Solving the Local Clean Energy Puzzle

The Clean Local Power PuzzleJohn Farrell, DirectorEnergy Self-Reliant States and Communities programjfarrell@ilsr.orgApril 2, 2012 presentation to the Pedernales Electric Coop

Energy Transformation Yesterday TomorrowCentralized 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

Good Sun Solar Insolation (kWh/m2/day) 4.5 - 5.0 5.0 - 5.5 5.5 - 6.0

Good Wind

Renewable Energy Cost Cost per kWh over project lifetime15¢ 15¢12¢9¢ Avoided Cost Wind Power Solar Power6¢ 6.4¢3¢ 4.5¢0¢ Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/day Wind project installed at $2,000/kW; solar at $5,000/kW Calculations include federal tax credits and depreciation

Renewable Energy Cost Cost per kWh over project lifetime15¢ 15¢ Cost12¢9¢ Avoided Cost Wind Power Solar Power6¢ 6.4¢ “The Cooperative will pay a price for distributed 4.5¢3¢ renewable generation that reﬂects its value”0¢ Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/day Wind project installed at $2,000/kW; solar at $5,000/kW Calculations include federal tax credits and depreciation

The Clean Energy Puzzle Cost Value Scale Ownership

The Issue of Scale Scale

Distributed Solar Cost per kWh After Tax Incentives$0.15$0.12$0.09$0.06$0.03 $0 100 kW 500 kW 1 MW 1 MW 5 MW 50 MW Rooftop Ground Electricity generation Transmission cost Calculations by the CLEAN Coalition

Distributed Wind Installed Cost per kW$3,000$2,400$1,800$1,200 $600 $0 < 5 MW 5-20 MW 20-50 MW 50-100 MW 100-200 MW > 200 MW 2009 Wind Technologies Market Report (LBNL)

The Issue of Value Value

Renewable Energy Value Cost per kWh over project lifetime15¢ 15¢12¢9¢ Avoided Cost Wind Power Solar Power6¢ 6.4¢3¢ 4.5¢0¢ Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/day Wind project installed at $2,000/kW; solar at $5,000/kW Calculations include federal tax credits and depreciation

Renewable Energy Value Value of Distributed Solar$0.15 6 cents per kWh in$0.12 addition to electricity$0.09$0.06 Local capacity value Avoided transmission access$0.03 Environmental Avoided transmission losses Brown energy replacement $0 Palo Alto, CA, municipal utility Feed-In Tariff for PV in Palo Alto, Calif. Imminent: http://tinyurl.com/72sxgsb

The Issue of Ownership Ownership

PEC Wind Power

Local Ownership Absentee Community 1.1x (low) Community 2.8x (high) Total Jobs Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

Local Ownership Absentee Community 1.5x (low) Community 3.4x (high) Total Economic Impact Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

The Whole Puzzle Cost Value Scale Ownership

Cost ValuePublic Support Scale OwnershipNo local ownership 60% negative Local ownership 45% positive 0% 25% 50% 75% 100% very negative negative neutral positive very positive

Your Own Pigs Don’t Stink

Sol Partners Community Solar 10 kW solar array Financed by utility Members buy panel shares ($5/Watt)

SunSmart Community Solar100 kW solar arrayFinanced by utilitiesMembers buy panel shares($6/Watt)

S.D. Wind Partners12 MW wind project7 turbines600 owner-ﬁnanciers

Questions?

Solving the Clean Energy PuzzleJohn Farrell Cost Value energyselfreliantstates.org jfarrell@ilsr.org johnffarrell Scale Ownership

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Solving the Local Clean Energy Puzzle

by John Farrell

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