$188 Million to Small Business Clean Energy Technology Development
On August 2, DOE announced it will award $188 million - including $73 million in Recovery Act funds - to small businesses in 34 states to develop clean energy technologies with potential for commercialization.
Funded through DOE's Small Business Innovation Research program (SBIR) and Small Business Technology Transfer program (STTR), the selections are for Phase II work. 201 awards in 76 targeted topics will support development of prototype or pilot operations for innovative technologies that have successfully passed the proof-of-concept stage. Targeted technology topics include smart grid, energy efficient buildings, industrial energy use, and high performance computing.
Smart grids will reduce energy use and thereby mitigate the need for new power plants, but system devices from utility control systems to household appliances need to communicate. One such Phase II project, led by Infotility in Colorado, will develop a "Smart Controller" that enables communication among distributed energy systems, such as rooftop solar panels, plug-in electric vehicles, and residential demand response devices.
In the solar sector, DOE seeks to develop novel but commercially feasible solar concepts and devices. A project led by Luminit, LLC, in California will build a unique sun-tracking holographic concentrator that separately uses visible light for PV power and infrared light to provide heat and hot water for a building. In keeping with Recovery Act goals, DOE's SBIR efforts have incorporated a fast-track process for applications and provided business incubator funding. See the DOE press release and the SBIR/STTR Programs Office Web site.
U.S. Wind had Strong 2009, Weak 2010
2009 was a record year for the U.S. wind industry, adding 10 GW of capacity and securing $21 billion in investments, according to "2009 Wind Technologies Market Report," released by DOE's Lawrence Berkeley National Lab on August 4.
Cumulative wind capacity grew 40% despite the economic turmoil, and wind was second only to natural gas in adding new electrical capacity to the U.S. grid (for the fifth consecutive year). Still, a sharp drop in wholesale electricity prices (due in part to lower natural gas prices) pressured the wind industry's bottom line in 2009 and indicated challenges were on the horizon.
The U.S. held the lead in total global wind capacity but China reached 36% of the world's market share compared to the U.S. at roughly 26%. Domestically, Texas added 2292 MW, easily outpacing the next highest states - Indiana with 905 MW and Iowa with 879 MW. 26 other states brought large-scale wind turbines online.
LBNL authors note that natural gas prices may not rebound as the economy recovers, which would put the near-term comparative economic position of wind at some risk. Further, the installed cost of wind projects continued to rise. Projects installed in 2009 were, on average, 9% more expensive at $2,120 per kW.
Although those costs will eventually decline, they remain high as developers work through the dwindling backlog of turbines purchased at peak prices in early 2008.
The picture for 2010 thus far hasn't been rosy according to a July 27 update by the American Wind Energy Association (AWEA). Only 700 MW of wind was added in the second quarter (Q2) of 2010, down 57% and 71% from 2008 and 2009 levels, respectively. Manufacturing investment is also lagging.
