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Solar SubgroupProgress

Context

Renewable energy capacity is growing rapidly

But intermittency remains a technical

challenge

New storage promises to help address intermittency

Transport energy demand is changing and will require more electricity

2001 2009 2013

0

50

Rat

ed p

ow

er (

GW

)

2005 2017

0

140

Cap

acit

y (G

W)

New renewable energy capacity(global)

New storage capacity(global)

0

1.2m New electric & plug-in hybrid vehicle(global)

Nu

mb

er o

f ve

hic

les

Sou

rces

: IR

ENA

, DO

E, E

Vvo

lum

es.c

om

Solar energy is used for heating, lighting, electricity generation, and other uses

Solar PV generates a small fraction of global

electricity

Sou

rce:

REN

21

Gig

awat

ts

0

100

200

300

2006 20162011

Solar photovoltaic capacity(global)

Solar PV is growing rapidly

and consistently surpasses projections by international

organisations

2006 201620110

12

Gig

awat

t-h

ou

rs

Concentrating solar power thermal storage capacity

(global)

6

2006 201620110

500

Gig

awat

ts-t

her

mal

Solar water heating collectors capacity

(global)

250

CSP and solar water heating are also growing rapidly

Sou

rce:

REN

21

Solar energy promises to be an increasingly important resource

As such, the Solar Subgroup are proud

to present

draft Solar

Specifications

Available online for review and testing by the Expert Group on Resource Classification

So what’s in the Solar Specifications?

Core elements

Solar reserves and resources classification

UNFC categories

Applications

Based on the simplified table from the UNFC 2009 and a renewable energy

project model

E, F and G categories using solar terms

Business, finance and government uses for the Solar Specifications

Annexes show solar resources have been classified before

The preface and introduction put the Solar Specifications in context acknowledging previous work

Solar reserves and resources classification

What are solarreserves and resources?

Sun= Useful energy

(measured at the reference point)

Reference point

TechnologyIr

rad

iati

on

Reserves

Project site

= Potentially useful energy(estimated at the reference point)

ResourcesPotentially accessible energy and projects

at various stages of development

Operational, pre-operational and designed projects

Irradiation is the energy from the sun that reaches earth’s surface

The reference point is the place where quantities of useful energy are measured and estimated

Solar irradiation: The quantity of energy arriving from the sun over a specified period of time

Energy technically not possible, or cost effective, to use with current technologies

Energy technically possible and cost effective to use (e.g. heat, light, solar PV, CSP, etc)

Inaccessible Potentially accessible Pre-development Development

Resources: Anticipated useful energy at sites, under various levels of investigation and

development, where solar energy could be utilised cost effectively.

Reserves: Anticipated useful energy for commercially

operational, pre-operational or designed solar projects

Pre-operational OperationalDesigned project

Sun

Increasing socio-economic viability and project feasibility

Solar reserves and resources are classified using a two

dimensional table

The socio-economic viability and project feasibility axes were joined into a single vertical axis

Solar energy categories and sub-

categoriesDefinitions

Confidence of useful energy estimate*

P90 P50 P10

Units of energy Units of energy Units of energy

- - Commercial operation end date - -

Reserves Operational Useful energy, over the remaining project lifespan, at sites with

technology to utilise solar energy. The utilisation of useful solar energy is

currently taking place and is economic on the basis of current market

conditions and realistic assumptions of future market conditions.

- - Commercial operation date - -Pre-operational Useful energy, over the project lifespan, at sites that are approved for

development and are under construction or are waiting to be constructed.

- - Financial close - -Designed Useful energy, over the project lifespan, at sites where a project has

been designed and entitlements secured but finance is still required.

- - Entitlements - -

Resources Under development Useful energy at sites where projects being designed but are yet to get

project finance.

Pre-development Useful energy at sites that are being investigated but are yet to be justified for development.

- - Decision to investigate - -Potentially accessible Useful energy at sites that could potentially be developed, but for

whatever reason are not currently being investigated for development.

Inaccessible Useful energy that technically could be utilised at reasonable cost (i.e. economically), but for whatever reason, is not available for use. Reasons could include: a lack of market access, regulations, a lack of infrastructure, or a lack of users to utilise the energy.

- - Technically possible and cost effective to use - -

*Assessment period (years): e.g. project lifetime or the set period for a national assessment

Solar Reserves and Resources Classification

Solar energy categories and sub-

categoriesDefinitions

Confidence of useful energy estimate*

P90 P50 P10

Units of energy Units of energy Units of energy

- - Commercial operation end date - -

Reserves Operational Useful energy, over the remaining project lifespan, at sites with

technology to utilise solar energy. The utilisation of useful solar energy is

currently taking place and is economic on the basis of current market

conditions and realistic assumptions of future market conditions.

- - Commercial operation date - -Pre-operational Useful energy, over the project lifespan, at sites that are approved for

development and are under construction or are waiting to be constructed.

- - Financial close - -Designed Useful energy, over the project lifespan, at sites where a project has

been designed and entitlements secured but finance is still required.

- - Entitlements - -

Resources Under development Useful energy at sites where projects being designed but are yet to get

project finance.

Pre-development Useful energy at sites that are being investigated but are yet to be justified for development.

- - Decision to investigate - -Potentially accessible Useful energy at sites that could potentially be developed, but for

whatever reason are not currently being investigated for development.

Inaccessible Useful energy that technically could be utilised at reasonable cost (i.e. economically), but for whatever reason, is not available for use. Reasons could include: a lack of market access, regulations, a lack of infrastructure, or a lack of users to utilise the energy.

- - Technically possible and cost effective to use - -

*Assessment period (years): e.g. project lifetime or the set period for a national assessment

Solar Reserves and Resources Classification

Soci

o-e

con

om

ic v

iab

ility

an

d

pro

ject

fea

sib

ility

G-Axis

Milestones

Socio-economic viability and project feasibility categories

Confidence of the estimates

The solar reserves and resources classification was

based on the simplified table from the UNFC 2009

...combined with key steps and milestones from a solar energy project cycle

Project development equity capital

Fin

anci

al c

lose

Pre-development Development

Feasibility ConceptDesign and permitting

Finaldesign

Financing

Pre-operational solar project

Operational solar project

Co

mm

erc

ial i

nve

stig

atio

n

Co

mm

erc

ial o

per

atio

n d

ate

Co

mm

erc

ial o

per

atio

n e

nd

dat

eRepay financiers and investors

Potentially accessible resources

Inaccessible resources

Solar resources Solar reserves

total useful energy = annual energy x lifetimeEn

titl

eme

nts

The solar energy project cycle was modified from a renewable energy project model published by NREL (Springer 2013)

Risk, knowledge and uncertainty are key issues in the NREL publication

Project development equity capital

Fin

anci

al c

lose

Pre-development Development

Feasibility ConceptDesign and permitting

Finaldesign

Financing

Pre-operational solar project

Operational solar project

Co

mm

erc

ial i

nve

stig

atio

n

Co

mm

erc

ial o

per

atio

n d

ate

Co

mm

erc

ial o

per

atio

n e

nd

dat

eRepay financiers and investors

Potentially accessible resources

Inaccessible resources

Solar resources Solar reserves

total useful energy = annual energy x lifetimeEn

titl

eme

nts

Time

Less

Mo

re

Unknowns

Risk

By linking to the solar project cycle, we aim to keep the Solar

Specifications practical

This includes being practical for project developers and opening possibilities related to finance

UNFC categories

The UNFC sometimes uses terms that are not relevant to solar energy

We modified the definitions so that

they would be meaningful in the context of solar

We also put the UNFC and solar definitions side by side in tables

so they can be compared

Extraction and sale is economic on thebasis of current market conditions andrealistic assumptions of future marketconditions.

The utilisation of useful solar energy is economic on the basis of current market conditions and realistic assumptions of future market conditions.

UN Framework Classification Solar Specifications

E1 Definition

“Extraction” is a word not commonly used in solar or

renewable energy

A lot of solar energy is own use

The Solar Specifications use the term “utilisation”

Feasibility of extraction by a defineddevelopment project or miningoperation has been confirmed.

Feasibility of solar energy utilisation by a defined solar project has been confirmed.

UN Framework Classification Solar Specifications

F1 Definition

“Extraction” and “mining” are words not commonly used in

solar or renewable energy

The Solar Specifications use the term “solar project” instead of

“mining operation”

Quantities associated with a knowndeposit that can be estimated with ahigh level of confidence.

UN Framework Classification

G1 Definition

“Quantities” refers to “quantities of a resource” but the solar energy community use the term

“resource” differently from the UNFC.

“Deposit” is a word not commonly used in solar

or renewable energy

Quantities associated with a knowndeposit that can be estimated with ahigh level of confidence.

Quantities of useful solar energy associated with a project that can be estimated with a high level of confidence (e.g. P90).

UN Framework Classification Solar Specifications

G1 Definition

The Solar Specifications use the terms “useful energy” and “useful solar energy”

In the solar community, the term “resource” means the total amount

of energy reaching a site on the earth’s surface

Footnote from page 11The Solar Specifications

highlight the difference in usage of the term “resource”

for example in the footnote on page 11, and by providing

definitions

Some of the terms used in UNFC definitions, such as “extraction”, “mining”, or “deposit” may be problematic to acceptance and uptake of the

UNFC by the solar energy community

This raises questions around what terms and definitions should be used in the UNFC,

renewable specifications and other UNFC related documents

Perhaps the UNFC, renewable specifications and other UNFC documents could use generalised

language that is meaningful and applicable to as many users as possible

Applications

Applications of the Solar Specifications include supporting business and government information cycles

Estimate the quantity of useful energy from a project or possible project

Collect data and information on solar projects and possible solar projects

2. Calculation

1. Collection

6. Reporting

Present the data and report to decision makers

7. Decisions

9. Changes

8. Implementation

Changes in projects, access to sites, markets, technology, as well as changes in regulations and competition

Implementation of solar development projects, other related investments and the acquisition of legal and social permits

Decisions made regarding projects, investments and next steps

5. Control

Check data quality and ensure information has been classified correctly

Classify useful energy estimates into solar reserves and resources categories

3. Classification

Business information cycle applying the Solar Specifications Business decision cycle

4. Compilation

Add useful energy estimates for solar reserves and resources categories

Estimate the quantity of useful energy from a project or possible project

Collect data and information on solar projects and possible solar projects

2. Calculation

1. Collection

6. Reporting

Present the data and report to decision makers

9. Changes

8. Implementation

Changes in projects, access to sites, markets, technology, as well as changes in regulations and competition

Implementation of solar development projects, other related investments and the acquisition of legal and social permits

5. Control

Check data quality and ensure information has been classified correctly

Classify useful energy estimates into solar reserves and resources categories

3. Classification

Business information cycle applying the Solar Specifications Business decision cycle

4. Compilation

Add useful energy estimates for solar reserves and resources categories

Ap

plicatio

n o

f the So

lar Specificatio

ns

Decisions made regarding projects, investments and next steps

Developer Financier

Financiers and developers

7. Decisions

The Solar Specifications could be used by developers to apply for project finance

The Solar Specifications could be used by financiers as

criteria for project finance

Reserves Criteria

Finance

Op

erat

ion

s

The government information cycle is similar to the business information cycle but is

focused on policy

Estimate the quantities of useful energy from existing and potential projects and fill data gaps using estimates made using GIS, taking into account infrastructure and policy requirements

Collect data and information on solar projects through administrative data (e.g. related to permits), by survey, from industry associations and from research organisations

2. Calculation

1. Collection

6. Reporting

Present the data and report to government and the public

8. Decisions

10. Changes

9. Implementation

Changes in projects, access to sites, markets, technology, as well as changes in regulations and competition

Implementation of policies and interventions including infrastructure investment, taxes, subsidies, and tariffs, and regulations

Decisions made regarding energy policies and interventions

5. Control

Check data quality and ensure information has been classified correctly

Classify useful energy estimates directly into reserves and resources categories

3. Classification

Government information cycle applying the Solar Specifications Policy cycle

7. Analysis

Monitoring of policy progress along with the analysis of issues and policy or intervention options

4. Compilation

Add useful energy estimates for solar reserves and resources categories forming national figures

Estimate the quantities of useful energy from existing and potential projects and fill data gaps using estimates made using GIS, taking into account infrastructure and policy requirements

Collect data and information on solar projects through administrative data (e.g. related to permits), by survey, from industry associations and from research organisations

2. Calculation

1. Collection

6. Reporting

Present the data and report to government and the public

8. Decisions

10. Changes

9. Implementation

Changes in projects, access to sites, markets, technology, as well as changes in regulations and competition

Implementation of policies and interventions including infrastructure investment, taxes, subsidies, and tariffs, and regulations

Decisions made regarding energy policies and interventions

5. Control

Check data quality and ensure information has been classified correctly

Classify useful energy estimates directly into reserves and resources categories

3. Classification

Government information cycle applying the Solar Specifications Policy cycle

7. Analysis

Monitoring of policy progress along with the analysis of issues and policy or intervention options

4. Compilation

Add useful energy estimates for solar reserves and resources categories forming national figures

Assessm

ent o

f resou

rce availability

Polic

y in

terv

enti

on

s

Solar resources have been classified before

In 1989 the United States Department of Energy made an assessment of national energy resources

This included renewable and non-renewable energy resources classified using the McKelvey diagram

Renewable energy made up the majority of the estimated US resource base in 1989

Solar and biomass made up a majority of the estimated US accessible resource in 1989

Renewable energy formed only a small fraction of US reserves in 1989

Other resource classification examples

World Energy Council (1994)

Theoretical potential

Geographic potential

Technical potential

Economic potential

The WEC classified renewable energy resources in its 1994 report titled “New Renewable Energy Resources - a guide to the future”

Other resource classification examples

World Energy Council (1994) Köberle et al 2015

the total primary solar energy flux hitting the Earth’s surface suitable for PV and CSP

Theoretical potential

Geographic potential

Technical potential

Economic potential

the primary energy flux in suitable and available geographic areas of the globe

the geographic potential after any efficiency losses of the primary to secondary conversion process are accounted for

the economically feasible technical potential

Others, such as Köberle et al (2015), have applied these categories to solar energy

The United States National Renewable Energy Laboratory also apply these categories

Sou

rce:

Bro

wn

et

al 2

01

6

Nearly 30 years ago, the Department of Energy noted: “reserve and resource estimates are not necessarily undertaken in a coordinated or parallel fashion across a full range of energy sources”

In many ways the situation has not changed much since then

Opportunities and challenges

Billions of dollars have been invested in solar energy and billions more will be invested with or without the Solar Specifications

The Solar Specifications need to be pragmatic if they are to make any difference

Practical applications

Use the Solar Specifications to monitor and manage

project development

Use the Solar Specifications for national solar energy assessments

Developers

Use the UNFC and Solar Specifications as a template for projects seeking finance

Financiers

GovernmentsUse the UNFC and

Solar Specifications as criteria for finance

Use assessments to inform policy and energy security

Use assessments to attract developers and investors

Include solar reserves in Reserve Replacement Ratios

Include solar reserves with oil and gas reserves

Reporting by public companies

Terms and definitions are important

Terms like mining, extraction and deposit from the UNFC are not relevant to renewable resources

Other terms like utilisation or project are relevant to both renewable and non-renewable resources

Using generalised language that is meaningful to both renewable and non-renewable resources is important for uptake of the UNFC and its application to solar

The terms used in the UNFC can be an impediment to engagement

The UNFC is sophisticated but complex

The UNFC elegantly brings together the E, F and G axes to form a sophisticated 3 dimensional classification scheme

Simplified 2 dimensional tables are much easier to explain, apply and engage users with

However, having a third dimension makes the classification scheme complex

It is difficult to explain a 3 dimensional classification scheme or engage new users

The challenge is maintaining consistency with the UNFC while being practical

Engagement

Renewable energy classifications already exist and have been applied to solar energy resources

The organisations that created and maintained these renewable resource classifications should be engaged by the EGRC

The Solar Subgroup will endeavour to reach out and engage the WEC, NREL and others

Next steps

Apr 2018 Sept 2019

Review by the Expert Group on Resource Classification

Testing of the draft Solar Specifications

Hold an expert group meeting to review second draft Solar Specifications

Revise the draft Solar Specifications based on feedback from EGRC, TAG and Solar Subgroup

Submit draft Solar Specifications to EGRC-10 for a decision on release for Public Comment

Apr 2019

Public Comment

Approval by Sustainable Energy Committee

We need your feedback

Thank you

Challenge Institute

Lead, Solar SubgroupDirector, Challenge InstituteDoctoral Candidate, UCL STEaPP

Produced by Jeremy Webb

jeremy.webb@challenge.institute

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