Potential Economic Benefits of Configuring Superconducting Technologies in the Florida Grid

1. Potential Economic Benefits of Configuring Superconducting Technologies in the Florida Grid EUCAS 2003 supported by the US Office of Naval Research Tim Lynch & Justin Schwartz Center for Advanced Power Systems (CAPS) Florida State University - Tallahassee, Florida

2. Outline • Center for Advanced Power Systems • Electrical grid problems • Superconducting technologies – potential benefits • Case study: Potential value of Superconducting technologies to Florida

3. Center for Advanced Power Systems at Florida State University • Center for Advanced Power Systems (CAPS) is an outgrowth from the National High Magnetic Field Laboratory • Established ~2001; Occupied new building in January 2003 • Mission is R&D and Systems Engineering of new technologies for electric power systems • Real-time simulations with hardware-in-the-loop • Systems testing & development (AMSC motor; LTS SMES, HTS transformer) • Critical materials R&D for systems (e.g., AC losses and electromechanical behavior of HTS materials) • Primary funding from Office of Naval Research for all-electric ship program

4. Assessing the Problem • Demand for electricity has increased significantly and will continue into the future. • US and Florida electricity infrastructure needs modernization. • Deregulation has slowed transmission investment across the US. • The result is congestion and a growing number of costly blackouts.

5. Historical & Projected World Energy Usage & Population From: Electricity Technology Roadmap: 1999 Summary and Synthesis, (1999).

6. 2003 North East Blackout:OOPS!!

7. What was the cost of the great 2003 North East Blackout? Initial estimates suggest that total costs exceed$6 to $30 billion (Includes individual & business losses) Ref: Associated Press: Aug 20, 2003

8. Attention to future needs of the US grid is insufficient • 94% of outages attributed to poor distribution • Demand estimated to increase by 9% through 2004; only a 3% transmission increase is planned • No major new investments in the last 15 years • Majority of transmission lines are over 20 years old • Average transmission project payback is 28.5 year • $2 billion annually spent on new transmission lines in 1998… down by 33% from 1990 • Source: Edison Electric Institute Under-investment in the US Electric Transmission Grid

9. What Types of Superconducting Equipment Can Help Us? • Underground transmission cables • Fault current limiters • Transformers • Motors • SMES, Generators, etc.

10. Expected Benefits of Superconducting Power Equipment • Decreased equipment size and weight  drives interest in the US Navy • Improved stability, reliability, and power quality, efficiency  deferred investment in new electricity generation plant • Flexible electricity dispatch and load management • Increased power transmission over existing rights-of-way • Removal of existing pollution factors including: soil and water contamination from oil leaks & decreased emission • Other…

11. Civilian Impact of CAPS Superconductivity Applications • Utilities • Higher density transmission uses & higher economic productivity • Reduced environmental impact • Industrial • More cost effective industrial processes: • Manufacturing & energy production • Electrical storage, transmission and expansion • Transportation • More cost effective electrical transportation: • High Speed Rail & MAGLEV technologies • Electric car / bus • Ship

12. Advantages of Superconducting Underground Transmission Cables • 1.4 acres per mile right of way versus 14 acres for conventional cable • No property devaluation • No environmental degradation • Larger current with lower resistive losses • Fewer citizen resistance & protests

13. Advantages of Superconducting Fault Current Limiters • Detects surges of power and redirects it to superconducting coils where it is absorbed at a considerably higher ratio than non superconducting controllers • Requires minimal maintenance • Allows utilities to increase line power capacity

14. Advantages of Superconducting Transformers • 30% reduction in total losses • 45% reduction in weight • 20%* reduction in cost of ownership • Extended overload capacity • No fire or environmental problems associated with insulating oil * These advantages are based on a 100 MVA transformer with HTS wire providing a critical current density of 10 kA/cm2 and AC losses of 0.25 mW/A-m in a parallel field of 0.1 tesla. Source: ASI,2003.

15. Advantages of Superconducting Motors • Increased machine efficiency • As much as 50% reduction in total losses • Smaller in size • Lower life cycle costs

16. High Performance Improved Power Quality Ease of Installation Flexibility Lower Cost Option Benefits of Superconducting Magnetic Energy Storage (SMES)

17. Growth in Florida Electrical Transmission Line Miles and Statewide Costs Cost Line Miles

18. Areas of potential transmission constraints Florida Transmission Grid 115 & 230 & 500 kV Lines

19. Potential Superconducting Technologies Economic Gains to the Florida and US Economy • Potential for greater economic productivity from investing in HTS in the Florida grid. • Total economic losses from the North East Black out – losses from lack of investments in the grid.

20. Results of Growth in Economic Productivity from Use of Superconducting Technologies in Florida • Net annual employment increase of 9,889, for 2006 through 2025 (With the 2.5% growth rate). • Florida GRP will annually increase by $500 million for 2006 through 2025. • Real disposable income will annually increase by $300 million for 2006 through 2025. Source: CEFA/FSU, Governor’s 2020 Energy Task Force Report (see www.cefa.fsu.edu)

21. Estimated Economic Losses from the North East Blackout Simulated for the US Electrical Grid and Economy* • Loss in employment of 763,188 jobs. • Drop in wages and other earnings of $32.5 billion. • Reduction in Gross Regional Product of $52 billion. * Simulated with the IMPLAN Economic Impact Model, CEFA/FSU, Sept 2003)

22. Conclusions • Shortfalls in investment in the US electrical grid result in very costly economic and other losses. • CAPS research on Superconducting technologies hold considerable promise for commercial applications. • Deployment of these technologies hold promise to: • Increase economic productivity • Reduce economic disruption and associated economic and other losses regionally and nationally.