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N.C. 'Green Power' Gains Steam
Stranded cost -- the financial issue that dogged North Carolina's electricity deregulation talks -- has reared its head in the ongoing push for "green power." North Carolina is playing catch-up as it works to put a plan in place to encourage the use of electricity generated from renewable resources such as solar, wind or water rather than from coal, gas or nuclear resources. Provisions to make cleaner power available were discussed in North Carolina's electricity deregulation talks, which ended without an agreement last year. North Carolina is among 16 states that do not offer some green pricing options. But utilities, environmental groups, state officials and other power suppliers have formed an advisory board and have been working since last year to hammer out a proposal for a statewide, voluntary green program. For utilities, the scenario means freedom from costly investments in green power generation and puts the cost on consumers. Nationally, utilities have fought "renewable portfolio standards" -- minimums that surfaced recently in a federal energy proposal. A U.S. Senate bill would mandate green offerings from utilities beginning in 2005 and continue to inch the level up each year until 2020. More than a dozen states operate under similar mandates. With the blessing of the State Utilities Commission, North Carolina's voluntary system could be in place by January 2003, says Carl Wilkins, director of client services for Advanced Energy, a Raleigh-based nonprofit leading the talks. Two deadlines already have been missed. A June 1 date is looming, at which point Progress Energy and Duke Energy are expected to file plans with the State Utilities Commission spelling out how they would collect green power fees. "It looks like we're going to make that," Wilkins says. But several questions remain unanswered. One sticking point is guaranteed contracts for green power providers. "Right now, no one has stepped forward and said that they are going to back these contracts," says Steve Kalland, an advisory board member. Some upfront investments could take years of business to recover. "If not enough people sign up, and we've brought these suppliers online, it becomes a stranded cost issue," says Kalland, who is associate director for the North Carolina Solar Center at N.C. State University. Suppliers pressing for a safety net could look to consumers or to the larger utilities to cover those investment costs if problems arise, stakeholders say. Other lingering issues include how to pay for the advertising needed to get consumers to sign on when the only revenue comes voluntarily from those same consumers. Wilkins says Advan-ced Energy is searching for marketing dollars, and federal funds may be available. Meanwhile, it's unclear exactly how the revenue would be divvied up among diverse suppliers and whether the money will spark new entries into the power supply sector. Advanced Energy, tapped by the Utilities Commission to run the program, would take its administrative cost from the fees. That share could be as much as 20 percent, Wilkins says. The current plan would give bidders in each of six green categories a 10 percent chunk of the demand. The remaining 40 percent would be allocated strictly on price point. Any category that could not supply its share would be up for grabs. Wind power is limited in North Carolina because of legal restrictions that ban equipment from the ridges where wind is best harvested, says Matthew Meares. Meares is an advisory board member representing ABB Inc., which produces wind farm equipment. Solar power technology has economies of scale challenges expected to limit its supply in the early years. Hydro operations and power derived from landfill gases are likely to lead the supply push, Kalland says, followed quickly by operations using turkey and hog waste to create power. "There are not a great number of green power producers in the state right now, and many of those that exist are extremely small," says Bob Gillam, an attorney with the Public Staff, the office that represents consumers before the Utilities Commission. Meares doesn't expect much of an uptick in interest in the green power supply business because the market share is small and the investment is large. The national average for consumers buying into voluntary programs is 1 percent. North Carolina's proposed fee is $4 per 100 kilowatt hour block. The average residential customer's monthly usage is 1,000 kilowatt hours. Customers decide how much or little green to buy. Converting fully to green power would increase the average monthly residential bill by $40. Source: American City Business Journals Inc 4/26/2002.
Wisconsin Public Service Gains National Recognition for Green Energy Program
The Center for Resource Solutions (CRS) announced today that Wisconsin Public Service Corporation's NatureWise product achieved national Green Pricing Accreditation. NatureWise electricity is generated from a blend of new renewable energy resources, and meets the national and regional Accreditation standards for environmental and consumer protection. The newly accredited NatureWise program is available to over 400,000 retail customers in the Wisconsin service territory. The program gained national Green Pricing Accreditation status by meeting or exceeding a series of stringent guidelines that include the use of renewable resources, appropriate product pricing and marketing, and customer education. Accredited utility programs also undergo an annual independent verification process to document that they have delivered the green power promised to their customers. Environmental, consumer, and clean energy groups all collaborated through CRS to establish the Accreditation criteria. The national criteria were then applied through a local statewide process in which consumer and environmental protection organizations worked directly with utilities in Wisconsin. This strategic collaborative effort ensures high quality green energy programs. "The Green Pricing Accreditation Initiative is part of efforts by consumer and environmental protection groups across the country to help use the power of customer choice to promote renewable energy and protect the environment," said Jan Hamrin, CRS Executive Director. The state of Wisconsin is a pioneer in Green Pricing achievement, featuring three of the first four programs in the nation to gain Accreditation. "Customer demand for clean electricity is turning renewable energy into a regional powerhouse here in the Midwest. We believe Accreditation is the best way to ensure that electricity customers get the renewable they are promised," said Michael Vickerman, Executive Director of Renew Wisconsin. The green electricity in NatureWise is offered in blocks of 100 kilowatt-hours (kWh) each, and customers pay a monthly premium of $2.65 per block. Each block will consist of:
For more information: http://www.eren.doe.gov/greenpower/ or http://www.thegreenpowergroup.org/
Framingham wind firm looks at Montana
Doug Barba, executive vice president of Ameresco Inc., a provider of energy services headquartered in Framingham, announced Monday that more than nine months of research at its wind energy site in Cut Bank, Mont., has confirmed the commercial viability of a major wind-energy installation at that site. "It's better than we thought, in terms of velocity and consistency. We also found that our site will generate power at the time that Montanans need it the most. We have the best wind during the daylight hours in the coldest months," said Barba in a statement. "This will justify an investment of over $150 million in a Montana wind project by our company." Ameresco, the 99 percent owner of Montana Wind Harness, is evaluating the wind potential of major sites in Montana. Montana Wind Harness has committed to build up to 115 wind turbines, at 1.3 megawatts each, in Montana. The turbines employ state-of-the-art, European technology, and stand more than 300 feet high from the base to the top of the blades. Source: Boston Business Journal 4/30/2002.
Palo Alto Utility Helps Local Schools Generate Their Own Electricity
Harnessing the sun's power to reduce electricity bills at Ohlone Elementary School is just one example of the ongoing partnership between the City of Palo Alto Utilities (CPAU) and the Palo Alto Unified School District (PAUSD). CPAU helped Ohlone successfully write a State of California grant proposal for a photovoltaic system (PV) to generate electricity for the school. Sited at the school's organic farm, the one-kilowatt (1,000 watt) PV system was installed by contractor-assisted volunteers on March 19. The new system will lower the school's overall electric bill while it provides students with a "living lab" of solar technology. CPAU has also provided training to Ohlone teachers and students on how to collect and analyze data on the operation of the PV system. This information will be collected on an ongoing basis by the students and then be used in classroom instruction on solar energy and environmental sustainability and posted online (on the Solar Schoolhouse website) to share & compare with other schools. Ohlone is the second Palo Alto school to generate renewable electricity from the sun. Gunn High School received a grant in 1999 from the City of Palo Alto Utilities' Photovoltaic Demonstration Program. Gunn installed a 5-kilowatt (5,000 watt) photovoltaic system [pictured below] which has been providing power to high school for about 2 years. CPAU is also working with the Gunn High School administration to provide a series of solar workshops for teachers and obtaining solar demonstration kits to be used in classrooms. Source: CPAU City Manager Memo 4/5/2002 via Solar e-Clips 4/9/2002.
$600M Solano Wind Plan Gets New German Backing
With a German conglomerate as its new backer, a Wyoming company is pushing ahead with a $600 million plan to harness Solano County's winds to power 750,000 Bay Area homes at a fraction of the cost of conventional electricity. The far-reaching proposal from TMA Inc. to Vallejo remains in preliminary stages but could establish the city as a regional power broker. Cheyenne-based TMA, now partnered with the multinational giant Siemens AG, envisions using 3,000 leased acres outside Fairfield near Travis Air Force Base to generate up to 1,000 megawatts, during the May-to-September peak wind months. That amount of electricity would be sufficient to power 750,000 homes, or about one-third of the Bay Area's households, said Tom Meissner, a TMA board member and the privately held company's point man in Northern California. The cost of TMA's wind-generated electricity would be 7.5 cents per kilowatt-hour, about 37 percent of Pacific Gas & Electric Co.'s current rate to Vallejo of 20.1 cents per kwh, said Meissner, a Suisun City resident. Meissner met Wednesday with Alvaro da Silva, Vallejo's economic development director, to outline rough terms of the 20-year power purchase proposal that he described as a "no-risk" offer to the city. "We have to see what the proposal is all about," da Silva said. "If it's acceptable, it would be two to three weeks before it would go to the council." With approval in May, TMA could have its first six units in operation by November to begin an 18-month test, Meissner said. Vallejo is looking at TMA's proposal as part of an energy independence plan proposed by City Manager David Martinez that would take city facilities off the power grid and eventually Vallejo's 4,200 businesses and 49,000 residences as well. The city has drawn national attention for its ambitious plan. The city already has contracted with BP Solar of Fairfield to build a 1-megawatt solar power facility. A San Rafael company is installing a solar plant at the corporation yard to provide emergency power to police headquarters. And Larry Asera of Vallejo, the city's energy consultant, is in early discussions with PowerLight Corp. of Berkeley to install solar arrays on the roofs at Vallejo City Hall and the adjacent John F. Kennedy Library. TMA and city officials have been talking since last summer, when test results surprisingly showed the Vallejo area with more windpower generating capacity than California's internationally recognized wind centers in the Altamont and Tehachapi passes. Those tests indicated a year-round average of 39 percent of maximum, with the figure rising to 70 percent during peak summer months. That means, for example, a 1,000-megawatt installation would produce an average 390 megawatts year-round, rising to an average at 700 with peaks at 1,000 during summer months when usage also is highest. While that power wouldn't be enough or consistent enough to take all 750,000 Bay Area homes off the grid, it would free an equal amount of grid power for industrial and commercial uses, and reduce the strain on California's outdated transmission lines, which can't move enough power to where it's needed during peak usage periods. "You'd still have to have conventional power, but you'd reduce the need significantly," Meissner said. Talks between Vallejo and TMA stalled in January when TMA failed to come up with backers that would guarantee the cost of the overall project, estimated at $600 million. Under the early proposal, TMA is required to assume all construction and operation costs, and most of the land leasing costs. The city would supply some space at three water-pumping stations and sign a long-term power purchase agreement. Since then, according to Meissner and Duane Rasmussen, TMA's CEO, the company has received a commitment from Siemens AG, the German conglomerate, to finance major projects in California and Wyoming and to provide engineering, planning and construction services on the projects. A German subsidiary will provide the money and a U.S. subsidiary based in Georgia will supply engineering, construction and operation services. "We were mainly interested in Siemens all the time," Rasmussen said. Siemens supplies some of the technology used in TMA's patented turbines, which rotate on vertical axes housed in 50-foot-high buildings that also accept photovoltaic panels. TMA's units not only are more efficient than the traditional propeller-tower units, according to the company, but the lower profile reduces aviation risks, visual pollution and bird kills. The company has installed 250-kilowatt turbines in the West and in Europe and is testing a new 750-kw unit for use in Solano County. Meissner said the core of TMA's offer is to sell all the power it generates to the city at a fixed rate of 7.5 cents per kilowatt hour for 20 years, with an inflation accelerator at the end of 10 years. "I'm prepared to go lower if they will go longer than 20 years," Meissner said. "I will clip a half-cent for every five (additional) years." Vallejo could sell unused power on the market, or to other cities, at a substantial profit that would more than cover the estimated $2.5 million annual cost of wind-generated electricity to supply municipal needs, primarily at water pumping stations, Meissner said. TMA also is negotiating to lease 3,000 acres of industrial and farmland south and west of the military base in the "wind corridor." "For Solano County, we could produce 1,000 megawatts with no obvious impact on the environment," Meissner said. Reach Doyle at adoyle@bizjournals.com or 925-598-1404. Source: East Bay Business Times 4/26/2002.
Alameda County Dedicates the Largest Solar Electric System in the Nation
As part of its Earth Day Celebration, the Alameda County Board of Supervisors today dedicated the nation's largest rooftop solar electric system, located atop the Santa Rita Jail in Dublin, Calif. Joining in today's dedication were William Keese, chairman of the California Energy Commission, Barbara Hale, director of Strategic Planning for the California Public Utilities Commission, Jeanne Clinton, deputy director of Conservation and Distributed Generation for the California Power Authority, and Alameda County Board of Supervisors President Scott Haggerty. PowerLight Corp. of Berkeley, Calif., the leading manufacturer and installer of large-scale solar electric systems, installed the first solar array on the Santa Rita Jail during the summer of 2001. The solar photovoltaic (PV) system performed so well and yielded such significant savings that PowerLight was commissioned to increase the County's initial solar generation system of 640 kilowatts to 1.18 megawatts. Covering approximately three acres of the jail's roof, this on-site solar system is the largest PV rooftop system in the United States. In addition, PowerLight worked with CMS Viron to integrate energy efficiency measures with the solar generation system to maximize energy savings. "Alameda County installed photovoltaics because the economics were so compelling," said Alameda County Supervisor Scott Haggerty, president of the Board of Supervisors. "Because our energy generation and cost savings were higher than projected, we decided to purchase additional solar generation from PowerLight." "Since the 1970s, California has led the nation in developing new technologies for renewable energy sources as well as creating standards for energy efficiency," said Energy Commission Chairman Keese. "The simplicity and common sense of combining roofing materials with electricity generation is perfect for a State committed to balancing economic growth with environmental considerations. The Commission is proud to be among the entities that provided the impetus for PowerLight Corporation to bring solar energy technologies successfully into commercial fruition." "Clean kilowatt hours are too precious to waste," said the California Power Authority's Deputy Director of Conservation and Distributed Generation Jeanne Clinton. "By integrating on-site solar power generation with energy efficiency measures, Alameda County has demonstrated its leadership in defining both clean and cost-efficient energy solutions." "The combined solar electric power and energy efficiency solutions we implemented through our relationship with PowerLight reflect the future of the energy industry," noted Alameda County Energy Program Manager Matt Muniz. "With solar electric generation, we reduced our overall energy cost, and in particular, reduced our purchases of expensive, peak energy from our local utility. With energy efficiency and demand side management technologies, we have maximized the value of our solar investment, while at the same time modernized our facility." "We applaud Alameda County for their environmental stewardship by using clean on-site solar electric power and energy conservation," noted Tom Dinwoodie, CEO of PowerLight. "This project exemplifies how local governments can improve air quality while saving taxpayers' dollars." Alameda County's solar powered installation, equivalent to powering 1,000 homes, spares the environment from thousands of tons of harmful emissions such as CO2, NOX, and SOX, which are major contributors to smog, acid rain and global warming. PowerLight's patented PowerGuard(R) solar roof tiles insulate and protect the roof while generating clean solar electricity. For this project, PowerLight incorporated high-efficiency solar cells from AstroPower (Nasdaq:APWR) and BP Solar, a BP Group company. To date, the combined project has reduced the facility's peak summer demand consumption of grid-generated electricity by 35%. Already, over 2.5 million kilowatt-hours of annual electricity consumption are diverted from California's electric grid by the Santa Rita Jail project. These savings benefit all State consumers by reducing grid power purchases, most of which occur during peak electrical demand hours -- at times when state transmission lines are the most constrained. Based on current PG&E electricity rates, the total project savings for Alameda County are about $425,000 in the first year of operation, and $15 million in net savings over the 25-year life of the project. Partial funding for the projects came from the California Energy Commission's (CEC) Emerging Renewable Buydown program, incentives from California PUC, and prior energy efficiency incentive payments. The County received a low interest rate energy efficiency loan from the CEC, and did not have to authorize any general fund revenues to finance its solar electric generation and energy efficiency projects. The project's electrical cost savings will pay the debt service for this loan. "Energy is a vital resource. As it becomes increasingly expensive, other public agencies will follow Alameda County's lead and perform energy efficiency upgrades to help manage costs and revitalize aging facilities. Such leadership by the County not only serves to protect our environment, but also creates job opportunities in California for the growing energy efficiency industry," said CMS Viron President John Mahoney. Alameda County invites the public to learn more about this project and view, in real time, the performance of the solar power system at its website: Note: In "CO2," 2 should be subscript. In "NOX" and "SOX," X should be subscript. Contact: PowerLight Corp., Susan DeVico, 415/434-8220 or Alameda County, Matt Muniz, 510/208-9518. Source: Solar e-Clips 4/22/2002.
LIPA Studies Wind Potential on Long Island
The Long Island Power Authority (LIPA) recently released a new study examining the use of offshore wind turbines to generate electricity for Long Island. The authority said the study found that approximately 5,200 megawatts (MW) of electricity could be produced by wind generators located three to six nautical miles off Long Island's south shore and east of Montauk Point. In addition, the study, titled "Long Island's Offshore Wind Energy Development Potential: A Preliminary Assessment," found that restricting the placement of the wind turbines to a location about three nautical miles from shore would produce more than 2,200 MW of electricity. "The study shows that harnessing the wind to produce electricity for Long Island has tremendous potential," said LIPA chairman Richard Kessel. "It's not without challenges, but the preliminary study demonstrates that its certainly worth moving forward with follow-up assessments to determine the best locations for siting offshore turbines, and to obtain more detailed information on the costs and environmental benefits of offshore wind generation." LIPA said the study also found that a 100-MW offshore project would cost approximately $150 to $180 million, with interconnection costs ranging from $40 to $70 million. The rotor hub for an offshore wind turbine would be 262 feet above the surface of the water, and rotor blades 164 feet long would make the tip of the rotor reach a height of 426 feet above the surface of the water. Additionally, LIPA noted that the permitting process for the projects would take a minimum of three years. "No doubt about it, offshore wind generation for Long Island holds promise for the future," said Kessel. "We're going to move forward with a more detailed evaluation of its potential so that we can develop some specific recommendations for the placement of wind generators off Long Island's south shore." Contact: LIPA, phone 516-719-9892. Source: EIN Staff 4/30/2002.
For more information on Renewable Resources go to: http://www.eren.doe.gov/repis/
Northeast Regional Biomass Program
The Northeast Regional Biomass Program (NRBP) is one of five Regional Biomass Energy Programs established and funded by the U.S. Department of Energy (DOE). The Northeast region consists of eleven states including: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. The program's mission is to evaluate biomass technologies and fuels and to provide objective, reliable information to consumers and policy leaders. The NRBP carries out its mission through an extensive network of local, state, and national government organizations, and partnerships with private industry. For more information on the NRBP see their Website at: http://www.nrbp.org.
Geothermal biz.com
The purpose of Geothermal biz.com is to help individuals, small businesses, and other groups develop geothermal direct use and small power generation projects in the western United States, Alaska, and Hawaii as part of the U.S. Department of Energy-led GeoPowering the West program. For more information, see http://www.geothermal-biz.com. Source: E-mail from Liz Battocletti, Bob Lawrence and Associates, Inc, (703)836-0304
Utah Enacts Net Metering Legislation, Kentucky Starts Pilot
Utah and Kentucky have joined the ranks of states in which the state's utilities offer net metering to their customers. Net metering allows customers to install their own power generation systems and feed excess power back into the grid. Customers are billed only for their net electricity use over a month or a year -- ideally, their meter turns backwards when they are feeding power into the grid. Net metering is usually limited to clean power sources of a certain size. The Utah legislation, which takes effect next week, applies to renewable energy and fuel cell installations of not more than 25 kilowatts. See the Utah bill at: http://www.le.state.ut.us/~2002/htmdoc/hbillhtm/HB0007.htm. Net metering is now available to some extent in 36 states. Most of the states require net metering by legislation. For a summary of these programs, see the EREN Green Power Web site at: http://www.eren.doe.gov/greenpower/netmetering/nmtable.shtml. Source: EREN Network News 5/1/2002.
NRECA Offers Distributed Generation Interconnection Tool Kit
The National Rural Electric Cooperative Association, the Cooperative Research Network, the National Rural Utilities Cooperative Finance Corp. and Energy Co-Opportunity have worked together to develop a number of resources to help electric cooperatives address the legal, economic and technical issues raised by consumer-owned generation. The tool kit contains a number of elements that provide models and guidance that each cooperative can adapt to their own unique needs:
The Tool Kit can be found on NRECA's Legal & Regulatory Web Page http://www.nreca.org/leg_reg/DGToolKit/. Source: IREC Interconnection News May 2002.
New Energy-10 Version 1.5 To Be Released Early May 2002
Energy-10 Version 1.5 is now scheduled for release in early May 2002. Registered users will receive copies of the upgrade free of charge. Version 1.6 (with a useable PV module) is scheduled for release in Fall 2002. Version 2.0, with the exciting new SKETCH capability, is scheduled for a late 2002 release. For more information on this powerful sustainable building design software tool, please contact the Sustainable Building Industry Council, Doug Schroeder, (202) 628-7400 x210 or schroeder@sbicouncil.org. Source: E-mail from SBIC 5/1/2002.
Energy Commission Forecasts Near-Normal Output from Hydro Plants
This summer's power output from the State's hydroelectric plants should approach 85 percent of normal, according to a just-released report by the California Energy Commission. The Commission's California Hydro-Electricity Outlook for 2002 report predicts that nearly 13 percent of California's total electricity needs this summer can be met with power from its in-State dams and powerhouses. Last year, when electricity supplies were much tighter, hydro projects produced less than 10 percent of the State's electricity. The report acknowledges that this water year, which officially began on October 1, 2001, has been very dry in the southern part of the State. Southern California has received just 30 percent of it's average rainfall. In the northern part of the State, however, where most of the hydroelectric generation occurs, precipitation has amounted to 100 percent of normal. Rainfall is unequally distributed in California; while three-quarters of the State's water use takes place south of Sacramento, roughly three-quarters of California's precipitation falls north of the capital city. The vast majority of in-State hydroelectric generation depends on runoff in 13 rivers that flow into the Sacramento River, the San Joaquin River, and the Tulare Lake basin. Runoff totals in those watersheds are presently estimated to be 84 percent of normal. Looking north beyond State boundaries, the report finds good news in the Pacific Northwest. After suffering drought emergencies last year, Washington has had near record precipitation amounts this season. As a result, more hydroelectric power should be available to California this summer from Washington and Oregon, further brightening the State's power picture. The report, prepared each spring by the Energy Commission, is based on hydrologic data and forecasts from the Department of Water Resources and confidential forecasts provided by some of the California utilities. April 1 is used as the yearly benchmark date, since on average 82 percent of the State's precipitation arrives by that date. The California Hydro-Electricity Outlook for 2002 is Publication Number 700-02-004F. It can be downloaded from the Energy Commission's website at: http://www.energy.ca.gov/reports. Source: E-mail from CEC 5/1/2002.
For more information on Educational Resources go to: http://www.thegateway.org
Senate Passes Energy Bill Including RFS
On Thursday, April 25, the U.S. Senate passed comprehensive energy legislation, S. 517, that includes establishing a renewable fuels standard (RFS) and makes long-awaited changes to the small ethanol producer tax credit, legislation to require utilities to produce 10% of their electricity by 2019 from renewable fuels; repeals the Depression-era Public Utilities Holding Company Act, which limits the operations of electricity holding companies; and gives wider power to the Federal Energy Regulatory Commission to regulate wholesale electricity markets and transmission lines. The bill now goes to a House-Senate Conference Committee appointed to work out the differences between the two bills. "The Senate's action is a true milestone for the ethanol industry," said Bob Dinneen, Renewable Fuels Association president. "And not just because the Senate energy bill sets the ethanol industry on an aggressive growth path, but because this debate helped forge a new era of understanding between the oil industry and renewable fuel producers. In order to cost-effectively and securely meet America's demand for motor fuels, our two industries must continue to work together in the future and I know we will." National Corn Growers Association president Tim Hume added: "This is the first time ever that national energy policy would require the use of renewable transportation fuel. This is a clear victory for farmers and renewable fuels advocates. When the time came to count votes, renewable fuels were, time and again, able to show the strong support they have in the U.S. Senate." The RFS provisions, backed by a coalition including members of the oil industry, agricultural groups, environmental and public health groups, and the ethanol industry, bans MTBE, eliminates the reformulated gasoline oxygen standard, enhances clean air rules, and establishes a minimum renewable fuels standard that grows to 5 billion gallons by 2012. The energy bill's tax section modifies the small ethanol producer tax credit to allow members of a farmer cooperative to fully participate in the program and also updates the definition of a small ethanol producer. Source: RFA 4/29/2002.
AWEA Applauds Passage of Senate Energy Bill
The American Wind Energy Association (AWEA) recently applauded the approval of Senate energy bill S. 517, which features a federal renewables portfolio standard (RPS), a five-year extension of the wind energy production tax credit (PTC) and a new investment tax credit for small wind systems. "The Senate's passage of an RPS signals a firm commitment to fully capitalize on America's enormous renewable resources," said AWEA executive director Randall Swisher. "The Senate energy bill will help pave the way for increased development of renewables by requiring electricity suppliers to look seriously at adding these clean, domestic energy sources to their power mix. [W]ith continued federal leadership and industry development, we estimate that wind energy can provide as much as six percent of the nation's electricity by 2020, or more than half of the renewable total required in the Senate-passed bill." The RPS would require that an additional one percent of the nation's electricity be generated from renewables by 2005, increasing to 10 percent by 2020. Additionally, a new credit trading system would help utilities comply with the renewables requirement in a cost-effective manner. The PTC, which provides an incentive of 1.5 cents per kilowatt-hour for electricity generated during the first 10 years of operation of a new wind plant, would be extended through 2006. The investment tax credit would cover 30 percent of system costs for residential and business uses. "A federal RPS has huge economic development implications for rural America, promising new jobs in many wind-rich states while bringing a 'second crop' to many landowners and new tax revenue to many local governments," said Swisher. Contact: Tom Gray, AWEA, phone 802-649-2112. Source: AWEA Wind Energy Weekly 4/26/2002.
FERC Issues NOPR For National Generator Interconnection Standards
On April 24, the Federal Energy Regulatory Commission (FERC) issued its notice of proposed rulemaking (NOPR) for national generator interconnection standards. While the bulk of the FERC's 193-page notice and discussion focused on large units, they also included for the interconnection of small generation equipment defined as those units less than 20 megawatts (MW) in capacity. The FERC intends to adopt a standard generator interconnection agreement together with a standard interconnection procedure that would become part of the open transmission tariff of every public utility. The issuance of the NOPR follows a FERC initiated consensus building process that resulted in the filing of a consensus document in January of 2002. The FERC relied heavily on the outline developed by the stakeholders in that process. One area where there was no consensus was whether the FERC had jurisdiction over the interconnection of small generators. Certain parties had argued in comments on the ANOPR that interconnections with the distribution grid were completely a state matter - one in which the FERC could not establish regulations. The jurisdictional issue was the first discussed by FERC in the NOPR comments. The FERC stated "[t]he actions proposed here are well within the authority granted to the Commission in the [Federal Power Act]; it is clear that the FPA grants federal jurisdiction over transmission by a public utility in interstate commerce and when public utilities make sales for resale in interstate commerce. Within this jurisdiction, we propose that the NOPR [rules] will apply only when a generator interconnects to the Transmission Provider's transmission system or makes wholesale sales in interstate commerce at either the transmission or distribution voltage level." Clearly the FERC has eliminated the distribution voltage level as the line determining state versus federal jurisdiction. The test FERC adopted is the more classic "sales for resale" test. If the generator is producing energy that will be re-sold, then the FERC interconnection rules will apply even if the unit is interconnecting with the distribution system. This comports with the current practice in the PJM Independent System Operator region (Mid Atlantic States) which treats generator interconnections not on the voltage of the interconnection but whether the generator will participate in PJM markets. The NOPR also states:
Comments on the NOPR are due in 45 days. Subsequent to that, the FERC rules will take effect. You can download the NOPR http://www.ferc.gov/electric/gen_inter/rm02-1-04-24-02.pdf, along with both a model Interconnection & Operating Agreement (IA) http://www.ferc.gov/electric/gen_inter/IA-04-24-02.pdf and a sample Interconnection Procedures (IP) http://www.ferc.gov/electric/gen_inter/IP-04-24-02.pdf document from the FERC website. Source: IREC Interconnection News May 2002.
For more information on legislative activities go to: http://www.kannerandassoc.com/fedenergybills.html or http://www.thomas.loc.gov/
Department of Defense Renewable Energy Assessment
The FY 2002 Military Construction Appropriations Act provided $6M to DoD to perform a renewable energy assessment. The following text consists of excerpts from Public Law 107-64, and associated committee reports: "The conferees direct that $6,000,000 be used to conduct a service-wide assessment of renewable energy alternatives at or near Department of Defense installations." Last winter's energy shortages, coupled with heightened national security concerns over the vulnerability of the existing power delivery system, transmission lines, and fuel supply sources, have underscored the need for the Department to increase its reliance on renewable energy resources, particularly solar, wind, and geothermal, at military installations and Department of Defense family housing complexes. It is the opinion of the Committee that renewable energy resources can help to improve energy reliability, independence, and security through diversification and distributed development, and in so doing, complement conventional energy resources. To accomplish this goal, the Committee directs the Department to designate an executive agent among the services with field-level renewable energy purchasing experience, to assess the regional potential of renewal energy generation, transmission, and distribution by industry on or near Department of Defense installations in the United States. Because of the Air Force's scope and level of experience, the Committee recommends that the Air Force be designated the executive agent. The assessment is expected to encompass installations in each of the services and should include an analysis of the overall cost, benefit, and risk of various renewable energy proposals. The Department is also directed to provide a plan for encouraging the participation of private industry in the development and provision of renewable energy, and address the Department's market, regulatory, legal, cost and other possible impediments to an increased reliance on renewable resources... The Department is directed to provide the congressional defense committees with an interim report on the scope and method of the assessment no later than April 30, 2002, and a final report no later than April 30, 2003. The study effort is in the process of being organized. It will cover wind, geothermal, and solar technologies. Several DOE laboratories will be assisting DoD. They include: Pacific Northwest National Laboratory (Washington), National Renewable Energy Laboratory (Colorado), and Sandia National Laboratories (New Mexico). Major planned assessment results include detailed assessment of military installation potential for renewable energy use; selectively placing wind anemometers; develop renewable energy project documents; cost/benefit and risk assessment of potential projects; identification of renewable energy potential near bases; and recommendations to mitigate legal or regulatory impediments. Other goals are to improve grid reliability, expand industry capacity, and to develop a roadmap to facilitate future renewable purchases. Source: E-mail Federal Utility Partnership Working Group 4/2/2002.
For more information on marketing and research go to: http://www.nrel.gov/analysis/emaa/index.html
DOE Funds Geothermal Effort in California
The University of Utah's Energy and Geoscience Institute (UU-EGI) and New York, NY-based Caithness Energy, LLC will receive $4.5 million in cooperative agreement funding from the Department of Energy (DOE) over the next five years as part of a $12-million initiative to boost production at the Coso geothermal field in California. DOE said the funding covers a cooperative agreement for an Enhanced Geothermal System (EGS) under a three-stage program. The first stage involves developing and demonstrating the appropriate technology for expanding production at an existing geothermal field. The second stage, for which DOE is currently accepting applications, seeks to improve production at geothermal fields that are currently economically unviable. The third stage involves developing technology that can be used to locate geothermal fields "that would be good candidates for EGS efforts." "Developing and demonstrating this enhanced geothermal system technology advances the President's national energy plan goals of deploying next generation technology and increasing renewable energy production on federal lands," said DOE secretary Spencer Abraham. Abraham said the additional power generated at the Coso geothermal site as part of the EGS program will be enough for more than 11,000 homes. UU-EGI and Caithness will use hydrofracing technology to create additional channels in the subsurface rock to allow more hot water to have access to existing geothermal wells. Contact: Tom Welch, DOE, phone 202-586-5806. Source: EIN Staff: 4/29/2002.
USDA Rural Cooperative Development Grant Program
The USDA Rural Business Cooperative Service requests applications for the Rural Cooperative Development Grant Program (RCDG). The primary objective of the RCDG is to improve the economic condition of rural areas through cooperative development. Approximately $5.3 million is available of which about $1.5 million will be reserved for pre-applications which focus on assistance to small, minority producers through their cooperative businesses. For more info, see the USDA Rural Development web site, or contact James Haskell at (202) 720-8460. Pre-applications are due 17 May 2002 and should be sent to the Rural Development State offices. Source: Geothermal Biz.com 4/30/2002.
For more information on funding solicitations go to: http://www.eren.doe.gov/solicitations.html
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