June 16, 2009 Michael W. Howard, Ph.D. Sr. Vice President, R&D Group Renewable Resources and Operational Challenges

2 © 2009 Electric Power Research Institute, Inc. All rights reserved. The Electric Power Research Institute Independent, unbiased, tax-exempt collaborative research organization Full spectrum industry coverage –Nuclear –Generation –Environment –Power Delivery & Utilization 460 participants in over 40 countries Major offices in Palo Alto, CA; Charlotte, NC and Knoxville, TN RD&D Consortium for the Electricity Industry

3 © 2009 Electric Power Research Institute, Inc. All rights reserved. Renewable Technology Development

4 © 2009 Electric Power Research Institute, Inc. All rights reserved. Renewable Technologies Variability and Predictability

5 © 2009 Electric Power Research Institute, Inc. All rights reserved. Challenge - Balancing Generation and Load Load Generation Objective Less Variability - More Predictability

6 © 2009 Electric Power Research Institute, Inc. All rights reserved. Wind – Variable and Predictable? Tehachapi Wind Generation

7 © 2009 Electric Power Research Institute, Inc. All rights reserved. 7 Solar - Variable and Predictable? Minutes Source: Jay Apt CMU, 4.6 MW TEP Solar Array (Arizona)

8 © 2009 Electric Power Research Institute, Inc. All rights reserved. What’s The Solution?  System Visibility  Generation Balancing Resources  Energy Storage  Transmission Integration  Demand Response  Meteorological Prediction

9 © 2009 Electric Power Research Institute, Inc. All rights reserved j j j j j j j j j j j j j j High Speed Scan Rates More Frequent Analysis of System Condition Enhanced Grid Visibility System Visibility

10 © 2009 Electric Power Research Institute, Inc. All rights reserved. Generation Balancing Resource Acknowledgment: Research Conducted by Warren Katzenstein and Jay Apt, CMU Ramp Rate and Duty Cycle for CT Balancing Wind Time (Hours) Ramp Rate (MW/min)

11 © 2009 Electric Power Research Institute, Inc. All rights reserved. Energy Storage Hours Discharge Time Power Seconds Minutes 100s kW 10s MW 100s MW 10s kW Ultracapacitors SMES Lead-Acid and Nickel Cadmium Batteries High Energy Flywheels Metal-Air Batteries Low Energy Flywheels Advanced Batteries Compressed Air Flow Batteries Pump Storage

12 © 2009 Electric Power Research Institute, Inc. All rights reserved. 1 mile Thermal Energy Storage

13 © 2009 Electric Power Research Institute, Inc. All rights reserved. Requires Transmission to Major Load Centers Transmission Integration Wind Resource Map Demand Centers High Wind Availability

14 © 2009 Electric Power Research Institute, Inc. All rights reserved. Transmission Integration

15 © 2009 Electric Power Research Institute, Inc. All rights reserved. NGCC ($6-8/MMBtu) Levelized Cost of Electricity, $/MWh Cost of CO 2, $/Metric Ton IGCC PC Wind (32.5% Capacity Factor) Comparative Costs of Electricity – 2015 All costs are in December 2007 $ Rev. October 2008 Biomass 95% confidence level values based on EPRI Report Renewables “out of the money” without incentives or mandates Nuclear

16 © 2009 Electric Power Research Institute, Inc. All rights reserved. Summary - Renewable Resources  29 States and DC have Renewable Portfolio Standards – 5 States have Renewable Goals  Several renewable generation technologies – viability depends on location and costs  Tradeoff - Variability and Predictability  Several technical solutions exist to integrate renewable resources