I ALTERNATIVE ELECTRICAL ENERGY SOURCES FOR MAINE SUMMARY REPORT W.J. Jones M. Ruane MIT Energy Laboratory Report No. MIT-EL 77-010 December 1977 ALTERNATIVE ELECTRICAL ENERGY SOURCES FOR MAINE W.J. Jones M. Ruane SUMMARY REPORT This report, prepared for the Central Maine Power Company, presents a comparative discussion of twelve technologies which were evaluated as possible alternatives to the construction of a 600 MWe coal-fired generating plant. The evaluations are published as appendices, each devoted to a specific technology. Report No. MIT-EL 77-010 MIT Energy Laboratory December 1977 Acknowledgments Numerous people shared reports and data with us and provided comments on the draft material. We hope that everyone has been acknowledged through the references in the technical sections, but if we missed anyone, thank you! Ms. Alice Sanderson patiently weathered out many drafts and prepared the final document with Merlin. the assistance of Ms. Dorothy Appendix A Conversion of Biomass - C. Glaser, M. Ruane Appendix B Conservation - P. Carpenter, W.J. Jones, S. Raskin, R. Tabors Appendix C Geothermal Energy Conversion - A. Waterflow Appendix D Ocean Thermal Energy Conversion - M. Ruane Appendix E Fuel Cells - W.J. Jones Appendix F Solar Energy Conversion - J. Geary, W.J. Jones Appendix G Conversion of Solid Wastes - M. Ruane Appendix H Storage of Energy - M. Ruane Appendix I Wave Energy Conversion - J. Mays Appendix J Ocean and Riverine Current Energy Conversion - J. Mays Appendix K Wind Energy Conversion - T. Labuszewski Appendix L Environmental Impacts - J. Gruhl Initial literature reviews and drafts of the various technical appendices were prepared by the persons listed. Preface The Energy Laboratory of the Mass. Inst. of Tech. was retained by the Central Maine Power Company to evaluate several technologies as possible alternatives to the construction of Sears Island #1 (a 600 MWe coal fired generating plant scheduled for startup in 1986). The assessments were made on the basis that a technology be: to a base -load 1) an alternative power generation facility. defined as ability capacity output 2) not restricted to furnish electric Base - load is up to a rated for 6570 hours per year. to a single plant. It may be several plants within the state of Maine. The combined output, when viewed in isolation, must be a separate, "standalone" source of power. 3) available to deliver energy by 1985. should LIST OF TABLES Table Page 1.1 Technologies 2.1 Components 2.2 Capacities and Annual Energies from Alternative Considered 10 of Alternatives 22 Technologies 3.1 25 Summary of Environmental Impacts of Alternative Technologies 29 4.1 Special 5.1 Levelized Fixed Charge Rate Assumptions 5.2 Optimistic Electricity Costs from Alternative Requirements for Alternative Technologies Technologies 32 35 37 4 ALTERNATIVE ELECTRICAL ENERGY SOURCES FOR MAINE Page 6 Conclusions 1.4 2.0 10 Introduction 1.0 1.1 Scope of the Study 10 1.2 Methodology 11 1.3 Discussion 12 14 Caveats 17 2.1 Principles of Operation 17 2.2 Components of Alternatives 21 2.3 Technical "Quantification" 21 27 Effects 3.0 Environmental 4.0 Applicability to Maine 5.0 Development Status of Technological 30 31 Requirements 4.1 Special 4.2 Estimates of Energy and Capacity 31 33 Economics Assumptions 5.1 Economic 5.2 Cost of Electricity 3 33 36 LIST OF FIGURES Figure Page 1.1 13 Projected Electric Sales for Central Maine Power 5 Conclusions A) The alternative technologies to a coal-fired plant considered in this report cannot be relied upon steam/electric expected increase in demand for electricity in Maine to by supply 1986. the Tech- nical, regulatory, and institutional limitations, and the lack of mercial experience indicate that they could not reliably be com- expected to supply the power and energy of the proposed plant. B) Several of the alternative technologies (biomass, tion, solar space and hot water heating, solid waste conserva- conversion, sto- rage, and wind) appear to offer some potential of increased energy ef- ficiency and renewable indigenous energy supplies with re- duced environmental impacts. acceptable These near-term technologies could to contribute to Maine's energy supply between now and begin 1986. They should be examined further and encouraged to determine if they are en- vironmentally and economically desirable. C) Other alternative technologies (central station solar mal, central station solar photovoltaic, dispersed solar waves, and currents), combined with energy-storage photovoltaic, systems, pear to offer potential for renewable indigenous energy reduced environmental impacts. Maine should follow their development in other also ap- supplies These technologies cannot contribute to Maine's electricity supply until some ther- time locations and expected after more to 1986. favor- able to their development. D) Maine does not have the conditions and resources required ocean thermal and most forms of geothermal energy conversion. Hot rock geothermal energy conversion in Maine might be possible but 6 for dry would not contribute to Maine's 2000. electricity supply Maine should follow its development after other, more in until the year favorable geological locations. E) Reliable quantification of the costs, and environmental impacts of the power and alternative not possible without further basic data collection by specific design studies. gies in the future, such data energy potential, technologies in Maine If Maine hopes to utilize these collection and design is followed technolo- studies will be necessary. F) Best case approximations of performance for technologies indicate that, regardless of costs, they dually supply or eliminate the expected increase in tricity. Based on available information, it to estimate the possible composite tive technologies were implemented. the is alternative cannot demand for entirely performance if all indivielec- conjectural the alterna- Even the individual best case proximations are subject to possible errors which could lead ap- to se- rious undercapacity and economic problems if Maine were to rely on the alternative technologies. G) Many of the alternative technologies (solar space and hot ter heating, wind, central station solar thermal, central lar photovoltaic, dispersed solar photovoltaic, waves, station and Unless extensive energy storage is these technologies provide on a random basis either peaking mediate energy, rather than base load power. 7 so- currents) are best operated in a fuel-saver mode, in which they supply energy it becomes available. wa- as included, or inter- On a statistical performance/demand basis these types facilities can present a "capacity credit" of "reliable" a given utility system. This "reliable" power can be fraction of the rated capability per facility. vestigations which should result in a of energy power within expressed There are methodology for "capacity credit" equivalencies for a number of dispersed tions. The studies H) as current in- arriving at energy sta- are not complete. Best case approximations of performance for the near-term ternative technologies indicate that their electricity will be between 50 and 100 mills/KWh. Actual costs costs will technologies fell in a range al- in 1986 probably higher but can only be quantified by actual design studies. costs for mid-term a Estimated to 200 mills/Kwh in 1986 dollars. The above are "busbar" costs, that is, the costs the of plants. electricity at terminals of 75 the generation Allowance for funds used during construction (see p. 34) be added to these estimates I) to determine the total busbar must costs. The overall environmental effects of the alternative techno- logies appear fects output from be due to to be roughly equivalent coal-fired generation. to or possibly The less than the ef- absence experience or even full-scale prototypes makes of commercial quantification of the impacts difficult. J) Based on the information in Table 2.1, note that only conver- sion of biomass, conservation, distributed solar space and heating, solid waste incineration, storage, and conversion potential alternatives for installation 1986. 8 by wind Among hot this water are group only conservation, solid waste incineration, and storage have some es- tablished commercial experience. The others of this group have the po- tential to be commercially developed in time to supply energy for 1986. It should be recognized that the necessary lead times for ing and licensing these alternative availability available by 1986 even though by then. 9 technologies the may commercial design- preclude technology their is 1.0 INTRODUCTION 1.1 Scope of the Study The Energy Laboratory of the Massachusetts Institute of Techno- logy (MIT) was retained by the Central Maine Power Company (CMP) to e- valuate several technologies (Table 1.1) as to the construction of Sears Island #1 (a 600 plant scheduled for startup in 1986). possible MWe This alternatives coal-fired report generating presents the re- sults of the study. Table 1.1 TECHNOLOGIES CONSIDERED conversion of biomass increased conservation geothermal energy conversion · ocean thermal energy conversion fuel cells solar energy conversion conversion of solid wastes storage of energy wave energy conversion ocean and riverine current energy conversion · wind energy conversion On a national scale, the technologies of Table 1.1 ted interest because of their independence and/or nuclear fuels and because they offer from the have stimula- conventional potential fossil of efficient utilization of those supplies or make use of renewable energy supplies. 10 more basic 1.2 Methodology The study of the technologies views of the available was based literature, primarily supplemented, when discussions with researchers, government agencies, and architect/engineering firms. rately. Each technology The results of these separate pendices. The body of this report studies presents on critical possible, equipment was re- vendors, reviewed are included comparative by sepaas ap- discussions, based on the appendices, using four categories: Status of Technological Development: description native approaches in terms of their principles of of the alter- operation, ma- jor components, operating experience, projected development schedule, anticipated technical problems. the technologies This was a generic study of per se. Applicability to Maine: special requirements availability of requirements in Maine; for potential utilization; energy produc- tion in Maine; institutional objections to use. Economics of Operation: economic assumptions; capital and ope- rating costs; projected electricity costs. Environmental Consequences: conversion technology; air, water, and land use impacts ronmental benefits. l1 of ancillary impacts operations; of envi- 1.3 Discussion Increased efficiency in the generation and consumption and the use of renewable energy couraged our fuels. in the face of sources nation's should, in growing An exploration in more determine those most appropriate for detail offer would contribution energy general, dependence Several of the technologies studied by MIT tial to Maine. of be to be on en- fossil this poten- necessary Maine's to energy supply. This study, however, had a narrower purpose in it was searching for alternatives which could possibly eliminate or delay the need for the coal-fired 600 MWe generation For this search, given. the load forecast Each technology 1) of CMP (Figure was evaluated to answer Under what conditions could serve) planned the power and energy this at that Sears Island. .1) was taken as a the following: technology to be supplied by supply Sears (conIsland #]? 2) What would be the best performance to be expected from this technology? In some cases, a successful commitment to a single alternative technologies could conceivably delay or a combination the generation for a year or two although the energy costs be higher. This was not considered the plant would still be needed to be to needs. 12 supply a true need for would coal probably alternative, Maine's of lonq-term since energy Millions of Kilowatts (106) Capability Responsibility, c CO O cm i N Y) . Od .d . . - . r- I I i- , 1--J . Nii .. -. .~ c N.c - L .L i\ ' .... .: , ib~---I \')U ' \\r 4 [i ------z- -- ---- \ I' .i.. -1 : - _. . )- ]- --l . I .. -I..,,._-h'-"-."-.: .i' I - . --\ . ·. i-',-. ,.\.. .., :.:,, " '-- i - .. - ;. .. \-._, " __ (6) *s.AnH O'I r-_ cO 42eMol)l o suoLJJL 13 *. . L) sa[IS t- OLl4a[l3 (') CM clo ~.m. -T...i.... O a 4-.Q l : - : r-. -i,.!.. .. .1e i --0 *-.------.----- ...... i .c . - \ : j---1- --I. ·----:-,_ ., i . . .. . ^4t . '} \~- ----!- _I .. * 1 · ) 0c I= In. . . *. CY II r~~ 9-: .. T.I O 1.4 A. Caveats The reader should keep in mind several limitations of with comparative evaluations performed on the basis associated the available literature: Comparison of alternatives is imprecise since sumptions made by different authors are irreconcilable, particularly between nologies, e.g., solar energy conversion unstated often very as- critical tech- different and or solid burning waste. Published reports tend to be optimistic. Maine of reported pilot or and plant demonstration can only indicate gross costs or design evaluations Extrapolations specific experience More benefits. engineering to detailed are studies required before a firm commitment to any of the alternative technologies can be made. B. Uncertainty surrounds almost every facet of the analysis formed in choosing alternative generation technologies to meet electrical demand in 1986 and beyond. sible in this situation. Usually, No absolute the wisest veral courses of action simultaneously. policy answers is to per- Maine's pos- are se- pursue What should be avoided is the the uncer- on one or more of the alternative tech- closing off of options which may become very important in tain future. C. To concentrate solely nologies could conceivably leave Maine in a serious tuation by 1986. undercapacity si- This might happen if, for any number of technical and institutional reasons, one or more alternatives failed to produce 14 their hoped-for energy. The adverse consequences undercapacity would be principally economic. for Maine However, both of such the Fede- ral Power Commission (FPC, 1976, p. 5) and the National Electric Reli- ability Council (NERC, 1976, p. 3) have warned of widespread capacity deficiencies by the the possibility could lead to brownouts and blackouts. mid-1980's. Utilities Such would of shortages probably in- stall short procurement time generation in the form of gas turbines the extent possible. The present capacity turbines is sized to meet normal would require several years to growth requirements. design, machinery required to increase gas installations would adversely of the manufacturers manufacture turbine affect the load. would contain too peaking little base much intermediate load capacity. More and light distillate industry Gas generation mix The gas install production. matching generation characteristics to the of The and the turbine by poorly resulting capacity oil would to mix and too have to be burned, if allowed by national energy policy. Undercapacity has the effect of reducing reserve margins associated carrying costs for capacity. Although there and may be trade-off between the carrying costs for reserve margins and the of reduced reliability levels, this issue is best addressed rather than "backed into" by a poor choice of technologies the a costs directly, for opera- tion. D. Adverse environmental effects could also result dercapacity situation. might an The urgency of bringing capacity on line create pressures for bypassing time. from environmental Older, less efficient, and have to be kept in service less longer. 15 hearings environmentally which sound un- might require plants E. What happens if Maine concentrates only of Sears Island #1? does not altogether on the A commitment to the conventional coal eliminate the possibility of action could conceivably vironmental drawbacks. later alternative However, as and, employment encour- the in en- might technologies Several of the alternative and increasing this and have its own economic offer unique economic benefits which would be missed, such aging new industries sit- of an undercapacity uation, although it reduces its chances of occurrence. course construction case Re- conservation, reduced cost-of-living and doing business in Maine. liance on indigenous renewable energy sources would In some Maine's out-of-state energy payments. help also ra- even re- Most of the renewable sources sult in lower consumer energy costs. appear to be reduce (e.g., situations pidly rising coal costs), the alternative technologies might energy of environmentally to comparable of coal. burning Choosing only the coal option could deny Maine the opportunity for in- troducing new, possibly less environmentally harmful energy supplies. F. some set of alternative technologies also The alternative technologies are more risky plant, so someone cessary capital. has pay the risk premium. If the alternatives sorb the losses. by the utility in- stockholders or are not technologies. 16 eco- must ab- best interests to someone pursue the construction of Sears Island #1 while continuing to some of the alternative coal ne- fail to be in Maine's Even so, it seems a than the utility nomically competitive with conventional generation, and problems. attract to are developed If the alternatives dustry, either electricity consumers or electric would associated investments will have to pay a risk premium Island Sears Choosing to develop both the coal plant at explore 2.0 STATUS OF TECHNOLOGICAL DEVELOPMENT* 2.1 Principles of Operation Our evaluation searched for technologies which could substituted for Sears Island #1. be have be Such technologies would possibly capable of producing or conserving 600 MW roughly 4 billion KWh of energy per year. of In large centralized facilities (e.g., biomass electrical general to power either combustion and power a few plants) or numerous small decentralized facilities (e.g., wind turbines) the best use of the characteristics of alternative offer technologies. In the following discussions only the most promising form of technology will be considered. each Thus, while it may be technically sible to erect a 1 KW wind turbine for every household, this pos- discus- sion would only consider the more likely design of several hundred 1-3 MW units. 1-3 Furthermore, only the most promising of MW wind turbine designs will be presented. ternatives tural. becomes unwieldy and the the candidate Otherwise the list comparisons of entirely The various appendices give more justification for al- conjec- the choice of the following as the best prospective designs. CONVERSION OF BIOMASS: Multiple harvesting with commercial logging and pulp operations would the presently noncommercial portions of the forest The fuel wood would be chipped in the forest small, centrally located conversion plants. and be in for used conjunction to use trucked as remove to fuel. several These plants would burn *Note: The technologies were first examined for the intrinsic characteristics (capabilities, status of development and/or commercialization, environmental impact, and anticipated cost of generated electricity). In Section 4.0, the applicability of each technology to Maine is discussed. 17 the chips to produce steam for the generation of electricity. of about 50 MWe size appears CONSERVATION: A to be optimal. Utilities, industries, lishments, and residential users would take commercial to action Heroic changes in lifestyle are not estab- reduce tricity consumption by foregoing demands and increasing the of end use. plant elec- efficiency Con- considered. servation produces no electricity but might reduce the need for new generation in 1986. GEOTHERMAL ENERGY CONVERSION: In the absence of natural wet or dry steam reservoirs, hot dry rock technology is needed any geothermal resources. to tap Deep wells must be drilled, after which the through hot rocks would be fractured and water pumped transfer heat to the surface. the cracks Depending on the temperatures involved, the hot water would be used to vaporize water or another working Plant sizes on to drive a turbine, generating electricity. to fluid the order ocean water of 100 MWe are considered. OCEAN THERMAL ENERGY CONVERSION: Warm surface would be used to vaporize a low boiling point working fluid to drive Cool ocean water, taken turbine, generating electricity. from depths Floating below 1500 ft, is used to condense the turbine exhaust. a con- crete hulls with 100 MWe capacity are considered. FUEL CELLS: with air (oxygen), electricity. Hydrocarbon fuels would be chemically without combustion, to generate Power conditioning equipment would electricity for public use. then direct MWe) are possible small (20 MWe) capacity plants is more likely. 18 current produce Because modular design is technology, larger plants (600 combined but basic 60 to Hz dispersal this of SOLAR ENERGY CONVERSION: considered. At central station Several solar mirror systems would focus sunlight on develop steam. solar thermal a technologies plants central for use when the sun was not available. of 100 MWe are considered. electricity energy Central area-extensive receiver-boiler The steam would be used to generate diately or the steam or generated electrical would plants be stored the order plants would on Central station photovoltaic This would then be converted to city for public use. Central plants of 100 MWe are considered. direct current electricity. 60 Hz electriSolar space and water heating involves dispersed single-residence or Either air or water would be to imme- utilize arrays of photovoltaic cells to instantaneously produce structure technologies. are single- circulated the solar collectors to the living area or hot water system. tricity would be produced, but electricity used for space from No elec- conditioning might be replaced by solar-derived energy, resulting in reduced demand from conventional sources at those times when collectible sunshine available. Dispersed solar photovoltaic systems for (single-structure) use would operate on the principles of systems. small-scale the central Direct current from photovoltaic cells would be converted 60 Hz electrical power to satisfy the demands Storage technology is critical to energy. was most to of the user. economic The increased size of collection facilities uses to of solar "charge" the storage also places an economic burden on solar energy technologies. CONVERSION OF SOLID WASTES: Municipal solid be collected at a series of transfer stations and then truck to several central energy conversion plants. wastes would transported There, the solid wastes would either be incinerated to produce steam for electricity 19 by generation or processed into another form to be used tary fuel for coal- or oil-fired utility boilers. sized at about as a supplemen- Incineration 50 MWe are considered. STORAGE OF ENERGY: lected or converted Storage devices would allow energy in one time period to be used in and conventional would be associated could utilize energy. sources. generation with thermal, a technologies. single pumped System storage would hydro, store electricity Storage facilities could be any storage technology. mechanical, or from size Storage electrical a since and alterna- Dedicated conversion col- another, would result in more reliable and efficient operation of both tive units variety their of modular units could be combined to form larger capacities. WAVE ENERGY CONVERSION: Buoy-type systems or floating could convert the kinetic energy of waves into mechanical compress air or pump water for eventual electricity cams energy production. to Wave energy systems would have to be moored off the coast with undersea bles for transmission of electricity to shore. The size tems would be limited by mooring and transmission of ca- the sys- considerations, and would probably be on the order of 1-5 MW capacity. OCEAN AND RIVERINE CURRENT ENERGY rents could be used to turn turbines manner similar to waterwheels. CONVERSION: for electricity production River current turbines be moored in the river and would transmission to the shore. Unit sizes would be require cable flows but will be on the order of 1 MW capacity. 20 River a in would systems have for function cur- of a to energy river WIND ENERGY CONVERSION: A tower-mounted, turbine could convert the kinetic energy of the wind energy to turn a generator to produce electricity. storage would be critical to sustained, tion. Unit 2.2 reliable sizes from 1.5 MWe to 3 MWe are being into which are needed for are other successful components off-the-shelf technologies. rotational Proper siting electricity of the availability produc- are critical commercial which new operation. are components In essentially addition established, These are summarized in Table 2.1, and along estimates of the technologies. Technical "Quantification" For most of the technologies sic data about the available there primary is a shortage energy of sources. adequate The data and, as a result, are example, wind speed data have incomplete typically or been would be found at an optimal wind turbine collected wind site. and solid waste production specific basis. data improve are future also A particularly weak point speeds). speed Such data which efforts currents, assessments. on existing a lack of time-dependent information on a daily time scale. 21 ground Collection needed in For near for data on energy generation potential of wind, waves, solar insolation in Maine would energy inappropriate. level at airports (which are chosen for their low wind data do not completely represent the elevated bawhich are available have often been collected for purposes other than assessments and considered. with a list of the major anticipated technical problems 2.3 axis Components of Alternatives For most of the technologies there there horizontal more data and Biomass siteis the 'o 4o- E S.a) 0. ox -I' 4)04 E E S.- S-. 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The added cost and complexity production result lecting and storing energy for those is generation and storage is in general a and is best done as part of specific when not the and central station solar and For der to facilitate their comparison as base load operated in a fuel saver mode. more In general, col- energy Matching critical studies. photovoltaic Costs for these technologies would be of basic problem this an attempt has been made to consider storage with central lar thermal techno- available. complex design the from the necessity periods source (e.g., sunlight, wind, or waves) of report station generation, adding if so- in technologies. attractive the or- Energy they storage were increases energy costs while making capacity ratings more reliable. Capacity and energy estimates were prepared city estimates were made for the rated (Table (maximum) 2.2). operating for the likely unit design of each alternative technology. timates are based upon the rated capacity tors. and Capa- typical Also given is the approximate number of units capacity Energy capacity es- of each fac- techno- logy which would be needed to replace the contribution of Sears Island #1. The figures in Table 2.2 are annual averages scale data are generally unavailable. Annual and seasonal problems such as reduced tions, and so forth. To guarantee since averaging insolation, adequate wind shorter time masks daily speed year-long capacity energy production would require oversizing several alternative logies (solar, waves, currents, and wind). The and impact of storage determined options can only design study. 24 be degree varia- of in and techno- oversizing a specific Table 2.2 CAPACITIES AND ANNUAL ENERGIES FROM ALTERNATIVE TECHNOLOGIES Technology Unit Energy Unitsa Unitsa Rated of Rated to Provide to Provide Capacity Unit 600 MWe at 3.7 x 109 KWh (MWe) (109 KWh) Rated Capacity ·__ __ _ 50 .307 12 12 Ocean Thermal 100 .614 6 6 Geothermal 100 .614 6 6 Fuel Cells 20 0.131 30 29 .614 6 6 .614 6 6 2.9x10- 5 NAC 130,000 .006 3.1xlO-5 See note d 117,000 50 .360 12 10 1.5 .005-.026f 600-120 7 1 0 -1 4 0 f Biomass Conservation b Solar Central Station Thermal 100 Central Station Photovoltaic 100 Space & Water Heating NAC Photovoltaice Dispersed Solid Wastes Storageb Waves f Currents 1 .001 600 3700f Wind 1.5-3.0 .005-.010f 400-200 740-370f aIgnores daily and seasonal variation. bDoes not produce any energy; replaces need for capacity CProvides thermal not electrical energy; may be substituted for electrical energy dCapacity depends strongly on assumptions about storage. eBased on study for Arizona. fStorage not included. NA: not applicable. 25 - Estimates of the impact of conservation on electricity demand are highly unreliable; in addition, some conservation measures tend to re- duce only peaking and intermediate capacity requirements, rather than base load requirements. We estimate that an all-out conservation ef- fort could theoretically eliminate 325 MW of capacity requirements and 2 billion KWh/yr of energy demand by 1986. This is what could be saved only if the complete and conservation effort were implemented by the government basis. slowly (Electricity customers in in the near dark while Maine cannot be the rest of the nation on sustained a national asked to lives the freeze "good life.") If a utility system has excess base-load energy, storage can employed at the system level to reduce or postpone new peaking and in- termediate capacity requirements by making better use of existing load generation. System level storage in serve system energy demands although it can city. itself provide Since system level storage depends on excess to provide intermediate and peaking energy does not and capacity, load it is alternative to the construction of new base load capacity. 26 base directly additional base be capaenergy not an 3.0 ENVIRONMENTAL EFFECTS Appendix L (Environmental Impacts) presents the results special literature review on the comparative environmental of total im- Some authors have found the pacts of technologies such as burning burning wastes, and geothermal energy conversion wastes, to be comparable a impacts the alternative technologies. solid of to forest the im- are not pacts of coal-burning plants. The alternative technologies for electricity production environmental panaceas. Several have as yet unresolved problems which could have a serious impact on Maine. environmental Others, when in operation, have minimal environmental impact. Many of the alternative sources newable primary energy sources and air, water, and land pollution gas generation. considered avoid impacts most do of rely the of conventional With adequate planning and good upon environmental coal, design, oil, it that most of these renewable primary energy resources can be utilization. of the facilities requires and materials The manufactured utilized products There are economic costs associated with even some of the least 27 for substantial environmentally Maine must decide if the benefits additional costs. the construction which environmental impacts must be considered. damaging technologies. and appears indefinitely with no long-term environmental effects comparable to potential problems of coal mining and re- warrant the The major impacts of the alternative technologies this report are given in Table 3.1. Conservation has considered the pact, closely followed by the dispersed solar energy-derived least in im- technolo- gies, (thermal, photovoltaic) wind, current and wave conversion. Cen- tral solar facilities and ocean thermal facilities may be in about the middle. and At the high impact end are the burning biomass and geothermal energy conversion. 28 of solid waste, Table 3.1 SUMMARY OF ENVIRONMENTAL IMPACTS OF ALTERNATIVE TECHNOLOGIES cr~~( :E C) U) 0 0_., (b uD SOLAR 01 c. -1 CD n c) I CD La CD 00 o U) (D ,) -_. O =r 0 301 0 C-) 0 0 o CD fD 0CD ID U) 01 __J.. 1-I rt 3 0 C-c') :0 0c- G) C 1) -S 1 U) U) -. 01 ml Energy Resource Depletion Conversion Area Transmission Area Water Consumption Use of Air Space Air Pollution - Particulate Air Pollution - Gaseous Water Pollution Construction Activity Heavy Metals/Toxic Thermal Discharge Solid Waste 1 1 1 1 2 1 1 1 1 4 3 2 1 2 3 3 4 3 3 3 3 4 4 2 3 4 1 4 3 3 3 2 3 1 1 3 3 2 3 3 1 3 1 1 1 1 4 1 1 1 2 2 )3 1 3 3 1 1 1 1 1 1 3 3 1 )l 1 1 1 1 1 1 4 1 1 1 1 1 1 4 1 1 1 1 3 1 1 1 1 1 1 3 1 1 1 1 3 1 1 1 1 1 3 2 1 3 3 4 4 3 3 2 2 3 3 3 4 3 1 3 1 1 1 1 3 1 1 1 1 1 2 1 1 2 1 1 1 1 4 1 1 2 3 2 2 1 4 1 1 1 1 2 1 1 1 1 1 2 1 1 2 4 4 2 3 2 2 3 3 2 3 1 1 3 1 3 1 Visual Intrusion Noise Public Health Transportation 3 1 1 1 1 1 3 1 1 1 1 1 1 1 1 2 1 1 1 1 1 2 2 1 1 2 2 1 1 1 1 1 1 1 2 1 27 28 22 TOTALS Impact Rating: O 3 1 - negligible 3 - moderate 2 - slight 4 - severe ) ) C 20 20 28 30 26 C4 30 16 indicates ratings for which the more optimistic value of a spread was chosen. 29 4.0 APPLICABILITY TO MAINE Each of the technologies was examined quirements for its satisfactory (for example, wind speed production regimes, solar to identify of electricity insolation When possible, the ability of Maine to provide these special in and energy. This approach gies is highly site-dependent. Specific to the and was electri- subject of siting etc.). requirements is necessarily possibility of large errors because the performance Maine levels, quantified and estimates were made of the resulting available cal capacity re- the technolo- design studies were beyond the scope of this evaluation. In an attempt to draw reliable conclusions about tives to construction of the Sears Island 600 MWe plant, the a alternabest case approach was used to evaluate the uncertain performance information the alternative technologies. The maximum electrical technology under best case assumptions was output determined. of of This each number could then be compared with the minimum requirements for replacing Sears Island plant. In some cases (e.g., ocean thermal the energy) Maine's total resources were clearly too limited to allow operation of the alternative technology. In other cases (e.g., wind energy) it is conjectural to say Maine's resources are, but statements can be made like, "Over one-MWe wind turbines would be needed to produce 95% reliable capacity." The reader is cautioned to note that whether wind turbines can actually be sited, licensed, and only partly a technical question. built what 2000 by Considerable institutional 600 2000 one-MWe 1986 and vironmental barriers might have to be overcome before such a system 30 MWe is en- the fol- possible per- which might not tech- nological requirements, such as the development of manufacturing meth- of wind turbines would lowing two sections our estimates represent formance, without regard to of the best barriers non-technical the in given numbers The be possible. exist or arise. 4.1 Special Requirements The special ods for the mass requirements production discussed turbine of wind lowing special requirements encompass the Rather, blades. energy basic and the raw fol- ma- (Table 4.1). technologies needs of the alternative terial are section in this could With two exceptions, all of the technologies clearly con- tribute to the electrical energy supply in Maine. A. Ocean thermal systems will not operate in the relatively cold and shallow waters off the Maine coast. B. Geothermal systems must rely upon hot dry rock technology be- cause Maine has no known hydrothermal or No data are available on the extent geopressured and resources. characteristics of theoretically be More im- Maine's hot dry rock resources. 4.2 Estimates of Energy and Capacity The fact that the remaining can technologies academic. operated in Maine is interesting but may be only portant is the question of how much energy duced or saved by the technologies. 31 and capacity can be pro- Table 4.1 SPECIAL REQUIREMENTS FOR ALTERNATIVE TECHNOLOGIES Technology Requirements Availability in Maine Biomass Biomass supply 90% forested; collection could be a problem; competition from pulp industry. Conservation Mandatorv Measures -- and Public Support Ocean Thermal Thermal gradient totaling 150 C None Geothermal Hot dry rocks Unknown Fuel Cells Clean gaseous None or liquid fuels from coal Solar Energy Solar insolation Low insolation levels; a(Iverse weather Solid Wastes Solid waste Small, rural population; supply collection problems Storage Suitable sites Limited Waves Coastal Access 300-400 miles of open walter coastline; fishing inter* ference Currents River Sites Numerous; icing and ship interference Wind Coastal reoions and moun tains High Wind Speeds 32 5.0 ECONOMICS Because there is, in general, little or no commercial experience with the alternative technologies studied here, estimates cost are necessarily approximate. In many cases there of are their no data whatsoever on the costs of certain components or operations. The cost data which exist are very sensitive made in their derivation. not reported to the assumptions Unfortunately many of those assumptions in the literature, making it necessary for pret the available data in order to draw even rough us to are inter- technical appendices have noted these assumptions comparisons. and include The inter- pretations when appropriate. 5.1 Economic Assumptions In order to allow at least an order of magnitude the economics of the various alternative technologies, nomic methodology was applied. comparison a common but should sentative of the relative costs of the alternatives. Only and environmental impact minimization could provide units that are still are in the experimental Our basis of cost comparison still in based A chosen. converted All reported costs have been using an escalation rate of 5% per year. ded. 33 comparison to absolute on avail- prototype designs. produced mills/KWh, terminals of the generation plant, . specific the stages or "paper" various technologies has been the cost repre- accurate of the electricity has transmission, Even then, costs will be no more reliable than which be a design study including issues such as siting, licensing, able performance data, most of eco- The numbers which this methodology produced are probably low in an absolute sense cost data. of at the by output year, 1986, 1986 dollars Escalation was not the was by compoun- No attempt was made to determine a lifetime cost for operating is Costs after 1986 were not compared as it the various technologies. considered to be too far into the future for to numbers make sense. The quality of the economic and operating data simply does not adding another set of assumptions to costs. lifetime develop a such specific design study were undertaken, then justify a If year-by-year an- alysis should be performed. total the Electricity costs were found by dividing annual Matura- pital and operating costs by the energy produced in one year. tion problems, which might first few years of low cause plant were operation, sumptions were necessary, optimistic but used, so the resulting energy ignored. reasonable are probably costs during the Whenever as- production energy as low In most cases, it was impossible to quantify the effects of duction of equipment and services on the 1986 prices, is not included. No attempt was made to determine effects (increased employment, sales of goods and etc.) of the alternative technologies as a were assumptions as possible. pro- so mass this effect economic secondary in services possible ca- Maine, credit against the capital their costs. Annual capital costs were determined by burning plant, A levelized fixed charge rate (LFCR) investment for an alternative technology, say into an annual levelized charge. converting a wood of 18% was used for all the alternatives and reflects the of owning a capital investment. annual Debt service, equity return, ation, state and local income taxes, investment tax credit, and property taxes are included in the LFCR; during construction (AFUDC) is not. 34 allowance for cost depreciinsurance, funds used Service life strongly affects the calculation of LFCR, portant implications for the evaluation of gies. the with alternative technolo- Because they are new technologies, their service life be estimated and will certainly vary from one technology im- can to only another. da- Given this uncertainty and the uncertainties of the basic economic ta, there seemed to be little justification for adding of individually calculated LFCR's. Over a range of the refinement posssible service lives (10-30 years), and using the assumptions of Table 5.1, the value of the LFCR changed between roughly 15% and 19%. Table 5.1 LEVELIZED FIXED CHARGE RATE ASSUMPTIONS Bond Interest Bond Fraction Common Stock Interest Common Stock Fraction Preferred Stock Interest Preferred Stock Fraction State Income Tax Federal Income Tax Investment Tax Credit Investment Tax Credit Fraction Property Tax, Insurance Service Life - N 9.75% 52.00% 14.50% 34.00% 10.00% 14.00% 7.00% 48.00% 10.00% 75.00% 1.50% 10-33 years Allowance for funds used during construction (AFUDC) was cluded in the costs calculated for the technologies. length of the construction period charges by as much as 30%. these could not in- Depending on the increase the If this increase were included the LFCR, LFCR would range between 19% and 24%. An LFCR instead of arbitrarily chosen as an optimistic but representative LFCR. 35 capital 18% in was Operating costs were taken directly from lated from known components of plant the operation, literature, or calcu- estimated as a fraction of plant investment. Energy generated was based on the rated native technologies and their estimated capacity capacity of the factors. alterIn cases there is no commercial experience on which to base forced most outage and maintenance estimates. 5.2 Cost of Electricity Based on the optimistic approach outlined costs of electricity from each of derived (Table 5.2). the in Section 1986 technologies were alternative 5.1, These costs should be considered numbers, (i.e., "most optimistic"), in the sense that as that commercially installed units will not provide it expected and below manufactu- Actual commercial costs may turn out to be ring breakthroughs. higher of two or more. Conservation is one method that can their investment. measures is case electricity these costs, even with reasonably likely technological by a factor best taken actually pay consumers for The economics of conservation vary according to the and the cost of the electricity. Storage costs have two components: the cost energy, which depends on its generating source, and storage equipment. The incremental storage of the Base load generation equipment is 36 the are the costs needed energy taken from storage can be economically competitive mediate and peaking generation. of cost same for all generating units, so the determining factor of the stored energy. stored the is the cost so that the with inter- Table 5.2 OPTIMISTIC ELECTRICITY COSTS FROM ALTERNATIVE TECHNOLOGIES Technology Range of Busbar Electricity Costs Mills/KWha in 1986 dollars Conversion of Biomass 50 - 70 Conservationb Ocean Thermal Energy Conversion 70 - 90 Geothermal Energy Conversion 25 - 80 Fuel Cells 55 - 70 Solar Energy Conversion Central Station Thermal 600 - 800 Central Station Photovoltaic 346 - 3000C Space Heating and Coolingd Dispersed Photovoltaice Conversion of Solid Wastes 40 - 90 Storage of Energyb Wave Energy Conversionf 25 - 116 Ocean and Riverine Current Energy Conversion 200 - 260 Wind Energy Conversion 65 - 100 aThese figures do not include AFUDC. Depending upon fuel costs, if AFUDC is included, the busbar cost of electricity can increase up to 30% bCosts depend on the cost of the energy conserved or stored. CCost depends on assumptions made about projected reductions in photovoltaic cell costs. dMay be economic for average homeowner (depending upon his alternatives). eMay be economic if photovoltaic cell costs fall drastically, but utility backup supply still needed. flow by as much as a factor of 3 due to missing costs. 37