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More and more suppliers are seeking Green -e certification of wholesale renewable energy and tradable renewable certificate products. This is a positive sign for the growth of green power marketers and for the quality of the wholesale supply. When a retailer offering a Green-e certified product sources from Green-e certified wholesale supply they receive a discount on their certification fee and may receive some administrative assistance with completing the annual Green-e product verification. In addition all retailers benefit from the independent quality assurance of Green-e.
Currently, there are 10 suppliers offering a Green-e certified wholesale product. With the exception of AMP-OHIO, all offer TRC products. These products reflect a diversity of market applications from the wholesale electricity market of Ohio to the national TRC market. Aquila is a large utility that sells Green-e certified TRCs from wind generation facilities in Kansas to other regional utilities for their green pricing programs. Certification does not carry through to the retail product and these utilities would have to apply for Green-e certification of their retail green pricing program. Bonneville Environmental Foundation, 3Phases Energy, and Sterling Planet all sell certified wholesale TRCs to both Green-e and non-Green-e certified utility green pricing programs.
Evolution Markets acts as national wholesale broker sourcing and packaging certified wholesale TRCs for other retailers. Community Energy, Inc. (CEI) has significantly expanded the market for its New Wind Energy product by offering certified wholesale TRCs to a number of utility retail partners within the same power pool in competitive markets. For instance, CEI sells wholesale TRCs from New York wind farms to Con Edison Solutions for their certified renewable electricity product, GREEN Power. Community Energy also serves as a certified wholesale TRC provider to Pepco Energy Solutions and other Mid Atlantic electricity suppliers who are able to offer their customers premium green power products that include New Wind Energy. EAD Environmental and Mainstay Energy are playing a similar role in the national and regional TRC wholesale market. These examples are just a few of the ways marketers use Green-e certification of wholesale TRCs to reach new customers and markets. With Green-e certification for wholesale products, Green-e certified energy is now easier to sell. For more information, contact Gabe Petlin. Source: CRS Release, 6-2003.
The U.S. Green Building Council is the nation's foremost coalition of leaders from across the building industry working to promote buildings that are environmentally responsible, profitable and healthy places to live and work. The U.S. Green Building Council is leading a national consensus for producing a new generation of buildings that deliver high performance inside and out. Council members work together to develop LEED™ products and resources, the Greenbuild annual International Conference and Expo, policy guidance, and educational and marketing tools that support the adoption of sustainable building. Members also forge strategic alliances with key industry and research organizations and federal, state and local government agencies to transform the built environment. To learn more about green building and how to start a green building program in your service territory, see the U.S. Green Building Council Web site.
Austin Energy announced that it plans to increase the fuel charge component of its electricity rate in three phases over the next year because of higher natural gas prices and the prolonged outage of one of its nuclear generating units. However, customers who purchase all of their electricity through the utility's GreenChoice program will see no rate impact from the fuel charge increase. This is because GreenChoice customers pay a fixed green power charge in place of the utility's fuel charge. For most GreenChoice customers, the premium paid for green power will fall from its current level of 1.076¢/kWh to just 0.054¢/kWh once the entire fuel charge increase takes effect.
Austin Energy Contact: Mark Kapner (512) 322-6123 . Source: Green Power Network, 6/17/2003.
Roy Cornwell, an 80-year-old engineer who owns 4,700 acres in California's Altamont Pass, recently met with Lawrence Livermore National Laboratory energy and environment scientist Ray Smith to discuss potential plans for a 1,800-megawatt (MW) hybrid wind energy and hydroelectric power project. According to Cornwell, whose Altamont property includes 793 wind turbines owned and operated by Florida Power and Light, the facility would use electricity produced at night by wind turbines to pump water uphill from one storage lake to another. During the day, the water would be released through hydropower turbines to generate "peaking power" to help meet the state's energy demands.
"Technically, it's feasible, no question," said Cornwell. "Environmentally, this thing is a 100-percent winner." In order for the concept to be feasible, Cornwell said wind turbines in Altamont Pass must generate 1,000 MW of electricity, a difficult improvement due to a 540-MW limit imposed by Alameda County to protect local birds. Additionally, officials said obtaining water to fill the lakes in the arid Altamont region could pose a problem. However, Cornwell asserted that the project would only require a "one-time supply." Source: Contra Costa Times 6/17/2003 Via EIN Renewable Energy Today 6/20/2003.
Construction began Friday on more wind turbines in the Kulm and Edgeley area of southeastern North Dakota. Florida-based FPL Energy is adding 14 wind turbines to its North Dakota farm, and will have 41 turbines when construction is completed later this year. Minnesota-based Otter Tail Power is buying electricity produced by the 14 new turbines. Bismarck's Basin Electric Power Cooperative is buying the rest. Otter Tail President Chuck MacFarlane said the project will benefit more than just North Dakota. ''This helps us meet our mission to provide low-cost, reliable energy to our customers in North Dakota, South Dakota and Minnesota,'' he said. FPL operates about 30 wind farms in 10 states. Source: Aberdeen News 6/21/2003.
King County plans to harvest biogas from a landfill and two sewage treatment plants, eventually using the fuel to generate enough electricity to power 21,400 homes for a year. The county is negotiating with an unnamed company that is interested in purchasing methane gas from the Cedar Hills Regional Landfill. Two other biogas-to-energy projects are in the works at county sewage treatment plants. See the article. Source: Seattle Times, 6/ 3/2003 via Energy Services - Energy NewsBriefs 6/6/2003.
Wilmington, MA-based sustainable energy storage and power conversion solution designer and developer Beacon Power Corporation recently announced the introduction of new Smart Power M5 renewable energy inverters, which the company said are "based on the development and enhancement of electronics technology and assets purchased from Advanced Energy Systems, Inc." According to Beacon Power, the initial product release is "an upgraded and improved five-kilowatt [(kW)] inverter system for grid-connect applications" that converts direct current (DC) power from solar energy sources into alternating current (AC) power for local use. The company also noted that the system, which is "based on and upgraded from the MM5000 unit purchased from Advanced Energy," will feature "multimode" operation in "a variety of system configurations."
"The high-efficiency five-kW inverter, backed by a warranty of up to five years, will offer a range of features in one compact, integrated system," said Beacon Power president and CEO Bill Capp. "These include a two-stage DC-to-AC inverter, charge controller with maximum power point tracking capability, complete switchgear, patented anti-islanding technology and battery back-up...capability. Systems can be equipped with optional performance monitoring software, residential battery boxes and string combiners."
Beacon Power said orders are currently being accepted for the inverters, with deliveries beginning in August. Additionally, the company said an off-grid version of the M5 unit, known as the M5 Plus, will be available later this year. Contact: Gene Hunt, Beacon Power, phone 978-661-2825. Source: Business Wire 6/17/2003.
State-owned Indonesian power company PT Perusahaan Listrik Negara (PLN) recently announced it has extended an offer to U.S. energy company Unocal to purchase the Sarulla geothermal power project located in North Sumatra, Indonesia for $60 million. According to Indonesian officials, the two parties have so far failed to agree on a purchase price for the geothermal project, which was postponed in 1998 as a result of Asia's financial tumult. "PLN is waiting for the answer from Unocal," said PLN president director Eddie Widiono. "After the acquisition agreement is signed, we will tender the project to find a partner for building the plant." Source: Reuters, 6/17/2003 via EIN Renewable Energy Today 6/18/2003.
New York, NY-based wind farm developer Bluewater Wind, LLC recently announced it has submitted a bid to the Long Island Power Authority to build, operate and maintain a 140-megawatt, 39-turbine wind farm six-and-one-half miles off the southern coast of Long Island. Additionally, the company said its has launched a new website, located on the World Wide Web at http://www.bluewaterwind.com, that addresses the proposed wind farm's "impact on and benefits to the Long Island community."
"Long Island is positioned to make history by converting the safe, clean power of wind into a renewable energy sources," said Bluewater Wind president Peter Mandelstam. "Wind energy can provide a permanent cure for the volatile electricity price fluctuations and supply shortages that have long plagued Long Island residents." Bluewater Wind said the project, which would cover "less than one-half square mile in total area," has been endorsed by 34 Long Island-based environmental, civic and faith-based groups.
"Long Island can steer the country in an exciting new direction with its offshore wind, which will be pollution-free, boundless and blow a gust of clean air into the future of energy production," said Natural Resources Defense Council air and energy program director Ashok Gupta. The company said the new website features "technically accurate photo simulations of how the wind park will appear from various vantage points," as well as a "nine-minute video" with "close-up images" of the wind turbines. Contact: Emily Lenzner, Bluewater Wind, phone 917-449-6491. Source: EIN Renewable Energy Today, 6/17/2003.
In biogas news, a sewage treatment facility is supplying its own power from methane generated during the sewage treatment process. The plant recently installed four microturbines to burn biogas from a previously installed fuel cell that converts biogas into energy. The micro-turbines burn the gas to provide electricity and heat used in plant operations. The biogas project is part of the Portland Office of Sustainable Development's City Energy Challenge (CEC), which claims to have reduced Portland's energy costs by more than $2 million per year. For more information on the biogas projects and CEC see CEC's Web site. Source: EREN Network News 6/17/2003.
Kyocera Solar, Inc. recently announced it has provided a new 57.6-kilowatt photovoltaic solar array to West Marine Products, Inc.'s 5,000-square-foot retail location in Santa Cruz, CA. According to Kyocera, the array, which was designed and installed by Solar Technologies, consists of 480 Kyocera 120-watt solar panels and is capable of providing up to 81,000 kilowatt-hours of electricity per year.
"West Marine is committed to using proven technology with a reasonable payback time to reduce our impact on the environment," said West Marine Products board chairman Randy Repass. "Our system, designed and installed by Solar Technologies with Kyocera panels and Sunny Boy inverters, provided the environmental and financial payback we were looking for."
Kyocera also noted that West Marine was "able to benefit from a variety of government incentives for the solar array," including a 50-percent rebate from the California Public Utilities Commission; an additional 15-percent "after rebate" California state tax credit; a 10-percent federal tax credit; and an accelerated five-year depreciation schedule that includes a 30-percent depreciation allowance in the first year. Contact: Cecilia Aguillon, Kyocera, phone 480-443-7956. Source: EIN Renewable Energy Today 6/16/2003.
The Dairyland Power Cooperative in La Crosse, WI recently announced it has contracted with ONYX Waste Services, Inc. to purchase methane gas collected at the Seven Mile Creek Landfill in Eau Claire, WI "to generate renewable energy for the residential and business consumers in the cooperative system." According to Dairyland Power, the gas collection system is "already in place," and the landfill is expected to begin producing power later this year.
"Dairyland Power is excited and proud to be developing this great renewable energy program," said Dairyland Power CEO William Berg. "It is a win-win prospect for all parties involved, especially the consumers, who will truly benefit from this reliable and environmentally beneficial energy resource." Contact: Dairyland Power. Source: PR Newswire, 6/12/2003 via EIN Renewable Energy Today 6/16/2003.
Dr. Vaughn Nelson will be teaching a Web-based course entitled "Wind Energy and Wind Turbines" during the fall semester at West Texas A&M University. The class starts the week of August 25, and ends December 5. It can be taken for college credit for students enrolled in West Texas A&M, 4.5 continuing education units (CEU)for $500, or certificate only for $400. Registration information for students interested in receiving CEUs or certificate is available West Texas A&M University's Web site.
Nelson describes the course as an introductory course with some math, calculations, and use of spreadsheets. At the end of the course, students should be able to:
The course is identified as Physics 302. Information is available on the Web site, or by calling the instructor, phone (806) 651-2295. Source: AWEA Wind Energy Weekly 6/20/2003.
Navigant Consulting, Inc. recently announced the release of a new study, titled "The Changing Face of Renewable Energy," which indicates that "dramatic improvements in performance, as well as government incentives, have resulted in reduced costs that are quickly making renewable energy technologies competitive with traditional forms of electricity generation." Navigant also said the study, which was conducted on behalf of a group of U.S. and Canadian energy and utility companies, forecasts that since the cost of electricity from wind and photovoltaics is now one-tenth of what it was just 20 years ago, "the use of renewable energy technologies will more than double over the next 10 years in the U.S. and Canada, with wind and biomass comprising some 85 percent of that new capacity."
"With wind and biomass technologies becoming economically competitive with conventional options, renewable energy is no longer simply the noble thing to do," said Navigant renewable and distributed energy director Lisa Frantzis. "Renewable energy is becoming an essential part of a diversified energy supply portfolio." According to Navigant, the study examined a "broad range of issues critical to the energy industry, including how to integrate intermittent renewable energy, such as wind, into the power grid; which successful business models have been implemented to compete in this transforming market; how to design a renewable portfolio standard; and the expected impact of a whole new class of market mechanisms, including renewable energy certificate trading and emission allowances." Navigant said the study reviewed 13 renewable energy technologies and two enabling technologies, including onshore and offshore wind, photovoltaics, concentrating solar power, hydro, biomass, geothermal and wave, "in addition to storage and inverter technologies." See 50 pages of the 500 page study. Contact: Andrew Bosman, Navigant, phone 312-573-5631. Source: Business Wire 6/19/2003.
Western's FY 2002 Annual Report recognizes Western's daily efforts to live up to the expectations of its customers, industry groups and the public. The Annual Report is accompanied by a Statistical Appendix. Western has also posted its Strategic Plan on the Web. Another document recently posted to the web is Western's Annual Performance Plan.
If you're interested in learning more about Tradable Renewable Certificates, see the latest Issuesletter from the Regulatory Assistance Project. Source: Ed Holt, Ed Holt & Associates, Inc., 6/20/2003.
The most effective way to push a comprehensive energy proposal (S. 14) through the Senate may be to send it to the floor the week prior to the August recess when members are eager to wrap up legislative business and return home, Sen. Pete Domenici (R-N.M.), chairman of the Senate Energy and Natural Resources Committee, indicated to reporters June 18. Although Domenici does not have a firm agreement with Republican leadership on when debate on the bill will resume, the senator said he "absolutely" expects to complete work on the energy bill sometime prior to the August recess. "Sometime between the end of this week and the week before the August recess" the Senate is "most apt to get [the bill] finished," Domenici said. "Before the U.S. Senate goes on August recess we will have an energy bill passed."
Domenici said he had spoken with Senate Majority Leader Bill Frist (R-Tenn.) twice during the week of June 16 concerning the energy bill and had several discussions with Lee Rawls, the majority leader's chief of staff, in the past week. Rawls formerly worked for Domenici. Domenici sought to dampen rumors that he and Frist are not in agreement on scheduling time to complete debate on S. 14. "I don't need anyone to intervene for me," Domenici said of his relationship with Frist. The Senate ceased floor debate on S. 14 June 12 with an agreement to return to the legislation once work on other agenda items including Medicare and prescription drugs is completed.
Leadership Considers Schedule Options: Domenici, the chief architect of the Republican energy bill, said a better strategy for completing work on the energy bill may be to call up the bill on the floor roughly a week before the August recess. This option was discussed at a meeting of the Republican leadership the week of June 16, Domenici said. "To take it up about seven or eight days before the August recess and the leader, having taken a position that we will finish it or we won't have an August recess, seems to me ... to be a pretty plausible way to get this thing done,” Domenici told reporters. "We are still assessing if it is in our best interest to go early in July or later," Marnie Funk, a spokeswoman for Domenici, added. Funk agreed that there may be a benefit in using the recess as an "artificial deadline."
Currently, Domenici does not plan to call for a cloture vote to end debate on the energy bill as soon as the bill is brought back to the Senate floor. Sixty votes are needed to invoke cloture. If cloture is successfully invoked, 30 additional hours of debate are allowed prior to voting on passage of the bill. If a cloture attempt fails, debate continues without time limits. Domenici acknowledged, however, that cloture could be necessary at some point if "other plans don't work."
Amendment List Has 'No Relevance: Prior to the energy bill being called up on the floor again Domenici must pare down the list of amendments the chamber will consider. The Senate reached unanimous consent June 12 on a list of amendments that members will be permitted to offer to the bill when debate resumes. The list included 299 Democratic and 95 Republican amendment placeholders. The corresponding amendments have not actually been filed with the respective cloakrooms. The list contains the name of the member offering the amendment and a topical reference. Many of the entries are also placeholders for senators who may not have had a specific amendment ready but wanted to reserve the right to offer an amendment. Domenici said he is not concerned about the size of the list because it is not an accurate indicator of the amount of work remaining to be done on the energy bill. "That list has no relevance to the number of amendments we'll have" to deal with, Domenici said. Domenici said he will continue to work on winnowing down the list of amendments, a process that will involve convincing members to scrap duplicate amendments, abandon other amendments, or work out compromises.
When Domenici feels the bill is ripe for floor action and could pass with just seven or eight days of debate, he will give First notice. Republican Senators said meetings regarding amendments have already begun. The major amendments Domenici expects to yet be offered will address corporate average fuel economy standards, climate change, electricity a renewable portfolio standard, and a tax package.
CAFE, Electricity, Climate Amendments: Sen. John McCain (R-Ariz.) told Domenici at the leadership meeting the week of June 16 he would submit to staff "shortly" an amendment that is expected to call for a significant increase in corporate average fuel economy standard. On the issue of electricity restructuring, Domenici said staff is close to completing work on an agreement that would address a trio of provisions including the Public Utilities Holding Company Act, Public Utility Regulatory Policy Act, and participant funding. Any agreement on these provisions will likely be included in a managers' amendment, a Republican staffer said. S. 14, as it currently stands, would repeal PURPA's mandatory purchase requirement, which provides incentives for the operation of cogeneration power facilities and requires utilities to buy a portion of power from or deliver power to combined heat and power facilities. The bill would also and repeal PUHCA, a 1930s-era law intended to restrict the consolidation of power companies under a few holding companies.
Climate Change Forecast: Domenici said he has no intention of introducing a climate change amendment but believes at least two will be offered. During markup of the energy bill in the Senate Energy Committee Domenici initially released and then withdrew a climate change title from consideration. Of those climate change amendments that are offered, Domenici said they will be given a chance to succeed. "If they win [passage], we will take it to conference," Domenici said. "If they lose, they lose." Domenici said he has heard that Sen. Thomas Carper (D-Del.) has an "amendment of significance" he is shopping around on reductions in carbon emissions. Domenici said there is a "rumor" that Carper's amendment is "comparable to the administration's Clear Skies legislation and "perhaps not too much more expensive" than the administration's plan.
Tax Package Ready: Sen. Charles Grassley (R-Iowa), the chairman of the Senate Finance Committee, asked Domenici June 17 when the Senate will be able to consider a package of energy tax incentives passed by the committee, which is expected to be attached to S. 14 via a single amendment. While Domenici said he is not ready to append the tax package to the energy bill, he predicted the package "will be accepted." Domenici also said he fully expects the tax package to include financial incentives for the construction of a natural gas pipeline between Alaska and the lower-48 states despite administration opposition to the incentives. Domenici said the comments made by Federal Reserve Chairman Alan Greenspan testifying before the House Energy and Commerce Committee on June 10 on the need for additional natural gas supplies gave the provisions a boost. The White House, however, "will have some influence on the conference," a Republican staffer said. Domenici also said he believes the marginal well credit included in S. 14 "will go great in the Senate" and will emerge intact from the House-Senate energy conference. S. 14 includes a new credit for the production of crude oil and natural gas from marginal wells. The credit is not available if the market prices for oil and gas exceed certain levels. Source: E-mail from Misty Young via Stephanie M. Ingersoll: Copyright © 2003 by The Bureau of National Affairs, Inc., Washington D.C., Daniel F. Geary
According to attorney Karen Atkinson, there are a number of opportunities available for American Indian tribes to reap advantages from partnerships with energy companies. Atkinson, senior counsel to the U.S. Senate Committee on Indian Affairs, recently spoke to EL&P about the topic.
EL&P: What are the new opportunities for energy development on American Indian tribal lands?
Atkinson: Well, there seems to be a lot of focus these days on looking at new sources of domestic energy production. Oil and gas prices are going up. The government is looking at national security issues, and, so, there is an increasing focus on pushing that supply and diversifying that supply. I think American Indian tribes are uniquely situated to address that problem. Tribes are owners of millions of acres of land nationwide, and, currently, they already contribute a significant share of our domestic energy resources. In the last 20 years, 11 percent of the nation's onshore oil and natural gas production came from Indian lands, and 11 percent of the coal production came from Indian lands. Additionally, there is a huge opportunity for tribes to develop renewable energy, and in 2000, the Department of Energy (DOE) did a study-a survey of renewable energy resources on Indian lands. It was a very general study, of course, but they concluded that there were at least 61 tribes that have sufficient renewable energy resources for central station generation or utility-scale generation.
EL&P: Is the energy industry open to developing Indian lands?
Atkinson: I think there is a tremendous interest, with a lot of companies who are trying to figure out the best way to approach and work with tribes. For two years now, the DOE has begun putting together a grant program for tribes to look at the feasibility for developing renewable energy on tribal land. In fact, one utility-scale, wind-generation [750 kw NEG Micon] turbine on tribal land has been constructed and began operating a couple of months ago in South Dakota on the Rosebud Sioux Nation reservation. They are working with Great Basin Energy up there and selling power to the area U.S. Air Force base, as well as Native Energy in Vermont.
EL&P: Are the tribes themselves open to that development?
Atkinson: Many Indian reservations are grossly underserved, as far as electrical services to their own communities. They have the highest percentage of homes in the nation without electricity, and, on a lot of reservations, you also have high unemployment. So, energy development-and, in particular, renewable energy development-can provide needed jobs and training to Indian communities. So, yes, I believe there is a lot of interest in looking at energy development. The Fort Mojave Reservation in Arizona, for example, partnered up with Calpine, and Calpine built one of the first power plants built on Indian lands as a result of that partnership. And, I think Calpine now has a couple of other tribes they're talking to about locating a power plant on tribal lands. Many of the tribes are located in the West, of course, and, therefore, are in somewhat critical or strategic locations-close to pipelines or transmission lines. Additionally, tribes also have water rights, which is critical to power plant development.
EL&P: What hurdles does this development still face?
Atkinson: I think the biggest hurdles are probably financial hurdles, actually. There is a lack of capital investment on Indian reservations, but there are a couple of pending bills in Congress to help attract capital and generate jobs in the energy field for tribes. The Energy Tax Incentives Act of 2003 provides incentives for the tribes. The Republican Energy Policy in Congress right now also has a title that addresses Indian energy issues. And, there are a couple of important pieces within that title that would help create a market for energy developed on Indian lands. One of the thoughts behind that legislation was to provide some sort of financial incentive to developers to locate on Indian lands. One of those incentives is a federal purchase requirement, and the federal government is one of the largest consumers of electricity in the nation, of course, with facilities and buildings and installations nationwide. The Tax Incentives Act would extend the renewable energy tax credit, and, right now, that tax credit is available to private developers. It's very key to providing financing and making wind projects economic and financially feasible in rural America. So, this would extend that provision to tribal lands as well.
EL&P: Do you see these pieces of legislation passing Congress and moving forward?
Atkinson: I think the Tax Incentives Act has a very good chance of passing. It has strong bi-partisan support, and it hasn't been that controversial. I do think some version of that will pass this year.
EL&P: Trace how you see this development unfolding over the next decade and its impact on the tribes themselves.
Atkinson: I think tribes are looking at different models now with energy development. In the past, tribes have been rather passive owners of energy resources, and the developer would come onto Indian land, lease it and extract oil, gas or coal resources. And, all the revenue would flow off the reservation. The tribe would get a lease payment or a royalty payment. I think what we're seeing now is tribes wanting to move to a different model. The Rosebud project is a good example of that. In this situation, the tribe worked with a developer very closely. It's a partnership, and the tribe is the owner of the project. That way, the tribe can build off the experience with a much more active ownership interest. They have plans, down the line, to build an 80 MW plant with this project. Atkinson is a partner in the Indian and gaming practice group for Dorsey & Whitney. She can be reached at 202-442-3000. Source: Electric Light and Power June 2003.
Going green is fashionable. Indeed, industrial and developing nations alike recognize the need to not only harness fossil fuels more efficiently but to also develop and commercialize renewable energy sources. It's a key impetus behind the Kyoto Protocol, the global warming treaty that has yet to take effect. The agreement has forced policy makers worldwide to focus on global warming and to propose solutions both inside and outside Kyoto's framework. Even the United States that has rejected the treaty has tried to come up with alternatives. In the past, political leaders and their constituencies globally have responded when the pressure is on. The overall aim is to make the planet a safer place to live while promoting economic prosperity.
Proponents of Kyoto say that it is good for both the environment and business. Newer and cleaner technologies will emerge because of it. And, exchanges are now cropping up to support its aims by trading carbon dioxide emission credits. In the eyes of Tom Delay, the chief executive of the Carbon Trust in London, the move to cleaner standards will hurt economic growth for a couple years but will pay huge dividends after that. With the United States rejecting Kyoto, Russia has come under mounting global pressure to accept it. It agreed to do so last year in South Africa but recent statements by a presidential advisor have cast doubts on its intentions. Andrei Illarionov said at the G8 Summit in France that the treaty could harm Russia's economy and that more study would be necessary.
But Russia could benefit. That's because it currently has a surplus of 6 billion tons of credits that it could sell, says a news report by the Energy Intelligence Group, which equates to several billion dollars in credits that it could sell. Industrialized nations are in the market for such credits, as the emissions from Western Europe, Japan and other advanced economies could grow by eight percent between 2000 and 2012 even though they will actively be taking steps to curb them through Kyoto, according to the United Nations.
Emissions Trading: Emissions trading may sound amorphous. But it is likely to materialize as the leading force behind the reduction of carbon dioxide (CO2) and other greenhouse gases, which are thought by many to be the main man-made contributor to global warming. As governments internationally continue to restrict pollution levels, emissions-trading exchanges are expected to sprout and play a role in environmental policy. The thinking is that by trading credits, a "price" for emission levels is established that will send the proper investment signals to those who have to decide how they will reduce harmful pollutants. Installing environmental controls may or may not be cheaper than buying emissions credits.
To implement Kyoto, it must be ratified by 55 countries and the amount of emissions released by developed countries that have signed must account for 55 percent or more of the industrialized world's total. The agreement will then take effect 90 days after the United Nations certifies it. To date, Kyoto has been ratified by 110 countries that include all 15 members of the European Union, Japan and Canada. But, the industrialized countries only account for 43 percent of the emissions. Because Russia's emissions make up 17 percent of all releases by advanced nations, its consent is vital to final adoption.
Specifically, the treaty requires industrial nations to cut their greenhouse gases by six percent below 1990 levels. Developing countries could meet those targets on a slower timetable. The goal, nonetheless, would likely remain elusive without some type of free market exchange. Some say that an exchange could be fully functioning by 2005. Altogether, the World Bank predicts that the market for all greenhouse gases will be worth $10 billion by the end of the decade. Under such a system, a cap is placed on carbon dioxide emissions. Businesses that discharge less can sell, bank or transfer those "credits." Companies that are pushing the limit can either take steps to cut their pollution by implementing new technologies, by switching to a cleaner-burning fuel, or by buying "credits" from another business. As the ceiling on emissions is gradually lowered, pollution levels drop. Countries could buy and sell those credits among each other.
"The quota system will allow enterprises in Europe to reduce emissions in the most cost effective manner," says Danish Environment Minister Hans Christian Schmidt. "It is good for the environment. It is good for enterprises and it is good for the economy."
Modern Technologies: Despite the fact that President Bush does not endorse the Kyoto Protocol, about 40 U.S. companies that include American Electric Power have created a pilot market for CO2 emissions. Trading at the so-called Chicago Climate Exchange began in late spring. Members have agreed to decrease their emissions by one percent a year for four years between 2003 and 2006. Likewise, a group of eight mega- companies that includes Dupont, Entergy and Shell is establishing a trading system; these companies have vowed to cut their CO2 emissions by 80 million metric tons no later than 2010. Meanwhile, a Chilean hydropower project has just become the first company from a developing nation to sell CO2 credits, the World Bank says. Hidroelectrica Guardia Vieja's 26-megawatt Chacabuquito hydro plant is expected to save 1 million tons of CO2 emissions over the next decade. As such, it will receive about $3.5 million from the World Bank's Prototype Carbon Fund, which has plans to buy about $110 million of greenhouse gas emission reductions from 26 projects in developing countries. Mitsubishi will purchase Chacabuquito's credits from the fund, according to a press release.
"By selling emissions reductions to developed countries, Chile is entering fully the international market of environmental cleansing," says Gianni Lopez Ramirex, executive director of Chile's National Commission for the Environment. "That will enable the national private sector to access resources to improve its technologies and introduce clean technologies." Limiting man-made CO2 emissions is gaining momentum internationally. Kyoto could become an effective vehicle to bring about change. Trading exchanges, meanwhile, could likely be a valuable free market weapon. In the end, modern technologies that promote the efficient use of fossil fuels and the development of renewable energy are necessary. Developed nations—to varying degrees—are embracing that trend. An archive list of previous IssueAlert articles. Source: UtiliPoint International, 6/19/2003.
Wind energy is already helping to reduce the current natural gas supply shortage in the U.S., and could be deployed rapidly over the next few years to bring it under control, according to an AWEA statement made June 18. The current supply shortage amounts to 3-4 billion cubic feet of natural gas per day (Bcf/day), according to energy experts, and the increasing use of gas for electricity generation is one of the major causes of the shortfall. But in many areas of the country where wind farms are generating electricity, they are directly helping to conserve vital natural gas supplies. "We estimate that the wind farms already in place, and those that will be installed by the end of this year, will be saving about 0.5 Bcf/day in 2004," said AWEA executive director Randall Swisher. "That means the natural gas shortage would be 10-15% worse if it were not for the relatively small amount of wind generation we have today."
In addition, Swisher said, rapid expansion of the nation's wind turbine fleet could sharply boost wind generation over the next four years, increasing its output to the equivalent of 3 Bcf/day (about as much natural gas as the states of Colorado and Alaska produce today). "Wind plants can be permitted and built relatively quickly—typically, within one to two years," Swisher said. "AWEA has proposed specific transmission plans for 30,000 MW of wind in the Midwest and West. We believe that at least that much new wind development is feasible by the end of 2007 under strong policy leadership. AWEA expects a cumulative total of 6,000 MW of wind will be installed in the U.S. by the end of this year." The North American supply of natural gas is increasingly limited and despite rising prices, drilling rig counts are not increasing fast enough to keep pace with demand. With the depletion rate for new gas fields accelerating and continued demand for natural gas in electric generation applications, an ongoing long-term natural gas "crisis" is now a reality. Unlike natural gas prices, which are subject to the vagaries of the market, wind energy costs are predictable over time; once a plant is built, the cost of producing electricity is stable and the fuel source is free.
"The days of $2 gas are gone," Swisher said, referring to the historical market price for natural gas, which hovered just above $2 per 1,000 cubic feet (Mcf) prior to the California electricity crisis of 2001. "What we can look forward to instead is a price range of $4 to $5 per Mcf, with regional shortages and occasional spikes to $6-$10. The hardship this could wreak on consumers is severe. By contrast, wind energy is renewable and its cost from year to year is very stable. In addition, it works well in tandem with natural gas generation." "Enacting the wind industry's national policy agenda now would provide certainty that we can avoid power generation problems in the future," declared Jim Caldwell, policy director for AWEA. "The agenda includes:
'These effective, responsible solutions would create thousands of jobs and millions of dollars in royalty income for hard-pressed farming and ranching states and provide stability to American businesses and consumers who expect to have power when they need it." AWEA estimates that as much as 100,000 MW of wind in the U.S.—enough to power 25 million homes—is feasible by 2013. Even at this level, wind's potential in the U.S. will not be tapped out. If gas prices remain in the $4 range, the total economically competitive U.S. wind resource is on the order of 600,000 MW. For more information on wind energy development or AWEA's national policy agenda, visit the AWEA newsroom. Source: AWEA Wind Energy Weekly 6/20/2003.
Distinguishing Oregon from the California electric deregulation meltdown, Bob Jenks, Executive Director of the Oregon Citizens Utility Board says that the state's 1999 electric restructuring law DID NOT deregulate residential consumers. Green power and renewable energy, especially wind power are taking off in a big way under the Portfolio of Options available to Oregon consumers.
The investor-owned utilities in Oregon – PGE and Pacificorp – are still obligated to serve residential consumers. Rather than sifting through confusing marketing messages, Oregon consumers are presented choices on their utility bill as a clear portfolio of options comparing each choice and allowing the consumer to decide what's right for them. This portfolio is developed by the utilities on behalf of their customers and is regulated by the Oregon Public Utilities Commission.
See the current Environmental Options or Green Power offerings in Oregon on the Oregon Office of Energy Power Options web site, including Fixed Renewable, Renewable Usage and Habitat offerings.
Driving the green power offerings is an enormous wind power development in the Northwest. Currently, 560 MW of wind power now serves the Northwest states of Washington, Oregon, Idaho and Montana. This is expected to increase by 400% in the next 3 years. Pacificorp alone says it intends to acquire 1,400 MW of wind power over the next 10 years in states it serves, while other large Northwest utilities also see lots of wind power in the future.
And, Jenks points out that wind power is very complimentary with the region's low-cost hydroelectric power since hydro can be stored electricity while wind power is intermittent. Only two years ago the worst drought in 50 years in the Northwest occurred during the California energy crisis and the heavy reliance on hydroelectric power contributed to the regional price spikes. Source: IREC/MSR enewsletter 6/20/2003.
Wholesale electricity prices fell in the U.S. West as below-normal temperatures were expected to reduce demand for electricity to run air conditioners. The Northwest will have zero demand for air conditioning tomorrow, and the Southwest's cooling demand will be 61 percent below normal, Weather Derivatives said. The high temperature in Los Angeles will be 67 degrees Fahrenheit (19 Celsius) tomorrow, 6 degrees below average, according to Intellicast.com.
Traders bought and sold power today for delivery tomorrow. Wholesale electricity at Washington's Mid-Columbia trading point, a benchmark for the Northwest, dropped $3.26, or 7.5 percent, to $40.36 a megawatt-hour at 7:30 a.m. local time, according to Bloomberg data. At the California-Oregon border, the price for power fell $4.33, or 9.6 percent, to $41 a megawatt-hour. "I haven't seen anything other" than the weather affecting prices today, said Saul Lopez, an electricity trader at Silicon Valley Power, the municipal utility in Santa Clara, California. "Things are pretty stable right now."
In Northern California, wholesale power declined $3.02, or 6.4 percent, to $44.25 a megawatt-hour. In Southern California, the price dropped $3.03, or 5.7 percent, to $49.95. Southern California power traded as low as $48.50 a megawatt-hour this morning on the Bloomberg PowerMatch trading system. Over the weekend, Southern California Edison shut down the 1,120-megawatt San Onofre 2 nuclear reactor for repairs. The plant is on the California coast about 55 miles north of San Diego.
Arizona Public Service Co. brought back on line the 1,270-megawatt Palo Verde 3 nuclear plant in Wintersburg, Arizona. The reactor was shut last week for condenser-seal repairs. At the Palo Verde switchyard, the price for electricity dropped $4.13, or 7.8 percent, to $48.91 a megawatt-hour. The price at the Mead substation, near Hoover Dam at the border of Arizona and Nevada, wholesale power declined $3.27, or 5.9 percent, to $52.06 a megawatt-hour. One megawatt-hour can power 800 typical U.S. homes for an hour, according to the U.S. Department of Energy. In the Four Corners region, where Arizona, Colorado, New Mexico and Utah meet, electricity dropped $3, or 5.7 percent, to $49.44 a megawatt-hour. Source: Bloomberg, 6/23/2003.
The Environmental Protection Agency requests applications for the new Environmental Justice Collaborative Problem-Solving Grant Program. This RFP is targeted at community-based organizations working on or planning to work on projects to address local environmental and/or public health concerns in their communities. EPA anticipates 15 awards of $100K each. Responses due 9/30/03. For more info, call 1-800-962-6215. (Federal Register 6/6/06). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy, 6/19/2003.
The Environmental Protection Agency announces its intent to request proposals for the FY03/FY04 State Innovation Grant Program. In addition, EPA seeks input from State Environmental Regulatory Agencies on the topic areas for the solicitation. Guiding principles will include: Strengthening EPA's innovation partnerships with States and Tribes, focusing on priority environmental areas (GHG, smog, water, waste water efficiency), diversifying environmental protection tools and approaches, and fostering ``innovation-friendly'' systems. The RFP expected to open in early to mid-August. For info go to EPA. (Federal Register 6/11/03). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy, 6/19/2003.
The Environmental Protection Agency seeks proposals to plan, organize and conduct a National Air Quality and Smart Growth Workshop. The workshop will be a national, multidisciplinary event that focuses on identifying ways of making Smart Growth and Air Quality Programs work better together. It should be a 2 - 2 ½ day event to be convened in the Summer, 2004. $200K expected to be available, 1 award anticipated. Responses due 7/17/03. For more info, contact Karen Blanchard at (919) 541-5503 or go to EPA. Refer to Sol# #OAR-ITPID-03-06. (Fedgrants 6/17/03). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy, 6/19/2003.
The U.S. Department of Energy announces it's intent to request applications for the FY04 Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. Small businesses, 500 employees or less, will be invited to apply. The objectives of these programs are to increase private sector commercialization of technology developed through DOE-supported R&D, stimulate technological innovation in the private sector, and improve the return on investment from federally funded research for economic and social benefits to the nation. Topics will include but not be limited to: New Technologies for General Illumination
Applications, Materials for Industrial Energy Systems, Sensors and Controls, Innovative Waste Heat Recovery, and New Energy Sources. The RFP is expected to open in mid-October. For more see SBIR/STTR. Source: Seattle Regional Office (SRO) of the U.S. Department of Energy, 6/19/2003.
The U.S. Department of Agriculture requests applications for the National Research Initiative Program. NRI supports research, extension and education activities that address critical emerging U.S. agricultural issues. Areas include but are not limited to air quality and a national training program for agricultural homeland security. $30 million expected to be available in FY03, award range from $500K - $4 million. Optional Letters of intent due 6/30/03, final proposals due 7/30/03. For more info, see USDA's Web site. (Federal Grants and Contracts Weekly 6/16/03). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy, 6/19/2003.
The Bureau of Land Management Alaska Fire Service requests quotes for a solar panel array for Inigok, AK. Specs include but are not limited to: 175 watt multi-crystalline solar modules, nominal voltage 12/24 volt, dimensions 42"x 49" x 1.5." Responses due 6/24/03. For more info, contact Patty Olson at (907) 356-5774. Refer to Sol# LBQ033035. (FBO 6/19/03). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy, 6/19/2003.
The Environmental Research and Education Foundation is accepting applications for a scholarship program for Ph.D. or post Ph.D. environmental scientists. Awards are for up to $12,000 per year, and are renewable for two additional years, for a total of $36,000. This scholarship is in memory of Francois Fiessinger, P.E., Ph.D., a founding director of the foundation. Responses due 9/1/03. For more info, go to EREF. (Foundations Center RFP Bulletin 6/13/03). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy, 6/19/2003.
The Institute for Government Innovation at Harvard University invites federal, state, local, and tribal agencies to apply for the 2004 Innovations in American Government Awards. The awards recognize outstanding examples of creative problem-solving in the public sector. Innovations Award winners receive national press attention, serve as models for replication, and become the subjects of research and case studies at leading schools and universities. Responses due 6/27/03. For more info, see Harvard University. (EPA Climate Change Govs listserv). Source: Seattle Regional Office (SRO) of the U.S. Department of Energy, 6/19/2003.
On June 16, the Colorado River Storage Project Management Center (CRSP MC) of the U.S. Department of Energy's Western Area Power Administration (Western) issued a request for information (RFI) for non-hydro renewable energy supply to serve federal installations in New Mexico. CRSP MC markets power from the Colorado River Storage Project and other projects. Western also has various interagency agreements with the U. S. Department of Energy, the National Nuclear Security Administration Service Center (NNSA), and the U. S. Air Force to supply the electrical requirements of Sandia National Laboratories and Kirtland Air Force Base located near Albuquerque, N.M., and of the Los Alamos National Laboratory, located at Los Alamos, N.M.
Through this RFI, Western is seeking sources of non-hydroelectric renewable energy generated from solar, geothermal, biomass, and/or wind technologies to supply up to 7½% of electric energy requirements of these NNSA/Air Force facilities, or approximately 54 million kWh per year. The Center anticipates that any power purchases would be for a five- or possibly 10-year period. Parties interested in supplying all or a portion of this power should submit a response that includes the information requested in the RFI no later than September 12. Responses should be mailed to the following address:
Western Area Power Administration
CRSP Management Center, Attn: L6440
P.O. Box 11606
Salt Lake City, UT 84147-0606
For the complete RFI, go to Western's CRSP MC Web site . For questions related to this solicitation, contact Sam Loftin, phone (801) 524-6381. Source: AWEA Wind Energy Weekly 6/20/2003.
This news item comes to you as a service of Western's Renewable Resources Program.
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