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Assessment of Potential Improvements in Large-Scale Low Wind Speed Technology Joseph Cohen Princeton Energy Resources International, LLC 1700 Rockville Pike, Suite 550 Rockville, Maryland 20852 USA [email protected] (301) 468-8416 Global WINDPOWER 2004, Chicago, Illinois March 29, 2004 Global WINDPOWER 2004 - Chicago, Illinois ACKNOWLEDGEMENTS Project Supported By: U.S. Department of Energy Under Subcontract To: National Renewable Energy Laboratory, NWTC Global WINDPOWER 2004 - Chicago, Illinois Technical Inputs: NWTC Staff Paul Migliore Alan Laxson Mike Robinson Bob Thresher Scott Schreck Paul Veers (Sandia National Laboratories) TECHOLOGY PATHWAYS ANALYSIS Analysis Process Characterize Reference Step 1: Characterize a set of cost and performance parameters for a composite, reference turbine Identify TIOs Step 2: Identify a “menu” of Technology Improvement Opportunities (TIOs) that could lead to this improvement Estimate TIO Effects Step 3: Estimate the range of potential change in cost, performance, reliability, and O&M for each TIO category Perform Analysis Step 4: Run these through a turbine systems model (the “Pathways Model”) to assess impact on cost of energy Review Results Step 5: Produce a curve of COE versus likelihood of achieving it. Global WINDPOWER 2004 - Chicago, Illinois CHARACTERIZE REFERENCE TURBINE • Nominal Description of Reference Turbine: 1.5 MW 70 m rotor diameter 65 m Hub Height Upwind, 3-blade; Variable pitch Variable speed • Composite of available technologies – based primarily on (2002) WindPACT studies and commercial/market data Global WINDPOWER 2004 - Chicago, Illinois ANALYSIS METRICS Overall evaluation metric - Levelized Cost of Energy (COE), which requires the following input variables: Turbine Capital Cost (TCC) Balance of Station Cost (BOS) Levelized Replacement Cost (LRC) Annual Operation and Maintenance Cost (O&M) Net Annual Energy Production (AEP) ISSUE: How to choose for “leading edge” technology, 100 MW plant, “favorable installation & maintenance conditions” consistent with large areas of class 4 winds, i.e., relatively flat land, easy access, no soil issues Global WINDPOWER 2004 - Chicago, Illinois REFERENCE WIND PLANT CHARACTERISTICS Expected Reference Inputs Minimum (most likely) Maximum TCC Turbine Capital Cost (2002 $) 920,000 1,000,000 1,100,000 Low/High Range -8% 10% BOS BOS Cost (2002 $) 368,600 388,000 465,600 Low/High Range -5% 20% LRC Levelized Replacement Costs ($) 9,750 15,000 22,500 Low/High Range -35% 50% O&M O&M Cost ($) 12,000 30,000 37,950 Low/High Range -60% 27% Land Land Lease Cost ($/kWh) 0.000648 0.00108 0.00140 -40% 30% AEP Net Annual Energy Production(kWh/yr) 3,973,500 4,415,000 4,547,450 Low/High Range -10% 3% A&L Availability and Losses 15% FCR Fixed Charge Rate 11.85% Total Cost per kW $859 $925 $1,044 Total cost per square meter 335 361 407 Net Annual Energy per square meter 1,032 1,147 1,182 Capacity Factor 0.302 0.336 0.346 Global WINDPOWER 2004 - Chicago, Illinois INPUT DATA ARE DISTRIBUTIONS O&M Cost Turbine Capital Cost Data Sources For All Inputs NREL/Sandia staff, WindPACT studies, Next Generation Turbine project, LWST proposals, in-house knowledge, etc. Global WINDPOWER 2004 - Chicago, Illinois REFERENCE COE Levelized Cost of Energy of Reference (2002) Turbine: 4.8 cents/kWh In constant end-of-2002 dollars Class 4 winds (13 mph average at 10 m) Assumes financing structures typical of GenCos (i.e., balance sheet financing) Detailed cash flow model used to calculate COE using assumptions for taxes, insurance, depreciation, cost of capital, financing fees, and construction financing Caveat – uses a relatively high required rate of return compared to current market rates Global WINDPOWER 2004 - Chicago, Illinois BE CAREFUL – COE IS NOT MARKET PRICE Constant dollars (Market uses Current) Varies, but typically 0.5 to 1+ cent/kWh PTC (Not included in analysis) Varies, but typically above 1 cent/kWh Year Dollars (analysis uses 2002) Range of resource in each wind power class Overnight (no costs during construction) Typically $50/kW or more Global WINDPOWER 2004 - Chicago, Illinois TECNOLOGY IMPROVEMENT OPPORTUNITIES Advanced (Enlarged) Rotor TIOs Advanced materials Site-Specific Design/Reduced Design Margin TIOs Changed/improved structural/aero design Improved definition of site characteristics Active controls Design load tailoring Passive controls Micrositing Higher tip speed ratios/lower acoustics Favorable wind speed distributions and shear Manufacturing TIOs New Drive Train Concept TIOs Manufacturing methods Permanent magnet generator Lower margins Innovative mechanical drives Manufacturing markups Learning Curve Effects Market–driven cost reductions Advanced Tower TIOs New Materials Advanced Power Electronics TIOs Incorporation of improved PE components Advanced circuit topology Reduced Energy Losses and Increased Availability TIOs Innovative structures Health monitoring (SCADA, etc.) Advanced foundations Blade soiling mitigation Self-erecting designs Extended scheduled maintenance Global WINDPOWER 2004 - Chicago, Illinois TIO’s POTENTIAL FOR IMPROVEMENT (Improvement from reference, in %) (Initial Analysis for 2003; Subject To Extensive Update in 2004) Capital Costs Annual Energy Production Probability of Success* Advanced (Enlarged) Rotor TIOs 70 70 * Manufacturing TIOs 70 * Reduced Energy Losses and Increased Availability TIOs 65 * Advanced Tower TIOs 80 80 - Site-Specific Design/Reduced Design Margin TIOs New Drive Train Concept TIOs Advanced Power Electronics TIOs Learning Curve Effects *High Probability of Success Case Global WINDPOWER 2004 - Chicago, Illinois 80 70 * 80 80 80 80 100 100 100 *TBD O&M Costs -30 -20 -10 Reliability +10 +20 +30 +40 WIND TECHNOLOGIES PATHWAYS MODEL (A Monte-Carlo Analysis Tool) Capital Costs Annual Energy Production O&M Costs Probability of Success -30 -20 -10 Advanced (Enlarged) Rotor TIOs Manufacturing TIOs Reduced Energy Losses and Increased Availability TIOs Advanced Tower TIOs Site-Specific Design/Reduced Design Margin TIOs New Drive Train Concept TIOs Advanced Power Electronics TIOs Learning Curve Effects Reliability +10 +20 +30 +40 Total System Aggregated Potential for Improvement (%) Total System -40 -30 -20 -10 +10+20+30 +40 70 70 * 7 0 *65 * 80 80 80 70 * 80 80 80 80 100 100 100 Total System Cost of Energy Potential for COE Reduction (%) -50 *TBD 3 cents/kWh at 60% Confidence Level ( subject to revision) Global WINDPOWER 2004 - Chicago, Illinois -40 -30 -20 -10 MEAN IMPACTS ON COE INPUTS Baseline Mean (An Input) AEP (MWH) 4,312 TCC ($/turb) 1,006,667 BOS ($/turb) 400,933 TCC + BOS ($/turb) 1,407,600 O&M ($/turb) 26,650 LRC ($/turb) 15,750 Global WINDPOWER 2004 - Chicago, Illinois Mean Pathway (Output) 5,804 872,698 377,467 1,250,164 26,331 13,871 Percent Improvement of Mean From Baseline (Absolute) 35% 13% 6% 11% 1% 12% Advanced materials Changed/improved structural/aero design Advanced (Enlarged) Rotor Active controls Passive controls Higher tip speed ratios/lower acoustics Manufacturing methods Manufacturing Lower margins Manufacturing markups Reduced Energy Losses and Health monitoring (SCADA, etc.) Blade soiling mitigation Increased Availability Extended scheduled maintenance New Materials Innovative structures Advanced Tower Advanced foundations Self-erecting designs Improved definition of site characteristics Site-Specific Design load tailoring Design/Reduced Design Micrositing Margin Favorable wind speed distributions and shear Permanent magnet generator New Drive Train Concepts Innovative mechanical drives Incorporation of improved PE components Advanced Power Electronics Advanced circuit topology Learning Curve Effects Market-driven cost reductions Global WINDPOWER 2004 - Chicago, Illinois Reliability O&M Cost Small Production TIO Categories Moderate Energy Large Cost IMPACT OF TIOs ON ELEMENTS OF COE