Climate change and smart grid? There are more linkages than you think

When you think of climate change and energy, what springs to mind? Coal, fossil fuel, power plants, renewables, and efficiency are likely on your list, whether as contributors or mitigation options. But if demand response and smart grid are not on your list, it is incomplete.

Smart Grid

You are not alone. The EPA didn’t put them on its “list” when it put out its draft Clean Power Plan (111d) earlier this year. The fact is, however, that smart grid and things under its umbrella like DR, storage, etc. should be squarely on the table when climate-related plans are being made.

There are three questions regarding smart grid and climate change that are being asked these days. There is also one question that is not being asked but should be. They will all be part of the discussion at the upcoming National Summit on Smart Grid and Climate Change on December 2-3, but let’s take a quick look at them now.

The first two are:

  1. Can states use smart grid (and anything like DR, storage, etc that is under its umbrella) in their compliance plans under the EPA Clean Power Plan (111d)?
  2. If the answer to the first question is yes, will that give a boost to smart grid activity?

The third one is:

3. Which should happen first? Grid Hardening or Grid “Smartening”? Or should they be done together?

The first two questions fall into the category of climate mitigation and emissions reduction. Even before the EPA Plan came out, smart grid and DR were not seen as saving kWh, and therefore emissions. They were focused on kW reduction, and only for short amounts of time, usually on peak, right?

Well, that may have been true once, but that is not the case anymore. DR is no longer just about the peak. It has evolved into technology-based intelligent energy management. It has become dynamic efficiency, as opposed to traditional end-use efficiency. As such, it optimizes and reduces energy consumption and emissions. But even where DR is used solely as a peak management tool, studies show that there is little if any “bounce back” effect during the off-peak( i.e. not all of the usage that was reduced is replaced) and that on average there is a 4-5% overall reduction.

Let’s look at another smart grid option – Conservation Voltage Reduction (CVR). This option is essentially one where smart grid technology allows a utility to provide the same service to the customer while also lowering voltage, which in turn lowers usage and therefore emissions. CVR has been shown to generate around 1% savings, and customers don’t have to do anything.

Thankfully, with a little prodding by the SG and DR community, EPA has seen the light and now commonly speaks out to say that smart grid is definitely eligible for states to consider putting in their 111d compliance plans. EPA has clarified that the four specified “building blocks” in its plan were for purposes of determining goals. They are not prescriptive choices. States can put anything they want to in their plan, as long as they demonstrate that there will be reductions.

So that brings us to question 2 – what does that mean for smart grid? Well, if it is eligible to be used in a state plan, that should be good, right? Not necessarily. First, the people putting together the state plans need to not be hung up on the myth that there are no reductions from smart grid. EPA saying it is eligible only means it is on the shopping list for states. The key is getting them to select it, and that may take a focused education effort on the part of the smart grid and DR community. And it wouldn’t hurt if as part of that effort, states were reminded that they can’t plan to do large amounts of intermittent renewables on the system and not think about DR and smart grid – yet another reason to put them into a plan.

Finally, let’s examine question 3on climate adaptation. Whatever climate change scenario one subscribes to, few if any speak out against the need to prepare for change, whether it is sea level rise, storms, or rising temperatures. So is there a role for smart grid? At the National Summit on Smart Grid and Climate Change, an entire track has been devoted to that discussion.

When it comes to the electricity system, resiliency is the word one hears most. While definitions of that differ, two of the common attributes of a resilient system are flexibility and diversity. That means not putting all of your eggs into one power system, or one line. It means seeking strength through a distribution system that is really distributed – not just for delivery of power, but for generating it. That is where distributed energy resources (DER) and microgrids – both part of the smart grid diaspora – come into play. They help increase the resiliency of a system. Of course such a system needs management. But that is where the new smart grid technologies provide the ability to sense, monitor, communicate, and control.

The challenge in the question is this: some grid resiliency efforts in the wake of Superstorm Sandy and other similar events are focusing on grid hardening – not grid smartening. Now I agree that grid hardening sounds conceptually comforting. After all, raising the level of a substation so that storm waters will flow underneath it (a real example) is pretty straightforward and understandable. But where does that get us in the end? How has that modernized the grid? Don’t get me wrong, I believe that grid hardening should be pursued where it makes sense, but not at the total exclusion of grid smartening.

In an ideal world, states would be looking at a climate adaption plan at the same time they are putting together a climate mitigation plan. In that ideal world, smart grid would get bonus points for being something that can go into both plans. But we don’t live in an ideal world, and state agencies operate in silos. It may be up to the DR and smart grid communities to help them with their plans, and help them connect the dots that will make those plans better and create better opportunities for smart grid. More

 

World on the brink of oil war as Opec bickers over price

Oil prices ended last week in freefall as the world’s largest group of producers from petro-states in the Middle East dithered over whether to cut output.

A secretive group of the world’s most powerful oil ministers will soon gather in Vienna to take arguably one of the most important decisions that could affect the still fragile world economy: whether to cut production of crude to defend prices at $100 per barrel, or keep open the spigots as winter looms among the biggest energy-consuming nations?

A sudden slump in the price of crude has exposed deep divisions within the Organisation of Petroleum Exporting Countries (Opec) ahead of its final scheduled meeting of the year next month to decide on how much oil to pump.

Some members, led by Iran, have called for immediate action to stem the drop in oil prices, while the Arab sheikhdoms of the Gulf have so far argued that it could be another three months before it becomes clear whether the group should cut production for the first time since December 2008.

Whatever they decide, oil remains the lifeblood of the global economic system due to its direct impact on inflation and input prices. Brent crude – a global benchmark of oil drawn from 15 fields in the North Sea, dipped last week to multi-year lows below $92 per barrel as a perfect storm of a strong US dollar, oversupply in the system and declining demand shattered confidence in the market. Brent has tumbled 20pc in the last three months after touching $115 per barrel in June.

In the US – the world’s biggest consumer – crude for November delivery at one point last week dropped below the psychologically important $90 pricing level, raising fears that a prolonged slump could put many of America’s shale drillers out of business. Shale oil, which can cost up to $80 per barrel to produce, has spurred an energy revolution in the US, which has started to threaten the dominance of producers in the Middle East.

However, at current price levels many of these new so called “tight oil” wells are approaching the point when they will soon become unprofitable.

Like the situation in the US, falling oil prices are also a double-edged sword for Britain’s economy and investors. Although George Osborne, the Chancellor, is less reliant on tax revenues from the North Sea than some of his predecessors, prices are approaching the point when many of the developments planned offshore west of Shetland by international oil companies could be placed on ice.

A sharp drop-off in domestic oil production and associated tax receipts from the North Sea would give Mr Osborne an unwelcome hole to fill in the government’s public finances heading into next year’s general election. However, falling oil prices will help to keep inflation low.

For Britain’s motorists the current declines have been good news that has trickled through to the price of petrol on forecourts. A litre of unleaded petrol in the UK has fallen a few pence over the past month to an average of around 127.21p on average, a figure last seen in 2011, just before Mr Osborne raised the value added tax on fuel to 20pc, from 17.5pc.

All eyes are now firmly focused on the next move by Opec, which controls 60pc of the world’s oil reserves and about a third of daily physical supply. The group has been branded an unaccountable “cartel” by free-market critics in North America who claim its system of limiting production by setting an output ceiling and quotas is tantamount to price rigging.

Although this is an accusation that the group’s secretariat which is based in Vienna strongly denies, its mostly unelected group of policymaking oil ministers undeniably pull the strings of the global energy industry in the same way that central bankers can control currencies.

Opec states have largely managed to maintain cohesion over the last decade as prices over $100 per barrel have enriched their economies and encouraged adherence to quotas. This consensus is now starting to break down, creating more uncertainty in the market and a potentially destabilising situation for the global economy.

Next month’s meeting promises to be the most tense held since the onset of the Arab Spring in 2010, with the Shi’ite Muslim faction of Iran and Iraq already appearing to line up against Saudi Arabia and the United Arab Emirates (UAE).

Iran’s Oil Minister Bijan Zanganeh has placed his cards on the table early by calling for Opec to urgently cut output to stem the sharp recent decline in prices, which threatens the Islamic Republic’s fragile economy after years of restrictive sanctions.

According to research from Deutsche Bank, Iran has the highest fiscal break-even price for its budget at over $130 per barrel of Brent, compared with the UAE at around $70 per barrel and Saudi Arabia at about $90. More

 

 

Solar power could be world’s top electricity source by 2050

Solar energy could be the top source of electricity by 2050, aided by plummeting costs of the equipment to generate it, a report from the International Energy Agency (IEA), the West’s energy watchdog, said on Monday.

IEA Reports said solar photovoltaic (PV) systems could generate up to 16% of the world’s electricity by 2050, while solar thermal electricity (STE) – from “concentrating” solar power plants – could provide a further 11%.

“The rapid cost decrease of photovoltaic modules and systems in the last few years has opened new perspectives for using solar energy as a major source of electricity in the coming years and decades,” said IEA Executive Director Maria van der Hoeven.

Solar photovoltaic (PV) panels constitute the fastest-growing renewable energy technology in the world since 2000, although solar is still less than 1% of energy capacity worldwide.

The IEA said PV expansion would be led by China, followed by the United States, while STE could also grow in the United States along with Africa, India and the Middle East. More


 

No nuclear waste: Fuel of future produced at Russia’s high-tech underground plant

Russia’s ‘Breakthrough’ energy project enables closed a nuclear fuel cycle and a future without radioactive waste. The first batch of MOX nuclear fuel has been manufactured for the world’s only NPP industrially power generating breeder reactors.

The first ten kilograms of the mixed-oxide fuel (MOX) – a mixture of plutonium and uranium dioxides (UO2 and PuO2), have been industrially produced by Russia’s nuclear monopoly, Rosatom, at the Mining & Chemical Combine (GKhK) in the Krasnoyarsk region.

Mixed-oxide fuel (MOX

A world first, tablets of the fuel of the future have been put on serial production and are destined for Russia’s next generation BN-800 breeder reactor (880 megawatts), currently undergoing tests at the Beloyarskaya nuclear power plant.

The production line, now undergoing start-up and adjustment, was assembled in a mine 200 meters underground and will become fully operational by the end of 2014.

Fast fission reactors solve the problem of depleted uranium nuclear fuel on the planet. They can ‘burn’ not only ‘classic’ uranium-235, (scarce and already coming to an end), but also uranium-238, which is abundant, and expands the world’s nuclear fuel capacity by an estimated 50 times.

Fuel for breeder reactors could even be made from nuclear waste, which from an ecological point of view is a priceless advantage.

The GKhK facility will be equipped with a unique dissolvent reactor that will break down nuclear waste containing plutonium and extract plutonium dioxide to be used in MOX-fuel production.

Also, while producing electric energy, breeder reactors actually generate more fissile material, and that one also can be used as nuclear fuel.

The GKhK plant is Russia’s leading full nuclear fuel cycle complex, processing nuclear waste from power generating nuclear reactors to establish future nuclear fuel ring closure.

MOX-fuel for previous versions of fast breeder reactors in the USSR and Russia had limited production at Russia’s oldest Mayak nuclear processing facility.

Starting from 2016, industrial-level MOX-fuel production in Russia will run at full capacity.

“Produced MOX-fuel tablets fully conform to the technical specifications,” Rosatom’s statement said, adding that the fuel will now be thoroughly tested.

Energy from here to eternity

Humankind has already produced so much nuclear waste that it would take decades, if not hundreds of years to process and recycle it. As of now, the only light at the end of the tunnel is fast-neutron reactor technology.

The fast-neutron nuclear – or breeder – reactors use technology that enables the use of a wider range of radioactive elements as fuel, thus considerably enlarging the potential stock of nuclear fuel for electric power generation.
Russia is the only country that operates fast neutron reactors industrially.

After decades of research, practically all breeder reactor projects around the world, including in the US, France, Japan and several other countries possessing nuclear energy technologies, were closed down. The only country that currently has operating breeder reactor power generation is Russia.

Over the last 50 years the USSR, then Russia, introduced a number of industrial and research fast neutron reactors. One of them, the BN-600 (600 megawatt), running at the Beloyarskaya nuclear power plant since 1980, is the only fast neutron reactor in the world that generates electricity on an industrial scale. The BN-600 is also the most powerful operable fast neutron reactor in the world.

The Beloyarskaya nuclear power plant is in Zarechny, some 45 kilometers from the regional center of Yekaterinburg, in the Urals region.

This year a new BN-800 breeder reactor will become operable at the Beloyarskaya plant.

The service life of the BN-800 breeder reactor is expected to be 45 years. Every month it will produce 475 million kilowatt hours of electricity, enough to ensure constant supply to 3.15 million families (the average monthly consumption of a family of three is 150 kilowatt hours).

The BN-800 uses liquid metal sodium (Na) as a coolant heat transfer agent. Commercial operation of the new reactor is planned to start in early 2015.

Russian physicists have already elaborated the next step for the revolutionary technology: a BN-1200 breeder reactor that is set to be assembled at the same Beloyarskaya nuclear power plant by 2020.

Overall, eight BN-1200 breeder reactors are expected to be constructed by 2030, which means that Russia is the only nation that is entering a new era of nuclear energy power generation – the closed nuclear fuel cycle, in other words truly clean and practically unlimited nuclear power generation. More

 

 

The Peak Oil Crisis: It‘s All Around Us

Ten years ago peak oil was assumed to be a rather straight forward, transparent process. What was then thought of as “oil” production was going to stop growing around the middle of the last decade.


Shortages were going to occur; prices were going to rise; demand was going to drop; economies would falter; and eventually a major economic depression was going to occur. Fortunately or not, depending on your point of view, the last ten years have turned out to a lot more complicated than expected. Production of what is now known as “conventional” oil did indeed peak back around 2005, and many of the phenomena that were expected to result did occur and continue to this day.

Oil prices have climbed several-fold from where they were in the early years of the last decade – surging upwards from $20 a barrel to circa $100. This rapid jump in energy costs did slow many nations’ economies, cut oil consumption, and with some other factors set off a “great” recession. Real economic hardships have not yet occurred

What is so interesting about all this is that a temporary surge in what was heretofore a little known source of oil in the U.S. is masking the larger story of what is taking place in the global oil situation

Much of this is due to the reaction that set in from high oil prices and increased government intervention into the economy. In the case of the U.S., Washington turned on the modern day equivalent of the printing presses and began handing out money that was used to develop expensive sources of oil and gas. The high selling price per barrel, coupled with cheap money led to a boom in U.S. oil production where fortuitous geological conditions in North Dakota and South Texas allowed the production of shale oil at money-making prices provided oil prices stay high.

U.S. unconventional oil production soared by some 3.3 million barrels a day (b/d) in the last four years, and, if the US Energy Information Administration is correct, is due to climb by another million b/d or so in 2015. While this jump in production was unexpected by most, it was just another phenomenon resulting from unprecedentedly high oil prices, which in turn resulted from the lack of adequate “conventional” oil production. As is well known, economic development can have major reactions and feedbacks

What is so interesting about all this is that a temporary surge in what was heretofore a little known source of oil in the U.S. is masking the larger story of what is taking place in the global oil situation. The simple answer is that except for the U.S. shale oil surge almost no increase in oil production is taking place around the world. No other country as yet has gotten significant amounts of shale oil or gas into production. Russia’s conventional oil production seems to be peaking at present, and its Arctic oil production is still many years, or perhaps even decades, away. Brazilian production is going nowhere at the minute, deepwater production in the Gulf of Mexico is stagnating and the Middle East is busy killing itself. On top of all this, global demand for oil continues to increase by some million b/d each year – most of which is going to Asia.

If we step back and acknowledge that the shale oil phenomenon will be over in a couple of years and that oil production is dropping in the rest of the world, then we have to expect that the remainder of the peak oil story will play out shortly. The impact of shrinking global oil production, which is been on hold for nearly a decade, will appear. Prices will go much higher, this time with lowered expectations that more oil will be produced as prices go higher. The great recession, which has never really gone away for most, will return with renewed vigor and all that it implies.

An additional factor which has grown considerably worse in the last ten years is climate change, largely brought about by the combustion of fossil fuels. We are already seeing global weather anomalies with record high and low temperatures and record floods as well as droughts. This too will take its toll on economic development as mitigating this change will soon become enormously expensive. We are already seeing migrations of restive peoples. Thousands are dying in efforts to get from the Middle East and Africa into the EU. Millions are already homeless across the Middle East and recent developments foretell hundreds of thousands if not millions more being added to ranks of refugees as decades and even centuries-old political arrangements collapse.

All this is telling us that the peak oil crisis we have been watching for the last ten years has not gone away, but is turning out to be a more prolonged event than previous believed. Many do not believe that peak oil is really happening as they read daily of surging oil production and falling oil prices. Rarely do they hear that another shoe has yet to drop and that much worse in terms of oil shortages, higher prices and interrupted economic growth is just ahead.

We are sitting in the eye of the peak oil crisis and few recognize it. Five years from now, it should be apparent to all. More

 

NOTICE OF INTENT TO FINALIZE THE TERMS OF REFERENCE FOR THE PROPOSED OCEAN THERMAL ENERGY CONVERSION PROJECT

REQUEST FOR COMMENTS AND NOTICE OF PUBLIC MEETING

The Environmental Assessment Board (EAB) is providing Notice to the Public of the publication of the Draft Terms of Reference (ToR) for the Environmental Impact Assessment (EIA) for a proposed Ocean Thermal Energy Conversion (OTEC) Project on the north shore of Grand Cayman. The public is invited to review and comment on the To R which has been developed in collaboration with the EAB, which includes representatives from the Department of Environment, Planning Authority. Port Authority, and the Electricity Regulatory Authority.

The prolect Proponent. OTEC international. LLC (OTI) ie undertaking an EIA for its proposed phased installation of 25 megawatts (MWe) of power. The Initial phase would be a 6.25Mwe floating power platform (FPP). The result of the ElA will be an Environmental Statement (ES) which will help to inform the decision-making process. Download PDF

Yo u r input will be considered in the finalization of the To R document which is available oniine at www.doe.ky or hard copies can be reviewed at the following locations:

1. Government Administration Building. 133 Elgin Avenue, George Town

2. George Town Public Library. 68 Edward Street

3. North Side Post Office. 896 North Side Road

Comments on the draft TOR may be submitted:

1) in writing during the public meeting.

2) electronically via e-mail to doe@gov.ky

3) mailed to Department of Environment, P.0. Box 10202. Grand Cayman, KY1-1002

4) hand delivered, in writing, to Department of Environment, Environmental Centre, 580 North Sound Road, George Town , Grand Cayman.

A public meeting will be held on Tuesday 23 September 2014 at the North Side Civic

centre to provide an opportunity for OTI and the EIA Consultant to outline the project and to invite comments and questions from the Public on the draft ToR. Representatives from OTI, the EIA Consultant and the EAB will be available to provide information and receive comments concerning the ToR . The presentation will commence at 7:30 p.m. and will be followed by a question and answer session at 8:00 p.m.

The period for written comments on the draft ToR opens on Friday 12 September for a duration of 21 days and will officially close at midnight on Friday 3 October 2014.

 

 

Geothermal Power Approaches 12,000 Megawatts Worldwide

In 2013, world geothermal electricity-generating capacity grew 3 percent to top 11,700 megawatts across 24 countries. Although some other renewable energy technologies are seeing much faster growth—wind power has expanded 21 percent per year since 2008, for example, while solar power has grown at a blistering 53 percent annual rate—this was geothermal’s best year since the 2007-08 financial crisis.

Geothermal power’s relatively slower growth is not due to a paucity of energy to tap. On the contrary, the upper six miles of the earth’s crust holds 50,000 times the energy embodied in the world’s oil and gas reserves. But unlike the relative ease of measuring wind speed and solar radiation, test-drilling to assess deep heat resources prior to building a geothermal power plant is uncertain and costly. The developer may spend 15 percent of the project's capital cost during test-drilling, with no guarantee of finding a viable site.

Once built, however, a geothermal power plant can generate electricity 24 hours a day with low operation and maintenance costs—importantly because there is zero fuel cost. Over the life of the generator, geothermal plants are often cost-competitive with all other power sources, including fossil fuel and nuclear plants. This is true even without considering the many indirect costs of fossil- and nuclear-generated electricity that are not reflected in customers’ monthly bills.

The top three countries in installed geothermal power capacity—the United States, the Philippines, and Indonesia—account for more than half the world total. California hosts nearly 80 percent of the 3,440 megawatts of U.S. geothermal capacity; another 16 percent is found in Nevada.

Despite having installed more geothermal power capacity than any other country, the United States currently generates less than 1 percent of its electricity from the earth’s heat. Iceland holds the top spot in that category, using geothermal power for 29 percent of its electricity. Close behind is El Salvador, where one quarter of electricity comes from geothermal plants. Kenya follows at 19 percent. Next are the Philippines and Costa Rica, both at 15 percent, and New Zealand, at 14 percent.

Indonesia has the most ambitious geothermal capacity target. It is looking to develop 10,000 megawatts by 2025. Having only gained 150 megawatts in the last four years, this will be a steep climb. But a new law passed by the government in late August 2014 should help move industry activity in that direction: it increases the per-kilowatt-hour purchase price guaranteed to geothermal producers and ends geothermal power’s classification as mining activity. (Much of Indonesia’s untapped geothermal resource lies in forested areas where mining is illegal.) Even before the new law took effect, geothermal company Ormat began construction on the world’s largest single geothermal power plant, a 330-megawatt project in North Sumatra, in June 2014. The plant should generate its first electricity in 2018.

Indonesia is just one of about 40 countries that could get all their electricity from indigenous geothermal power—a list that includes Ecuador, Ethiopia, Iceland, Kenya, Papua New Guinea, Peru, the Philippines, and Tanzania. Nearly all of them are developing countries, where the high up-front costs of geothermal development are often prohibitive.

To help address this mismatch of geothermal resources and funds, the World Bank launched its Global Geothermal Development Plan in March 2013. By December, donors had come up with $115 million of the initial $500 million target to identify and fund test-drilling for promising geothermal projects in the developing world. The Bank hopes that the experience gained from these projects will lead to lower costs for the geothermal industry overall. This would be good news on many fronts—simultaneously reducing energy poverty, air pollution, carbon emissions, and costly fossil fuel imports. More

 

Energy Efficiency Simply Makes Sense

What simple tool offers the entire world an extended energy supply, increased energy security, lower carbon emissions, cleaner air and extra time to mitigate climate change? Energy efficiency. What’s more, higher efficiency can avoid infrastructure investment, cut energy bills, improve health, increase competitiveness and enhance consumer welfare — all while more than paying for itself.

Maria van der Hoeven - IEA

The challenge is getting governments, industry and citizens to take the first steps towards making these savings in energy and money.

The International Energy Agency (IEA) has long spearheaded a global move toward improved energy efficiency policy and technology in buildings, appliances, transport and industry, as well as end-use applications such as lighting. That’s because the core of our mandate is energy security — the uninterrupted availability of energy at an affordable price. Greater efficiency is a principal way to strengthen that security: it reduces reliance on energy supply, especially imports, for economic growth; mitigates threats to energy security from climate change; and lessens the global economy’s exposure to disruptions in fossil fuel supply.

In short, energy efficiency makes sense.

In 2006, the IEA presented to the Group of Eight leading industrialized nations its 25 energy efficiency recommendations, which identify best practice and policy approaches to realize the full potential of energy efficiency for our member countries. Every two years, the Agency reports on the gains made by member countries, and today we are working with a growing number of international organizations, including the European Bank for Reconstruction and Development, the Asian Development Bank and the German sustainable development cooperation services provider GIZ.

The opportunities of this “invisible fuel” are many and rich. More than half of the potential savings in industry and a whopping 80 percent of opportunities in the buildings sector worldwide remain untouched. The 25 recommendations, if adopted fully by all 28 IEA members, would save $1 trillion in annual energy costs as well as deliver incalculable security benefits in terms of energy supply and environmental protection.

Achieving even a small fraction of those gains does not require new technological breakthroughs or ruinous capital outlays: the know-how exists, and the investments generate positive returns in fuel savings and increased economic growth. What is required is foresight, patience, changed habits and the removal of the barriers to implementation of measures that are economically viable. For instance, as the World Energy Outlook 2012 demonstrates, investing less than $12 trillion in more energy-efficient technologies would not only quickly pay for itself through reduced energy costs, it would also increase cumulative economic output to 2035 by $18 trillion worldwide.

While current efforts come nowhere close to realizing the full benefits that efficiency offers, some countries are taking big steps forward. Members of the European Union have pledged to cut energy demand by 20 percent by 2020, while Japan plans to trim its electricity consumption 10 percent by 2030. China is committed to reducing the amount of energy needed for each unit of gross domestic product by 16 percent in the next two years. The United States has leaped to the forefront in transportation efficiency standards with new fuel economy rules that could more than double vehicle fuel consumption.

Such transitions entail challenges for policy, and experience shows that government and the private sector must work together to achieve the sustainability goals that societies demand, learning what works and what does not, and following the right path to optimal deployment of technology. Looking forward, energy efficiency will play a vital role in the transition to the secure and sustainable energy future that we all seek. The most secure energy is the barrel or megawatt we never have to use.

Maria van der Hoeven is the Executive Director of the International Energy Agency, an autonomous organization which works to ensure reliable, affordable and clean energy for its 28 member countries and beyond. This commentary appeared first this month in IEA Energy, the Agency’s journal.

 

Ocean-based power plant previewed in North Side

North Side residents got a preview last week of a proposed electric power plant that will be moored off their coastline if its proponents get the necessary approvals.

Design for 25 Mw OTEC Plant

District MLA Ezzard Miller invited representatives of OTEC International LLC to the Craddock Ebanks Civic Centre on Thursday night to explain the ocean thermal power project to his constituents.

Eileen O’Rourke, the company’s chief operating officer, outlined the process by which heat in the upper layers of sea water can be turned into electricity. The process is known as Ocean Thermal Energy Conversion.

After years of research and experimentation, the technology to process this source of renewable energy is now commercially viable and a proposal has been made to be a wholesale supplier of electricity to Caribbean Utilities Company, Ms. O’Rourke said. Talks have already been held with the Caribbean Utilities Company and government officials.

The production plant would be on a purpose-built barge, or floating power platform, 140 feet wide and 200 feet long and moored less than a mile offshore. Most of the plant would be about 16 feet above the water line, with a small part of it rising another eight feet.

The structure would include pipes to circulate the sea water, moorings to the sea floor and a cable that would carry the generated power under the beach and under the road to a sub-station on land. The sub-station would connect to CUC, Ms. O’Rourke explained.

Meetings have already been held with such entities as the Department of Environment, Public Works and the Environmental Assessment Board. The plan is for necessary permits to be applied for starting in October.

“We hope to get all permits and approvals in the first quarter of 2015,” Ms. O’Rourke said.

The target date for operation of the offshore power plant is the first quarter of 2017.

Pilar Bush, managing director of AtWater Consulting, confirmed that an island-wide public consultation will be held later this month.

OTEC International chose Grand Cayman for its first commercial system because CUC was “an open and willing partner” and because the Cayman government wants to move away from relying on fossil fuels, Ms. O’Rourke said. She noted that one power platform would produce 6.25 megawatts of electricity and that quantity would eliminate the need for 2.9 million gallons of imported diesel fuel annually. CUC’s average production of electricity is around 70 megawatts, it was noted.

Another reason Grand Cayman was chosen was the “excellent sea conditions” – including water temperatures and deep water proximity to the shoreline. There is a well-documented history of local ocean conditions, including extreme storm conditions. North Side was chosen as the best location, she said.

In response to questions from the audience, company representatives referred to job opportunities and the development of safety protocols, along with design features for the protection of marine life.

Start-up costs for the building and installation of the power platform will be expensive, Ms. O’Rourke indicated, but sea water as a source of renewable energy means low operating costs and protection of the consumer from the volatility of oil prices.

Development of the requisite technology was funded by the Abell Foundation, a non-profit organization based in Maryland, USA since 1953, said Ms. O’Rourke, who is also treasurer of the foundation. One of its objectives is supporting innovative efforts to solve systemic social, economic and environmental problems.

In 2000, The Abell Foundation acquired an exclusive license to the OTEC technology developed over decades by Sea Solar Power’s J. Hilbert Anderson and his son James Anderson. In 2001, Abell established a limited liability company with the mission bring OTEC to commercialization. The company became OTEC International LLC (OTI). Bringing the economical, renewable energy solution of ocean thermal energy conversion to developed and emerging markets is important to both OTI and Abell. More