solving the local clean energy puzzle
TRANSCRIPT
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?
