Week 5 - Chapter 8 - Renewable Electricity

Question 1

What is utility scale?

Answer 1

A large-scale energy production system, typically connected to the grid.

Utility scale projects often involve significant investment and infrastructure.

Question 2

Who is a technology manufacturer?

Answer 2

A company that produces technological products or systems for various applications.

Technology manufacturers can range from hardware producers to software developers.

Question 3

What is a project developer?

Answer 3

An entity responsible for planning, executing, and managing a project from inception to completion.

Project developers often work in sectors like construction, renewable energy, and technology.

Question 4

Define the product development lifecycle.

Answer 4

The process of bringing a new product to market, including stages like conception, design, and launch.

The lifecycle helps in managing the product from initial idea to market release.

Question 5

What does asset finance refer to?

Answer 5

Funding for the purchase or leasing of assets, typically used in capital-intensive industries.

Asset finance is crucial for companies looking to invest in new technologies or equipment.

Question 6

What is resource variability?

Answer 6

The fluctuations in the availability of a resource over time.

Resource variability can affect energy production, especially in renewable sectors.

Question 7

What are stranded assets?

Answer 7

Investments that have lost their value or cannot generate a return due to market changes.

Stranded assets often occur in industries affected by regulatory shifts or technological advancements.

Question 8

What are atmospheric pressure differentials?

Answer 8

Differences in atmospheric pressure that can drive wind and weather patterns.

These differentials are crucial for understanding wind energy generation.

Question 9

What is a wind power class?

Answer 9

A classification that categorizes wind resources based on their speed and reliability.

Wind power classes help in assessing the feasibility of wind energy projects.

Question 10

What is a nacelle?

Answer 10

The housing that contains the generator and other components of a wind turbine.

Nacelles are critical for the operation and efficiency of wind turbines.

Question 11

Define fixed-output pricing.

Answer 11

A pricing structure where the price per unit of output remains constant over time.

Fixed-output pricing can provide stability for producers in volatile markets.

Question 12

What are production tax credits (PTCs)?

Answer 12

Tax incentives provided to producers of renewable energy based on the amount of electricity generated.

PTCs are aimed at promoting investment in renewable energy technologies.

Question 13

What is a renewable portfolio standard (RPS)?

Answer 13

A regulation that requires a certain percentage of energy to come from renewable sources.

RPS policies are designed to increase the use of renewable energy in the energy mix.

Question 14

What are renewable energy certificates (RECs)?

Answer 14

Tradable certificates that represent proof that energy was generated from renewable sources.

RECs are used to track renewable energy generation and compliance with RPS.

Question 15

What does grid integration refer to?

Answer 15

The process of incorporating renewable energy sources into the existing power grid.

Effective grid integration is crucial for maximizing renewable energy usage.

Question 16

What is the experience curve?

Answer 16

A phenomenon where the cost per unit of production decreases as cumulative production increases.

The experience curve is often used to predict cost reductions in technology sectors.

Question 17

What is merchant wind?

Answer 17

Wind energy projects that sell electricity directly to the market rather than through long-term contracts.

Merchant wind projects face more market risk but can capitalize on high market prices.

Question 18

Define insolation.

Answer 18

The amount of solar radiation received by a given area over a specific time period.

Insolation is a key factor in assessing solar energy potential.

Question 19

What is predictable resource variability?

Answer 19

Variability in resource availability that can be forecasted with reasonable accuracy.

Predictable variability is crucial for planning and optimizing renewable energy generation.

Question 20

What is random resource variability?

Answer 20

Unpredictable fluctuations in resource availability that cannot be accurately forecasted.

Random variability can create challenges for energy management and system stability.

Question 21

What is conversion efficiency?

Answer 21

The ratio of useful energy output to the total energy input in a system.

Higher conversion efficiency indicates a more effective energy system.

Question 22

What is biomass?

Answer 22

Organic material used as a renewable energy source, including plant and animal waste.

Biomass can be converted into biofuels, biogas, or used for direct combustion.

Question 23

What are feedstocks?

Answer 23

Raw materials used to produce biofuels or other energy products.

Common feedstocks include agricultural residues, wood, and municipal solid waste.

Question 24

What is municipal solid waste (MSW)?

Answer 24

Waste that comes from households and businesses, which can be used as a feedstock for energy production.

MSW can be processed through technologies like gasification to recover energy.

Question 25

What is gasification?

Answer 25

A process that converts organic or fossil-based materials into carbon monoxide, hydrogen, and carbon dioxide. ## Footnote Gasification is used to produce syngas for energy generation.

Question 26

What is biogas?

Answer 26

A type of renewable energy produced from the anaerobic digestion of organic matter. ## Footnote Biogas can be utilized for heating, electricity generation, or as vehicle fuel.

Question 27

What are production wells?

Answer 27

Wells that are drilled to extract geothermal energy from underground reservoirs. ## Footnote Production wells are essential for enhanced geothermal systems (EGS).

Question 28

What is an enhanced geothermal system (EGS)?

Answer 28

A technology that enhances geothermal energy extraction by artificially creating reservoirs. ## Footnote EGS can significantly expand the potential for geothermal energy production.

Question 29

What does recharge rate refer to?

Answer 29

The rate at which an aquifer or geothermal reservoir is replenished. ## Footnote Understanding the recharge rate is critical for sustainable resource management.

Question 30

What is an ocean energy generation system?

Answer 30

Technologies that harness energy from ocean resources, such as tides and waves. ## Footnote Ocean energy generation systems are part of the broader renewable energy landscape.

Question 31

What is a tidal barrage?

Answer 31

A dam built across the entrance of an estuary to capture tidal energy. ## Footnote Tidal barrages can generate electricity from the rise and fall of tides.

Question 32

What are tidal streams?

Answer 32

Fast flowing bodies of water created by the gravitational pull of the moon and sun, used for energy generation. ## Footnote Tidal stream systems can be harnessed using underwater turbines.

Question 33

What are offtake contracts?

Answer 33

Agreements between a producer and buyer for the sale of energy or products produced. ## Footnote Offtake contracts provide financial security and predictability for project developers.

Question 34

What is a lease agreement?

Answer 34

A contract outlining the terms under which one party can use property owned by another. ## Footnote Lease agreements are common in the renewable energy sector for land use.

Question 35

What is third-party ownership (TPO)?

Answer 35

A financing model where a third party owns and operates a renewable energy system on behalf of the user. ## Footnote TPO can lower upfront costs for consumers and encourage renewable energy adoption.

Question 36

What are tariff mechanisms?

Answer 36

Pricing structures set by regulatory authorities to promote specific energy sources or technologies. ## Footnote Tariff mechanisms can incentivize investment in renewable energy projects.

Question 37

What is avoided cost?

Answer 37

The cost that a utility avoids by investing in renewable energy instead of traditional energy sources. ## Footnote Avoided costs can help in evaluating the economic benefits of renewable projects.

Question 38

What is a market price referent (MPR)?

Answer 38

A benchmark price used to determine the value of renewable energy in the market. ## Footnote MPR is important for assessing incentives for renewable energy generation.

Question 39

What is the value of solar tariff (VOST)?

Answer 39

A pricing mechanism that reflects the value of solar energy to the grid and society. ## Footnote VOST can support solar energy development by ensuring fair compensation for producers.

Question 40

What does market risk refer to?

Answer 40

The potential for financial loss due to fluctuations in market prices. ## Footnote Market risk is a significant consideration for investors in renewable energy projects.

Question 41

What is curtailment?

Answer 41

The reduction of output from renewable energy sources due to grid constraints or oversupply. ## Footnote Curtailment can impact the profitability of renewable energy projects.