• Energy Research

Early-stage capital providers and clean energy technology incubators are supporting a new wave of innovations focused on end-use efficiency and demand control. This wave complements expanding investments in supply technologies required for electricity sector decarbonization.

Early-stage capital providers and clean energy technology incubators are supporting a new wave of innovations focused on end-use efficiency and demand control. This wave complements expanding investments in supply technologies required for electricity sector decarbonization.

Abstract Over the past decade, solar photovoltaic (PV) power has experienced dramatic deployment growth coupled with substantial decreases in system prices. This article examines how solar PV power is currently positioned in the electricity marketplace and how that position is likely to evolve in the foreseeable future. We first assess the current cost competitiveness of solar PV in select U.S. locations and industry segments using the levelized cost of electricity (LCOE) metric. This framework enables us to quantify the effects that supportive public policies, time-of-use pricing, and anticipated future technological improvements have on the cost of solar PV. We also build on recent analytical work that has identified circumstances under which it becomes financially attractive to add behind-the-meter batteries to an existing PV solar system. Taken together, our findings suggest that solar power, by itself and in conjunction with low cost storage, is positioned to account for a significant and growing share of the overall energy mix.

Abstract Over the past decade, solar photovoltaic (PV) power has experienced dramatic deployment growth coupled with substantial decreases in system prices. This article examines how solar PV power is currently positioned in the electricity marketplace and how that position is likely to evolve in the foreseeable future. We first assess the current cost competitiveness of solar PV in select U.S. locations and industry segments using the levelized cost of electricity (LCOE) metric. This framework enables us to quantify the effects that supportive public policies, time-of-use pricing, and anticipated future technological improvements have on the cost of solar PV. We also build on recent analytical work that has identified circumstances under which it becomes financially attractive to add behind-the-meter batteries to an existing PV solar system. Taken together, our findings suggest that solar power, by itself and in conjunction with low cost storage, is positioned to account for a significant and growing share of the overall energy mix.

Abstract The policy of net metering allows operators of residential- and commercial solar PV systems to sell surplus electricity back to their utility at the going retail rate. This policy has recently been criticized on the grounds that it provides a subsidy for residential and commercial solar installations, a subsidy that is paid for by all ratepayers. In response, public utility commissions have begun to take up this regulatory issue. This paper presents a theoretical and empirical analysis of the effects of net metering restrictions. We examine the impact that overage tariffs (OT) will have on the size of future residential PV investments. Overage tariffs credit electricity generated by the solar system, but not consumed by the household and thus transferred back to the utility, at a rate below the going retail electricity rate. Our calculations focus on three representative locations in the states of California, Nevada and Hawaii. We find that if overage electricity is credited at some rate set at or above the levelized cost of electricity (LCOE), there would be sufficient incentives for investors in residential solar PV to continue in the current mode of solar rooftop installations, even though the profitability of these investments might be reduced substantially. At the same time, we find that the LCOE is a tipping point insofar as overage tariffs set below that level would have a sharply negative effect on the individual size and overall volume of new rooftop installations.

Abstract The policy of net metering allows operators of residential- and commercial solar PV systems to sell surplus electricity back to their utility at the going retail rate. This policy has recently been criticized on the grounds that it provides a subsidy for residential and commercial solar installations, a subsidy that is paid for by all ratepayers. In response, public utility commissions have begun to take up this regulatory issue. This paper presents a theoretical and empirical analysis of the effects of net metering restrictions. We examine the impact that overage tariffs (OT) will have on the size of future residential PV investments. Overage tariffs credit electricity generated by the solar system, but not consumed by the household and thus transferred back to the utility, at a rate below the going retail electricity rate. Our calculations focus on three representative locations in the states of California, Nevada and Hawaii. We find that if overage electricity is credited at some rate set at or above the levelized cost of electricity (LCOE), there would be sufficient incentives for investors in residential solar PV to continue in the current mode of solar rooftop installations, even though the profitability of these investments might be reduced substantially. At the same time, we find that the LCOE is a tipping point insofar as overage tariffs set below that level would have a sharply negative effect on the individual size and overall volume of new rooftop installations.

The fabrication and manufacturing processes of industrial commodities such as iron, glass, and cement are carbon-intensive, accounting for 23% of global CO2 emissions. As a climate mitigation strategy, CO2 capture from flue gases of industrial processes-much like that of the power sector-has not experienced wide adoption given its high associated costs. However, some industrial processes with relatively high CO2 flue concentration may be viable candidates to cost-competitively supply CO2 for utilization purposes (e.g., polymer manufacturing, etc.). This work develops a methodology that determines the levelized cost ($/tCO2) of separating, compressing, and transporting carbon dioxide. A top-down model determines the cost of separating and compressing CO2 across 18 industrial processes. Further, the study calculates the cost of transporting CO2 via pipeline and tanker truck to appropriately paired sinks using a bottom-up cost model and geo-referencing approach. The results show that truck transportation is generally the low-cost alternative given the relatively small volumes (ca. 100 kt CO2/a). We apply our methodology to a regional case study in Pennsylvania, which shows steel and cement manufacturing paired to suitable sinks as having the lowest levelized cost of capture, compression, and transportation.

The fabrication and manufacturing processes of industrial commodities such as iron, glass, and cement are carbon-intensive, accounting for 23% of global CO2 emissions. As a climate mitigation strategy, CO2 capture from flue gases of industrial processes-much like that of the power sector-has not experienced wide adoption given its high associated costs. However, some industrial processes with relatively high CO2 flue concentration may be viable candidates to cost-competitively supply CO2 for utilization purposes (e.g., polymer manufacturing, etc.). This work develops a methodology that determines the levelized cost ($/tCO2) of separating, compressing, and transporting carbon dioxide. A top-down model determines the cost of separating and compressing CO2 across 18 industrial processes. Further, the study calculates the cost of transporting CO2 via pipeline and tanker truck to appropriately paired sinks using a bottom-up cost model and geo-referencing approach. The results show that truck transportation is generally the low-cost alternative given the relatively small volumes (ca. 100 kt CO2/a). We apply our methodology to a regional case study in Pennsylvania, which shows steel and cement manufacturing paired to suitable sinks as having the lowest levelized cost of capture, compression, and transportation.