Clean Energy Supplement

Opportunity for Colorado

John Gregory
March 31, 2011

1
Agenda

Future Energy Investment

Clean Energy

Opportunity

Job Creation

Summary

2
Future Energy Investment

Electric power is a growth industry

– Some Key Drivers:

Increase in population

Business

Automated Manufacturing

Internet

3
Future Energy Investment

Energy capacity impacts cost.

– Business
– Manufacturing ⇒ Products
– Attracting companies to an area

4
Clean Energy

Renewable Energy Sources

– Wind Farms*

PPM Energy / SWE - Lamar = 160 MW

BP - Cedar Creek I = 300 MW

BP – Cedar Creek II (Proposed) = 300 MW

Duke Energy – Kit Carson = 51 MW

RES – Cedar Point (Const.) = 252 MW

Power is a function of wind conditions.

* Nameplate Capacity 5
Clean Energy

Renewable Energy Sources

– Solar Farms

CSU – USAFA = 3 MW

Power is a function of time of day and cloud
cover.

Power Plants
– Martin Drake = 254 MW
– Ray Nixon = 151 MW
6
Clean Energy

Electric Grid
– Industry strives toward 100% utilization of
equipment.
– Power companies balance power
production with power consumption, also
know as load balance.
– Smart Grid – Auto balance national grid
system.

7
Clean Energy (Power Grid)
Power Plant
(Power Source)

Power Grid

Consumer
(Load)

8
 Clean Energy (Power Grid)
Wind Farm Power Plant
(Power Source) (Power Source)

Wind Farm Standby

Not Generating Power
Power

Power Grid

Consumer
(Load)

9
 Clean Energy (Power Grid)
Wind Farm Power Plant
(Power Source) (Power Source)

Wind Farm
Generating
Power

Power Grid

Consumer Storage
(Load) (Load)

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 Clean Energy (Power Grid)
Wind Farm Power Plant
(Power Source) (Power Source)

Wind Farm Standby

Not Generating Power
Power

Power Grid

Consumer Storage
(Load) (Source)

12
 Clean Energy (Power Grid)
Wind Farm Power Plant
(Power Source) (Power Source)

Wind Farm Standby

Not Generating Power
Power

Power Grid

Regenerate
Storage
Capacity

Consumer Storage
(Load) (Load)

13
 Clean Energy (Power Grid)
Wind Farm Power Plant
(Power Source) (Power Source)

Wind Farm Standby

Not Generating Power
Power

Power Grid

Compensate
Additional
Load

Consumer Consumer Storage

(Load) (Load) (Source)

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Clean Energy

Energy Storage
– Compensates for energy demand
– Revenue stream derived from peak and
off peak energy costs difference.
– Energy Bank for Renewable Sources

15
Clean Energy

Energy Storage Technologies

– Battery Storage

Cycling lifetime and scale energy capacity

Full Cycle Efficiency > 95%

Immediate power delivery response

– Rotating Mass

Scale energy capacity

Full Cycle Efficiency ≈ 90%

Immediate power delivery response

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Clean Energy

Energy Storage Technologies

– Compressed Air Energy Storage (CAES)

Requires large caverns for energy capacity

Full Cycle Efficiency ≈ 70%

Slow power delivery response (10 minute)
– Pumped Storage (Hydro)

Requires upper and lower reservoirs

Full Cycle Efficiency = 80%

Fast power delivery response < 20 sec.

Over 100 years in existence.

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 Clean Energy

New Pumped Storage technology allows it to work
as a grid stabilizer.

Total of 31 Load
Changes

Figure 2: Typical situation in a modern pumped storage plant delivering balancing power, changes
in load and operation mode during four hours of operation. 18
“Pump Storage works with Wind”, Mirjam Sick and Alexander Swab, International Water Power and Dam Construction, October 21, 2005
Clean Energy

Pumped Storage Power

– Power = Pressure x Flow
– Pressure is a function elevation
– Machine cost is a function of flow
– Colorado Rockies provide good pressure
source.

Twin Lakes (400’) & Cabin Creek (1250’)
– Utah has 2 permits in progress for PS.
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Clean Energy

Pumped Storage Requirements

– Upper and lower reservoirs
– Water source (Compensate for
Evaporation & Seepage)
– Head and Tail Race, or Runners
– Generator and Pump
– Grid Connection
– Permit and License
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Clean Energy

Environmental Impact
– Fish Mortality

Fish Screens
– Water cleanliness

Improved seal technology
– Water diversion

Reservoir Replenishment
– Earth moving

Reservoir Construction
– Mining Tunnels

Head and Tail Races (or Runners)

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Clean Energy (KOPS II)

“Large Hydro References”, Andritz Hydro

Hydropower Plant Kops II Brochure

Vorarlberger Illwerke Ag 22
Clean Energy (KOPS II)
Upper Reservoir

Hydropower Plant Kops II Brochure, Vorarlberger Illwerke Ag 23

Clean Energy (KOPS II)
Upper Reservoir

“Water is Energy, Hydropower at EnBW”, EnBW Energie Brochure. 24

Clean Energy (KOPS II)

Hydropower Plant Kops II Brochure, Vorarlberger Illwerke Ag 25

Clean Energy

Hydropower Plant Kops II Brochure, Vorarlberger Illwerke Ag 26

Clean Energy (KOPS II)

Hydropower Plant Kops II Brochure, Vorarlberger Illwerke Ag 27

 Clean Energy (KOPS II)

28
“Large Hydro Ensuring Grid Stability with Rapidly Expanding Wind Generation – A Supplier’s Perspective”, Peter Amler, Energy 2010, Aberdeen, May 2010.
 Clean Energy

18’ Robbins Tunnel Boring Machine (TBM) and KOPS II

29
“Robbins Double Shield TBM Powers through Rock Using 19-inch Disc Cutters”, http://www.robbinstbm.com/case-study/kops-ii/
Clean Energy (KOPS II)

30

Hydropower Plant Kops II Brochure, Vorarlberger Illwerke Ag

Clean Energy (Feldsee)

31
“Large Hydro References”, Andritz Hydro
 Clean Energy

32
“Large Hydro Ensuring Grid Stability with Rapidly Expanding Wind Generation – A Supplier’s Perspective”, Peter Amler, Energy 2010, Aberdeen, May 2010.
 Clean Energy

33
“Large Hydro Ensuring Grid Stability with Rapidly Expanding Wind Generation – A Supplier’s Perspective”, Peter Amler, Energy 2010, Aberdeen, May 2010.
Opportunity

Possible Pumped Storage Locations

– Colorado Springs - Rampart Reservoir
– Pikes Peak – Bighorn Reservoir & Lake
Moraine
– Fort Collins - Horse Tooth Reservoir
– Penrose - Brush Hollow (South Slope
Development with TransCanada)*
– Potentially many other sites in the State.
* Colorado House Bill 11-1083 34
Opportunity (USAFA)

Water Treatment
Plant
Potential Dam
Site

35
Opportunity (USAFA)

Potential Dam
Site

36
Opportunity (USAFA)

Rampart
Reservoir
Tesla Hydro
Generator
(20 MW)

37
Opportunity (USAFA)

Potential Dam Site

38
Opportunity (USAFA)

Rampart Reservoir
– Upper reservoir in place with water supply
– Build lower reservoir on USAFA
– Close proximity to the power grid.

39
Opportunity (Pikes Peak)

Wilson
Reservoir

Bighorn
Reservoir

40
Opportunity (Pikes Peak)

12077’

11693’

11289’

10216’

41
Opportunity (Pike Peak)

Pike Region Reservoirs

– Upper and Lower reservoir in place with
water supply
– Distant Grid connection (Manitou Springs)

42
Opportunity

Commonalities between Rampart and

Pikes Peak
– Municipality and Front Range
– Support Wind and Solar Farms
– Existing infrastructure enhances permit
and license process.

43
Opportunity

Financing
– Low interest rate loans available for hydro
projects and preference for municipalities.
– Clean energy credit from Federal and
State Government.
– Bureau of Reclamation to secure
Rampart Reservoir.
– Share cost burden among Federal, State,
and Colorado Springs Utilities.
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Opportunity

Military Installation Directive
– “The USAFA currently receives all electrical energy used from
off-base electric generation sites. The federal Energy Policy Act
of 2005 (EPA Act 2005), federal Executive Order 13423 (EO
13423), and the federal Energy Independence and Security Act
2007 (EISA 07) require military installations to use increasing
amounts of renewable electrical energy and also require that the
source of that renewable energy be located on the military
installation. In order to meet these legislative directives and
policies, the USAFA desires to partner with CSU in developing a
best business case for the generation and purchase of on-base
renewable electrical energy. Through the federal American
Recovery and Reinvestment Act (ARRA) of 2009, the USAFA
has available $18.3 million in funding to contract for solar electric
service through a solar electric generating facility constructed by
CSU (or its designee) on USAFA land.”

Build 3MW Solar Farm, Defense Industry Daily, August 5, 2009 45

Opportunity

46
http://www.recovery.gov/Pages/default.aspx
Opportunity

Return On Investment

Energy 400 MW for 6 hours 200 MW for 6 hours

Supply Charge $ 0.02 / KW-
KW-hr $0.04 / KW-
KW-hr $0.02 / KW-
KW-hr $0.04 / KW-
KW-hr
Revenue per Day $48,000 $96,000 $24,000 $48,000
Revenue per Year $17.3 M $34.6 M $8.65 M $172.8 M
30 Year Total $518.4 M $1.04 B $259.6 M $518.4 M

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Opportunity

Program(s) requires involvement from:
– Local Government
– Environmental Groups
– National Environmental Protection Agency (NEPA)
– Colorado Springs Utilities
– USAFA and Pike National Forest
– Governor, Governor’s Energy Office and State
Government
– US Congressional State Representatives
– Federal Energy Regulatory Commission
– Bureau of Reclamation

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Opportunity

Start Early!

Know your project better than anyone else.

Address staffing needs for the effort

Consult with FERC early and often

Clearly articulate issues and identify data
gaps

Gather existing information from everyone.

File a complete application

Seek local solutions.
“Licensing and Compliance 101”, Northwest Hydroelectric Association Conference Workshop, 2011.
49
Job Creation

Jobs
– Temporary Jobs

Environmental Impact Study (??)

Engineering (50)

Construction (500)

Community Jobs (2500)
– Permanent Facility Jobs

0.67 person / 1 MW

New jobs provide sales and property tax
source.

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Summary

Energy storage partners with renewable
energy sources and Smart Grid.

Energy storage can attract wind and solar
energy companies to the area.

Renewable energy companies would create
jobs for the state.

Each energy job will create tangible jobs for
communities.

Energy capacity, cost, and reliability are
factors with companies.
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Summary

Pumped Storage
– Most effective energy storage method.
– Environmentally friendly.
– Technology improvements provide grid
stability and water safety.

Colorado Springs is “Water Ready” to
provide economical energy storage for
the state and Smart Grid.
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Thank you

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