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Dr. Dan E. Arvizu Director, National Renewable Energy Laboratory Meeting the Renewable Energy Challenge: What Will it Take to Reach Solar PV’s Ultimate Potential May 8, 2006 Presented at the 2006 IEEE 4th World Conference on Photovoltaic Energy Conversion in Waikoloa, Hawaii NREL/PR-100-40011

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Page 1: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Dr. Dan E. ArvizuDirector, National Renewable Energy Laboratory

Meeting the Renewable Energy Challenge:

What Will it Take to Reach Solar PV’sUltimate Potential

May 8, 2006

Presented at the 2006 IEEE 4th World Conference on Photovoltaic Energy Conversion in Waikoloa, Hawaii

NREL/PR-100-40011

Page 2: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

World Energy Supply andthe Role of Renewable Energy

Source: OECD/IEA, 2004

Page 3: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Electricity Outlook: 2001-2025Electricity Outlook: 2001-2025

Source: International Energy Outlook 2003, Table A9

Central/South America782 BKh

1,577 BKh

Middle East/Africa

1,000 BKh2,633 BKH

Japan/Australia1,221 BKh1,658 BKh

DevelopingAsia

3,103 BKh6,604 BKh

WesternEurope

2,540 BKh3,708 BKh

3.3%

1.4%

Eastern EuropeFormer Soviet Union1,768 BKh2,642 BKh

NorthAmerica

4,293 BKh6,628 BKh

1.8%

3.0%

1.6% 2.3%

3.7%

• Total annual average world electricity growth - 2.4% from 2001 to 2025• Growth rates in transitioning economies higher than developed economies• Natural gas and coal will be near-term fuels of choice for generation• Distributed generation and renewable energy will offer attractive options

74% increase

Page 4: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Magnitude of Challenge RequiresGlobal Action and a Change in Trajectory

Magnitude of Challenge RequiresGlobal Action and a Change in Trajectory

Page 5: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Magnitude of Challenge RequiresGlobal Action and a Change in Trajectory

Magnitude of Challenge RequiresGlobal Action and a Change in Trajectory

Page 6: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Getting There Involves…

Technologies

ReducingRisk

ReducingRisk

CapitalMobilization

CapitalMobilization

Policies Markets

Page 7: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

PV is a $10B+ industry and a $1B venture capital marketPV is a $10B+ industry and a $1B venture capital market

Renewable Energy is Growing

Energy-Tech Investments as a Percent of Total U.S. Venture Capital

Renewable Energy Annual Growth Rates

Source: Nth Power LLC

Page 8: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Worldwide PV Shipments

Source: Paul Maycock, PV News, February/March 2005.

Page 9: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Distributed generation is the immediate market . . . peak power

California (2004)

Page 10: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Renewable Energy Electricity Generation Costs as Percentage of 1980 Levels:

Historical and Projected

Renewable Energy Electricity Generation Costs as Percentage of 1980 Levels:

Historical and Projected

Source: NREL 2005, 2002

Page 11: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

CALIFORNIA

“BIG 3”Experience(It works . . .!)

Policy Stimulates marketsFederal, state, and local governments are the STEWARDS

Page 12: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Is Policy ALL We Need?

Page 13: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

ModuleModuleInverterInverter

Installation,EngineeringInstallation,Engineering

Mounting,Electrical

Mounting,Electrical

Page 14: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

ModuleModuleInverterInverter

Installation,EngineeringInstallation,Engineering

Mounting,Electrical

Mounting,Electrical

Focus on Module R&D . . .

Page 15: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

PV Module Production Experience (or “Learning”) Curve

80%

PV Module Price (2004$/Wp)

1

Page 16: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

90%

PV Module Production Experience (or “Learning”) Curve

1st Generation TechnologyCrystalline Silicon1st Generation TechnologyCrystalline Silicon

80%

PV Module Price (2004$/Wp)

1

Page 17: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

90%Lower feedstock pricesThinner wafers Improved processingImproved performance

Lower feedstock pricesThinner wafers Improved processingImproved performance

PV Module Production Experience (or “Learning”) Curve

80%

•••

EPIA2030

EPIA2020

SEIA2020

PV Module Price (2004$/Wp)1

Page 18: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

90%Lower feedstock pricesThinner wafers Improved processingImproved performance

Lower feedstock pricesThinner wafers Improved processingImproved performance

PV Module Production Experience (or “Learning”) Curve

80%

•••

EPIA2030

EPIA2030

SEIA2020

PV Module Price (2004$/Wp)

1

Page 19: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

90%

70%

Lower feedstock pricesThinner wafers (<100 µm)Improved processingImproved performance (>25%)

Lower feedstock pricesThinner wafers (<100 µm)Improved processingImproved performance (>25%)

PV Module Production Experience (or “Learning”) Curve

Disruptive, advanced 1st & 2nd generation

Disruptive, advanced 1st & 2nd generation

80%

••

EPIA2030

EPIA2020

SEIA2020

PV Module Price (2004$/Wp)1

Page 20: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

90%

70%

Lower feedstock pricesThinner wafers (<100 µm)Improved processingImproved performance (>25%)

Lower feedstock pricesThinner wafers (<100 µm)Improved processingImproved performance (>25%)

PV Module Production Experience (or “Learning”) Curve

Disruptive, advanced 1st & 2nd generation

Disruptive, advanced 1st & 2nd generation

80%

••

EPIA2030

EPIA2020

SEIA2020

PV Module Price (2004$/Wp)1

Page 21: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

80%

90%

PV Module Production Experience (or “Learning”) Curve

Disruptive I2nd Generation Thin films Concentrators Organics . . .

80%

90%

••

EPIA2030

EPIA2020

SEIA2020

PV Module Price (2004$/Wp)1

Page 22: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

80%

90%

PV Module Production Experience (or “Learning”) Curve

Disruptive I 2nd Generation Thin films ConcentratorsOrganics . . .

80%

90%

••

EPIA2030

EPIA2020

SEIA2020

PV Module Price (2004$/Wp)1

Page 23: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

90%

80%80%

Disruptive II3rd Gen and beyondQuantum dotsNanotechnologyMulti-multi-junctionsThermophotonics, voltaicsIntermediate band . . .

70%70%60%60%

PV Module Production Experience (or “Learning”) Curve

PV Module Price (2004$/Wp)

1

Efficiencies beyond theShockley-Queisser Limit(40% … 50% … beyond?)

Efficiencies beyond theShockley-Queisser Limit(40% … 50% … beyond?)

DOE is the STEWARD

R&DEnsures technology ownership, enables growth, new markets

EPIA2030

EPIA2020

SEIA2020

80%•

Page 24: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Industry-GuidedR&D

Industry-GuidedR&D

1st and 2nd Generation PVApplied Science & EngineeringFundamental Science SupportNational Laboratory and University Partners

Short Term

Short Term

Page 25: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Near t

o

Mid TermNea

r to

Mid Term

Industry-GuidedR&D

Industry-GuidedR&D

National

Laborat

ory-Led

Device

, Proce

ss,

and Reli

abilit

y

Innovatio

n

National

Laborat

ory-Led

Device

, Proce

ss,

and Reli

abilit

y

Innovatio

n

1st and 2nd Generation PVApplied Science & EngineeringFundamental Science SupportNational Laboratory and University Partners

2nd & Advanced 1st Generation

Applied Science & EngineeringFundamental Science

Industry and University Partners

Short Term

Short Term

Page 26: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Long TermLong Term

Near t

o

Mid TermNea

r to

Mid Term

Industry-GuidedR&D

Industry-GuidedR&D

National

Laborat

ory-Led

Device

, Proce

ss,

and Reli

abilit

y

Innovatio

n

National

Laborat

ory-Led

Device

, Proce

ss,

and Reli

abilit

y

Innovatio

n

University and National Laboratory

Discovery & Innovation

University and National Laboratory

Discovery & Innovation

3rd Generation PV primarilyFundamental ScienceAdvanced Applied Science

1st and 2nd Generation PVApplied Science & EngineeringFundamental Science SupportNational Laboratory and University Partners

2nd & Advanced 1st GenerationApplied Science & Engineering

Fundamental ScienceIndustry and University Partners

Short Term

Short Term

Page 27: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

Cornerstone:Science & Technology Facility Cornerstone:Science & Technology Facility

Partnered and leveraged withSC Nanoscience CentersUniversity Centers of ExcellenceDiscovery & Innovation Institutesfor success

Partnered and leveraged withSC Nanoscience CentersUniversity Centers of ExcellenceDiscovery & Innovation Institutesfor success

Closing the key gaps:•Time

between concept & consumer usefrom discovery to industry accessdelays in re-doing previous

knowledge (data mining . . .)

Closing the key gaps:•Time

between concept & consumer usefrom discovery to industry accessdelays in re-doing previous

knowledge (data mining . . .)

Bridging fundamental and applied research

Bridging fundamental and applied research

Long TermLong Term

Near t

o

Mid TermNea

r to

Mid Term

Industry-GuidedR&D

Industry-GuidedR&D

National

Laborat

ory-Led

Device

, Proce

ss,

and Reli

abilit

y

Innovatio

n

National

Laborat

ory-Led

Device

, Proce

ss,

and Reli

abilit

y

Innovatio

n

University and National Laboratory

Discovery & Innovation

University and National Laboratory

Discovery & Innovation

Short Term

Short Term

Closing the key gaps:• Performance

between theory & practicebetween laboratory & commercialbetween discrete & integrated

components

Closing the key gaps:• Performance

between theory & practicebetween laboratory & commercialbetween discrete & integrated

components

Page 28: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,
Page 29: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

PowerLight PowerGuard® Rooftop System, 536 kW, Toyota Motor Corp., Torrance, CAPowerLight PowerGuard® Rooftop System, 536 kW, Toyota Motor Corp., Torrance, CA

Shell Solar at Semitropic Water Storage Dist.980 kW, single-axis tracking, Wasco, CA Shell Solar at Semitropic Water Storage Dist.980 kW, single-axis tracking, Wasco, CA

WorldWater & Power, Irrigation System267 kW, Seley Ranches, CAWorldWater & Power, Irrigation System267 kW, Seley Ranches, CA

Sun Power & Geothermal Energy Co. Solar-Wastewater Plant, 622 kW, Oroville,CA

Sun Power & Geothermal Energy Co. Solar-Wastewater Plant, 622 kW, Oroville,CA

Shell Solar, “Sunspot Bürstadt”, rooftop system,Grid tied, 5MW, Bürstadt, GermanyShell Solar, “Sunspot Bürstadt”, rooftop system,Grid tied, 5MW, Bürstadt, Germany

…toward our destination

RidgeVineyardsPV Rooftop65 kW, CA

RidgeVineyardsPV Rooftop65 kW, CA

RWE Schott Stillwell Avenue SubwayStation, PV Canopy Roof, 250,000 kWh/yr, Brooklyn, NY

RWE Schott Stillwell Avenue SubwayStation, PV Canopy Roof, 250,000 kWh/yr, Brooklyn, NY

WorldWater & Power and Alternity PowerAtlantic County Wastewater TreatmentPlant, 8 MW solar-wind hybrid, NJ

WorldWater & Power and Alternity PowerAtlantic County Wastewater TreatmentPlant, 8 MW solar-wind hybrid, NJ

Powerlight, Bavarian community,6.3 MW, single-axis tracking, Mühlhausen, Germany

Powerlight, Bavarian community,6.3 MW, single-axis tracking, Mühlhausen, Germany

Page 30: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

The ultimate test of the human conscience may be the willingness to do something today for future generations whose words of thanks will not be heard.

-Senator Gaylord Nelson, founder of Earth Day

Page 31: Meeting the Renewable Energy Challenge · Meeting the Renewable Energy Challenge: ... Ultimate Potential. May 8, ... WorldWater & Power, Irrigation System 267 kW,

The U.S. Department of Energy’sNational Renewable Energy Laboratorywww.nrel.gov

The U.S. Department of Energy’sNational Renewable Energy Laboratorywww.nrel.gov

Golden, ColoradoGolden, Colorado