Renewable Energy - Power for a Sustainable Future

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Renewable Energy - Power for a Sustainable Future Diana Ma, Ph.D. Vice President, SunPower Corp. October 24, 2009 Chung Tai Zen Center of Sunnyvale 1

Contents 1. The Vital Natural Processes: 2. The Imbalance of Nature Processes due to Mankind 3. Climate Changes: The Fundamental Challenges Confronting Humanity 4. Renewable Energies: Green Powers for a Sustainable Future Solar Thermal Solar Photovoltaic Bioenergy Wind 5. Reduce Consumption of Energy Services 6. Executive Takeaways Chung Tai Zen Center of Sunnyvale 2

What is CO 2 and Why Does It Matter? CO 2 plays an important role during Photosynthesis process, is vital for life CO 2 is a product of respiration by plants, human,animals, and microorganisms CO 2 is a by-product from combustion of organic matters (e,g. fossil ) CO 2 is stored in 3 major reservoirs: atmosphere, lands, and ocean 72%~77%% of total greenhouse gases is CO 2 Atmosphere Greenhouse Gases: CO 2, CH 4, NO x, etc. CO 2 CO 2 Land burns Organics CO 2 CO 2 +H 2 O Sugars + O 2 CO 2 Ocean: CO 2 dissolve: CO 2 +H 2 O H 2 CO 3 CO 2 in 3 reservoirs was well balanced in pre-industrial days Chung Tai Zen Center of Sunnyvale 3

What is Greenhouse Effect? CO 2, CH 4, NO x, CFC, etc Infrared (IR) radiation is given off by the Earth to outer space and cools the Earth Sunlight (UV, Visible) passes through the atmosphere and warms the Earth Greenhouse effect balances sunlight in and out and makes the earth surface suitable for life Chung Tai Zen Center of Sunnyvale 4

When More CO 2 Emitted to Atmosphere Atmosphere Greenhouse Gases: CO 2, CH 4,NOx, CFC, etc CO 2 CO 2 Land burns Organics CO 2 CO 2 +H 2 O Sugars + O 2 CO 2 Ocean: CO 2 dissolve: CO 2 +H 2 O H 2 CO 3 CO 2 in atmosphere has increased from 280 ppm < 1900 s to 387 ppm in 2007, and 50 ppm was increased in the recent 35 years Chung Tai Zen Center of Sunnyvale 5

Less IR Radiation Transmitted Out CO 2, CH 4, NO 2, CFC-12, etc Some IR is trapped by increased Greenhouse gases Infrared (IR) radiation is given off by the Earth to outer space and cools the Earth Sunlight (UV, Visible) passes through the atmosphere and warms the Earth Increased level of Greenhouse gases in the atmosphere traps IR and reduces the cooling effect on earth, causing climate changes Chung Tai Zen Center of Sunnyvale 6

The Natural Processes are Out of Balance - Upset Balance of The Natural Processes by Industrial Activities and Modern Life Style Greenhouse Gas Carbon Dioxide (CO 2 )* Preindustrial level Current Level Increased since 1750 280 ppm 387 ppm* 104 ppm** 1.46 Methane (CH 4 ) 700 ppb 1,745 ppb 1,045 ppb 0.48 Nitrous Oxide 270 ppb 314 ppb 44 ppb 0.15 Halocarbons CFC-12 0 533 ppt 533 ppt 0.17 Radiative Forcing (W/m 2 ) Source: Green Gases by Wikimedia * CO 2 current level is at its highest for at least 800,000 years.** 50 ppm was increased from 1973 to 2006 The usage of fossil fuel and excess deforestation all contribute to the acceleration of CO 2 emission The Greenhouse gas levels will be 2X of the pre-industrial level by 2050 if no action taken, warming up the earth by ~1.8ºC-6.4ºC Chung Tai Zen Center of Sunnyvale 7

What Are the Impacts of Climate Changes? 2ºC rise in global temperature will have serious negative effects on our environmental, food, water supplies, and health: Many ecosystems irreversibly decline. 20-30% of species face extinction. Sea levels rise due to thermal expansion and ice melt. More frequent and extreme whether events such as heat-waves, floods, storms, wildfires, and droughts occur around the world. Regional food shortages, mass migration and poverty increase, threatening the survival of the most vulnerable population. (source: IPCC 2007) Patterns of disease change with wide areas of the world becoming at risk. 2007 1981 Chung Tai Zen Center of Sunnyvale 8

What Are the Actions Taken? 1. Internationally, countries have been negotiating a global agreement through United Nations, such as the Kyoto Protocol of 1990s. 2. New international negotiations are to be concluded by 12/09 at the Climate Change Conference in Copenhagen 3. Numbers of countries are setting a national CO 2 reduction targets over 2008~2012, 8% for EU, 7% for the US, 6% for Japan, 8% for Australia, and 10% for Iceland. 4. However, significantly more intensified efforts must be taken in order to stabilize the atmospheric CO 2 level at < 50% above its current level (e.g. < 450ppm), CO 2 emission must be reduced by >80% by 2100 Chung Tai Zen Center of Sunnyvale 9

World Electricity Generation by Fuel Type (2007) Solar <1% Nuclear 16% Other renewables 18% Natural gas 19% World Fossil Fuel Reservation: Coal: 200 years Oil: 40 years Natural gas: 60 years Source: BP 2003 Oil 6% Coal 40% Source: U.S. Energy Information Administration 2007 Fossil fuel combustion is the biggest source of CO 2 emission (coal energy: 1000gCO2/kWh). Renewable energies greatly reduce CO2 emission (20~80gCO2/kWh) Chung Tai Zen Center of Sunnyvale 10

What Are the Main Techniques? 1. Reduce the consumption of energy services 2. Increase the efficiency of energy conversion or utilization 3. Switch to lower carbon content fuel, e.g. natural gas instead of coal 4. Enhance the sinks for CO 2, e.g. forests, soils, and ocean which draw-down CO 2 from the atmosphere 5. Use energy sources with very low CO 2 emission, such as renewable energy or nuclear energy 6. Capture and store CO 2 from heavy CO 2 emission sources, e.g. fossil fuel combustion Source: IEA Report Putting Carbon Back into the Ground, 2001 Chung Tai Zen Center of Sunnyvale 11

CO 2 Capture & Storage into Ground & Ocean Source: Putting Carbon Back into the Ground, IEA, 2001 Source: Ocean Storage of CO2, IEA, 1999 CO 2 Capture & Storage is under investigation and may provide short term cost relatively effective (2X of current cost) CO 2 emission reduction without much impact on the existing energy infrastructure. However, the long term environmental impacts are of great concerns and need to be further investigated. Chung Tai Zen Center of Sunnyvale 12

The Primary Source of Renewable Energy - Incoming Solar Radiation Renewable is defined as energy obtained from the continuous currents of energy recurring in the natural environment. The primary source is the incoming solar radiation Among the 5.4M exajouls (Ej) per year incoming radiation, 3.8M Ej available, >10,000 time than needed Source: Renewable Energy G. Boyle, 2004 Chung Tai Zen Center of Sunnyvale 13

Renewable Energy for CO 2 Emission Reduction Examples of Global Primary Energy 1600 1400 1200 1000 800 600 20% by 2020 50% by 2050 80% by 2100 Solar Wind Biomass Solar Wind Biomass Geothermal Hydroelectric Nuclear Fossil Fuel 400 200 0 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100 Source: Don Aitken adapted from Bull and Billman, NREL 2004 Solar, Wind and Biomass Energies will play significant roles in stabilizing CO2 in atmosphere (80% CO 2 emission reductions by 2100) Chung Tai Zen Center of Sunnyvale 14

Solar Thermal Energy - Convert Sun Thermal Energy to Heat and Electricity Applications Water and Space Heating Electricity Technology Heating: utilize energy-saving building design or use heat collector Electricity: Utilize high temperature oils or salts as heating medium and mirrors to concentrate lights Cost & Complexity Heating: cost effective and fast return Electricity: high upfront capital cost but relatively low running cost Environmental Impact 50X less CO 2 emission than fossil energy Large land demand for power plant Kramer Juction, CA Source: G. Boyle, Renewable Energy 2004 Drawbacks Local climate dependent Require high upfront investment for power plant Source: G. Boyle, Renewable Energy 2004 Combined with energy-saving building design, low temperature solar heating contributes as significant benefits as a solar thermal or PV power plant Chung Tai Zen Center of Sunnyvale 15

Solar Photovoltaic (PV) Energy - Convert Sunlight to Electricity Chung Tai Zen Center Rooftop Zen Picture Solar Power Plant In Nellis Air Force Base If PV modules of 20% average efficiency were installed on 0.05% of the earth surface, ~ 0.65% earth s total desert area, it would meet current world energy demand Source: SunPower Marketing Chung Tai Zen Center of Sunnyvale 16

Solar PV Energy Applications Power for residential and commercial rooftop, as well as power plants (grid connected), and rural electrification for developing countries (non-grid connected). Technologies Si and polysilicon solar cell Thin-film on glass or flexible substrate Cost & Complexity High in upfront capital Lowest running cost Easy to install Environmental Impact 20X lower CO 2 emission than conventional coal electricity Can leverage low value land Flexible in sizes, suitable for homes, big cities or small rural villages Drawbacks ~5-10X higher cost than conventional Chung Tai Zen Center of Sunnyvale 17

Electrification for Rural Areas - Solar PV in an Isolated Village of Amazon, Brazil By 2012, 500,000 village scale PV systems will be installed - EU Plan for Take off By 2020, Solar PV power will be provided to 1B off-grid people - European PV Industry Association and Greenpeace Electricity also allows isolated villages to access solar-powered medical clinic, water pump & satellite internet access Chung Tai Zen Center of Sunnyvale 18 Source: SunPower Marketing Solar PV has the potential to meet the need of the world s poorest with affordable clean energy 18

How to Close the Cost Gap $0.15/kwh Federal Tax Subsidies Economic Viability Reduce solar PV system cost Reduce development cost and timeline Lower PV financing cost $0.10/kwh Fossil Electricity Increase production cost due to resources depletion Add carbon mitigation cost Chung Tai Zen Center of Sunnyvale 19

Solar Panel Cost Reduction Factors - Conversion Efficiency - Manufacturing Scale - Silicon Utilization - Manufacturing Yield >20% efficiency module Source: SunPower Q2 09 Earning Call, July, 2009 Chung Tai Zen Center of Sunnyvale 20

Bioenergy - Convert Biomass into Heat, Power and Fuel Biomass of all the living earth s matter is an enormous energy store Through photosynthesis processes the biomass energy store is continuously replenished Naturally, biomass experiences numerous energy exchanges via chemical, physical and biological processes Bioenergy have been used since mankind began The bioenergy cycle on the local scale Chung Tai Zen Center of Sunnyvale 21 Source: G. Boyle, Renewable Energy, 2004

Bioenergy Applications Mainly for heating, fuels (e.g. ethanol) and electricity (most suitable for small scale locate generation or operating as combined heat and power (CHP) plants) Biomass Sources Energy crops : the purpose-grown energy crops (e.g. corn, sugar cane) Wastes (energy from wastes): unwanted products from human activities Technologies Combustion Anaerobic digestion Gasification Cost & Complexity Upfront equipment capital for electricity is high. Fuel cost can be significant Environmental Impact CO 2 emission: 93gCO 2 /kwh (combustion), 25 gco 2 /kwh (gasification). Increased other greenhouse gases and air pollutants: NOx, CH 4, and SO 2. Energy consumption for some processes can be high Land-greedy and energy crops compete with agricultural land Chung Tai Zen Center of Sunnyvale 22

Biomass Energy Extraction of landfill gas (CH 4 ) Straw-fired power station G. Boyle, Renewable Energy, 2004 Chung Tai Zen Center of Sunnyvale 23

Wind Energy - Convert Wind Energy to Electricity Applications Power plant Technology Maturity One of the earliest alternative energies Horizontal and vertical axis wind turbines Cost & Complexity The most cost effective and competitive with fossil energy Environmental Impact Lowest CO 2 emission with minimal pollution Minimal water and energy consumption. Noise Electromagnetic interference Birds fatal collisions Visual Chung Tai Zen Center of Sunnyvale 24 Source: G. Boyle, Renewable Energy, 2004

Integrated Wind and Solar Energies to Building Source: G. Boyle, Renewable Energy, 2004 A future building concept that maximizes two main natural energy resources. Chung Tai Zen Center of Sunnyvale 25

Increasing Electricity Demand Countries Canada / USA Europe 3 rd World (China/India) Annual per capita electricity use (kwh) 12,000 14,000 2000 8000 Spain Australia < 2000 Source: SVTI, 2008 Average Annual Percentage Change in Net Electricity Consumption (2003 2030) Source: US Department of Energy - EIA Choice of our lifestyle has great impact of energy demand Chung Tai Zen Center of Sunnyvale 26

Reduce Consumption of Energy Services >40% of current CO 2 emissions are caused by the choices we make ~ 25 consumer electronic products in every US household now vs 3 in 1980 Consumer electronics consume 15% power demand and will increase by 3X in the next 2 decades More and bigger cars and houses Eating more meats Waste more water More wastes generated: electronic wastes, plastic bags, papers. Choosing a green and low emission lifestyle is the most cost effective and fastest action we can take to reduce CO 2 emission Become a vegetarian (at least one day a week) We must jumpstart a fundamental transformation of global economics, politics, social responsibility and low emission lifestyle towards a global climateresilient, green-low emission and more sustainable future Chung Tai Zen Center of Sunnyvale 27

Executive Takeaways Mankind s industrial activities and modern lifestyle have upset the natural balance. Global climate change is threatening the earth s well-being and endangering our sustainable future. Intensified efforts must be taken across the globe in all aspects, technically, economically, politically, and socially in order to reduce greenhouse gas emissions Renewable energy and other energy efficiency improvements are crucial to reduce CO 2 emissions Reducing energy consumption is the most cost effective and fastest solution that everyone can contribute Be part of the solution! Chung Tai Zen Center of Sunnyvale 28

Backup Chung Tai Zen Center of Sunnyvale 29

Other Renewable Energies Renewable Energies Technology Maturity Cost CO2 Emission Environmental impacts Hydro Geothermal Matured and being used for years Maturing and being used Comparable Low Large dams environmental and social impacts can be significant Comparable Relatively Low Relatively low Marine ( Waves, Tidal) Emerging High Similar to PV Relatively low (under study) Chung Tai Zen Center of Sunnyvale 30