Incentives for Developing Incentives for Developing Locally-owned Wind in Minnesota Locally-owned Wind in Minnesota American Public Power Association American Public Power Association 2006 Business & Financial 2006 Business & Financial Conference Conference September 19, 2006 September 19, 2006
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Incentives for Developing Locally-owned Wind in Minnesota
Incentives for Developing Locally-owned Wind in Minnesota. American Public Power Association 2006 Business & Financial Conference September 19, 2006. About the Speaker. Asst. Commissioner for Renewable Energy - PowerPoint PPT Presentation
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Incentives for DevelopingIncentives for DevelopingLocally-owned Wind in MinnesotaLocally-owned Wind in Minnesota
American Public Power AssociationAmerican Public Power Association2006 Business & Financial Conference2006 Business & Financial ConferenceSeptember 19, 2006September 19, 2006
About the SpeakerAbout the Speaker
Asst. Commissioner for Renewable Energy
Fifteen years experience in variety of key staff positions Governor’s Office; MN Dept. of Commerce; MN
Public Utilities Commission; MN Office of Attorney General; MN House of Representatives and MN Senate
Presentation OverviewPresentation Overview
General Comments
REPI Program (1995-2000)
REPI plus Xcel (2000-2004) Standard Offer
C-BED program (2005 to present)
General CommentsGeneral Comments
Minnesota targets incentives towards locally-owned energy projects
These provide the optimum mix of benefits to Minnesotans
Most comprehensive community energy program in the country
Renewable Energy Renewable Energy Production IncentiveProduction Incentive
Established in 1995
Pay 1.5 cents per kwh for 10 years for eligible projects
Energy must produced by locally-owned wind project with a capacity of 2 MW or less
Capped at 100 MW
Only a handful of projects before the year 2000
REPI Plus Xcel Standard OfferREPI Plus Xcel Standard Offer
In 2000, the MN Dept. of Commerce and Xcel Energy developed a standard offer for locally-owned small wind projects
Xcel agreed to pay 3.3 cents per kwh for 20 year contracts
Projects qualified for REPI as well 4.8 cents per kwh for the 1st 10 years 3.3 cents per kwh for the last 10 Plus federal PTC
REPI Plus Xcel Standard OfferREPI Plus Xcel Standard Offer (cont.)(cont.)
100 MW cap met in 2002
Additional 100 MW of REPI authorized in 2003
All 200 MW fully subscribed (with a waiting list) by the end of 2004
Community-Based Energy Community-Based Energy DevelopmentDevelopment
Policy-makers wanted to extend REPI again, but the state had significant budget deficit
Without $$, needed to be creative
Created “C-BED” tariff in 2005
No size limitation
Community-Based Energy Community-Based Energy DevelopmentDevelopment (cont.)(cont.)
C-BED tariff allows the utility to pay a front-end loaded rate
A higher rate in 1st 10 years of a 20-yr contract
In exchange for a lower rate in the later years
Results in a rate similar to REPI plus Xcel standard offer