The Evolution of Distributed Electrical Power

Insights from the Global North | Nextek Power Systems: The Evolution of Distributed Electricity Generation

Presenters: Paul Savage, Nextek Power Systems

Rapporteur: Seren Pendleton-Knoll

Overview

Nextek Power Systems Inc. CEO Paul Savage addressed some of the business and technological challenges that face microgrid energy stakeholders in his speech on 'The Evolution of Distributed Electricity Generation.' DC electrical grids have as yet not been applied for widespread public utility use. Their limited distribution range (a result of their late 1800s technology) couldn’t compete with AC’s transmission abilities. One of the primary uses for DC power is elevator motors, dating from before 1930, that are still in use. These “winding drum” motors, outlawed after 1940 for safety reasons, were grandfathered in. They persist due to the enormous cost of replacing them with new elevator systems. Despite this, there is one DC grid, located in San Francisco that has been operating since 1879, three years before Thomas Edison opened his New York DC power plant. Learn more here.

Main Topics Discussed

• In our lifetime, the load (what we use electricity for), has gone from almost entirely AC to entirely DC. Not a lot of semi-conductors before 1970s.
• Power convertor takes AC to DC, or DC to AC. A more ideal state would have fewer conversions. Think about what this means for battery storage?
• Adoption DC in developed countries – fuel optionality, efficiency. DTE Energy largest utilities in US, have 2 floors of their headquarters for DC power to run their lighting systems. Built DC house in their parking lot. PNC Bank put DC lightening in their first net zero bank, have 2,500 more to go! In Japan DC micro grid was only source of electricity for miles after the tidal wave. Sun blazer one designed and built by Nextek, charging station has deep cycle batteries. Provides 3 days of light and cellphone charging. Whole Foods Berkeley one of their first customers – love DC system! Rides through their outages.
• What we see as the areas with the largest changes taking place: lighting intrinsically DC. Displays, retail advertising on every shelf of the store. Vehicles, as more electric vehicles, more charging stations needed, naturally gravitating towards DC. Computing, giant consumer of DC. Developing world issues being addressed through micro grids. Most of the world isn’t waiting for AC infrastructure. Huge drivers economically – big piece of business.
• Efficiency gains from AC to DC. Benefit to power storage to have batteries live in DC. Increased safely. Don’t need licensed electricians – takes fewer hours to install. Product costs less to install and is cheaper to own. Reliable – NNT facilities in Japan researched stopped after 7 years and went DC. Change over in buildings, move things around while people are working, can work on everything hot. Allows you to provide wireless control and cheaper cost. In US it is a big deal, federal investment tax credit gives 30% cost of solar back to customer. Can take this system (integrating solar and power for connected loads) – ethical double dipping.
• Large corporate reimaging their products as DC. Armstrong offer version of product in DC. Intel have a whole power lap in New Mexico. Lennox have solar assisted products. All the autos are looking at integrated charging structure, economics of providing buffer to grid. Integrated battery system.
• Emerge Alliance. Co-founder. Over 100 global electrical companies promoting DC power standards. Need to have large set of devices to plug into your DC system. Ideally need parts commonality.
• IEEE Pilot in Haiti: demonstrating how DC can advance efficiency and interoperability. Yellow box: has USB port for phone charging. 40 of the boxes can fit in charging container under solar panel.
• System designed by one of the Nextek employees. A frame also is built to load and unload from a pickup truck. Designed for best use, and not for cost, in the beginning. Put together open source design book. Anyone can build the mechanicals. Brings price down to $14,000 a unit, totally built = $28,000 a unit.
• Deliver into the market that covers 80 families in four days after local infrastructure established. At the end of the day, the loads are the same, no reason to design around an old platform.
  

Questions Posed

1. Does the price include the power box?

• Nope, just the solar boxes. Power boxes are about $46 a piece.
  

2. 1cent per person per day means what?

• Cost from the customer. First deployment, cost of kerosene in Haiti, built to that price. Drove open source plan. Could have business in accessories. To get the job done, can bring customer for 1cent a day for a family of five.