Energy Efficiency Implementation & Finance


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Energy Efficiency Implementation & Finance: By Gil C. Quiniones, Acting President & Chief Executive Officer, New York Power Authority

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  • We're the country's largest state public power organization, producing some of the cheapest electricity in North America.Our 17 generating facilities and over 1,400 circuit-miles of transmission lines produce the power to help sustain more than 380,000 jobs statewide.We are a national leader in promoting energy efficiency and the use of renewable-fuel and clean-energy technologies.
  • Energy Efficiency Implementation & Finance

    1. 1. Energy Efficiency Implementation & Finance<br />Gil C. QuinionesActing President & Chief Executive Officer New York Power Authority <br />October 4, 2011<br />
    2. 2. Overview<br />Large Public Power Council<br />New York Power Authority<br />Energy Efficiency at New York Power Authority<br />Energy Efficiency Initiatives in New York<br />Takeaway Questions<br />
    3. 3. Large Public Power Council (LPPC)<br />NYPA is a member of a consortium of 25 locally-owned and controlled not-for-profit power systems serving more than 45 million people in 11 states and Puerto Rico<br />LPPC is a member of the Alliance to Save Energy<br />LPPC’s recently established Energy Efficiency Task Force focuses on supporting Federal policy and legislation that facilitates energy efficiency goals<br />Clean & Efficient Energy Program (CEEP) launched in 2009 by Alliance to Save Energy, American Public Power Association, and LPPC. Created an online space for information sharing and peer-to-peer networking to assist public power utilities in establishing energy efficiency programs<br />
    4. 4. Niagara Power Project (2,441 MW)<br />St. Lawrence-FDR Project (800 MW)<br />Blenheim-Gilboa Pumped Storage (1,040 MW)<br />500 MW Combined-Cycle (500 MW)<br />Small Clean Power Plants (450 MW)<br />Richard M. Flynn <br />Power Plant<br />(135 MW)<br />New York Power Authority (NYPA)<br />
    5. 5. Energy Efficiency at New York Power Authority<br />NYPA Energy Services provides turnkey project development including audit, design, construction, and financing to eligible participants<br />NYPA Energy Services<br /><ul><li>Since 1990, over $1.4 billion financed in energy efficiency and clean technology
    6. 6. In 2008, NYPA committed to finance an additional $1.4 billion by 2015
    7. 7. Program results in 4,506 public facilities serviced, saving $135 million a year, and avoiding 824,000 tons of greenhouse gases and 2.5 million barrels of oil a year </li></ul>*Financed to Date<br />
    8. 8. Energy Efficiency at New York Power Authority<br />Customers are generally public and governmental entities with low default risk<br />NYPA Energy Services Program<br />Actual Financing to Date, 2008 -2011 ($MM)<br />Breakdown by User Type / Customer <br />
    9. 9. Energy Efficiency at New York Power Authority<br />NYPA provides project financing through a revolving credit program funded by issuing commercial paper<br />To date, NYPA’s has financed over $1.4 billion, recovered over $1.0 billion, with no repayment defaults in the program<br />Customer repayment is typically within 10 years. Customers have the option to repay in full at any time with no prepayment penalty<br />Completed Project. <br />NYPA assists with <br />systems commissioning and <br />evaluating expected savings <br />Initial Engineering Audit & <br />Scope of Work<br />Construction. NYPA serves as construction manager<br />Implementation<br />Project Origination<br />Financing<br />Commercial Paper issued to finance project beginning with audit<br />Annual Interest based on cost of commercial paper outstanding in previous calendar year<br />Monthly Interest during construction based on cost of monthly Commercial Paper issued<br />
    10. 10. Energy Efficiency Initiatives in New York<br />New York Energy Efficiency Portfolio Standard goal set in 2008 to reduce overall<br />electricity usage by 15% by 2015<br />Green Jobs / Green NY (2009). Combination of grants and loans available for qualifying residential, small business, and non-profit facilities. Financing through New York State Energy & Research Development Authority (NYSERDA), which uses program funds to leverage commercial lending<br />Municipal Sustainable Energy Loan Program (2009) allows municipalities to use Federal funding to create PACE-based revolving loan program. Several NY cities and towns developed programs but held up after FHFA comments in 2010<br />Power NY legislation (2011) requires utilities to offer on-bill financing for NYSERDA loan repayments to utility bills. Program in planning stage, targeted to begin in 2012 <br />Recharge New York (2011) provides low-cost NYPA power as incentive for economic development incentives. Applicants will have energy efficiency requirements and those with energy efficiency history will be evaluated favorably<br />
    11. 11. Energy Efficiency in New York<br />In 2007, New York City issues PlaNYC, its comprehensive sustainability plan <br />including 127 initiatives to meet clean development goals. <br />Energy efficiency goals in PlaNYC include improving efficiency in buildings, expanding knowledge and energy efficiency workforce, and developing energy efficiency financing and information<br />In October 2010, the City launched the New York City Energy Efficiency Corporation<br />Public-private partnership funded with $37.5 million in Federal Energy Efficiency & Conservation Block Grants <br />Offering financial products and credit enhancements to under-utilized energy efficiency markets including commercial, institutional, multi-family housing, and non-profits<br />Model in development would aggregate small transactions, provide public incentives, and attract commercial lender for project financing<br />
    12. 12. Questions to Consider<br />Where is the potential “low-hanging fruit” in energy efficiency?<br />What are the best practice mechanisms for using public funding to leverage commercial lending for energy efficiency?<br />How can policymakers expand energy efficiency programs to customers with higher risk of default while still maintaining excellent credit?<br />