Solving the Local Clean Energy Puzzle

The Clean Local Power PuzzleJohn Farrell, DirectorEnergy Self-Reliant States and Communities [email protected]

April 2, 2012 presentation to the Pedernales Electric Coop

Energy Transformation

Centralized powerYesterday Tomorrow

Transmission network

Distribution network

House

Storage

Local CHP plant

Commercialbuilding

Factory

Storage

Storage

Storage

Solar PV power plant

Windpowerplant

House with domestic CHP

Clean, local power

Good Sun

5.0 - 5.55.5 - 6.0

4.5 - 5.0

Solar Insolation(kWh/m2/day)

Good Wind

Renewable Energy Cost

0¢

3¢

6¢

9¢

12¢

15¢15¢

4.5¢6.4¢

Cost per kWh over project lifetime

Avoided CostWind PowerSolar Power

Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/dayWind project installed at $2,000/kW; solar at $5,000/kWCalculations include federal tax credits and depreciation

Renewable Energy Cost

0¢

3¢

6¢

9¢

12¢

15¢15¢

4.5¢6.4¢

Cost per kWh over project lifetime

Avoided CostWind PowerSolar Power

Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/dayWind project installed at $2,000/kW; solar at $5,000/kWCalculations include federal tax credits and depreciation

Cost

“The Cooperative will pay a price for distributed renewable generation that reflects its value”

The Clean Energy Puzzle

Cost Value

OwnershipScale

The Issue of Scale

Scale

Distributed Solar

Electricity generation Transmission cost

$0

$0.03

$0.06

$0.09

$0.12

$0.15

100 kW 500 kW 1 MW 1 MW 5 MW 50 MW

Cost per kWh After Tax Incentives

Rooftop Ground

Calculations by the CLEAN Coalition

Distributed Wind

$0

$600

$1,200

$1,800

$2,400

$3,000

< 5 MW 5-20 MW 20-50 MW 50-100 MW 100-200 MW > 200 MW

Installed Cost per kW

2009 Wind Technologies Market Report (LBNL)

The Issue of Value

Value

Renewable Energy Value

0¢

3¢

6¢

9¢

12¢

15¢15¢

4.5¢6.4¢

Cost per kWh over project lifetime

Avoided CostWind PowerSolar Power

Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/dayWind project installed at $2,000/kW; solar at $5,000/kWCalculations include federal tax credits and depreciation

Renewable Energy Value6 cents per kWh in

addition to electricity

Palo Alto, CA, municipal utility

$0

$0.03

$0.06

$0.09

$0.12

$0.15Value of Distributed Solar

Brown energy replacementAvoided transmission lossesEnvironmentalAvoided transmission accessLocal capacity value

Feed-In Tariff for PV in Palo Alto, Calif. Imminent: http://tinyurl.com/72sxgsb

The Issue of Ownership

Ownership

PEC Wind Power

Local Ownership

Total JobsEconomic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

Absentee

Community

Community

1.1x (low)

2.8x (high)

Local Ownership

Total Economic ImpactEconomic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

Absentee

Community

Community

1.5x (low)

3.4x (high)

The Whole Puzzle

Cost Value

OwnershipScale

Public Support

No local ownership

Local ownership

0% 25% 50% 75% 100%

very negative negative neutral positive very positive

60% negative

45% positive

Cost Value

OwnershipScale

Your Own Pigs Don’t Stink

10 kW solar array

Financed by utility

Members buy panel shares ($5/Watt)

Sol Partners Community Solar

100 kW solar array

Financed by utilities

Members buy panel shares ($6/Watt)

SunSmart Community Solar

S.D. Wind Partners

12 MW wind project

7 turbines

600 owner-financiers

Questions?

Solving the Clean Energy Puzzle

Cost Value

OwnershipScale

John [email protected]