Benefits that can be effected by Superconductivity within the DOE (OE) 5 Year Plan

1. The Energy Policy Act of 2005Electric Transmission and DistributionFuture R&D NeedsFSU Center for Advanced Power Systems Tallahassee, FloridaFebruary 2, 2006Alan Lauder

2. Benefits that can be effected by Superconductivity within the DOE (OE) 5 Year Plan Major improvements in efficiency, quality and reliability in electric power generation, transmission, distribution and storage Substantial savings in electric power consumption through major improvements in motor and magnet efficiencies Commercial viability demonstration and initial commercial product introductions through the new, additional PDRI project specified in EPAct that builds on, but does not replace, DOE’s core HTS program Maintenance of U.S. technology leadership with attendant business expansion and high quality U.S. jobs creation Alan Lauder February 2, 2006

3. Benefits that can be effected by Superconductivity Why expand the core program in the 5 year plan? The core HTS research program has proven to be highly successful in driving new materials and processing discovery and development by universities, National Laboratories and corporations, thereby helping to establish a world leading technology position for the U.S. Continuing research advances in this core program are showing the path to lower cost, more competitive, superconductor based products and processing. The SPI program has encouraged U.S. corporations to invest in high risk, collaborative, product and process development involving competitive bidding, peer review, and cost sharing. SPI has become a general model for effecting high risk technology development. Alan Lauder February 2, 2006

4. Benefits that can be effected by Superconductivity Why expand support for HTS in the 5 year plan? Technical viability has been proven for many applications The grid urgently needs the substantive improvements that superconductor based products can deliver The U.S. is on the verge of demonstrating commercial viability and reliability of underground superconducting power lines, which is typically the most expensive phase of any product development Expected economic benefits are further confirmed by the recent creation of large and rapidly expanding government supported development programs in China and South Korea to compete with the established programs in Japan, Europe and the U.S. Alan Lauder February 2, 2006

5. Power Delivery Research Initiative (PDRI) Program Structure and Funding Recommendations PDRI focus should be to identify, address and resolve critical system integration issues: - develop tools to model and visualize how HTS cables will interact with conventional grids - develop test procedures to determine the behavior of cables under fault conditions - devise refrigeration systems viable for commercial installations - integrate fault current limiter technology to enhance the general commercial application of superconducting cables - explore the viability of direct current technology - conduct actual in-grid demonstrations under a sufficiently wide range of conditions to instill confidence in utilities that these new cables will integrate smoothly with existing systems Alan Lauder February 2, 2006

6. Power Delivery Research Initiative (PDRI) Program Structure and Funding Recommendations Program content is delineated in EPAct 2005, Section 925 DOE should recognize the urgency of the need and address by: Implementing a coherent plan realized through specific projects subject to competitive bidding, rigorous peer review, and cost sharing by private sector participants Funding for PDRI, consistent with EPAct legislative history, should begin in FY2007 at a level of about $30M annually for 3 to 5 years Preparation of an RFP for PDRI should begin immediately to permit programmatic starts early in FY2007. This is critical to avoid loss of momentum and to meet the prescribed 2007-2009 timeframe of EPAct Alan Lauder February 2, 2006