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Lincoln Electric Cooperative's new solar demonstration project follows recent action by the board of trustees who approved a new policy that allows members to interconnect their small renewable energy systems to the utility grid. The Cooperative's solar demonstration project has three goals:
The Co-op hosted a free Solar Seminar for co-op members to learn more about clean, reliable solar technologies, and how they can be put to work for co-op members. Jim Tracy, a renewable energy specialist with the National Center for Appropriate Technology and Lincoln Electric's Tim Engleson put on the seminar. The workshop featured a slideshow explaining the basics of solar energy (both photovoltaic and thermal); a video presentation of how the technology is being applied in Montana; and numerous handouts. Attendees also saw a demonstration of LEC's 1 kW grid-tied photovoltaic system and learned more about the Co-op's new net metering policy, which allows members to connect their renewable energy system to the grid.
To allow members to interconnect to LEC's system, the cooperative first needed to approve a net metering policy that specifies how a member can legally and safely connect a renewable energy system to the co-op's poles and wires. Net metering allows homeowners to receive the full value for the electricity that their renewable energy system produces. The term, net metering, refers to the method of accounting for the electricity production of a photovoltaic or wind energy system. Net metering allows homeowners with such systems to use any excess electricity they produce to offset their electric bill. As the homeowner's system produces electricity, the kilowatts are first used for any electric appliances in the home. If more electricity is produced from the system than is needed by the homeowner, the extra kilowatts are fed into the utility grid.
At the end of the billing month, if the member has generated more electricity than they used, LEC "banks" the excess kilowatt-hours, allowing the member to offset future usage. If the member uses more electricity than they generate, they pay the difference. The billing period for net metering is monthly with an annual true up. Source: Tim Engleson, Eureka, MT, August 22, 2003 .
Evolution Markets announced August 22, the first trade in renewable energy certificates under Connecticut's newly revised renewable energy program. This trade, brokered by Evolution Markets, which marks the kickoff of the latest REC trading program in the fragmented U.S. 'green tag' market. More information is available in a corresponding executive brief detailing the trade. Evolution Markets continues to devote time and resources to the development of REC or 'green tag' trading markets in the U.S. For more information on the Connecticut REC market, please refer to a recent Executive Brief written by Chief REC Broker, Anna Giovinetto. For more information on Evolution Markets, see the Public Renewables Partnership Web site.
The big guys already know it—green tags can be used to earn an additional $1 to $100 per megawatt-hour of electricity produced from renewables, whether by solar photovoltaics, wind, biomass/biofuel, geothermal or hydropower. But according to a recent survey of small-scale renewable energy site owners, only 9.2percent of site owners know what a green tag is. And only 6.3 percent know that green tags can be sold for extra revenue.
Green tags are environmental certificates that represent the positive attributes of renewable energy. These tags become separated, or "unbundled," from the actual electricity at the point of generation, and can be sold independently. Almost any renewable energy installation that is grid-connected and less than five years old is eligible to receive green tags. These tags are traded on national markets. However, most smaller-scale renewable energy installations have been unable to capitalize on green tags, because either they did not know about them, or their sites are too small to produce a marketable quantity of green tags.
Mainstay Energy, a renewable energy financing company headquartered in Chicago, is introducing a program to purchase green tags from small-scale renewable sites, enabling site owners to earn this extra revenue from their installations. CEO Hoyt Hudson explains, "Mainstay Energy is the first company in the U.S. to offer a national program to purchase green tags from small-scale renewables. We are excited to be providing this valuable service that allows small-scale sites to participate in national environmental markets."
"The 'Rewards' program from Mainstay Energy offers a way for renewable energy to be even more practical than it already is," adds Hudson. "The sale of green tags accelerates the payback time on almost any grid-tied renewable energy project, usually between 10 percent and 50 percent." Even among people who understand what green tags are, there is confusion about when a site is eligible to receive green tags. For example, a site can receive green tags even if it is not "exporting" electricity to the grid; the fact that a site is offsetting grid electricity is what counts. Also, sites are eligible for revenue from green tags even if they are in a net-metering agreement with their electric utility.
The green tags purchased by Mainstay are aggregated and brought to market as "Green-e" certified wholesale and retail products. Green-e is a voluntary certification program established by the Center for Resource Solutions, a national nonprofit organization that encourages sustainable growth and promotes the use of renewable energy. Source: www.GREENBUZZ.com for August 4, 2003.
Washington, D.C.—Spending billions of dollars annually on goods and services—often more than the gross domestic product of entire countries—corporations, international organizations, universities, and other large institutions are key in fostering the shift towards an environmentally sustainable world, reports a new study from the Worldwatch Institute. Through their daily purchases, these mega-consumers hold considerable sway over the health and stability of many of the world's most fragile ecological systems, says Worldwatch Research Associate Lisa Mastny, author of Purchasing Power.
"While environmentalists have worked for decades to win the hearts and minds of individuals, some of the world's biggest consumers have remained out of the spotlight," says Mastny. "Yet their enormous and often environmentally devastating purchases of everything from gas-guzzling vehicle fleets to cancer-causing cleaning supplies can have far greater consequences for the future of our planet than the buying habits of most individual households."
In some industrial countries, government purchasing accounts for as much as 25 percent of GDP. Government procurement in the European Union alone totaled more than $1 trillion in 2001, or 14 percent of GDP. In North America, it reached $2 trillion, or about 18 percent of GDP. Universities, too, spend billions of dollars each year on everything from campus buildings to cafeteria food. In the United States, colleges bought some $25 billion in goods and services in 1999—equivalent to nearly 3 percent of U.S. GDP. And the United Nations spent nearly $14 billion on goods and services in 2000.
Because of the large-scale, systematic approach that most institutions take in their purchasing, a single decision made by one professional buyer or purchasing department can have a tremendous ripple effect, influencing the products used by hundreds or even thousands of individuals.
"By that same token," says Mastny, "just one environmentally focused purchasing policy or guidance—if properly implemented and enforced—can bring widespread benefits to an institution. By investing in everything from energy-efficient lighting to organic food, growing numbers of businesses, government agencies, hospitals, and other organizations are not only creating safer and healthier workplaces, but are also saving money."
If enough demand for green products is generated, entire markets can shift. A few notable successes point to the tremendous power of green purchasing:
But while green purchasing initiatives are blossoming in the world's wealthier nations, the question remains of how to jumpstart a similar movement in the developing world. Although overall resource use in these countries is still relatively low compared to industrial countries, rising consumer demand will make strengthening local markets for environmentally sound technologies—from renewable energy to non-chorine bleached recycled paper—increasingly important.
Mastny says that one way institutions can help spread green purchasing in developing countries is by using their own procurements to strengthen local green markets. By seeking to buy a greater portion of their goods and services from local green suppliers, leading international players like the United Nations, the World Bank, and multinational corporations can not only stimulate green markets, but also combat mounting criticism about the environmental impacts of their activities.
"Green purchasing will never be a magic solution to the world's rampant resource consumption, but it does offer tremendous opportunities for lessening the impacts," says Mastny. "And as more and more institutions realize the benefits of buying green—in terms of employee health, the environment, and their own bottom-lines—groups that disregard environmental factors risk being left behind." Go to the WorldWatch Web site for a variety of information about green purchasing resources. Source: World Watch Institute, 8/11/2003.
UtiliPoint—Aug. 22—The McNeil Generating Station produces power from an unusual feedstock: wood chips from a nearby forestry operation. About 200 tons of those shavings are converted each day into a fuel source and mixed along with natural gas to produce 50 megawatts of power in Burlington, Vt. Instead of transporting the wood to a local landfill where it would decompose and produce emissions, it is now converted into a usable fuel. Source: PowerMarketers.com Daily Power Report for Aug. 25, 2003.
When the power went out for around 50 million residents in the Northeast and Midwest, and parts of Canada, eight Capital Region households remained lit with electricity generated from Plug Power Inc. fuel cells. "We had eight systems operating during the blackout," said Cynthia Mahoney White, Plug's manager of public relations and marketing. The 5-kilowatt units provided power to eight apartments at the Naval Support Unit in Saratoga Springs. Two Plug units also provided power for a West Point resident, and one unit kept the lights on at Plug's headquarters in Latham.
After the blackout, the worst in U.S. history, attention quickly turned to the nation's outdated power grid and alternative energy solutions to the country's energy needs. As a result, Plug's pilot program with the U.S. Department of Defense received attention. The Naval Support Unit's eight fuel-cell systems are part of a program to test the viability of fuel-cell technology and determine if fuel cells are cost- effective, said Mike Cyktich, public works officer at the Naval Support Unit.
Lt. Commander Mary Lewellyn, the officer in charge of the Naval Support Unit, said the other 192 apartments were out of power for about five hours. Since the blackout, Plug has been called by The New York Times, The Wall Street Journal, CNN and CNBC. USA Today reported on the front of its Money section Aug. 18 that Plug's stock went up 23 percent.
"We're getting coverage fast and furious," White said. "The employees are really excited about the recent coverage and interest we've received." Greg Silvestri, Plug chief operating officer, said he's not surprised by the media attention.
"I think the story about distributive generation has been out there for a while," he said. "The factors that led to the beginning of Plug Power and other companies have always been present and never gone away. The public attention comes and goes with news events."
Plug is ready to capitalize on the press coverage with its latest product, GenCore5T, a product for the telecommunications industry. Silvestri told CNBC that Plug has a GenCore model that can be purchased for $14,995. He said the first GenCore products will be sold at a loss because it is important for the company to have a product available as soon as possible. Eventually, he said, the cost to manufacture the product will come down as sales volume increases.
The move to put the product out early has paid off, he said. Large telecom providers like Verizon Wireless, Cingular and Bell South, as well as back-up power suppliers to those companies, are inquiring about the GenCore, Silvestri said. The blackout "put an additional sense of urgency into the discussions. Plug Power absolutely is committed to bringing this technology to the marketplace." Source: Richard A. D'Errico The Business Review, 8/22/2003, | 518-640-6807
Westlake Village, CA-based SolarMission Technologies, Inc. (formerly Energen Global, Inc.) recently announced plans to "expand development of Solar Tower technology into the U.S." Previously, the company said it granted an exclusive license to Victoria, Australia-based EnviroMission, Ltd. to develop the Solar Tower large-scale solar thermal renewable energy technology, which SolarMission said is "capable of generating 200 megawatts of clean green grid-connected electricity to around 200,000 households," in Australia.
SolarMission said it now plans to "build on EnviroMission's progress and...commence commercialization of the technology outside Australia." "U.S. enthusiasm for solar tower technology comes as no surprise," said EnviroMission CEO Roger Davey. "If inquires out of the U.S. could be used as an indicator, Solar Tower technology should be bigger than Texas. The real winner from development of this technology in the U.S. will be the environment, with significant greenhouse gas abatement expected from the technology's emission-free power generation." Contact: SolarMission. Source: EIN Renewable Energy Today, 8/21/2003.
Shell WindEnergy Inc. will build its largest wind farm to date at a site 90 miles Southeast of Lubbock, Texas, in Scurry and Borden counties. The 160 megawatt project, to be constructed in a 50-50 joint venture with Padoma Wind Power, is due to be completed by the end of this year. The Brazos wind farm will consist of 160 Mitsubishi MWT 1000-A wind turbines, some of which will stand some 226 feet tall and weigh more than 370,000 pounds (170 tons). The total output from the wind farm will generate enough electricity to power approximately 30,000 homes.
The wind farm is being developed by Cielo Wind Power, LLC and Orion Energy, LLC. TXU Energy has agreed to purchase electricity generated by the wind farm and has entered into a retail electricity arrangement with Green Mountain Energy Company. Shell WindEnergy will be the operator.
David Jones, director of Shell WindEnergy, said today: "Shell WindEnergy is committed to being a major player in the American wind sector. Brazos is twice the size of our previous biggest project and at a stroke will increase our installed gross capacity in the United States from 232 megawatts to 392 megawatts. We are also pleased to build upon our existing good relationships with Mitsubishi, Padoma and Cielo, while simultaneously forging new relationships with TXU Energy, Green Mountain Energy and Orion, whom we look forward to working with in the future as we grow our wind energy business."
Jan Paulin, President and Chief Executive Officer of Padoma Wind Power said: "The Brazos Wind Farm constitutes yet another example of the extremely successful policies enacted by the State of Texas to encourage the development of clean renewable energy sources within that State. Padoma is excited about this joint venture and about our excellent working relationships with Shell WindEnergy, Cielo and Mitsubishi, which have enabled us to work with these parties to facilitate the project."
Shell WindEnergy currently owns four wind parks in the United States; Rock River I in Wyoming (50 megawatts), White Deer (80 megawatts) in Texas, and Cabazon (41 megawatts) and Whitewater Hill (61 megawatts) in California. Shell WindEnergy also announced today it has acquired a 40 per cent share of the La Muela Wind Park in northeast Spain from TXU Europe Energy Trading B.V. The transaction marks the beginning of commercial-scale wind operations in Europe for the Royal Dutch/Shell Group of Companies.
Shell WindEnergy focuses on developing and operating wind farms and selling 'green' electricity. Shell WindEnergy is part of Shell Renewables, one of the five core businesses of the Royal Dutch/Shell Group of Companies. Shell Renewables was established in 1997 to pursue commercial opportunities in solar photovoltaic and wind energy. Source: Shell Release 7/23/2003.
The company hereby announces that on Thursday July 3, 2003 ORMAT Nevada, Inc., executed a binding Letter of Intent with a number of sellers for the complete acquisition of the entire Steamboat Geothermal Complex in Steamboat Hills, 10 miles south of Reno, Nevada, including the Steamboat 2 and 3 power plants as well as adjacent private land which has the potential to support additional geothermal developments.
This transaction, which is still subject to the consent of the lessor (General Electric Capital Corporation ), is expected to close by July 31, 2003 by which date ORMAT will pay a one-time payment of $32.5 million. This pending transaction follows the closing last week of the acquisition by ORMAT Nevada of the Steamboat 1 and 1A plants which share the same geothermal resource with the Steamboat 2 and 3 plants.
All the projects have Power Purchase Agreements with Sierra Pacific Power for additional 18-20 years for energy and capacity. Currently the existing projects generate some $15 million in annual revenues, which increase gradually in accordance with the escalation clause in the PPAs.
The Complex is located at the Steamboat Known Geothermal Resource Area, on the foothills of Mount Rose in the northern Sierras, some 10 miles from ORMAT headquarters in Sparks, Nevada. This KGRA is considered one of the prime geothermal resources in the Western USA. ORMAT built the original facility of Steamboat 1 in 1985, followed shortly thereafter by its extension Steamboat 1A. Steamboat plants 2 and 3 were constructed in early 1990 and have performed in a manner that exceeded the initial projections. Currently, the Complex produces some 35,000 kW, which is enough power to satisfy the electricity needs of about 35,000 homes. The projects, which have a very low visual impact, are located on a major intersection in the Reno area, and are generally praised by the local community as a model of responsible renewable energy development. Nevada is one of the states leading the implementation of Renewable Portfolio Standards, which requires the local power utilities to buy more green power such as geothermal. ORMAT has already benefited from this initiative by entering into two PPAs for its Desert Peak projects: DP 2 and DP 3.
Lucien Y. Bronicki, Chairman of the ORMAT Group of Companies said, "We are proud to be back at Steamboat, one of the projects we developed 18 years ago which is still working at full throttle. It is another showcase of ORMAT's reliable projects." Hezy Ram, ORMAT's VP of Business Development added that, "This acquisition fits ORMAT's long term strategy which calls for taking ownership positions in various geothermal projects, upgrading them and financing them for the long term. The previous two acquisitions of the Brady and the Ormesa complexes have been shored up and are operating today at a much higher capacity. We intend to review the future potential of Steamboat in the framework of the supporting environment in Nevada." The addition of the Steamboat plants will increase ORMAT Group's current portfolio of owned and operated plants to 225 MW. For more information on this project contact: Rany Raviv. Source: Ormat Release, 7/7/2003.
TUCUMCARI, New Mexico- August 27, 2003- Caprock Wind, LP plans to install up to 80 MW of wind-driven turbine generators about 20 miles southeast of Tucumcari within the next 12 months—to convert wind energy into electricity that will be sold to customers of Xcel Energy.
The planned Caprock Wind Ranch™ will be constructed on privately owned land in Quay County southeast of Tucumcari and southwest of San Jon, New Mexico. Xcel Energy will purchase all of the output of the ranch's 60-80 turbines for at least 15 years.
"If the federal production tax credit for wind power is continued," Walter Hornaday, Caprock Wind LP president, said, "Caprock Wind Ranch will start commercial operations in August 2004." Caprock Wind LP is an affiliate of Cielo Wind Power, of Austin, Texas, a privately held company that develops, assists with construction of and maintains utility-grade wind-power projects.
"Cielo Wind Power is the largest developer of wind power in the Southwest, and has the Southwest's largest development staff dedicated solely to cost-effective and environmentally responsible wind project development," Hornaday said. The wind-powered turbine generators that will be used at the ranch will rotate into shifting winds from atop tubular-steel towers more than 200 feet tall. Three blades, each nearly 100-feet-long, will drive each turbine, generating electricity when winds blow between 8 and 60 miles per hour.
Under normal conditions, an 80-megawatt facility will generate about 245,000 megawatt-hours of power each year, Hornaday estimated. That would provide sufficient electricity to serve the year-round average needs of about 26,600 Xcel Energy-served homes. Xcel Energy provides electricity to more than 400,000 home, business and industrial accounts across eastern New Mexico, the High Plains of Texas, the Oklahoma Panhandle and southwestern Kansas.
"Generation from wind is particularly attractive in this region because of the strength of winds here and because wind generation, compared to generation at conventional power plants, conserves water, which is particularly important in this area," Hornaday said. "The cooperation of landowners and Quay County officials is another driving force in developing a successful wind project in Quay County." "The purchase agreement we've signed with Caprock Wind, LP outlines pricing and contract conditions that are economical to Xcel Energy customers," said Gary L. Gibson, Xcel Energy state president. "We are pleased to add these 80 megawatts to the nearly 81 megawatts of wind power that help us serve approximately one million people in this region."
Regionally, Xcel Energy purchases wind power from a 660-kilowatt wind project at Texico and an 80-megawatt wind project near White Deer, Texas—both developed by Cielo Wind Power (www.cielowind.com). The Texico project is New Mexico's first commercial-scale wind generation facility. Xcel Energy and Cielo expect an expansion of the Texico facility by the end of this year.
Xcel Energy sells the energy from the Texico turbine to customers who voluntarily pay a small premium to support development of wind energy. Call 1-800-824-1688 for information about the program, Windsource®. Minneapolis-based Xcel Energy delivers about one-tenth of all the wind power sold in the United States, Gibson said. The company serves customers in 12 states, and is the nation's fourth-largest combined natural gas and electricity supplier. Source: Cielo Release 8/27/2003.
The U.S. Navy recently announced plans to begin a pilot program this fall that uses underwater buoys and ocean movement to generate electricity. The program, to be conducted at Kane'ohe Marine Base in Hawaii, will feature five PowerBuoys, each capable of generating up to 50 kilowatts of electricity.
According to PowerBuoy manufacturer Ocean Power Technologies of New Jersey, the system comprises a 35-ton cylinder moored to the sea floor. The cylinder rides the sea waves up and down on a rod, which generates energy that is converted to electricity in a nearby canister and transported to shore via a cable. "One-hundred square miles of ocean could provide electricity for all of California, said OPT executive Charles Dunleavy. Source: Popular Science August 2003 via EIN Renewable Energy Today 8/28/2003.
Companies Unveil New Building-Integrated Solar Panels
Two companies in recent weeks have announced new solar power products that will allow solar power to be integrated into buildings. Solar panels are expensive, and one approach to alleviating that expense is to make the panels serve a dual purpose, producing power while acting as a functional part of the building -- an approach called building- integrated photovoltaics, or BIPV.
United Solar Ovonic LLC has teamed up with GenFlex Roofing Systems to offer a photovoltaic roofing product for flat or low-slope commercial roofs. The result, according to the two companies, is a durable, weather-resistant roofing material that also generates power. See the Ovonic Solar press release, in PDF format only.
Spire Solar Chicago has introduced a translucent solar module that can be used for skylights or awnings. The solar modules, which feature a clear back sheet to allow light to pass through, recently passed environmental and safety testing by Underwriters Laboratory. The modules will be used for awnings in a new condominium project and for cornices in a new commercial building, both located in Chicago. See the Spire Solar Chicago press release. Source: EREN Renewable Energy Today, 8/26/2003.
The Arizona Public Service Company, Inc. (APS) recently announced that the $4-million Stone Forest Biomass Project, a plant located in Eagar, AZ that "will consume approximately 96 tons of forested wood each day and...produce three megawatts of electricity," is expected to be completed in November. APS noted that the new plant, which will be operated by Western Renewable Energy, will also help the company "develop a template to build biomass plants that use similar technology in other parts of the state," such as Flagstaff, Payson and Prescott.
"APS is committed to developing clean renewable energy sources today that will fuel tomorrow's economy," said APS vice president of communications, environment and safety Ed Fox. "Biomass is one of those future energy sources, and in Arizona, it also can be part of a solution to our forest health issues." Contact: Damon Gross, APS, phone 602-250-2269. Source: EIN Renewable Energy Today, 8/26/2003.
Mark you calendars! The next National Wind Coordinating Committee Business Meeting will be in Huron, South Dakota on October 16-17 in conjunction with the NRECA and South Dakota Wind Working Group's meetings on October 14th and 15th. Source: NWCC Home Page 8/25/2003.
Lawrence Berkeley National Lab is pleased to announce the completion of a new Berkeley Lab report, "Accounting for Fuel Price Risk: Using Forward Natural Gas Prices Instead of Gas Price Forecasts to Compare Renewable to Natural Gas-Fired Generation."
Against the backdrop of increasing -- and increasingly volatile -- natural gas prices, renewable energy resources, which by their nature are immune to natural gas fuel price risk, provide a real economic benefit. Unlike many contracts for natural gas-fired generation, renewable generation is typically sold under fixed-price contracts. This report examines the value of renewable generation as a hedge against rising and volatile natural gas prices.
This report can be downloaded in html format. If you would like a colleague to be added to the Berkeley Lab e-mail list for report distribution, please e-mail Mark Bolinger. Source: Mark Bolinger, Lawrence Berkeley National Laboratory, 8/27/2003.
The Solar Electric Power Association listed its monthly newsletter for August 2003. The newsletter is available online in PDF. If you're interested in joining SEPA, contact them at: 202.857.0898. Source: E-mail from Holly Riester, 8/27/2003.
The 2003 Utility Wind Interest Group Technical Wind Workshop, Utility Wind Integration: Focus on the Pacific Northwest, will be held October 23-24 in Seattle, Washington. A tour of the Nine Canyon Wind Project is being planned for October 22. Transportation will be provided. There is a $50 fee for the tour. Online registration will be available September 10.
The 2003 UWIG Technical Wind Workshop will explore key issues related to deployment of wind energy in the Pacific Northest and nationwide, and will include presentations and discussion on both large-scale (transmission-connected) and small-scale (distribution-connected) wind turbine installation experiences. Topics will include current status of regional/national transmission planning, overview of local wind power activities by utilities, wind power technology, utility integration issues including utility study results on wind operating impacts, UWIG Utility
Roundtable (for members and utility guests), UWIG distributed wind training seminor, and UWIG User Group Formation/planning meetings in areas of operating impacts, distributed wind, turbine modeling, and transmission & market operation best practices. The draft agenda will be distributed soon and posted on the UWIG web site.
Please note that the UWIG Technical Wind Workshop will follow the American Public Power Association Wind Power Opportunities for Public Power Workshop to be held in Seattle on October 21, cosponsored by APPA's DEED Program, The U.S. Department of Energy Wind Powering America Program, and UWIG. For additional information on that workshop, please visit APPA. Source: Karen Lane, UWIG, 8/26/2003.
The political and regulatory dust from last week's massive blackout in the Eastern U.S. was still settling this week, and its impact remains far from clear. Most political observers are betting that the power failure, which affected some 50 million people from New Jersey to Michigan and northward into Ontario and Quebec, will increase the chances for rapid passage of broad energy legislation currently pending in Congress.
While that may indeed happen, it will take special effort by Congress, where a series of regional disputes has stalled many measures in the past. One of the most contentious in recent months has been the question of control and operation of the electricity transmission system, an issue that appears to be at the heart of the blackout. Many lawmakers from the South and West have opposed both centralized control over transmission and greater integration of the nation's still-regional electricity markets, expressing a range of concerns from states' rights to fears that allowing the cheaper power they produce to flow elsewhere will reduce a key competitive advantage in attracting new businesses.
At the same time, the Federal Energy Regulatory Commission has argued that a nationwide system of coordination and control is vital to the country's future and its economic well-being. As FERC chairman Pat Wood put it recently to a reporter from The Economist magazine, "I'm from Texas, a great advocate of states' rights! Even so, I truly believe that more federal control makes sense. After all, if there's any commodity that deserves to be treated as interstate commerce-and therefore under federal jurisdiction-it has to be one that moves across state and even national boundaries at the speed of light."
The Pennsylvania-based public interest organization PennFuture struck a similar note. Observing that the area controlled by PJM, the Pennsylvania-New Jersey-Maryland interstate transmission system operator, was largely unaffected by the blackout, it commented, "State governments and agencies need to support larger regional organizations like PJM to operate the grid. Indeed, PJM was the wall that stopped the blackout-perhaps preventing it from cascading all the way down the eastern seaboard to Florida. Having all information under one roof and the buck stopping on one desk improves reliability. When it comes to electricity, no state can protect itself. Smart states welcome a strong federal role."
For AWEA, the choice of future direction is relatively clear, said deputy executive director Tom Gray: "We can either continue to move ahead toward a modernized, integrated national electricity market in which wind plants have fair access to transmission and can easily ship their product to market-the equivalent of 'free trade' in electricity-or we can try to turn back the clock to a balkanized, parochial system in which each local utility and generator has only its own individual interest in mind and no one is watching out for the public benefit. The economic costs of the latter approach will be enormous. Not only will it be much harder for a location-dependent energy source like wind to make headway in the market, but the overall costs of electricity will be significantly higher and American products will be less competitive."
Wind also benefits from the development of larger-scale, regional transmission operators, Gray said, because "the larger the pool of generation resources that is available to a system operator, the easier it is to integrate a variable energy source like wind into day-to-day operations." AWEA policy director Jim Caldwell said the development of "smart" transmission system controls is critical to the system's future and should be aggressively pursued. Industry experts say investment in such controls, which could respond at electronic speeds to problems on the system, has been stalled because a preoccupation with introducing competition among generators has led to a lack of focus on transmission improvements. In the words of the Economist article, "Some worry that expanding the grid's capacity will mean laying more transmission lines. Actually, it need not. Thanks to advances in materials technologies and superconducting cables, more power can be shipped down the same rights of way if decades-old wire is simply replaced. Just as important is sophisticated new communications and monitoring hardware and software that will allow grid controllers to assess flows of power more easily."
Caldwell notes that press reports that tens of billions of dollars of investment in transmission are needed are probably correct, but even so, the cost is relatively small compared to the costs of the blackout or the cost savings from increased efficiency in the much-larger electricity generation sector. He added, "Utilities have called for new incentives in order to entice them to make this transmission investment, but the real problem is not the allowed rate of return on regulated transmission investments but rather who would own the right to use the increased network capacity the investments would create, and who should pay for the insurance they provide against rare but catastrophic regional blackouts."
From the beginning of the current debate in Congress, AWEA has supported proposed regulations and legislation that would encourage the formation of regional and ultimately national electricity markets, and it will continue to do so in cooperation with other allies as the House-Senate conference on the energy bill proceeds. Source: AWEA Wind Energy Weekly, 8/22/2003.
Cape Wind Associates, the organization behind the hotly contested offshore wind farm project in Nantucket Sound, recently announced that U.S. district court judge Joseph Tauro has rejected an appeal by opponents to the project "that had attempted to invalidate the permit for [a] scientific data tower on Horseshoe Shoal."
"Cape Wind is working hard to provide as much objective scientific information about this project as possible, and attempts like this failed lawsuit of our opponents represent an effort to stifle scientific research and informed debate on the merits of this important project," said Cape Wind president Jim Gordon. "...[T]he scientific data tower is also providing the public with important real-time information on the environmental conditions of Nantucket Sound...."
Cape Wind noted that it is currently undergoing "an extensive permit public-interest review" by 17 federal and state agencies. Contact: Cape Wind. Source: EIN Renewable Energy Today, 8/20/2003.
In a victory for industrial plant operators, the Environmental Protection Agency is preparing to issue a new rule within days to let thousands more facilities modernize without adding more pollution controls. The new rule relaxes the agency's definition of ``routine maintenance,'' a catch-phrase Congress adopted in its 1977 Clean Air Act amendments to describe the only reason an industry could modernize without having to install best-available pollution control technology. Source: PowerMarketers.com Daily Power Report for Aug. 25, 2003.
Our Special Topic this month is a snapshot of CEO's outlook for clean energy for power generation in North America over the next ten years. For this purpose, "power generation" refers to electricity produced by utilities as well as power produced on-site by end users.
CEO 10-Year Outlook Highlights:
There is a long history of rosy forecasts for renewable and clean energy. In general, the power generation market has fallen short of achieving many such projections over the past twenty years. We believe there are several factors that explain this "serial" discrepancy. In some cases, technological advances and cost reductions have been over-hyped and lagged expectations. Public policies often fell short of providing meaningful long-term market incentives for clean energy. We have also discovered in recent years that although many consumers express concern over the environment, when it comes to a purchase decision price is most often the key consideration.
The Drivers: Despite this less than stellar track record, CEO believes the overall outlook for the clean energy market is very bright indeed. Ample anecdotal evidence supports the notion that clean energy is poised for rapid and sustained growth. Large corporations such as DuPont are committing to clean energy procurement goals. Traditional energy companies like BP Amoco, Chevron-Texaco, and Shell are making significant investments in the clean energy business.
Public policy is by far the most important determinant of the future for clean energy. Federal and state initiatives to promote clean energy will create a base demand level. The Energy Bill recently passed by the U.S. Senate includes a national renewable portfolio standard, trading mechanisms, significant tax credits, and other funding mechanisms for clean energy. President Bush also recently announced a $1.5 billion program to commercialize fuel cells. At the state level, renewable portfolio standards and stipulated goals have the potential to create demand for new clean energy capacity of at least 23 gigawatts by 2013.
Other factors will also come into play. Advances in clean energy technologies will increase performance and cost-effectiveness. Deregulation of electric utility markets will continue to foster an environment where new technologies and innovation can thrive. Energy security and reliability concerns will increase interest in new clean energy technologies that can be situated strategically throughout a utility grid as an alternative to large central generation. (This article was written prior to the large-scale power blackout.) Reduced reliance on fossil-fuel technologies also factors into the energy security equation.
The Numbers : CEO's base case outlook projects generation from non-hydroelectric renewable energy sources to make up an increasing share of overall North American power generation over the next decade — increasing from 2.1percent to approximately 5.0 percent. By the end of 2012, clean energy capacity will total 60 gigawatts and will be sufficient to meet forecast demand created by state, provincial, and federal government mandates.
Following are brief commentaries on each key sector:
Wind: Wind power is becoming increasingly "mainstream" in North America as the technology gains market acceptance and large credible players like General Electric and FPL Energy take significant positions in the industry. As public policy creates demand for clean energy, wind will be the technology of choice in many instances simply because a) it has a proven track record, and b) it is the lowest-cost alternative. CEO sees wind power growing dramatically over the next ten years, with installed capacity increasing at an average annual rate of 22 percent. By 2012, wind power is forecast to reach 39 gigawatts and account for two-thirds of all non-hydro renewable power supplies in North America. An important caveat to this base case forecast is that it is highly predicated on aggressive U.S. federal policies and incentives to promote renewable energy. CEO believes that is in fact the most likely scenario.
Biomass: This sector, which includes co-firing, gasification, and municipal solid waste, is forecast to grow at a steady but modest rate of approximately 2.7 percent. Much of this growth will come from the addition of landfill gas recovery and on-site combined heat and power applications.
Geothermal: Geothermal generation is likely to get a significant boost over the next several years from U.S. federal tax incentives and easing of restrictions on leasing federal lands. North American installed capacity is expected to increase by 50 percent by the end of the decade to approximately 4.0 GW. This figure represents a small fraction of the estimated 25 GW of geothermal resources that can be tapped in the western U.S. and Canada. There is room for additional growth from this base case depending on how pending provisions of the U.S. energy bill pan out in coming weeks.
Solar PV: Solar technologies overall are not expected to make significant contributions to U.S. grid-connected electricity supplies. However, installations of solar photovoltaics at end user sites are projected to grow dramatically - at an average annual rate of 30 percent over the next ten years. The primary driver for this market is cost. This forecast assumes: a) manufacturers will continue to make strides in reducing costs of producing PV panels, b) cost of grid power will steadily increase over the next ten years, and c) state and federal incentives will continue.
Fuel Cells: This sector is a wild card. CEO sees fuel cells as one of the most promising power generation technologies on the horizon. However, the timing of when fuel cells will break through to the broad commercial marketplace is difficult to predict. The industry faces two major challenges: cost reduction and proven performance. We believe much progress will be made on both fronts in the next ten years and result in an increase in installed capacity from a few megawatts to 470 megawatts by 2012. Most of this new capacity will be deployed at commercial, industrial, and institutional facilities as well as at utility substations in size ranges of 50 kilowatts to 50 megawatts. Major automobile manufacturers will play a significant role, either directly or indirectly, as their backing of stationary fuel cell projects will help their endeavors in the vehicular marketplace. Again, public policy will factor prominently into the outlook for this sector. If significant public funding is made available for stationary applications, fuel cells could achieve commercialization much sooner.
CEO's long-term view of the clean energy sector is based on current affairs, present and proposed projects, technology advancements, and governmental policies and trends. As everyone eagerly awaits the final results on the energy bill in Washington, the outlook remains bright for clean energy.
About the authors: Malcolm Jacobson and David Glover are Principals at Strategic Clean Energy, LLC, where they apply their combined 36 years of experience to clean energy consulting. Their particular areas of expertise include strategic planning, market analysis, project structuring, financial analysis, and risk management. A sampling of their accomplishments includes:
Considered experts in their field, their articles and quotations have appeared in major publications, including the Wall Street Journal. The forgoing article was presented in their August issue of Clean Energy Outlook, a monthly publication focused on commercial implications of news, technologies, and projects within the clean energy industry. Additional information can be obtained by calling SCE at (281) 356-4043 or email. Source: Energy Central, 8/18, 2003 -- Clean Energy Outlook .
Will Help State Meet Clean Power Mandate by 2017 Sacramento - There will be enough renewable electricity generation in California to allow the state's investor-owned utility companies to meet a mandated 20 percent renewable energy requirement by 2017, according to the California Energy Commission.
The Commission has released a staff preliminary assessment of expected electricity supplies from wind, geothermal, biomass, solar, and other renewable sources within California. Commission staff made the preliminary assessment to help the California Public Utilities Commission develop a renewable energy transmission plan to bring renewable energy to consumers.
Senate Bill 1078, authored by Senator Byron Sher (D-Palo Alto), established the Renewables Portfolio Standard or California. It requires a retail seller of electricity (investor owned utilities and direct access providers) to increase their use of renewable resources by at least one percent per year, until 20 percent of their retail sales is procured from renewables by 2017.
"California's abundance of commercially available renewable resources would suggest that our 20 percent goal could largely be achieved from projects that have already been proposed," said Commissioner John Geesman, chair of the Commission's Renewables Committee. "We have within our grasp the ability to change California's electricity supply mix."
By nearly doubling the state's existing base of renewable resources, the RPS will help decrease California's dependence on natural gas-fired power plants. Adding renewables to the system can also improve air quality by reducing emissions, including greenhouse gases.
Senate Bill 1038, also authored by Senator Sher, requires the CPUC to develop a comprehensive transmission plan for renewable electricity generation facilities. The bill also requires the Energy Commission to develop a final renewable energy resources appraisal that describes California's renewable resource potential. Both documents must be submitted to the state legislature by December 1, 2003.
The Commission's preliminary assessment will help the CPUC target its transmission plans by the type of energy resources produced in areas like Tehachapi, the Salton Sea, San Gorgonio Pass, Altamont Pass, and Siskiyou County. Commission staff estimate that by 2017, the state's investor owned utilities and energy service providers will require an additional 21,000 gigawatt-hours a year of renewable electricity generation to meet the 20 percent RPS target.
The preliminary assessment noted that renewable energy projects already in various stages of development could provide as much as 25,000 gigawatt-hours per year, more than enough to meet the RPS demand. In addition, staff said that in-state renewable energy production could meet the RPS goal without exhausting California's total potential wind, geothermal, biomass, and solar energy resources. The Commission's preliminary assessment is available on-line. Source: CEC Release, 7/10/2003.
Officials with Taiwan's Committee for the Establishment of a Nuclear Free Home recently announced that the government has earmarked 3 billion new Taiwan dollars (about $88.3 million U.S.) for the research and development of renewable energy resources. In addition to the new funds, officials announced that the committee has decided to ease land acquisition regulations for companies looking to establish wind farms in the country.
Officials also noted that the committee plans to provide 166 million new Taiwan dollars (about $4.8 million) to subsidize the use of solar systems, with the hope that the number of families using solar power will increase from the current figure of 12,000 to 20,000. Source: Taipei Times 8/19/2003 via EIN Renewable Energy Today, 8/27/2003.
The Defense Energy Support Center has issued a Renewable Energy Certificate Request for Proposals on behalf of the EPA's Research Triangle Park, North Carolina site. Technical data is due on September 16 and pricing is due on Sept. 23. Source: Chandra Shah, National Renewable Energy Laboratory, FEMP.
Dairyland Power Cooperative has issued a comprehensive Request For Proposal for long-term power supply of up to 300 megawatts net power output and associated energy to serve the growing electrical loads in its service territory. The sources of capacity and associated energy can come from new generating station construction or from existing sources. Dairyland requires reliable, high capacity factor generation (baseload) capability to be in service by 2009.
Those interested in tendering a proposal should inform Dairyland by Sept. 10, 2003, with formal proposals due Nov. 3, 2003. Questions concerning the RFP may be sent to Dairyland. To access the RFP, please go to the Dairyland Power Cooperative Web site and press the Generation RFP button located on the home page. Source: PR Newswire, 8/27/2003.
LINCOLN -- Renewable energy grants totaling $177,654 have been awarded to six energy projects in the state of Nebraska, it was announced Tuesday by Jim Barr, Nebraska state director of USDA Rural Development. "These dollars are great news to Nebraska as the grants will help these farmers and rural businesses in areas of new energy generation and reduction of current energy costs and consumption," Barr said. Two of the six energy projects are located in northeast Nebraska.
David John Tobias, a small business owner in rural PIlger, will use the $10,000 grant to assist in the construction of a 10-kilowatt on-farm wind turbine generating 12,105 kilowatt hours each year. The turbine will generate a substantial portion of the small farming business' electrical needs.
Northeast Nebraska News Company, a small business in rural Hartington, will utilize its $10,000 grant to replace existing central air and heating systems with high efficiency heat pump systems at its Osmond and Randolph locations. The firm also will replace its natural gas water heater at the Osmond location with an electric water heater. Source: Sioux City Journal, 8/27/2003.
This news item comes to you as a service of Western's Renewable Resources Program.
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