Solaqua's Energy Future Project :: Context of the Project

Project Proposal (to be updated)

Section 1.1 Impending Energy Challenges

Section 1.2 The Rising Cost of Energy

Section 1.2.1 Energy Composition

 

Introduction

 

Energy independence and energy security are becoming subjects of increasing significance in light of vulnerabilities exploited in recent national and international widespread disasters. This study will assess the financial viability of a renewable energy powered center demonstrating and manufacturing a novel renewable energy technology. Technologies to facilitate and foster energy independence into an attainable reality, and ultimately, into a business as usual manner of energy production, must be financially viable and socially acceptable. An emerging technology in the solar realm of the renewable energy spectrum with much promise and potential is the Fresnel Solar Photovoltaic Energy System being developed by Solar Age Technologies in collaboration with Rensselaer Polytechnic Institute in Troy, New York. The novel concentrator design could potentially provide heat and/or electricity and is geared towards industrial and commercial facilities with energy demand levels of 1 to 50 megawatts. A commercial or industrial facility located in the northeastern United States is currently facing the highest electricity prices in the country, up to almost double the electricity prices in the west north-central region of the country. Energy prices in general, including oil, coal, and natural gas, are expected to continually rise due to increasing demand and infrastructure instability. Renewable energy options to commercial and industrial facilities are supported at both the Federal and State levels in New York, and technologies to better provide and promote market saturation of renewable energy options are currently being sought and researched.

 

In order to introduce emerging technologies to the market on a widespread scale, financial evaluations must be made on both the supply side, production of these technologies on a large-scale basis, and on the demand side, to determine what the actual benefits would be to end-users. This study will evaluate both of these components in a single, streamlined context by evaluating production and consumption at one, centralized facility. This will allow for evaluation of both the financial viability of production and the financial acceptability of the technology as a component of a renewable energy powered commercial/industrial facility. Additionally, this study will provide an energy plan for a proposed renewable energy powered facility, which will be used to structure and design the facility. Renewable energy systems traditionally have high costs associated with them and are considered by some studies cost-prohibitive. Thus a renewable energy demonstration center has the capacity to structure itself in an unsustainable manner financially. If the center does not structure its energy production methods to be cost-competitive with purchasing power from a local utility the center is then demonstrating exclusive technology, which is not affordable to those firms that are struggling financially with current, market energy prices. It is an intention of this study to demonstrate renewable energy systems that are cost-competitive over a 15 to 25 year horizon. It is necessary to assess renewable energy systems over time because renewable energy systems are purchased up front, meaning that almost all of the costs of the energy that will be produced over the life of the system are paid before any power is produced at all. This brings up the point of net present value of the energy that is being purchased over the life of the system. Essentially, by purchasing a renewable energy system, a firm is locking in their energy prices for the life of the system, and thus excluding themselves from any increase in market energy prices; likewise, they are excluding themselves from any decrease in energy prices. The Energy Information Agency (US) report an increase in energy demand by 3.3% from 2004 to 2005 and an increase in energy prices in the northeast by 9.5% in the same time period.

National Renewable Eenrgy Laboratory. “Surviving Disaster with Renewable Energy” <http://www.nrel.gov/surviving_disaster/value_nature.html >

Solar Age Technologies. “Descriptive Memorandum for the Solar Age Technologies, Inc: Fresnel Solar Photovoltaic Energy Systems. “

Energy Information Administration “Short-Term Energy Outlook and Winter Fuels Outlook.” October 12, 2005.

New York State Research and Development Authority, PON 959 “Renewable Energy Manufacturing Incentive Program.”

US Department of Energy Efficiency and Renewable Energy. EERE Network News January 22, 2003.

Royal Academy of Engineering. “The Cost of Generating Electricity. A study carried out by PB power for The Royal Academy of Engineering.” March 2004

Energy Information Administration “Short-Term Energy Outlook and Winter Fuels Outlook.” November 8 th, 2005.

 

 

 

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