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Renewable Energy Portfolios

Midwest Rural Energy CouncilLa Crosse, WI

Renewable Energy Portfolios

Midwest Rural Energy CouncilLa Crosse, WI

Chris VandeVenter, Legislative RepresentativeBasin Electric Power Cooperative

February 29, 2008

Chris VandeVenter, Legislative RepresentativeBasin Electric Power Cooperative

February 29, 2008

Future of EnergyFuture of Energy

• Resource Development

• Energy Demands and Growth

• Renewable Energy

• Energy Efficiency and Conservation

• Climate Change and Carbon Management

Updated as of 2/2008

Basin Electric Power Cooperative

MEMBER SYSTEMSserve 2.5 million consumers

Basin Electric Power Cooperative

MEMBER SYSTEMSserve 2.5 million consumers

State Goal

☼ PA: 18%¹ by 2020

☼ NJ: 22.5% by 2021

CT: 23% by 2020

MA: 4% by 2009 +1% annual increase

WI: requirement varies by utility; 10% by 2015 goal

IA: 105 MW

MN: 25% by 2025(Xcel: 30% by 2020)

TX: 5,880 MW by 2015

☼ AZ: 15% by 2025

CA: 20% by 2010

☼ *NV: 20% by 2015

ME: 30% by 200010% by 2017 - new RE

State RPS

☼ Minimum solar or customer-sited RE requirement* Increased credit for solar or customer-sited RE

¹PA: 8% Tier I / 10% Tier II (includes non-renewables)

HI: 20% by 2020

RI: 16% by 2020

☼ CO: 20% by 2020 (IOUs)*10% by 2020 (co-ops & large munis)

☼ DC: 11% by 2022

DSIRE: www.dsireusa.orgJanuary 2008

☼ NY: 24% by 2013

MT: 15% by 2015

IL: 25% by 2025

VT: RE meets load growth by 2012

Solar water heating eligible

*WA: 15% by 2020

☼ MD: 9.5% in 2022

☼ NH: 23.8% in 2025

OR: 25% by 2025 (large utilities)5% - 10% by 2025 (smaller utilities)

*VA: 12% by 2022

MO: 11% by 2020

☼ *DE: 20% by 2019

☼ NM: 20% by 2020 (IOUs)10% by 2020 (co-ops)

☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)

ND: 10% by 2015

Renewable Portfolio StandardsRenewable Portfolio Standards

105 MW*

15% by 2015

20% by 202010% by 2020

(co-ops)

10% by 2011

25% by 2025

Current Renewable Portfolio Standards in Basin Electric Service

Area

10% by 2015(goal)

10% by 2015(goal)

Views on RenewablesViews on Renewables• 2006 surveys conducted by ND Association of

RECs• 88 percent of North Dakotans believe utilities

should be required to get some energy from renewable resources.– 71% agreed even if their bills went up 5% as a

result.• 93% of North Dakotans say renewable energy

needs to be a legislative priority• 68% of North Dakotans choose wind or

renewables over coal if they had to pick just one fuel to handle all new generation needs.

Coal2,300 MWCoal2,300 MW

Natural Gas181 MWNatural Gas181 MW

Oil115 MWOil115 MW

Wind136 MWWind136 MW

Other22 MWOtherOther22 MW22 MW

FuelFuel

Power Supply Facilities3,000 MWPower Supply Facilities3,000 MW

Stegall TieStegall Tie

Sidney TieSidney Tie

Miles City TieMiles City Tie

Rapid City TieRapid City Tie

Cooperative Power SupplyCooperative Power Supply

Power Supply Transmission Distribution Consumers

OwnersMemberG&TBasin

Electric

WesternWestern

Wind Generation – 136 MWWind Generation – 136 MW

MinotMinot

EdgeleyEdgeley

HighmoreHighmore

ChamberlainChamberlain

RosebudRosebud

PipestonePipestone

WiltonWilton

•• Chamberlain ProjectChamberlain Project

–– Joint project with East River Electric Joint project with East River Electric Power Cooperative, Madison, SDPower Cooperative, Madison, SD

–– Two 1.3 MW turbinesTwo 1.3 MW turbines

–– Commercial in January 2002Commercial in January 2002

–– Basin ElectricBasin Electric’’s first wind projects first wind project

•• Minot ProjectMinot Project

–– Joint project with Central Joint project with Central Power Electric Cooperative, Power Electric Cooperative, MinotMinot

–– Two units, 1.3 MW eachTwo units, 1.3 MW each

–– Commercial in fall 2002Commercial in fall 2002

Basin Electric Wind ProjectsBasin Electric Wind Projects

•• North Dakota I Wind Energy North Dakota I Wind Energy CenterCenter

–– 40 MW: 27 turbines, 1.5 MW 40 MW: 27 turbines, 1.5 MW eacheach

–– 8 miles west of Edgeley, ND8 miles west of Edgeley, ND

•• South Dakota Wind Energy CenterSouth Dakota Wind Energy Center

–– 40 MW: 27 turbines, 1.5 MW each40 MW: 27 turbines, 1.5 MW each

–– 10 miles south of Highmore, SD10 miles south of Highmore, SD

•• Wilton Wind Energy CenterWilton Wind Energy Center

–– 49.5 MW: 33 turbines, 1.5 MW 49.5 MW: 33 turbines, 1.5 MW eacheach

–– South of Wilton, ND South of Wilton, ND

FPL Energy Wind ProjectsFPL Energy Wind Projects

VenturaVentura

Heat Recovery Projects22 MWHeat Recovery Projects22 MW

Port of MorganPort of Morgan

Other ResourcesOther Resources

•• Western Area Power AdministrationWestern Area Power Administration–– Hydropower (280 MW)Hydropower (280 MW)

–– Winter peakingWinter peaking

• Built by ANG, a consortium of energy companies– Began commercial operation in 1984

• ANG defaulted on $1.5 billion DOE loan guarantee in 1985

• Basin Electric formed Dakota Gasification in 1988 to purchase the plant

• Synfuels plant produces about 150 mmscf of natural gas daily

• $1 billion repayed to U.S. through revenue sharing and canceled tax credits

• Built by ANG, a consortium of energy companies– Began commercial operation in 1984

• ANG defaulted on $1.5 billion DOE loan guarantee in 1985

• Basin Electric formed Dakota Gasification in 1988 to purchase the plant

• Synfuels plant produces about 150 mmscf of natural gas daily

• $1 billion repayed to U.S. through revenue sharing and canceled tax credits

Dakota Gasification CompanyDakota Gasification Company

Basin Electric Member Load GrowthBasin Electric Member Load Growth

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021

MW

4.52% 4.52%

19471947

37813781

1834 1834 New Investment in

our system

Coal - 940 MW

Transmission

Gas - 490 MW

Renewable - 322 MW

Resource Development1,750 MWResource Development1,750 MW

230 kV230 kV

BelfieldBelfield

Bowman

HettingerHettinger

DickinsonDickinson

TiogaWilliston

CharlieCreekCharlieCreek

Watford City

AVSAVS

ND Transmission AdditionsND Transmission Additions

New BEPC Wind Farms2009/2010New BEPC Wind Farms2009/2010

115 MW115 MW

100 MW100 MW

Commitment to RenewablesCommitment to Renewables

0

50

100

150

200

250

300

350

400

450

500

2007 2008 2009 2010 2011

Waste Heat Wind

MWMW

Dry Fork Station (WY)385 MWDry Fork Station (WY)385 MW

Total BEPC Wind Generation During the Monthly Peak Hour: 2007

Total BEPC Wind Generation During Total BEPC Wind Generation During the Monthly Peak Hour: 2007the Monthly Peak Hour: 2007

86

109120

48

8

59 61

25

6046

65

28

0102030405060708090

100110120130140

Jan

30

Feb

15

Mar

2

Apr 4

May

13

Jun

25

Jul 2

4

Aug

13

Sep

04

Oct 2

6

Nov

29

Dec

31

136 MW Nameplate Rating136 MW 136 MW Nameplate RatingNameplate Rating

MWSMWS

48.7%

35.6%

41.9%

33.7%

45.3%

36.5%

30.0%28.7%

43.5%41.5%

46.0%

34.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Jan

Feb Mar AprMay Ju

n Jul

AugSep Oct NovDec

Average 38.8%Average 38.8%PercentPercentPercent

2007 12 Month Capacity Factor2007 12 Month Capacity Factor2007 12 Month Capacity Factor

• Incorporated Feb. 2008• Four initial members – virtual co-op• Membership open to G&Ts and unaffiliated

cooperatives• Enable cooperatives to participate in the

development of renewable resources

National Renewables Cooperative OrganizationNational Renewables Cooperative Organization

BASIN ELECTRIC POWER COOPERATIVEA Touchstone Energy Cooperative

Reasons to pursue efficiency and conservationReasons to pursue efficiency and conservation• Co-op philosophy

• State & federal requirements

• Reduce demand / resources

• Better manage resources

• Reduce operating cost

• Reduce carbon emissions

1.5% per

year*

Spend $$ on conservation

Spend 2%per year

on conservation

1.5%per capita*(proposed)

*Annual reduction in retail sales

Conservation RequirementsConservation Requirements

Basin Electric EffortsBasin Electric Efforts

• Efficiency improvements at Basin– HDQ efficiency – 135,000 kwh/month– Turbine Upgrades at Generators– Load Management– Plug-in Hybrid Project

• Conservation happens at the local level• Basin developing conservation program to

assist members

Plug-in Hybrid10-29-2007Plug-in Hybrid10-29-2007

Potential CO2 reductions in the U.S. Electricity Sector

Electric Power Research Institute, August 2007

BismarckBismarckBeulahBeulah

WeyburnField

WeyburnField

EstevanEstevan

ApacheApacheEnCanaEnCana

13 Million Tons Sequestered To Date13 Million Tons Sequestered To Date

Dakota Gasification Company (DGC)World’s Largest Carbon Sequestration ProjectDakota Gasification Company (DGC)World’s Largest Carbon Sequestration Project

LOW PRESSURE STEAMLOW PRESSURE STEAM

FLUE

FLUE

GASGAS

CO2

CO2

CARBONCAPTURE

Antelope Valley Station

57 mmscf/d

CO2 PIPELINECO2 PIPELINE

240 mmscf/dPipeline capacity

Current flow rate:153 mmscf/d

Great PlainsSynfuels Plant

Compressors

CO2flood

operation

CO2CO2

Demonstration/Commercialization ProjectDemonstration/Commercialization Project

SummarySummary

• Load growth driving electricity• Carbon driving pace of new power plants• Renewables are one part of a balanced

energy portfolio• Still need base load power• Support renewables, but oppose mandates• Carbon capture and storage must be

developed for existing power plants