Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Renewable Energy World Europe 2012
Renewable Track
Session 3: Renewable Energy Policy & Finance
Leslie Martel Baer, MS, MA...
Acknowledgements
 University of Colorado Business School
Global Energy Management Program
 Herb Rubenstein, Lecturer
 J...
Agenda
 Renewable energy policies
 Why RE policies?
 How do different policies compare?
 The Renewable Energy Foundati...
Renewables Policies
13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 4
Example:
UK Renewables Obligation (RO)
 Establishes a standard
for electricity suppliers
 Suppliers meet
standard throug...
Example:
US’s Production Tax Credit
 Credit to developers
 Requires either
 Raising of taxes
 Cutting of programs
 Ca...
Total Installed Wind Generation
Capacity, 1992–2010
Stability Matters: U.S. driven by
temporary stability, multiple
incent...
Wind Generation Capacity as a
Percentage of Total Capacity
1992–2010
Colorado’s RES Similar to UK’s RO:
Paid for by rate p...
What is the
Renewable Energy Foundation?
 Non-profit
 Think tank
 “sustainable
development for the
benefit of the publi...
REF’s Evolving Stance
2006: 25 GW wind may be too
much
 Distributed wind helps smooth
variability; resource remains
volat...
REF’s Evolving Stance
2006: 25 GW wind may be too
much
2011: Address indirect & direct
costs, macroeconomics
 Distributed...
Where Do REF’s
Recommendations Apply?
 Policy-making bodies: dig deep into the
technical and economic implications
 Ques...
Other Models
13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 13
Colorado GEO:
Wind as a Least Cost Resource
 Utility-scale RE
13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K...
Colorado GEO:
Wind as a Least Cost Resource
 Utility-scale RE
 Water issues
13 June 2012 REW Europe 2012 | L. M. Baer | ...
Colorado GEO:
Wind as a Least Cost Resource
 Utility-scale RE
 Water issues
 Large geographic
region; weather
systems f...
NREL: Making Room for Coal
 The “right” carbon
cap and RPS
 Reduce emissions w/
more coal in portfolio
(not CCS)
 Cheap...
Reinventing Fire:
An Optimal Energy
Scenario to 2050
One of Rocky Mountain Institute’s scenarios
shows the “best case” dov...
Is REF Right?
 Yes…
 We need people asking these questions
 The UK focus is not in the best place
 Other think tanks s...
Renewable Energy World Europe 2012
Renewable Track
Session 3: Renewable Energy Policy & Finance
Leslie Martel Baer, MS, MA...
Upcoming SlideShare
Loading in …5
×

Is the Renewable Energy Foundation Right About UK Wind Subsidies?

194 views

Published on

Energy scenario plans from leading entitings such as Shell, IHS, and Rocky Mountain Institute are converging--with clearly preferable scenarios and undesirable ones. At the same time, policy think tanks and government agencies are starting to formulate and enact energy policy that actual tracks to those more desirable global energy scenarios.

Delivered to Renewable Energy World Europe 2012, Cologne, Germany

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

Is the Renewable Energy Foundation Right About UK Wind Subsidies?

  1. 1. Renewable Energy World Europe 2012 Renewable Track Session 3: Renewable Energy Policy & Finance Leslie Martel Baer, MS, MA, Strategist 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 1
  2. 2. Acknowledgements  University of Colorado Business School Global Energy Management Program  Herb Rubenstein, Lecturer  John Constable, Head of Policy & Research, Renewable Energy Foundation 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 2
  3. 3. Agenda  Renewable energy policies  Why RE policies?  How do different policies compare?  The Renewable Energy Foundation and wind  Other models  Colorado: Wind as a least cost source  NREL: Room for coal  RMI: Down to 26% Fossils by 2050  Wrap up, Q&A 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 3
  4. 4. Renewables Policies 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 4
  5. 5. Example: UK Renewables Obligation (RO)  Establishes a standard for electricity suppliers  Suppliers meet standard through ROCs  Suppliers pass cost to consumers  Regressive mechanism  Efficient market (?) 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 5
  6. 6. Example: US’s Production Tax Credit  Credit to developers  Requires either  Raising of taxes  Cutting of programs  Can be regressive  Attractive only to developers with a tax bill to offset 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 6
  7. 7. Total Installed Wind Generation Capacity, 1992–2010 Stability Matters: U.S. driven by temporary stability, multiple incentives, urgency 0 10000 20000 30000 40000 1992 1997 2002 2007 UK U.S. Colorado 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 7
  8. 8. Wind Generation Capacity as a Percentage of Total Capacity 1992–2010 Colorado’s RES Similar to UK’s RO: Paid for by rate payers U.S. states are driving RE action 0% 2% 4% 6% 8% 10% 1992 1997 2002 2007 UK U.S. Colorado 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 8
  9. 9. What is the Renewable Energy Foundation?  Non-profit  Think tank  “sustainable development for the benefit of the public by means of energy conservation and the use of renewable energy”  Award winning  Other Agenda?  REF’s Approach  Analyze the data  Empirical research  REF’s Conclusion  The RO is regressive  Hurts consumers  Emphasize ○ Efficiency ○ Baseload renewables 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 9
  10. 10. REF’s Evolving Stance 2006: 25 GW wind may be too much  Distributed wind helps smooth variability; resource remains volatile  Weather systems are bigger than countries, making smoothing difficult  Wind requires firm generators to cycle more than without wind  Wind reduces investment in more firm renewables  Dramatic increases of wind could cause struggles with system balancing 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 10
  11. 11. REF’s Evolving Stance 2006: 25 GW wind may be too much 2011: Address indirect & direct costs, macroeconomics  Distributed wind helps smooth variability; resource remains volatile  Weather systems are bigger than countries, making smoothing difficult  Wind requires firm generators to cycle more than without wind  Wind reduces investment in more firm renewables  Dramatic increases of wind could cause struggles with system balancing  Avoid regressive RE levies  Non-profits: implement climate, efficiency agenda  Efficiency to cushion lower income consumers from prices  Focus: firm generation (biomass), district heating (waste)  Policies, costs, savings on bills  Make data accessible and more transparent to consumers 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 11
  12. 12. Where Do REF’s Recommendations Apply?  Policy-making bodies: dig deep into the technical and economic implications  Question “prevailing wisdom”  Regionalism is crucial for analysis (REF’s analyses do not apply globally)  A “price” on carbon emissions may ultimately be the best mechanism for market efficiencies 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 12
  13. 13. Other Models 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 13
  14. 14. Colorado GEO: Wind as a Least Cost Resource  Utility-scale RE 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 14
  15. 15. Colorado GEO: Wind as a Least Cost Resource  Utility-scale RE  Water issues 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 15
  16. 16. Colorado GEO: Wind as a Least Cost Resource  Utility-scale RE  Water issues  Large geographic region; weather systems factor differently  Large grid; balancing factors differently  Mid-continent NG (?) 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 16
  17. 17. NREL: Making Room for Coal  The “right” carbon cap and RPS  Reduce emissions w/ more coal in portfolio (not CCS)  Cheap domestic fuel  Modest impact to prices  Unlikely, but feasible   Technical Report  NREL/TP­6A2­48258  May 2010    Evaluating Renewable  Portfolio Standards and  Carbon Cap Scenarios in   the U.S. Electric Sector    Lori Bird, Caroline Chapman, Jeff Logan,  Jenny Sumner, and Walter Short    13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 17
  18. 18. Reinventing Fire: An Optimal Energy Scenario to 2050 One of Rocky Mountain Institute’s scenarios shows the “best case” dovetails with REF’s recommendations: • Incentivize efficiency and DSM first, fairly • Renewables make it to parity • Transparency for and by producers, suppliers, consumers is essential • Players operate under values, goals that fit their functions (e.g., suppliers supply) 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 18
  19. 19. Is REF Right?  Yes…  We need people asking these questions  The UK focus is not in the best place  Other think tanks support REF’s analysis ○ Efficiency and DSM are the crucial first steps ○ RPSs and carbon caps will change the landscape  But…  Solutions are not global  Policies must consider the region 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 19
  20. 20. Renewable Energy World Europe 2012 Renewable Track Session 3: Renewable Energy Policy & Finance Leslie Martel Baer, MS, MA, Strategist leslie.baer@energyintersections.com 13 June 2012 REW Europe 2012 | L. M. Baer | REF and the U.K.'s Wind Subsidies 20

×