Energy Center at Discovery Park | Purdue University | West Lafayette, Indiana
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ENERGY CENTER September 2015 State Utility Forecasting Group | Energy Center at Discovery Park | Purdue University | West Lafayette, Indiana 2015 INDIANA RENEWABLE ENERGY RESOURCES STUDY State Utility Forecasting Group Energy Center Purdue University West Lafayette, Indiana David Nderitu Douglas Gotham Darla Mize Tim Phillips Paul Preckel Marco Velastegui Fang Wu Liwei Yu September 2015 Table of Contents List of Figures .......................................................................................................................... iii List of Tables ............................................................................................................................ v Acronyms and Abbreviations ................................................................................................. vii Foreword……………………………… ………………………………………………. ........ .x 1. Overview ..................................................................................................................... 1 1.1 Trends in renewable energy consumption in the United States ...................... 1 1.2 Trends in renewable energy consumption in Indiana ...................................... 4 1.3 Cost of renewable resources .......................................................................... 12 1.4 References ..................................................................................................... 15 2. Energy from Wind ..................................................................................................... 17 2.1 Introduction ................................................................................................... 17 2.2 Economics of wind energy ............................................................................ 19 2.3 State of wind energy nationally ..................................................................... 24 2.4 Wind energy in Indiana ................................................................................. 30 2.5 Incentives for wind energy ............................................................................ 36 2.6 References ..................................................................................................... 38 3. Dedicated Energy Crops ............................................................................................ 41 3.1 Introduction ................................................................................................... 41 3.2 Economics of energy crops ........................................................................... 46 3.3 State of energy crops nationally .................................................................... 51 3.4 Energy crops in Indiana ................................................................................. 52 3.5 Incentives for energy crops ........................................................................... 55 3.6 References ..................................................................................................... 57 4. Organic Waste Biomass ............................................................................................ 61 4.1 Introduction ................................................................................................... 61 4.2 Economics of organic waste biomass ............................................................ 63 4.3 State of organic waste biomass nationally .................................................... 67 i 2015 Indiana Renewable Energy Resources Study - State Utility Forecasting Group 4.4 Organic waste biomass in Indiana ................................................................. 72 4.5 Incentives for organic waste biomass ............................................................ 79 4.6 References ..................................................................................................... 81 5. Solar Energy .............................................................................................................. 85 5.1 Introduction ................................................................................................... 85 5.2 Economics of solar technologies ................................................................... 88 5.3 State of solar energy nationally ..................................................................... 92 5.4 Solar Energy in Indiana ................................................................................. 96 5.5 Incentives for solar energy ............................................................................ 98 5.6 References ................................................................................................... 100 6. Photovoltaic Cells .................................................................................................... 103 6.1 Introduction ................................................................................................. 103 6.2 Economics of PV systems ........................................................................... 106 6.3 State of PV systems nationally .................................................................... 110 6.4 PV systems in Indiana ................................................................................. 113 6.5 Incentives for PV systems ........................................................................... 116 6.6 References ................................................................................................... 118 7. Hydropower ............................................................................................................. 121 7.1 Introduction ................................................................................................. 121 7.2 Economics of hydropower ........................................................................... 122 7.3 State of hydropower nationally ................................................................... 126 7.4 Hydropower in Indiana ................................................................................ 131 7.5 Incentives for hydropower…………………………………………………133 7.6 References………………………………………………………………….135 ii 2015 Indiana Renewable Energy Resources Study - State Utility Forecasting Group List of Figures 1-1 Renewable energy consumption in the U.S. (1949-2014) ........................................... 2 1-2 U.S. energy consumption by source (1949-2013) ....................................................... 2 1-3 U.S. total energy consumption by energy source in 2014 ........................................... 3 1-4 Net U.S. electricity generation by energy source in 2014 ........................................... 4 1-5 Renewables share of Indiana total energy consumption (1960-2012) ........................ 5 1-6 Renewables share of Indiana electricity generation (1990-2012) ............................... 6 1-7 Wind energy installed capacity in Indiana .................................................................. 7 1-8 Indiana installed PV capacity in NREL Open PV Project database ............................ 8 1-9 Estimated generating technologies capital cost ......................................................... 13 1-10 Estimated generating technologies O&M cost .......................................................... 14 2-1 Horizontal wind turbine configuration ...................................................................... 17 2-2 Estimated capital costs of various electric generation options .................................. 20 2-3 Installed wind project costs over time ....................................................................... 21 2-4 Generating technologies O&M cost .......................................................................... 22 2-5 Reported U.S. wind turbine O&M costs over time ................................................... 23 2-6 Average cumulative wind and wholesale electricity prices ...................................... 24 2-7 U.S. wind capacity growth. ....................................................................................... 25 2-8 Renewable portfolio standards across the U.S... ....................................................... 26 2-9 Wind power capacity by state at the end of March 2015 (MW) ............................... 27 2-10 80-meter U.S. wind resource map ............................................................................. 29 2-11 Annual wind energy capacity installation in Indiana ................................................ 30 2-12 Indiana wind speed at 100 meters height .................................................................. 34 2-13 Indiana wind speed at 50 meters height .................................................................... 35 3-1 Switchgrass ................................................................................................................ 42 3-2 Potential production of energy crops at various years and farmgate prices .............. 47 3-3 Supply curves for all energy ...................................................................................... 48 3-4 Bioenergy crop trial stations ...................................................................................... 51 3-5 Estimated shares of energy crops and agricultural residues supplied at $60 per dry ton in 2030 ........................................................................... 53 3-6 Projected production of energy crops in Indiana in 2030 ......................................... 54 4-1 Supply of crop residues at various prices under DOE base-case