IEEE Power & Energy Magazine - July/August 2015 - 20

ideas for power grids as well as
for energy production and consumption, many of which are
available today or will be in the
near future.

Solar and Wind Power
First, the largest available energy
source is the sun, but until
recently we were unable to transform the sun's energy via solar
power generation to useful quantities of power at reasonable costs.
We have seen the first large-scale
adoption of solar generation in
Germany, and, based on current
trends in terms of costs and policy, many forecasts suggest widescale global adoption of solar genfigure 1. An 800-kW generator at South Pearl Street Station circa 1880. [Source: The
eration in the coming years.
Street Railway Journal, 1884; https://www.flickr.com/commons, Creative Commons
The advantage of solar is that
(CC) License.]
it has no fuel cost and can come
in utility-size projects or widely
capitalist monopolies in the early 20th century), fol- distributed implementations. This advantage, however,
comes at a cost and currently requires subsidies, credits, and
lowed by regulation for just and fair returns
✔✔ multiple reforms or liberalizations in production, out-of-market financing to be economically sound or profitable. Further, distributed solar upsets utility business modtransport, and distribution
✔✔ an era of an emphasis on rural electrification that con- els and wholesale market marginal pricing (although there
are examples now where solar is comparable on a per kWh
tinues in some nations today
✔✔ the advent of nonutility generators, self-supply mecha- generation cost to traditional technologies such as gas-fired
generation).
nisms, and cogeneration
In addition to solar, wind power generation is increas✔✔ more recently, deregulation of supply and the growth
ingly improving yield and reliability, controlling costs, and
of power markets.
In addition, numerous other innovations have occurred contributing to market share globally. Many projections 20
since the Pearl Street Station went into operation: a plethora years or so ago only began to recognize wind power proof prime mover technologies, electric generator types, and duction technology's growth potential. Now, that worldwide
efficiency improvements; more efficient electromechanical experience with wind development and as learning rates in
conversion, topology control, and automation; transmission manufacturing processes improve, wind power is becoming
and transformation developments; and advances in sanita- more a part of the landscape, as shown in Figure 3, as well
as more competitive.
tion systems and pumping, to name just a few.
Both wind and solar have a tendency to lower short-run
Today, the world is evolving away from coal and incandescent lighting technologies toward renewables and even power prices with no marginal costs of production such
more efficient lighting technologies. Prospects and oppor- as the fuel purchases fossil plants require. Although solar
tunities for further creative destruction are vibrant from and wind projects require subsidies such as in-feed and
supply, transport, and demand impacting revenues affecting production tax credits, they rely on energy market revenue
utility business models and structures of wholesale markets. from production as well. Wind power development often
leads to transmission development signals more so than
solar futures.
Many Options for the Grid
What is different today compared to the past (when technologies like the example in Figure 2 were the norm) is the New Storage Technologies
sheer number of options available simultaneously for future With increasing numbers of storage technologies lowering
grids. These options span policy, regulation, technology, storage costs, a solar and wind revolution is within reach
markets, the environment, manufacturing, and other dimen- within the next few decades. Storage in the electrical grid is
sions. The oil crisis of the 1970s inspired numerous new seeing new entrants and start-up manufacturers angling for

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july/august 2015

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Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - July/August 2015