Local Energy Choice with Community Choice Aggregation

Clean, Local Energy with Community Choice Aggregation John Farrell, Director Energy Self-Reliant States and Communities program jfarrell@ilsr.org 612-808-0888 Presentation on Feb. 10, 2012

ILSR’s Unique Perspective Yesterday Tomorrow Centralized Power Clean, local power Solar PV power plant Storage Storage Transmission network Storage Storage House Local CHP plant Distribution network House with domestic CHP Wind powerFactory Commercial plant building

Centralized Power

CCAs Break Monopoly

CCAs Lower Rates NOPEC, OH - 4-6% REAP, RI - Fulton, IL - 20% $18m saved Oak Park, IL - 2¢/kWh over 10 yrs

CCAs Green Electricity MEA, CA NOPEC, OH - 50% moreup to 590% more Oak Park, IL - 400% more

Greater CCA Potential

shouldCCAs Localize Electricity ^Local Ownership Boosts Impact of Renewables Absentee Local 1.5x (low) Local 3.4x (high) Total Economic ImpactEconomic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

shouldCCAs Localize Electricity ^Local Ownership Boosts Jobs from Renewables Solar Wind Coal Natural Gas 0 2 4 6 8 10 Jobs per Megawatt Construction, manufacturing and installation Ongoing maintenance and fuelPutting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)

shouldCCAs Localize Electricity ^Local Ownership Boosts Jobs from Renewables Solar Wind Coal Natural Gas 0 2 4 6 8 10 12 14 Jobs per Megawatt Construction, manufacturing and installation Ongoing maintenance and fuel

should CCAs Localize Electricity ^ Local Ownership Boosts Support for RenewablesNo local ownership 60% negative Local ownership 45% positive 0 25 50 75 100 very negative negative neutral positive very positive Attitude towards increased use of local wind energy

shouldCCAs do Feed-in Tariffs ^• Long-term, standard contract• Fixed price• Grid connection*

shouldCCAs do Feed-in Tariffs ^ low risk = low cost REC MarketRisk Auction FIT Return

should CCAs do Feed-in Tariffs ^Avg. Cost of Solar (2011 3Q) U.S. $5.20/W Risk Germany $2.80/W Return

should CCAs Support DG ^ •avoided cost10 cents •on-site/near demand •lower transmission losses 5 cents •reduce dist. system stress 0 cents •hedge against fuel prices •prevent blackouts -5 cents •reduce pollution-10 cents $4/Watt •create jobs-15 cents How the utility values 4 cents-20 cents Cost of solar Energy value distributedSocial benefits Grid benefits generation

DG Grid Beneﬁts •avoided cost10 cents •on-site/near demand •lower transmission losses 5 cents •reduce dist. system stress 0 cents •hedge against fuel prices •prevent blackouts -5 cents •reduce pollution-10 cents $4/Watt •create jobs 8.5 cents But it’s-15 cents 4 cents worth more-20 cents Cost of solar Energy value Grid benefits Social benefits Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

DG Social Beneﬁts •avoided cost10 cents •on-site/near demand •lower transmission losses 5 cents •reduce dist. system stress 0 cents •hedge against fuel prices 12.5 cents •prevent blackouts -5 cents •reduce pollution-10 cents $4/Watt •create jobs-15 cents-20 cents Cost of solar Energy value Grid benefits Social benefits and more Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

How Munis Value DG$0.15 6 cents per kWh$0.12 in addition to electricity$0.09$0.06 Additional local value Avoided transmission access$0.03 Environmental Time-of-delivery Brown energy replacement $0 Palo Alto, CA, municipal utility

CCA Landscape Active CCAs No active CCAs

m o us orEn Clean Energy Potential 31 states could be electricity self-reliant 100% or more 75 to 100% 50 to 75% 25 to 50% 25% or less Energy Self-Reliant States, 2nd Edition | ILSR, 2010

State Renewable Policy 29 states have a clean energy mandate Renewable mandate (29) Renewable goal (8) No RPS policy (13)

State Electricity Markets Deregulated (13) Suspended (7) Regulated (30)

State Electricity Markets Deregulated + CCA Suspended + CCA Regulated (30)

CCA Opportunities “storm of interest”“going Boulder” burst of activity

Thank you! John Farrell energyselfreliantstates.org jfarrell@ilsr.org johnffarrell 612-808-0888

http://www.renewableenergyworld.com	301
http://grist.org	55
http://us-w1.rockmelt.com	1

Local Energy Choice with Community Choice Aggregation

by John Farrell on Jul 17, 2012

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Local Energy Choice with Community Choice Aggregation Presentation Transcript