CRITICALNATIONALNEEDIDEA LowCostRenewableDistributedPowerGeneration AWhitePapersubmittedtoNIST PreparedbyOptiwindCorp. January15th,2009 Keywords: RenewableEnergy,DistributedGeneration,WindPower,Solar Power SubmittingOrganization: OptiwindCorp. ContactInformation: RusselH.Marvin ChiefExecutiveOfficer OptiwindCorp.

er OptiwindCorp. 59FieldStreet Torrington,CT06790 rmarvin@optiwind.com Fax:(860)8669961 Phone:(860)8664488

ExecutiveSummary
The creation of a new energy paradigm that is costeffective, sustainable, and is acceptablefromanenvironmentalandnationalresourceperspectiverepresentsone of the greatest challenges facing America. Historically, leadership in energy technologies has been important in creating and sustaining world leadership positions for countries. Thus, in addition to the security and environmental benefits, it is vital for economic national competitiveness that the United States establishesleadershipinthenewenergyeconomy. Over the past few years the need for change in our energy supply has become abundantlyclear.AstheenergyconsumptionofnonUSeconomieshaveincreased, theunsustainabilityofasituationwheretheUnitedStatesconsumesapproximately 25%oftheworldsoilproductionwhileproducingonlyabout10%andpossessing about3%oftheresourcewasdrawninstarkrelief.Althoughtheglobaleconomic downturnprovidedatemporaryreprieve,therecanbelittledoubtthatareturnto economic growth will result in immense pressure on energy prices. Geopolitical events have underscoredthe vulnerability of reliance on limitedforeign resources andourfurtherunderstandingoftheenvironmentalimpactofcarbondioxide,both in global warming and ocean acidification, has reinforced the urgent need for change. Newtechnologyoffersatransformationalopportunityinenergy.Renewableenergy resources, like wind and solar, are far greater than total energy consumption presentlyservedprimarilybyhydrocarbonfuels.Thekeychallengeforrenewable power production is to reduce cost and be able to site the power generationnear consumption.Lowcostdistributedgenerationwillbeanimportantpartofefficiently improving our aged, congested electricity infrastructure which is projected to become further stressed both by continued increase in traditional electricity consumption and potential new load resulting from changes in the transportation sector. 1 Although many energy technologies have been advanced, and renewable power generation is growing substantially mostly in the form of large wind and solar installations, there remains a great challenge to create costeffective distributed renewable power. This is an interdisciplinary problem that requires both technology and manufacturing advancements. It is a problem that requires new approaches,suchasmovingawayfromtraditionalsemiconductorsforphotovoltaic cells or changing wind turbine designs to eliminate large wingspan blades. An exampleofoneofthesenewapproachesistheCompactWindAccelerationTurbine (CWAT), where an aerodynamic structure is used to accelerate wind through smaller turbines, thereby reducing the size of the moving parts by more than a
1PresidentsCouncilofAdvisorsonScienceandTechnology,TheEnergy

Imperative:ReportUpdate,November2008 2

factor of ten. Such a technology can open the midwind market (100 kW to 1MW distributedunits),therebyallowinggenerationtobesitedclosertoconsumption. Since renewable power generation generally does not have any fuel cost and has relativelylowoperatingcost,thedrivingfactorforeconomiccompetitivenessisthe power generation equipments installed cost relative to the net power produced. Installedcostindollarsperwattofnameplatecapacityaretypicallyquotedforeach typeofdevice;however,amorerelevantmetricisdollarsperwattproducedwhich isthe$/W(nameplate)dividedbythecapacityfactor. Table1Targetinstalledcostfordistributedwindandsolargeneration
Technology Solar(PV) Wind Target$/W(net) 7.00 7.00 Typical Capacity Factor 15%to25% 25%to35% Target (nameplate) 1.05to1.75 1.75to2.45 $/W

Installedcostdiscussedhereisthetotalcosttotheendcustomerandthusisprice asopposedtocostfortheequipmentmanufacturerandinstaller.Theinstalledcost required to be competitive depends on the local cost of electricity. Achieving the target of seven dollars per Watt (net) will produce a transformational result with broadmarketpenetrationofdistributedrenewablepower.Thisgoalismorelikely achieved first in the midsize distributed power market (100kW to 1MW) for powering loads such as commercial facilities, industry, government facilities, and schools. Realization of these cost targets in submegawatt distributed renewable power generation requires new highrisk approaches. Successful products will likely involve a combination of novel design, new product technology, and new manufacturingtechnology.Thehighdevelopmentcostandlongdevelopmenttime, combined with the high risk associated with concurrent development of new product and manufacturing technologies, requires government investment along with industry. Although significant resources are being focused on solar power, relativelylittleefforthasbeappliedtoaddressdistributedwindpower. TheNISTTechnologyInnovationProgramcanplayapivotalroleinaddressingour nationsandtheworldsenergychallengebyfosteringandfundingthedevelopment of new product and manufacturing technologies that result in costeffective renewable power generators that are amenable to distributed electricity generations.Successwillnotonlyaddressanimmensesocietalchallenge,butwill createalargenewdomesticindustrywithgloballeadership.

Socie etalChalle engeandN NationalNeed

Energyisintegr raltoourso ocietyandp prosperity. Infactitis sofundame entalthatfo or most tpeople,atn normaltime es,itishard dlygivingm morethough htthanweg givetotheai ir we b breath. Cha ange occurs at glacial r s rates. Two critical rea o alizations h have brough ht energ to the fo gy orefront of our thinkin The first is that our energy economy i ng. y is unsu ustainable and that, in healthy economic times, incr a reasing global deman nd comb binedwithl limitedsupplyresourc cewilllead todetrimen ntalpricein nflation.Th he secon ndrealization,prompte edpartially ybytheobservationtha atglacialra atesneedno ot beslow,isthatt theenvironmentalimp pactofconti inuingthestatusquoin nenergywi ill negativelyimpactourplane etandquali ityoflife. The United St tates consu umes appr roximately 25% of the world petroleum d m consu umption (a and about the same portion of the total energy co f onsumption) ); howe everwepro oduceonly about10% oftheglob balpetroleu umproducti ionandhav ve abou ut3%ofthe eworldsoilresource. Figure1sh howstheU UnitedStatespetroleum m consu umption, production, and imports over the past 50 y e years. The rapid pric ce incre easeinoilin nthelate19 970sisnot ticeableint thedropin consumptio onoccurrin ng attheendofthe e1970sandearly198 80s.Notea alsothatthi ispriceincr reasedidno ot ltingreater rdomesticp production. resul

Figur re1USpet troleumcon nsumption, production n,andimpor 2 rts Figur 2 shows the historical trend and proje re s ected future energy consumption e n. When one cons n siders that our energy sources a primarily nonrene y are ewable wit th limitationsonp productioni increase,ad doublingof fenergydem mandin50 0yearsand a tripli ingin100y yearsisane enormouschallenge.It isclearthat twithoutap positiveshift to a new ener rgy paradig gm, supply limitation will neg y ns gatively im mpact futur re dqualityoflife. productivityand Figur re2World denergyconsumptioninquadrillionBTU 3 2Ene ergyInformationAdmin nistration,E EnergyOutl look2008 4

 TheE EnergyInfo ormationAd dministratio onisprojec ctingthatw worldelectri icitydeman nd 4 Al will nearly dou uble betwee 2005 an 2030. lthough the projected increase i en nd e d in esticconsum mptionisle ess,ithasb beenpointed doutbythePresident tsCouncilo of dome Advis sors on Scie ence and Technologyt that change esto the tra ansportationsectorlik ke the introduction of plugin hybrid an electric v n n nd vehicles wi add new load to th ill w he tricitygrid. 5 elect Our c challenge is not just how to supp costeffe s ply ective energ in the fac of rapidl gy ce ly incre easing dem mand, but a also involve creating a energy system that does no es ot negatively impa the envi act ironment a and quality of life. Ev if hydro ven ocarbon fue el were enotlimited d,wenowappreciateth hatadoubli ingortriplin ngoftheus seofcoalan nd oil w would have potentially catastroph ramifications. The National A hic Academies o of Scien nceandEng gineeringha aveprovide edacallto actioninst tressingthe eimportanc ce 3Ray L. Orbach, U.S. Department of Energy Basic Rese y U y, earch and Am mericas
Energ Future, pr gy resentation at the Summit o Americas Energy Futu on March 14, on s ure 2008; data on cons ; sumption thro ough 2030 fro EIA (2007 and after 20 through 2 om 7) 030 2100 from IPCC (2000; Figure 8)

4Ene ergyInformationAdmin nistration,I Internationa alEnergyOutlook2008 8,DOE/EIA A

0484 4(2008) 5PresidentsCou uncilofAdv visorsonSci ienceandT Technology,TheEnerg gy Impe erative:Rep portUpdate ,November2008 5

ofad ddressingglobalwarmi ingaswead ddressour energychal llenge. 6 Car rbondioxid de emissions resulting from p power gene eration with traditiona hydrocar h al rbon fuels i is contr ributing to global war rming and o ocean acidif fication. Ov the pas few years, ver st publi icopinionh hascaughtu upwithscie entificunde erstandingt thatitisimp perativetha at CO2emissionsa areaddresse edinourfutureenergysolutions. y In ad ddition to consuming fuel and em c mitting carb bon, traditi ional power generatio r on alsoc consumesv vastquantiti iesofanoth herlimitedr resourcefr reshwater.Atransitio on toin theUnitedStatesto2 20%windenergyisest timatedtos save450bi illiongallon ns ofwa aterannuall 7 ly. Anot ther import tant challen associa nge ated with a new energy paradigm is energ a gy distribution.Th heUSelectricitygridisold,withcapacitylimi itationstha athaveledt to reliab bility probl lem during periods of peak dema and. Further increase in demand e d, parti icularlyinm moredensel lypopulated,geograph hicallycons strainedreg gionssucha as the c coasts, will likely ove l erstress the existing infrastructu e ure. Many envisione y ed scena arios, like substantial increases in large central wind farms, w add new d will w stres sses to the electricity grid. In fa the DOE estimates that the a act E s addition gri id inves stmentrequ uiredfora2 20%winds scenario,wh heremosto ofthatwind dpowerisi in the f form of ce entral large wind fa e arms, will cost $20 billion b (seef fig.3). 8 Brin nging lowc cost renew wable powe er into the energ mix in the gy n form of distrib m buted powe er gener ration reducesthestre esson the electricity grid. sional The congress get office has budg state following EIA ed, g forec casts, But there are r reasons to expect that distr ributed generationcould dmeet a sig gnificantly greater g Figure3Agridscenar F riofor2030assuming2 20%wind fo orlargewin ndfarms.8

6The eNationalA AcademiesS SummitonA AmericasEn nergyFutur re:Summar ryofa Meet ting(March2008) 7USD DepartmentofEnergy20%WindEnergyby y2030,DOE E/GO10200 082567, July2 2008 8Han ndetal.,PowerSystem mModelingo of20%Win ndGenerate edElectricit tyby2030, NREL L/CP5004 42794,June2008 6

portionoffutureelectricitydemandintheUnitedStates,atcoststhatcouldcompete withthoseofgenerationfromnewcentralpowerplants. 9 Lowcost, renewable, distributed power generation addresses these important societal challenges. The United States has an opportunity to establish global leadership in this import new industry, thereby increasing our economic competitiveness, enhancing our domestic economy, and creating numerous, much discussed, green jobs. Creating the required breakthrough technology and manufacturing processes should be a national priority and warrants significant government attention. A discussion of research, technology development, and manufacturingdevelopmentneededtoaddressthesechallengedisfoundinthenext section(SolutionPath).Themagnitudeoftheresearchchallengesarelargeandthe timeframe is critical, requiring public/private cooperation. Many companies have efforts underway; however, due to the high risk, long timeframe and high capital intensityofdevelopmentintheenergyindustry,theseeffortsaresmallerandmore diffusethanisappropriate.Althoughanumberofgovernmententitiesarefunding research in renewable, distributed power generation, NIST TIP can make an importantcontribution.Thisisbecausefundingfornovelconceptslikelytobreak thecostbarrierhasbeensmallandtheproblemishighlyinterdisciplinary,requiring aperspectiveoftechnologyandmanufacturing.

9CongressionalBudgetOffice,ProspectsforDistributedGeneration2003

Solutionpaths
Widescale application of distributed, renewable power generation will have a transformational positive effect to our energy system. The key barrier to broad marketpenetrationisachievingsufficientlylowcapitalequipmentandinstallation costsothattherealizedelectricitycostiscompetitivewiththeexistinggrid(costof centralpowergenerationplusdistributioncost). Since renewable power generation generally does not have any fuel cost and has relativelylowoperatingcost,thedrivingfactorforeconomiccompetitivenessisthe power generation equipments installed cost relative to the net power produced. Installedcostindollarsperwattofnameplatecapacityaretypicallyquotedforeach typeofdevice;however,amorerelevantmetricisdollarsperwattproducedwhich isthe$/W(nameplate)dividedbythecapacityfactor. Table1Targetinstalledcostfordistributedwindandsolargeneration
Technology Solar(PV) Wind Target$/W(net) 7.00 7.00 Typical Capacity Factor 15%to25% 25%to35% Target (nameplate) 1.05to1.75 1.75to2.45 $/W

Installedcostdiscussedhereisthetotalcosttotheendcustomerandthusisprice asopposedtocostfortheequipmentmanufacturerandinstaller.Theinstalledcost requiredtobecompetitivedependsonthelocalcostofelectricity.Thesegoalsare exceptionallychallengingforresidentialpowerproductioninthenearterm,butare potentiallyachievableinmidsizerangedistributedpowerdevices(100kWto1MW size). Achieving the target of seven dollars per Watt (net) will produce a transformational result with broad market penetration of distributed renewable power by creating a substantial portion of our power inexpensively, cleanly, and locallyatindustrial,commercial,andgovernmentfacilities. A number of new technologies have the potential to be developed into lowcost renewabledistributedpowergenerators.Althoughwindandsolartechnologyare leadingcandidates,manytechnologiesshouldbeconsidered.Itislikelythatnovel approacheswillberequiredasmoreestablishedrenewablepowergenerators,such asthreebladewindturbinesandsiliconphotovoltaic,arenotwellsuitedtoachieve the cost goals in distributed applications. Examples of candidate technologies include: 1. Novel distributed wind turbine designs for the midwind market. For exampleCompactWindAccelerationTurbines(CWATs)thataredevicesthat utilize aerodynamics structural design to accelerate wind through smaller turbines. 2. Thin film solar technology utilizing new materials and/or application technologyandnovelconcentratedsolartechnologies.

3. Novellowgradeheattoelectricitytechnologieslikesomeversionsoforganic Rankinecycletechnologies. Although the particular research programs are unique to the technology, manufacturingprocesses,andproductsbeingdeveloped,aNISTTIPprograminthis areawillstimulatetheNationsscientificfrontiersintheareasofadvancematerials andmanufacturingtechnologies.TakingthedevelopmentofCWATsasanexample, we see that numerous material and manufacturing advancements are involved. A number of companies and research organizations are pursuing accelerated wind turbine technology. The Optiwindconcept is shown in figure 4. By accelerating available winds around its structure and harnessing that enhanced power with a series of individually mounted 5bladed fans, the CWAT enables customers located in wind areas as low as Class 2 to economically deploy wind turbines for distributed generation. And, with roughly 20% of the US land area located in Class 2 winds, this significantly enhances the size of the available marketforwindenergy.Torealizetheinstalledcosttargetsin Table 1, numerous material and manufacturing advancements arerequired.Newhighstrengthtoweightratiomaterialsand designs are important to reducing cost. These include metals, plastics, and composites. Manufacturing technologies include newmoldingandformingprocesses,suchasformingpartsoutof Figure4 high strength steels, making unique structural shapes from low OptiwindCWAT cost polymers, and extending the size capability of injection molding. As an aside, it is interesting to note that the manufacturingtechnologyforlargewindturbineswasdevelopedinEurope,giving market dominance to European companies and resulting in the American companies still importing blades from Europe. Other advancements likely to be developedinmanufacturingtechnologybyaCWATprogramincludenewassembly technologies to automate steel and plastic fabrication. This research leverages US technology leadership position in areas like fans and aircraft engines, helping to develop this new technology and potentially advancing those fields. Other technologiesthatarelikelytobeadvancebydistributepowerprogramsincludethin filmmanufacturing,lowcostoptics,semiconductors,andelectronics. NIST is in a unique position to accelerate the technology and manufacturing innovationsrequiredtodevelopanddeploylowcost,renewable,distributedpower generation. A NIST Technology Innovation Program in this area will advance key technologies and, if successful, will result in US leadership in a vital new industry withvastbenefitsrangingfromenergysecurity,improvedenvironment,stablelow costdomesticelectricity,aneconomicvitalitythroughthecreationofgreenjobs.