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A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director [email protected] Houston Advanced Research Center www.harc.edu November 18, 2004

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Page 1: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

A Vision for our Energy Future

UH GEMI Energy Advancement Leadership Conference

Karl R. RábagoEnergy Group [email protected] Advanced Research Centerwww.harc.edu

November 18, 2004

Page 2: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Houston Advanced Research Center

◊ Mission focused independent contract research center

◊ Established 1982

◊ Sustainable development Clean / Renewable Energy

Sustainable Technologies

Life Sciences / Health

Environment

Social / Policy Analysis

◊ Lab and office space

◊ Around 50 employees

◊ Not-for-profitThe Woodlands, Texas

Page 3: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Clean & Renewable Energy at HARC

◊ Fuel Cell Evaluation Users Group Ten different modules/systems from five different

manufacturers (2001-2004)

◊ Combined Heat & Power (CHP) Production of multiple energy products from a single

source for maximum efficiency (e.g., cogeneration)

◊ Carbon Management & Markets Industrial Coalition Credit aggregation & marketing

◊ Energy Policy Member, TX Renewable Energy Industry Assc.

◊ Consulting

Page 4: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

Page 5: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

Our predictions will come out wrong

(unless)

Page 6: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

US energy/GDP already cut 42%, to very nearly the 1976 “soft path”

Rocky Mountain Institute

renewablesnuclear

gas

0

50

100

150

200

250

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

primary energy consumption

(quadrillion BTU/year)

"hard path" projected by industry and government

"soft path" proposed by Lovins

soft technologies(which do not include big hydro or nuclear)

oil and gas

coal

renewables

nuclear

coal

oil and gas

actual total consumptionreported actual total energy

consumption

government

Page 7: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

Crisis will still be the strongest motivator

Page 8: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Precipitating Facts

TABLE 1: Benefits of Texas Energy Industry revenues shown are in millions of dollars

  1982 1995 Change

School Fund $512 $124 - 76%

Severance Tax

$2,374 $848 -64%

Mining Jobs 292,000 147,800 -49%

Virtus Energy

Page 9: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

End of a Legend

Virtus Energy

Page 10: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

A New Vision

The Texas Sustainable Energy Development Council envisions a Texas responsibly powered by its sustainable energy resource base

and serving as a model to others in equitable prosperity, environmental

health, advanced technology, innovative government and respect

for future generations.

Page 11: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Texas: Clean Energy Giant?

TX SECO # 8

Page 12: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

A Reminder

◊ “Resource” is a topic that embodies both economic and physical attributes

◊ We are NOT going to run out of the physical resource - Did a shortage of stones end the stone age?

◊ We ARE going to run out of willingness to pay (in $, frustration, and consequences) for some resources and in some locations

◊ So, at $10 billion dollars or 1 million cases of cancer or 1 million refugees per pound or per barrel or per bushel, we have an infinite supply . . . What are you willing to pay?

Page 13: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

We will measure success against the Triple Bottom Line

Page 14: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced
Page 15: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Sustainable Development

Society Economy

Environment

Page 16: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

We will learn Systems Thinking

Page 17: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Practical Electric Economics

Page 18: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Optimized industrial designOptimized industrial design

• Redesigning a standard (supposedly optimized) industrial pumping loop cut its power from 95 to 7 kW (–92%), cost less to build, and worked better in every way

• No new technologies — just two changes in the design mentality

• Many other examples are in Natural Capitalism, free at www.natcap.org

• Redesigning a standard (supposedly optimized) industrial pumping loop cut its power from 95 to 7 kW (–92%), cost less to build, and worked better in every way

• No new technologies — just two changes in the design mentality

• Many other examples are in Natural Capitalism, free at www.natcap.org

Page 19: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

New design mentality example

1. Big pipes, small pumps (not the opposite)1. Big pipes, small pumps (not the opposite)

Page 20: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

No new technology, except in the mind of the designer

2. Lay out the pipes first, then the equipment (not the reverse).

Optimize the WHOLE system,and for multiple benefits.

2. Lay out the pipes first, then the equipment (not the reverse).

Optimize the WHOLE system,and for multiple benefits.

Page 21: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

No new technologies, just two design changes

◊ Fat, short, straight pipes — not skinny, long, crooked pipes!

◊ Benefits counted 92% less pumping energy Lower capital cost

◊ “Bonus” benefit also captured 70 kW lower heat loss from pipes

◊ Additional benefits not counted Less space, weight, and noise Clean layout for easy maintenance access But needs little maintenance—more reliable Longer equipment life

◊ Fat, short, straight pipes — not skinny, long, crooked pipes!

◊ Benefits counted 92% less pumping energy Lower capital cost

◊ “Bonus” benefit also captured 70 kW lower heat loss from pipes

◊ Additional benefits not counted Less space, weight, and noise Clean layout for easy maintenance access But needs little maintenance—more reliable Longer equipment life

Page 22: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

We will look before we leap

Page 23: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

It Takes a System

Page 24: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Finding Better Options

Page 25: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Some Systems are Better than Others

Page 26: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

Energy solutions will be smaller and more

satisfying

Page 27: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

A 5-year rolling average reveals that US fossil-fueled steam unit orders have been fading since the 1970s; their ordering rate, all ≤1/5 the former size, is now back to Victorian levels

Maximum and average sizes of new generating units (fossil-fueled steam, all utilities, 5-year rolling average) by year of entry into service

0

200

400

600

800

1,000

1,200

1,400

1910 1920 1930 1940 1950 1960 1970 1980 1990 20000

50

100

150

200

Maximum new size Average new size Number of new units

Rocky Mountain Institute

Page 28: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Big steam units aged ungracefully

Fossil-fueled steam units: median Equivalent Availability Factor vs. age, by size range,

1982–93

70

75

80

85

90

95

0 5 10 15 20 25 30

age (years)

EA

F (

%)

1 MW100 MW200 MW300 MW600 MW1,000 MW

RMI analysis by André Lehmann, using Markovian smoothing of 29 July 1994 NERC raw data on all 1,347– 1,527 U.S. steam units in the years shown; raw data kindly provided by Resource Insight, Inc.

Page 29: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

“Distributed Benefits”

◊ Small Is Profitable: The Hidden Economic Benefits of Making Electrical Resources the Right Size (RMI, 8/02) www.smallisprofitable.org One of The Economist’s top three

business/economics books of 2002

◊ Codifies and quantifies 207 “distributed benefits” that collectively increase the economic value of decentralized generation by typically ~10 (but site-specific)

Page 30: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

The system will be smarter

Page 31: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Smarter & More Communicative

U.S. DOE

Page 32: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Why Make Just One Product?

Page 33: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Why Sell Only One Product?

Production of Renewable

Energy

Environmental & Other Benefits(from displacement)

Commodity Electricity

• Certificates represent the contractual right to claim the environmental and other non-electricity attributes associated with electricity generated from a renewable energy facility

• May be traded independently of energy markets

Page 34: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

We will recognize that public goods can and should be well-

managed with public policy

Page 35: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

US Transportation Oil Gap

US DOE Hydrogen Posture Plan

Page 36: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

California: policy works

Per-Capita Electricity Consumption, 1960–2000

0

2

4

6

8

10

12

14

16

1960 1965 1970 1975 1980 1985 1990 1995 2000

MW

h P

er P

erso

n-Y

ear Rest of US

California

(DOE and CEC data, compiled 1960–89 by Worldwatch Institute, 1990–2000 by Rocky Mountain Institute; 2000 data are preliminary; 1991–2000 population data not yet renormalized to 2000 Census findings)

Rocky Mountain Institute

Page 37: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

A Variety of Policies

AWEA Wind Energy Outlook 2004

Page 38: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

In the Future . . .

Materials will matter . . . even

more

Page 39: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

World Demand for Stuff is Growing

Page 40: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Dematerialization

Page 41: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Principal Flows are Fossil Related

WRI

Page 42: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Hazards are Growing

WRI

Page 43: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

As with Energy, So with Materials

Page 44: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

No Materials Self-Sufficiency

Page 45: A Vision for our Energy Future UH GEMI Energy Advancement Leadership Conference Karl R. Rábago Energy Group Director krabago@harc.edu Houston Advanced

Thanks!

◊ Visit us at www.harc.edu

◊ Karl R. Rá[email protected]