Engineering Inc. - November/December 2010 - (Page 11)

A prime example is Portland General Electric (PGE), which supplies power to more than 822,000 customers in Oregon. The U.S. DOE rates it the No. 1 utility in the country for customer participation in a renewable power program. PGE operates a total of 217 wind turbines, which generate a maximum of 450 megawatts (MWs) of power. The utility expects to generate 9 percent of its energy mix through renewable sources by the end of 2010 and 15 percent by 2015. The goal, says PGE CEO Jim Piro, is to balance “environmental impact, cost and reliability.” Beyond the Meter a minority equity interest in Tres Amigas for $1.75 million in cash and AMSC stock. “Government-funded grants and tax credits—many created by the Energy Policy Act of 2005—are also spurring innovation, development and adoption,” says Paul Boyce, vice president of engineering for P.W. Grosser Consulting, Inc., a Bohemia, N.Y.-based firm specializing in environmental services. Unfortunately, many of these tax credits and incentives are scheduled to expire in 2012. Without them—and with today’s sagging economy—experts say many renewable energy projects are in danger of being put on hold—and, in some cases, abandoned. Getting Involved Renewable Energy At a Glance Biomass: accounts for approximately 15 percent of the world energy supply. used primarily for heating and electricity. examples: wood, ethanol, biodiesel, methane. Wind: Makes up about 2 percent of worldwide power. it’s among the fastestgrowing renewable segments, though it’s not suitable for many areas. it also creates infrastructure challenges because it requires transmission lines to remote areas and is non-dispatchable—meaning that the power must be tapped when it is available or it is lost. Geothermal: this power-generation technology is limited to areas where natural geothermal activity exists. However, it is used in two-dozen countries, including the united States (which has 77 existing power plants). Hydroelectric: about 20 percent of the world’s power supply comes from hydroelectricity, and it accounts for 88 percent of the electricity extracted from renewable sources. there is no direct waste, and Co2 output is extremely low. Hydrogen and Fuel Cells: a fuel cell converts a source fuel, such as hydrogen, into electrical current. although this technology shows tremendous promise (it has no moving parts and produces zero emissions), it is currently used on a limited basis, mostly because of high manufacturing costs. Much of the renewable-energy industry’s progress can be attributed to private firms developing wind, solar and geothermal farms as well as transmission lines—sometimes on their own and sometimes as part of a partnership with utilities. TransWest Express Transmission Project, for example, calls for the construction of a $3 billion, 3,000 MW, 600 kilovolt HVDC transmission line from Wyoming to Las Vegas. The line would carry renewable energy produced in Wyoming, including wind and solar, to the Southwest. The private company began development in 2005 and hopes to commence construction in 2013. Several other projects are in the works. In New Mexico, Tres Amigas Super Station would provide a transmission hub with an eventual 30-gigawatt capacity that would carry solar and wind energy to Arizona and California. The first phase of the project will cost an estimated $600 million. Financing for the development phase was provided through a combination of private investors and strategic partners, including American Superconductor (AMSC), which acquired For engineering firms looking to tap into the energy boom, ramping up knowledge is essential. “Tremendous opportunities exist for engineering firms,” says Jack Hand, CEO of Power Engineers, a Hailey, Idaho-based firm that specializes in alternative energy. He believes that, “Despite a downturn in the economy, the development of alternative energy sources will likely continue unabated for the next 10 to 15 years.” Many utilities view energy projects as oneoff propositions and need outside expertise. As an example, over the next decade, Hand also expects a heavy emphasis on building out a national smart grid. “Today, the power flows where the load is. We need to interconnect the existing U.S. grids and make lines bidirectional,” he says. “This will allow us to move power more efficiently.” Christie says all stakeholders, including firms, utilities and policymakers, must do a better job of coordinating development and infrastructure across sectors and agencies. “Right now, the environment is extremely entrepreneurial and energy U.S. Energy Sources (2009) production isn’t necessarNuclear Power 8.3% ily matched with demand. There must be a focus on Renewable Energy 7.7% building out systems and � infrastructure to support � � these technologies.” Other 5.6% One of the biggest challenges is how to negotiate � � Petroleum 35.3% � a complex web of approval and permitting processes. “The process is slow and Natural Gas 23.4% it creates delays,” says Hand. “Many of the projCoal 19.7% ects currently proposed are Source: U.S. Energy Information Administration six to 12 months behind (http://www.eia.doe.gov/aer/pecss_diagram.html) schedule. Engineering and construction firms are sitting around waiting for work to commence.” Bureaucratic morass aside, it’s clear the country’s energy landscape is evolving— and engineering firms and other stakeholders looking to take advantage must be prepared to adjust. “It takes a strong commitment to move these projects forward in our current political, regulatory and economic environment—especially when projects involve multiple states or regions,” says Burns & McDonnell’s Olander. “But, as we usually do in this country, we’ll find a way to get things done.” n Samuel Greengard is a business and technology writer based in West Linn, Ore. NovEmbER / DECEmbER 2010 ENGINEERING INC. 11 http://www.eia.doe.gov/aer/pecss_diagram.html

Table of Contents for the Digital Edition of Engineering Inc. - November/December 2010

Engineering Inc. - November/December 2010
Contents
From ACEC to You
News and Notes
Market Watch
Legislative Action
Power Play
2010 Fall Conference Highlights
Ins and Outs
Re-energized
Business Insights
Young Professionals of the Year
Members in the News

Engineering Inc. - November/December 2010