Outline• Energy Plan and Report Evaluation – Local (GroWNC): County Plans, Comprehensive Economic Development Strategy (CEDS) – Regional: Western North Carolina (AdvantageWest, EvolveEnergy Partnership, MRC) – State• Current Energy Conditions/Trends• Issues• Opportunities• Goals
Energy Baseline• How and where is energy consumed in the GroWNC region produced (fuel type, location)?• How much energy is consumed by sector (residential, commercial, industrial, government, transportation)?• How much does energy cost the consumer?• What are the trends?
Energy Generation • Duke Energy and Progress Energy generate 96% of states electricity – Considerable amount sold to munis and EMCs via wholesale electricity markets • Western NC (MRC 27‐county region) in 2008: – 2,435 megawatts of electricity generation capacity (8.3% of state’s total) – 50% powered by coal, about 31% by hydroelectric, and 17.4% natural gasSources: 2011 North Carolina Clean Energy Data Book, NC Sustainable Energy Association, June 2011; Understanding the Impact of Electric GenerationChoices on North Carolina Residential Electricity Rates, NC Sustainable Energy Association, November 2011; Western North Carolina Vitality Index, 2012
Energy Consumption• NC has over 9.5 million residents• NC has no local deposits of coal, petroleum, or natural gas – vast majority of energy resources for the state must be importedSource: Western North Carolina Vitality Index, 2012
Energy Consumption in NCSources: North Carolina State Energy Report, March 2010; Western North Carolina Vitality Index, 2012
Energy Costs• Residential electric bill increases mainly attributable to cost recovery for new conventional power plants, air pollution control retrofits, and for increasingly expensive fuels 7% rate increase for Duke Energy approved by NC Utilities Commission in January 2012 (15% requested initially) Source: Understanding the Impact of Electric Generation Choices on North Carolina Residential Electricity Rates, NC Sustainable Energy Association, November 2011
Installed Green Power Systems Source: NC GreenPower, http://www.ncgreenpower.org, last updated March 9, 2012
Current Energy Trends• Clear shift in focus to clean and efficient energy and energy conservation nationally as well as locally• Number of firms in North Carolina’s clean energy sector by reported year entering the sector, 2011: Source: North Carolina Renewable Energy & Energy Efficiency Industries Census, NC Sustainable Energy Association, November 2011
Clean Energy Cluster & Growth • A cluster of renewable energy and energy efficiency‐focused businesses has formed in Henderson & Buncombe counties – 3rd largest in the state • Renewable energy industry employment is growingSource: 2011 North Carolina Clean Energy Data Book, NC Sustainable Energy Source: Western North Carolina Clean Energy Cluster Analysis,Association, June 2011 September 2011
Codes & Ordinance Review • Remove Barriers Geothermal Definitions Create Incentives Biomass • Building Lighting Hydro Other Wind Solar • Enact StandardsLocalityAsheville • Range of use Brevard classifications and Buncombe Co. definitions Haywood Co. HendersonvilleMadison Co. • = directMarshall • = indirectTransylvania Co. Waynesville
Plan Evaluation IssuesIssue RegionIncreasing energy prices (electricity, gasoline, natural gas) AllAir quality impacts due to conventional electricity production, GroWNC, transportation – effects on resident health, appeal to visitors Western NCEnergy security & reliability Western NC, – WNC fuel shortages following Hurricanes Katrina & Rita in 2005 State‐wide– NC imports all of its energy supply, except for a small amount of wood, hydro and solar energyNational recession affecting markets for clean energy sector GroWNC, products, most exported to other states or countries Western NCShortage of engineers, lack of opportunities to retain young Western NCprofessionalsEnergy baseline for GroWNC counties/municipalities?Local Codes/Ordinances?
Identified OpportunitiesOpportunity RegionCost avoidance/limiting costs by changing energy demand GroWNCAlternative/clean energy industry growth = jobs GroWNCLarge biomass resource, strong wind resources, solar and GroWNC, geothermal firm expansions, expansion of electricity production Western NCfrom landfill gasesResidential energy efficiency – 35% of homes in region built prior Western NCto 1970
Energy Workgroup IssuesIssuesAccess to Financing • Key obstacle to continued development of multiple clean energy sectors; interrelated to other key issues (finance stakeholders, data); educating finance professionalsDocumented Data on Energy Savings• Lack of data on documented energy savings; information gap with regard to direct financial savings from investments; communication is key to reaching wider audienceUncertain Regulatory Environment• Ensure local decision makers aware of relevant state & federal regulatory issues (market barriers); concerns regarding weakened state and federal support; opportunities to streamline public performance contracting should be identified and exploredLimited Resources and Capacity• Issue common to many smaller localities and organizations; need to clearly communicate local government’s need for policy & supporting resources & the benefits of investmentsAging (residential) Infrastructure • Older and low‐income residential structures present energy challenges, direct and immediate need for energy upfitsOthers?
Energy Workgroup OpportunitiesOpportunitiesCross‐sector collaborations & leading‐by example• Educational Institutions – Unique opportunity to implement projects and lead‐by‐ example; resources for partnerships • Local Government – Lead‐by‐example through demonstration projects, innovative deployments, and public‐private partnerships • Agriculture – Decline of farming presents opportunities (biomass, biofuels)• Finance – Continue to push financial sectorPublic outreach and awareness campaign • Outreach should start at educational level and emphasize local community; key to catalyzing regional shiftMore effectively addressing rural‐urban gap • Opportunity to more effective address rural‐urban gap• Recognizing differences and developing programs that leverage unique resources of bothOthers?
Plan Evaluation Goals & Objectives• Implement greater % of renewable energy sources (utility‐scale and distributed generation) to improve environmental performance and reduce dependence on outside sources of energy and fuels• Continue to attract clean energy sector businesses and retain existing jobs• Improve the energy efficiency of existing buildings (all sectors) and construct new buildings using sustainable design, e.g. LEED standards• Improve energy conservation and energy efficiency measures outreach to residents and businesses• Implement energy conservation plans and policies for local governments• Reduce vehicle miles traveled and promote alternative transportation fuels to improve environmental performance of energy use in the transportation sector and reduce costs• Double avg. fuel efficiency of the region’s transportation fleet by 2025 Adopt, modify, remove, add, set specific targets?
Wrap‐up/Next Steps• Nominate Steering Committee representative• Next Steps – Explanation of Reality Check #1 – Preview of WG‐2 meeting• Keypad polling to assess Energy Workgroup composition