Inverters for Alternative Energy Resources Economic Factors Application Drivers Architecture or Packaging Trends Technology and Regulatory Developments Third Edition

Inverters for Alternative Energy Resources: Economic Factors, Application Drivers, Architecture/Packaging Trends, Technology and Regulatory Developments, Third Edition

 The focus of this comprehensive analysis provides decision makers with a detailed and insightful look into the current and future opportunities and threats available in the inverter market for Alternative Energy Resources.

Among the areas covered in this report are the technology, architecture and packaging trends affecting the industry, as well as a thorough discussion of new and emerging technologies and materials, applications, potential threats and the latest regulatory
developments and standards. Over 30 illustrations, graphs and tables are presented depicting a variety of power system schematics and comparisons, technologies, product introductions, packaging solutions, efficiency standards and other relevant information.

Subjects included in this analysis are:
Application Segments
Alternative Energy Developments
Photovoltaics
Photovoltaic Inverter Technologies
Wind Power
Fuel Cells
Policy and Regulatory Framework for Development
Cost Dynamics of Renewable Resources
Cost Dynamics of Inverter Technology
Technology Trends and Developments
Product Innovations and Developments

Executive Summary

 Led by the growing photovoltaic market (PV), the outlook for inverters used in Alternative Energy Resource technology is expected to remain strong. Industry growth in this application will be driven by a combination of government incentives and declining PV module prices. Projected to make up over 95% of the market, the inverters used in PV installations, both small (1-5kW) and large (>6MW), will far outpace those used in either wind or fuel cell applications.

Driven by the need to develop alternative sources of energy, limit greenhouse gasses and reduce the dependence on foreign energy supplies, the market forces driving the alternative energy resources industry vary by region. In Europe, the primary driving
forces are feed-in tariffs, which have been successfully used in 16 EU countries, most notably Germany, Italy and Spain. In fact, in Europe renewables comprise the fastest-growing segment of the energy market. In North America, unlike Europe, the alternative
energy industry is driven by a combination of regulations, subsidies and tax incentives and legislation. In contrast, Asia employs a patchwork system of incentives including subsidies and other government actions. In this region, the primary focus on alternative
energy is the alleviation of power shortages and the development of backup and emergency power.

A particularly significant technological and architectural trend includes the continued development of Building Integrated Photovoltaic (BIPV) systems. A BIPV system involves integrating photovoltaic modules into the building envelope material and power generators. Evidence of this can be seen in the number of successful BIPV projects worldwide, ranging from individual residential units to large commercial developments. The development of BIPV systems is also significant because in buildings, it can play more roles than solely producing electricity. As an example, Sharp makes translucent solar PV panels that incorporate light-emitting diodes (LEDs) to provide illumination as well as power.

The emergence of technology developed to address the problem of PV shading is another area of expected growth over the next several years. Considered one of the biggest challenges facing photovoltaics, a small amount of shade can lead to disproportionate
power loss of more than 50%. One completely shaded cell can reduce a solar panel’s output by as much as 75%. In a response to this challenge, a number of companies are developing products specifically designed to counter the effects of PV shading in both the residential and commercial sectors.

The move towards transformerless inverters has also made significant strides in the PV industry over the past several years. Despite concerns about safety, size limitations and the lack of technological maturity, they are considered considerably more efficient and can be produced at a much more competitive price. In fact, transformerless inverters continue to advance around the world and have achieved a global market share of about 70%. Additional developments in inverter technology include improvements in communications and monitoring and the trend towards longer warranties.

The trend towards more efficient inverters has also made considerable progress. In an effort to improve the efficiency of the technology, semiconductor companies are developing discrete IGBTs, MOSFETs such as CoolMOS as well as Silicon Carbide
(SiC) devices in power modules and stacks, with the objective of raising solar inverter efficiency to 98 %, and with the purpose of feeding as much solar-based electricity into the power grid as possible. A number of semiconductor companies are developing
technologies designed to increase efficiency and reduce electricity waste to a minimum. Despite the efforts of a number of government and regulatory bodies worldwide, the goal of interconnection and regulatory standards is still a work in progress. However, there are a number of groups working on electrical interconnection standards with the objective of reducing or removing barriers between distributed generation technology and the utility grid. A survey done found that most projects, including PV, wind and fuel cells, meet some sort of resistance from the utility companies when they try to interconnect with the grid. The expensive and sometimes difficult interconnection requirements currently in place worldwide comprise a key barrier to the increased use of alternative systems. One of the more interesting technologies being developed to drive interconnection is the
development of a “smart grid.” However, removing current interconnection requirements is not as simple as changing the policies, and a method of resolving these barriers is ongoing.

Despite the attention given to large multi-megawatt wind farms, which are projected to continue growing, both in size and number of installations, most of the opportunities for inverter manufacturers are in the small wind turbine market (<100kW). Although the
market for wind power inverters is only a fraction of the size (<3%) of the PV market, the small wind market is experiencing a number of significant developments, including the emergence of Building Integrated Wind Energy (BIWE) and the further development of vertical axis wind turbines (VAWTs).

Although the smallest of the three applications presented in this report, fuel cells present another important opportunity for inverter manufacturers. Eighty percent of the fuel cell units currently produced serve the stationary market in a number of capacities, including combined heat and power (CHP) applications, distributed generation on-site power and backup power. An especially important development is the FCC 07-107 requirement to provide eight hours of emergency backup power at remote terminals or wireless sites and 24 hours of power backup at central offices or switch sites. As a result of this FCC requirement, the telecom industry presents a promising growth opportunity for the fuel cell industry.

In addition, the rate of refurbishment and replacement of the existing building stock, combined with the new ultra-efficient housing/building laws such as those described in the European directive (2002/91/EC), contribute to a growing market for residential micro-combined heat and power. Fuel cells are an enabling or bridging technology which can allow the environmental and efficiency benefits of CHP to migrate into the residential market. In this respect, fuel cell technologies represent a market opportunity for the clean generation of electricity and provision of hot water and heating.

Table of Contents:

Introduction3
Application Segments.6
Alternative Energy Developments.6
Photovoltaics.6
Gigawatt Scale Production Capacity8
Recent Developments in PV Module Supply 9
Building Integrated PV Systems10
Microgrids14
Photovoltaic Shading14
Micro Inverter Systems19
Photovoltaics Inverter Technology21
Transition to Transformerless Systems.29
Communication and Monitoring.31
Maintenance Issues 33
Warranties 34
Wind.35
Large Wind Turbines36
Small Wind Turbines38
Vertical Axis Wind Turbines.39
Building Integrated Wind Energy..41
Wind Inverter Technology .42
Fuel Cells44
Combined Heat and Power (CHP) Applications 44
Backup Power Applications..45
Fuel Cell Inverter Technology.49
Policy and Regulatory Framework for Development...49
Adoption of Feed-in Tariffs.49
Renewable Portfolio Standards...52
Interconnection to the Utility Grid.54
Net Metering58
Standards and Regulations61
Renewable Energy Certificates....66
Direct Subsidies and Tax Incentives.67
Legislative Policies...69
Cost Dynamics of Renewable Resources.70
Cost Dynamics of Inverter Technology.73
Technological Trends and Developments.73
Semiconductors 73
Digital Power 76
Product Innovations and Developments.77
Disclaimer.81

Tables

Table 1 – Comparison of Inverters with and without Transformers 30

Graphs

Graph 1 – Spanish PV Market (2003 – 2010) . 51

Figures

Figure 1 – Building Integrated Photovoltaic System 11
Figure 2 – Building Integrated Photovoltaic System Structural Example 12
Figure 3 – Micro Grid Configurations. 15
Figure 4 – Problem with Shading in Current PV Systems16
Figure 5 – National Semiconductor Solar Magic 17
Figure 6 – Proposed Solution to Problem with Shading  18
Figure 7 – PV Array wired in Parallel 19
Figure 8 – PV Array wired in Series 20
Figure 9 – Enphase Micro-inverter .22
Figure 10 – Commercial Grid-tied Solar Inverter System 23
Figure 11 – Inverter Configuration for Off-grid System .24
Figure 12 – Residential Grid-tied Inverter System .25
Figure 13 – SMA America Inc. Sunny Central 250U Inverter 26
Figure 14 – SatCon 1 Megawatt Inverter.27
Figure 15 – Comparison of Inverter System with and without a Transformer 32
Figure 16 – The Development and Path of Wind Turbines 37
Figure 17 – Wind Cube Rooftop Wind Turbine 39
Figure 18 – Vertical Axis Wind Turbine40
Figure 19 – Building Integrated Wind Turbine 41
Figure 20 – Building Integrated Wind Turbine Examples.20
Figure 21 – SOFC Fuel Cell Installation. 48
Figure 22 – Nature of Main Interconnection Guidelines in Europe 57
Figure 23 – Net Metering for PV in the US 59
Figure 24 – Net Metering for Wind Power in the US 60
Figure 25 – IEEE Series of Interconnection Standards 63
Figure 26 – Renewable Energy Certificates 66
Figure 27 – Cost Comparison of Renewable Energy 72
Figure 28 – Inverter Circuit Board with SiC Components 74


Companies Mentioned:

 3Degrees, Acme Group, Advanced Energy Industries, Aerotecture International, AeroVironment, Aisin Seiki Co, Agni, altPower, American Superconductor Corp., American Wind Energy Association, Applied Materials, Applied Ventures LLC, Arizona State University Global Institute of Sustainability, Atlantis Energy Systems, Ballard Power Systems, Blue Oak Energy, Borrego Solar, California Energy Commission, California Public Utilities Commission, California Solar Initiative, Canadian Standards Agency, China Renewable Energy Scale-up Program, Coalition for Green Bank, Concordia University, Conergy, Converteam SAS, Cool Earth Initiative (Japan), Cree, Deutsche Bank, DisPower, Dow Corning, EADS Astrium, EADS Composite Aquitaine, EFOY, Electric Power Research Institute, Electron Solar Energy, Emerson Network Power, Enphase Energy, European Commission,  European Union, FedEx, First Solar Inc., Fraunhofer Institute for Solar Energy Systems, Freescale Technology, Fronius, FuelCell Energy, GenCell, General Compression, GE Financial Services, GE Wind, German Standardization Committee for Photovoltaics, Global Wind Energy Council, Gould Evans Associates, Green Energy Technologies LLC, Greenpeace, Grupo Diez, GWS Technologies, Hemlock Semiconductor, IdaTech,  International Electrotechnical Commission, International Energy Agency, IEEE Power and Energy Society, Ingeteam, Interstate Renewable Energy Council, Leadership in Energy and Environmental Design (LEED) Green Building Rating System, Infineon Technologies AG, International Rectifier, Isolux Corsàn, Ixys, Long Island Power Authority,  Kinkos, Kyocera, Lord Aeck & Sargent,  Magnetek, Magnum Energy, Massachusetts Renewable Energy Trust Large Onsite Renewables Initiative, Mastervolt, McGraw-Hill, Mechanology, Mercedes-Benz, Ministry of Economy Trade and Industry, Mitsubishi, Moser Baer India Ltd, National Renewable Energy Laboratory, National Semiconductor, New Energy and Industrial Technology Development Organization, New York State Energy Research and Development Authority (NYSERDA), New Zealand Ministry of Economic Development, Nippon Oil Corp., Optisolar, Osaka Gas, Outback Inverters, Pacific Gas & Electric Co, Pacwind, Power-One, PV Powered, Renewable Energy Sources Act (Germany), Ricardo, Rockport Capital Partners, Sandia National Laboratories, Sanyo Electric Co., Satcon Technology, SemiSouth Laboratories, Sharp, Siemens Energy, Solar Energy Grid Integration Systems Program, SolarPlaza, Southern California Edison,  Toshiba Corp., ReliOn, RWE, Saft Power Systems, San Diego Gas and Electric, Schneider Electric, SMA Technologie AG, Solectria Renewables, Soliant Energy, Solid State Energy Conversion Alliance, Solyndra, Studer Innotec, Sunfilm AG, Sontor GmbH, Sputnik Engineering AG, Sustainable Energy Technologies, Swift Wind Turbine, Terra Moya Aqua, Third Point Venture, ThyssenKrupp VDM GmbH, Toshiba Transmission Distribution & Industrial Systems Company  Photovoltaic Systems Division, Toyota Motors, TranSiC AB, Underwriters Laboratories, United Kingdom Department of Business Enterprise and Regulatory Reform, US Department of Economic and Community Development, US Department of Energy, US Environmental Protection Agency,  US Federal Communications Commission (FCC), U.S. Green Building Council, US National Electrical Code, University of Phoenix, Versa Power Systems, Vestas, Vincotech, Waldpolenz Energy Park, Westcode Semiconductor, Whole Foods Markets, Windrotors, Windside Production OY, Xantrex, Yahoo, Zynergy Power plc