Iowa Office of Energy Independence

Energy Independence

Economic Prosperity

Iowa’s Energy Economics

$5.25 billion, or 37% of Iowa’s energy expenditures, accumulated to economies of other states or countries.

The money Iowans spent on renewable energy including wind, hydropower and ethanol, amounted to a total of $427.6 million.

Using Iowa-based energy resources kept $133.5 million circulating in the state economy that would have gone elsewhere if it had been used to purchase fossil energy.

Economic & Energy Independence

There are 3 ways to keep or make more money for Iowa Increase Iowa’s use of in-

state energy resources Increase Iowa’s export of

renewable energy Increase Iowa’s overall

energy efficiency

Wind in Iowa is big business

Iowa Wind Industry Today

SIEMENS

S5 Sector Five

Technologies

… plus more than 200 existing Iowa manufacturers in the supply chain

Policy As A Pump Primer Today

Iowa is currently #1 in the country in wind generation output as a percentage of all electricity generation in the state

17-20% of all electricity generated in Iowa is from wind Current installed wind capacity of 3,670 MW

Why? Advanced ratemaking principles are available for wind

projects Federal and State Tax Credits Transmission infrastructure and location near load

centers Excellent location and high capacity factor Experience with RPS Iowa Power Fund

Iowa Power Fund: The Vision

Do what we do well

Create an irreversible momentum in energy

Create permanent Iowa jobs

Iowa Power Fund: The Facts

Created in 2007 $100 Million Fund Focused on:

Research & Development Early Stage

Commercialization Education

To date, the Iowa Power Fund has allocated $40.5 million for 32 projects in Iowa. These projects have leveraged more than $271 million in additional funds.

Power Fund: The Facts

The Iowa Power Fund was also tapped to assist with flood recovery, allocating $7.5 million to help homeowners and businesses to rebuild with energy efficient equipment and materials.

Beginning in 2010, 4%, or more than $800,000 per year, of the Iowa Power Fund appropriation was earmarked to fund competitive projects for community energy efficiency and renewable energy investments.

The Iowa Power Fund provides approximately $2.5 million annually to community colleges for energy-related curriculum delivery and development.

Power Fund Wind Projects

Research & Development Iowa Alliance for Wind Innovation &

Novel Development (IAWIND) Iowa Stored Energy Park Carbon-Free Energy

Commercialization TPI Composites Acciona Windpower North America

There Is More To Know About Wind Turbine Blades

TPI: Advanced Wind Blade Manufacturing

This project is working to foster the more efficient mass production of wind turbines in Iowa

By improving labor productivity in wind manufacturing up to 35%, this project will increase manufacturing throughput

This will result in more employment opportunities in Iowa, along with better-paying and technically-challenging employment possibilities

Today Iowa agribusiness feeds, fuels and secures our society

POET: Project LIBERTY

Project LIBERTY in Emmetsburg, Iowa will be one of the world’s first commercial scale cellulosic bio-refineries Convert corn cobs to ethanol through enzymatic

hydrolysis Corn cobs are easy to harvest, have limited

environmental impact and have high carbohydrate content that makes more ethanol

Will help to meet the vision of producing 36 billion gallons of ethanol a year

Algae can be an affordable biofuels feedstock

Green Plains Renewable Energy & Bioprocess Algae

This project is using breakthrough technology for the mass production of algae as a fuel feedstock The inputs for the mass

production of algae are the waste products from an ethanol plant: carbon dioxide and waste water.

With this level of production, a 50 million gallon a year ethanol plant would produce enough oil for 5.8 million gallons of biodiesel annually.

Energy Leadership Starts in Communities

Dubuque: Model for Energy Efficiency and Economic Growth The City of Dubuque is creating an Integrated

Sustainability Service model for measurement and monitoring of its energy and water systems, infrastructure components, and transportation networks with assistance from IBM 

This system will allow City management and electric utility customers to track: energy use on a near real-time basis, and the impact information about usage on actual use patterns

This will help the City and its citizens understand electric consumption and the sustainability footprint of the community, as well as provide cross-analytics for all related areas of energy consumption within the community

Iowa’s Energy Independence Plan

2007 2025

2007Creation of the

Iowa Power Fund2007 - 2025

Achieve Key Goals for Iowa

Optimize Energy Use

•30% increase in energy efficiency

•10% decrease in vehicle miles

traveled

Fully Develop Iowa’s

Renewable Energy

Potential•10,000 MW of wind

Installed in Iowa

Maximize the Development & Use of

Biofuels

•Increase Iowan’s use of biofuels to 50%

•Meet future low carbon fuel standards

National Plan Goals: DOE 20% Wind by 2030

What the report means for Iowa: 10 + GW build out Currently at: 3,670 MW Balance needed: 6,330 MW

1-2GW can come only with nominal investment in Transmission

Solution: Interconnect wide EHV Overlay

Barriers

Transmission limitations are the greatest obstacle to realizing the economic, environmental, and energy security benefits available from wind (U.S. DOE).

Lack of transmission capacity across that nation is holding up economic development Over 300,000 MW of wind projects across the U.S. are on

hold Concerns of adequate transmission nationwide are shared

by solar, geothermal, and hydropower industries. 56% of major transmission lines in Iowa are over 35

years old

Transmission Upgrades

One version of interstate backbone system is estimated at $60B spread over 10-20 years Transmission accounts for 10% of total electrical

delivery costs

An updated national transmission grid will provide: Thousands of good jobs, plus many more indirect Reduced carbon emissions

Iowa’s Work on Transmission Issues Governor’s Wind Energy Coalition (GWEC)

26 states represented Upper Midwest Transmission Development

Initiative (UMTDI) Governor’s level initiative in 5 states

Eastern Interconnect States Planning Council (EISPC) 39 states plus the District of Columbia & City of

New Orleans

GWEC Recommendations Adopt a renewable electricity standard Develop new interstate electric transmission system infrastructure for

renewable energy resources both on-shore and offshore Support coastal, deep water, and offshore wind energy technology

and transmission research and development Streamline permitting processes for both offshore and on-shore wind

energy development projects Expand the U.S. Department of Energy’s work with the states and the

wind industry to accelerate innovation Extend the treasury department grant program in lieu of the

investment tax credit, and adopt a long-term renewable energy production tax credit with provisions to broaden the pool of eligible investors

UMTDI

Two working groups: Cost allocation Transmission

Seeking a regional solution to transmission Report recently issued

Proposes cost allocation strategy

Working in coordination with MISO’s Regional Generation Outlet Study (RGOS) to best determine wind resources to build to; similar to CREZ in Texas

Eastern Interconnection States' Planning Council (EISPC)

Goal to develop plans for eastern interconnect-wide transmission system for renewables access

Two representatives from each state State Energy Office (Roya Stanley) Utilities Board (Rob Bernsten)

Received $14 million for planning from DOE

Publishes Annual Interconnection

Analysis

Regional/state compliant plans

provided as input

Study gaps relative to national, regional

and state policy

Regional Plans and Projects

Annual interconnection

analysis

States•Regional Policy

recommendations•State energy policies

•Rate Policies

Eastern Interconnection Planning Collaborative

•Rolls-up regional plans•Coordinates with Canada, Western Interconnect and ERCOT

•Receives stakeholder input and holds public meetings•Performs studies of various transmission alternatives

against national, regional and state energy/economic/environmental objectives

•Identifies gaps for further study

DOE/FERC

ISO / RTOs & Order 890 Entities•Produce Regional Plan through

regional stakeholder process, including state regulatory authorities

Provides policy direction,assumptions &

criteria

• Review/direction• Order adjustments

States•Policy recommendations

•State energy plans

FERC

EISPC

Deliverables Conduct studies on key issues and prepare

whitepapers on energy efficiency, renewables, nuclear siting, coal potential, energy storage, prices, and more

Identify potential locations of low or no carbon generation

Provide insight into economic and environmental implications

Attempt to achieve consensus on modeling inputs and future scenarios

How We Will Know When We’ve Completed Our Mission

“We want to live in a healthy place where our families and

friends have rewarding careers, comfortable places to live, clean

air and water, and abundant opportunities for the future.” –

Roya Stanley, Director

Iowa Office of Energy Independence