Confidential - Luthin Associates

L Confidential
A
uthin
ssociates
Summer 2011
Issue IX Volume II
Not in My Pond!
e’ve all seen solar photovoltaic modules on rooftops of residential and
commercial buildings. In New Jersey, they seem to be on every other
utility pole as well. Depending on
your particular point of view, they
are either tolerable or intrusive.
While most of us would not want a
major solar generating facility on
our block, we might more readily
accept solar arrays on ponds in rural areas. This idea is one of many
innovative options being developed
across the country.
W
The unobtrusive rooftop
solar
module was and still is the leading
solar photovoltaic installation.
However, interest in renewable solar energy has increased dramatically. The United States Energy Information Administration reports
that shipments of photovoltaic cells
and modules increased by over 4.5
times from 2005 to 2009. This increased interest has led to some
out-of-the-box thinking about
where to put solar modules.
Land-based installations (generally
referred to as ground mounts) have
been used for several years. There
are a number of large ground
mount systems producing many
m e g aw a t t - h o u r s o f p o we r.
Ground mounts can take advantage
of motorized tracking systems that
allow the solar modules to “follow
the sun,” thereby increasing their
efficiency. Foundation support issues utilizing geotechnical engineering expertise must be addressed for
proper installation and operation.
One application that is becoming
more and more popular is the solar
canopy over parking lots and parking structures. These canopies
Inside this Issue...
come in a variety of styles, ranging
from continuous rows of modules
to discrete clusters. This application not only provides a large area
for solar power generation, but
also provides shading and protection from rain and snow for vehicles and their drivers. In most
cases, the canopies are mounted
on poles anchored into the parking
surface, and take up few, if any,
parking spaces. The canopies can
also be used to provide charging
stations for electric vehicles.
surfaces must be studied and addressed before this type of installation can be deployed.
Not in My Pond!
Perhaps the most innovative recent The First Geotherapplication is a solar module that
mal Elevator
floats on water. There are two such
floating applications installed on
ponds in the Sonoma and Napa Valley
Do You Know?
regions in California. Several companies are also beginning to develop a
market for solar installations on agricultural and mining ponds, hydroelectric reservoirs and canals. Generally, Faster Freezing Ice
Cubes?
the modules are attached to a metal
lattice fitted to pontoons and anchored by tie lines to buoys to withstand wind and waves. Additional
Whom Do You Trust?
benefits may also be realized. One
study has shown that water evaporation under the floating arrays decreased by 70 percent, and that the
Energy Myths
systems inhibit destructive algae
growth by blocking the sunlight that
the algae need to grow.
1
2
2
2
Another application seeing wider
use is the placement of solar modules on old landfills or other
3
“brownfield sites.” This is a very
sustainable way of making good
use of what would otherwise be
large areas of abandoned or under4
productive property. New York
City Mayor Michael Bloomberg recently announced that the city has
its sights set on using shuttered
landfills for new solar power These innovative approaches to solar Catherine Luthin:
4
plants. These renewable energy installations (continued on page 3) On a Personal Note
plants, he said, could
generate more than 50
megawatts of power,
and would be developed using publicprivate partnerships. As
with the more traditional ground mount
systems, landfill or
brownfield systems
would also be able to
take advantage of solar
tracking technology to
increase system efficiency. In addition to
the geotechnical considerations needed to anchor the systems, environmental concerns related to disruption of Luthin Associates Staff, pictured at the Ocean Grove Fishing Pier in Ocean Grove, NJ
From Left: John Luthin, CFO; Jim Ferris, Director; Rakesh Parasuraman, Director
landfill or brownfield
The First Geothermal Elevator
While reading Journey to the Center of the Earth
many years ago, I was struck by the idea that
the journey back was not going to be an easy
one. The uphill climb, I suspected, would involve a torturous climb to the surface. Little
did I know then that Jules Verne had anticipated this problem by inventing the first geothermal elevator, which sprang up from an underground lake and propelled Professor Lidenbrock and company through a volcano into
Stromboli, Italy.
Centuries later, geothermal power continues
to be one of the most abundant and sustainable renewable energy resources available.
The word “geothermal” derives from the
Greek words geo (earth) and therme (heat); i.e.
earth heat.
There are two primary ways in which this geothermal resource is used. The first is geothermal-generated electricity, which is produced
directly from the steam and/or hot water
trapped in what is called a geothermal reservoir. Essentially, the heat from the earth's core
continuously flows outward to the surrounding layer of rock. When temperatures and
pressures become high enough, some rock
melts, becoming magma. Then, because it is
lighter (less dense) than the surrounding rock,
the magma rises (convects), carrying the heat
from below and moving slowly upward toward
the earth's crust. Sometimes the hot magma
reaches the surface, where we know it as lava.
But most often the magma remains below the
earth's crust, heating nearby rock and water.
Some of this hot geothermal water travels back
up through faults and cracks and reaches the
earth's surface as hot springs or geysers, but
most of it stays deep underground, trapped in
cracks and porous rock. This natural collection
of hot water is what forms the geothermal reservoir.
To produce geothermal-generated electricity,
wells up to a mile deep or more are drilled into
the geothermal reservoirs to tap the steam and
hot water that then drive turbines linked to
electricity generators. There are three types of
geothermal power plants: dry steam, flash
plants, and binary plants. Dry steam is the oldest geothermal technology, taking steam out of
fractures in the ground and using it to drive a
turbine directly. Flash plants pull deep, highpressure hot water into cooler, low-pressure
water. The resulting steam drives the turbine.
In binary plants, the hot water is routed past a
secondary fluid with a much lower boiling point
than water. This process vaporizes the secondary fluid, and the vapor drives the turbine.
power plant produces. Also, unlike solar and
wind energy, geothermal energy is always
available.
There are, however, some environmental
concerns. Fluids drawn from the deep earth
carry a mixture of gases, notably carbon dioxide (CO2), hydrogen sulfide (H2S), methane (CH4), and ammonia (NH3). These pollutants contribute to global warming, acid
rain, and noxious smells if released into the
environment. In addition to dissolved gases,
hot water from geothermal sources may
hold in solution trace amounts of toxic
chemicals, such as mercury, arsenic, boron,
antimony, and salt. These chemicals come
out of solution as the water cools, and can
cause environmental damage.
The costs associated with geothermal
power might also be a hindrance. Since it
requires no fuel, it is immune to fuel cost
fluctuations. However, capital costs tend to
be high, generally above $4 million per
megawatt. Drilling accounts for over half the
costs, and exploration of deep resources entails significant risks. This compares to $1
million per mW for natural gas and $2.5 milThere are many advantages to geothermal- lion per mW for large scale wind farms.
generated electricity. It can be extracted without burning a fossil fuel, and geothermal fields An easier to use geothermal resource inproduce only about one-sixth of the carbon di- volves geothermal heat pumps (GHPs), also
oxide that a relatively clean natural-gas-fueled known by a variety (continued on page 4)
Faster Freezing Ice Cubes?
Summer drinks call for ice cubes, and we want
them fast. But would water freeze faster if it
started out hotter? Laura Bruce at Bankrate.com cites her local utility, Portland General Electric, as claiming that “ hot water
freezes faster than cold water because it
evaporates, leaving 25 percent less water to
freeze.”
asked him to “bust” that myth.
it was a tie. The hot water sample did indeed
lose some fluid to evaporation, which reAudin put eight samples of water — from the moves heat faster than conduction does, but
same tap, in identical containers having the the hot water also had much more heat to
same starting volume — into the same freezer. lose, apparently canceling out the difference.
Using a lab grade thermometer, he measured
the cooler water in four containers at 75oF and Bottom Line: No apparent time benefit was
the water in the other four at 130oF (about the realized. The hotter sample gave us less ice,
temperature of a cup of tea). Checking every 5 which was not appreciated. Maybe the hot
When our friend, Lindsay Audin aka Energywiz minutes for about an hour, he found that 1 cube sample would have frozen faster if it had
told us about this in his most skeptical voice, at each of the 2 temperatures fully froze at the been boiling when put into the freezer, but
we felt it was so counterintuitive that we same time (within a minute or two), while 3 at only somebody selling electricity would sugeach temperature were still partially frozen, so gest doing this.
Do You Know?
In the past, gas-fired generators for producing
electricity were used for peaking plants because of the high cost of running those generators. Over the past six years, however, due
to increased efficiency, greater supply, and,
lower costs, natural gas generation is being
used more and more.
Nearly 237 gigawatts (GW) of natural gasfired electric generation capacity were added
to the Nation’s total capacity between 2000
and 2010, representing 81% of the total capacity additions over that period. By the end of
Page 2
2010, natural gas-fired generators provided
39% of the Nation's total capacity of 1,042
(GW).
Since 1980, about 65% of the existing natural
gas capacity that has been added has been by
way of combined-cycle units. These units capture exhaust heat and feed it to boilers, making the generators more efficient. Recent capacity additions to the electric generation fleet are natural gas combustion turbines,
typically used for peaking purposes (source:
Energy Information Agency).
Issue IX Volume II
Whom Do You Trust?
It was more than 30 years ago that I built my
first deck. Product research in the pre-PC era
was much more difficult than it is now, and
your local lumber yard guy was the main
source of information. At the time, Wolmanized wood was the hi-tech product of the day
that would make your deck last for at least 30
years-- guaranteed!! The salesman provided
several pamphlets from the manufacturer and
an industry group that swore by its product.
Fifteen years later, my deck was still as strong
as ever, no sign of rot, but it looked awful. The
planks had been through several power washings and stainings, and I wound up replacing
them. I found the warranty document and read
it again. It quite clearly stated, “guaranteed not
to rot for 30 years.” In truth, they had never
guaranteed that it would look good 30 years
later. I had just assumed that it would.
Warranties for photovoltaic systems (PV) have
their own issues. The main components of the
PV systems are the solar panels and inverters,
which convert DC power to AC. Both of these
systems have unique performance characteristics that should be clearly understood when
shopping. Many manufacturers offer 20 to 25
year warranties on the solar panels. Typically,
this long term warranty is for “output.” Is the
number of watts being produced equal to the
rating, or at least within a tolerance, which
may be 90% but could be 80% or some other
number? The warranty for manufacturer’s defects is usually nowhere near 20 years. It may,
in fact, be as low as five years. If some of your
panels are lemons, you will be replacing them
at your cost after that time. Power inverters
typically have warranties of two to 15 years,
and if the inverter is not sized correctly, it will
wear out sooner, and the sizing error will
probably void any warranty.
will also want a copy of the manufacturer’s
warranty agreement. (Why would a third
party influence my need for a warranty
agreement? Wouldn’t I want one in any
case?)
When companies like Enron can fail, and
where ESCos and other equipment installers
may not be in business for the long term, it
is also important to understand who holds a
warranty. Will that company be viable if you
need to exercise a claim? If the manufacturer is a company in a foreign country, how
do you go about collecting on a product you
bought eight years ago? We would all agree
on the value of installation contractors who
have a good deal of experience and an
equally good reputation. We expect them to
verify warranties, and we should make sure
they perform that role. However, in the
emerging energy product markets, installers
may represent niche companies who are
new to the market place and have a shorter
track record. Vetting a warranty may not be
in their best interests.
A contractor may point out that a product
has been certified by Underwriters Laboratory. That tells us it’s safe, but we don’t
know anything else about it. UL approval is
a safety measure. It does not certify lamp
life. Many industries though, do police themselves and provide standards to measure
performance. The Illuminating Engineering
Society has developed two procedural standards—LM 79 and 80—to measure electrical, photometric, efficacy and lumen depreciation of LEDs. Organizations like
NYSERDA and Con Edison will require that
products that qualify for rebates meet
these standards. While the standards can be
manipulated by manufacturers or in some
cases applied to a product fraudulently, given
It is also important to know when a warranty the uncertainty of a new technology, they
begins. If you hire an ESCo to install a number provide a good starting point for your reof energy conservation measures at your facil- search.
ity, the installation period may be as long as a
year. It is possible that the chiller could be in- This article asks many more questions than
stalled in December and tested in January. it answers, and there is good reason for that.
Does the warranty clock start running in Janu- The best way to learn about most things,
ary, or during the summer when you actually and especially warranties, is through experistart using it? Does the ESCo have any liability ence. Yet how many of us can survive more
for the warranty period? There are many com- than one or two projects where the warponents to an HVAC system, and these com- ranty did not provide what we expected?
ponents may have multiple manufacturers and There are no shortcuts to understanding
terms. Murphy’s Law dictates that something the effectiveness of a warranty in protecting
will malfunction on the hottest day of the year your business interests. The mere fact that
during the first cooling season, and that the manufacturers offer and companies pay for
warranty will have expired last week. In addi- extended warranties implies that there is a
tion to the start date and warranty period, you good chance that your product may fail bewill want to know if you have the ability to ne- fore its expected life term.
gotiate that start date and what the criteria
for selecting it is. If a third party vendor
We recommend an approach that may help
stands between you and the manufacturer, you you make the right decisions:
Here Comes The Sun!
1. Always purchase equipment and energy
installation projects competitively. Do
not just look for competition in the installing company, but also in their
product options. Be careful of installers
that handle only one manufacturer.
While this is not necessarily a bad
thing, getting several proposals that include other manufacturers will help.
2. Have a demonstration installation
where feasible. Certainly, lighting lends
itself well to this approach.
3. Identify professional organizations that
certify the type of equipment you intend to purchase.
4. Ask your utility or energy efficiency experts if they can provide information
about a product or technology. If the
equipment is rebate-eligible, it probably
has weathered the scrutiny of these organizations.
5. Find out who stands behind the warranty. At the least, look up their D&B
ratings. For high capital costs, review
their financial status.
6. If the general market place purchases
an extended warranty, there is probably
a good reason for it, so consider such a
purchase as well.
7. Be careful about understanding the operating requirements of the equipment.
If, for example, an LED fixture is not
properly ventilated, the warranty may
be voided.
Team Luthin for Avon Raft Race: Kevin Comerford of Memorial Sloan Kettering; John Luthin, CFO; Jose Jr; Jose
Sr; Carlos; Grainne Hughes of Con Ed Solutions & Nancy
Gardner of Hess. Results and photos on www.luthin.com
Not In My Pond (Cont’)
likely foretell the future of renewable solar
energy as we attempt to increase the production of clean energy and decrease greenhouse
gas emissions and dependence on foreign oil.
Of course, as we learn more about these new
ideas, we may find out that there are destructive characteristics to some of them, like the
solar pond, that will lead rural America to
shout, “Not in My Pond!”.
Page 3
Energy Myths: Outside Air, Switching on All the Lights and Foreign Oil Based Electricity
Like any major industry, energy has its folk- mid (as is often true at night), then such “night
lore and myths. Here are just a few.
flushing” could introduce more heat in the air’s
humidity than is displaced from its lower dryMyth: Bringing in night air that’s cooler than bulb temperature.
air inside a building will cut the next day’s
cooling load.
Myth: Improving the efficiency of lighting, elecReality: Depends on your neighborhood. Is tric appliances, and motors could significantly
the total heat content – air plus moisture – reduce oil imports.
of the incoming outside air less than the Reality: This will only be true in Hawaii, where
conditioned air in the building? A significant oil is the major source of fuel for its power
chunk of cooling load comes from drying plants. For all of the US, less than 2% of elecout wet air. What might work well at night in tricity comes from oil. The US has eliminated
the dry plains may not work so well in hu- most oil-fired generation, using it now mainly in
mid coastal areas. If the interior air is small peaking units, not in the large base load
warmer and more humid, it makes sense to plants. Today, nearly all of our kilowatt-hours
replace it with cooler and dryer outside air. come from coal, natural gas, nuclear, and hydro.
But if the outside air is cooler and more hu- (Source: Energy Information Agency)
Myth: Turning on all your lights at the same
time results in a much higher demand charge
than starting all of them just a few at a time.
Reality: When fluorescent lights running on
electronic ballasts are first switched on, they
may indeed pull 10 times as much power as
they do after startup. But that high power
draw lasts less than 2 seconds. Utility demand
charges, on the other hand, are based on the
most kilowatt-hours consumed in a 15 or 30minute period. A brief high draw has essentially no impact (less than ½ of 1%) on the
kWh consumption in that period, and thus
very little impact on the peak demand charge.
Turning on all the lights at once, however,
might cause a circuit breaker to trip.
The First Geothermal Elevator (Cont’)
of other names, including geoexchange, earth- cooling, depending on climate.
coupled, earth energy, or water-source heat
pumps.
GHPs must have a heat exchanger in contact with the ground or groundwater to exThe GHP is a central heating and/or cooling tract or dissipate heat. Several major design
system that pumps heat to or from the ground. options for these heat exchangers are availUnlike an air-source heat pump which transfers able. In Direct Exchange systems the ground
heat to or from the outside air, a ground source -coupling is achieved through a single loop
heat pump exchanges heat with the ground. circulating refrigerant in direct thermal conThis is much more energy-efficient because un- tact with the ground. Closed Loop systems
derground temperatures are more stable than have two loops. The primary refrigerant
air temperatures through the year. Depending loop is contained in the appliance cabinet
on latitude, the upper 10 feet of the Earth's sur- where it exchanges heat with a secondary
face maintains a nearly constant temperature water loop that is buried underground.
between 50 and 60 °F. The core of the heat Open Loop systems also have two loops,
pump is a loop of refrigerant pumped through a but the secondary loop pumps natural water
vapor-compression refrigeration cycle that from a well or body of water into a heat exmoves heat. A ground source heat pump ex- changer inside the heat pump.
tracts ground heat in the winter (for heating)
and transfers heat back into the ground in the The U.S. Environmental Protection Agency
summer (for cooling). Some systems are de- has called geothermal heat pumps the most
signed to operate in one mode only, heating or energy-efficient, environmentally clean, and
cost-effective space conditioning systems
available. Heat pumps offer significant emission reductions potential, particularly where
they are used for both heating and cooling
and where the electricity is produced from
renewable resources.
Geothermal heat pump systems are characterized by high capital costs and low operational costs compared to other HVAC systems. Their overall economic benefit depends
primarily on the relative costs of electricity
and fuels, which are highly variable over time
and across the world. Based on recent prices,
geothermal heat pumps currently have lower
operational costs than any other conventional
heating source almost everywhere in the
world. Natural gas is the only fuel with competitive operational costs, and only in a handful of countries where it is exceptionally
cheap, or where electricity is extremely expensive.
On A Personal Note...
how much solar installations
have developed and what future
installations may look like which
are featured within the article,
“Not in My Pond”.
G
rowing up in the sixties, you
were defined by your response to the following question:
who is the better band—The
Beatles or The Rolling Stones?
At the risk of a few curses from our
readers, my response was and is The
Beatles. The deciding factor for me is
George Harrison’s guitar solos. My
favorite song of all time is “Here
Comes the Sun,” and whenever I lisIssue IX Volume II
ten to it, my spirits lift:
Here comes the sun
Here comes the sun, and I say
It’s all right….
Here comes the sun could also be
Luthin Associates’ mantra for the
future. The firm is currently negotiating a solar energy purchase
agreement for a university. The
agreement has us talking about
Well, I am editing this newsletter
at the beach, the sun is hiding and
it’s getting a little hazy As I laze in
my beach chair, my husband is up
and casting out a line to go fishing…
Warranties for Photovoltaic
Enjoy the Summer!
(PV) Systems are one of the issues we addressed in our solar
Catherine Luthin
negotiation. “Whom Do You
Trust?” is our attempt to clarify
Luthin Associates
a host of issues when you look
at any potential energy conservation measure. Other articles 15 Walling Place, Avon By The Sea,
New Jersey, 07717
in this issue focus on Geothermal Power and its connection
Phone: 732.774.0005
to Jules Verne, and we “bust”
Fax: 732.774.0049 fax
some energy myths.
Email: [email protected]
Page 4