Arizona and Solar Power:      The Time is         NOW!      Arizona Corporation   Commissioner Paul Newman         Septemb...
What Is AZ’s Electricity Mix?• Total in-state generation: 27,000 MW• Total in-state consumption: 16,000 MW  – 40-50% coal ...
AZ Imports 90% of Fossil Fuels• AZ imports all Nat Gas and 2/3 of coal• AZ spent a total of $2.5-3 BILLION on  coal, natur...
AZ: Only 1-2% of Non-hydro   Generation is Renewable in 2011                          Only 4 states  17 states were       ...
Renewable Portfolio Standards                                                                  RPS Policies               ...
AZ Renewable Energy Standard       (RES) is 15% by 2025AZ’s RES means that 15%of the kilowatt-hours                       ...
24 States Generate More Clean         Electricity Than AZ!A list of the states/jurisdictions with more clean energy than  ...
24 States Generate More Clean        Electricity Than AZ! Why do each of these states generate MORE  clean energy than Ar...
24 States Generate More Clean      Electricity Than AZ at 3.5%! Oregon 5.0%        Wisconsin        5.6% Michigan 5.6%  ...
AZ REST is 15% by 2025 –                     low!                  2009 MWh                                 2009 (%       ...
Arizona v. New Jersey:            Solar InvestmentArizona• 448 MW total installed solar• $637 million was spent on solar p...
Solar Module Costs: From $7/watt      Down to ~$1.25/watt
Installed System Price per Watt,                                                             3Q10 Breakout           2008-...
APS’ RW Beck Study on the Value          Of Distributed Energy        Operating Impacts and Valuation study               ...
Worldwide PV Shipments   PV has historically been a marginal power source, but incentives drove steep growth in demand fro...
Total Installed Solar Power Per MillionPeople Very Low In the U.S. Relative to  Germany, Spain, Czech Republic        (wha...
Germany Has Nearly Half of the  World’s Installed Solar PV
Germany has installed 15 times more  solar per person than the U.S.!
AZ Wins in Clean Energy Future• AZ: not living up to clean energy potential• AZ exports about 30% of our electricity: why ...
Solar Has  CreatedJobs Almost 10xFaster Than the  National  Average
Sadly, not many of these projects are    in AZ! See this map from SEIA:http://www.seia.org/research-resources/solar-me
Global Renewable Energy 2011: $257 billion invested ($147B Solar)http://newenergynews.blogspot.com/2012/06/solar-leads-wor...
Federal Policies         That Help Clean Energy• Level the playing field for subsidies• Reduce/end subsidies for fossil fu...
Section 1603: $409 Million Worth of   Projects in Arizona To Date• Section 1603 is a cash grant in lieu of taking a 30%  s...
Wind PTC (Production Tax Credit) In Danger; U.S. Wind Market Could Fall 80%U.S. wind market could  fall by 80% without  PT...
$72.5 billionfor FossilFuels                $12.2                billion for                Wind and                Solar
Cumulative Historical Federal Subsidies     Heavily Favor Oil and Gas              Cumulative Historical Federal Subsidies...
Key Finding - Average Annual Subsidies to Each Energy Sector Over             Their Lifetime                              ...
Coal, Electric Utilities Spend         Heavily on Lobbyinghttp://www.motherjones.com/environment/2012/04/beyond-coal-plant...
Health Effects from Burning Fossil       Fuels are Enormous
Az's solar future   sept 2012 - includes state and federal issues--11-18-12
Az's solar future   sept 2012 - includes state and federal issues--11-18-12
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Az's solar future sept 2012 - includes state and federal issues--11-18-12

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Where does AZ's electricity come from; state and federal solar issues, Section 1603 funds etc.

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Az's solar future sept 2012 - includes state and federal issues--11-18-12

  1. 1. Arizona and Solar Power: The Time is NOW! Arizona Corporation Commissioner Paul Newman September 2012
  2. 2. What Is AZ’s Electricity Mix?• Total in-state generation: 27,000 MW• Total in-state consumption: 16,000 MW – 40-50% coal – ~30% natural gas – ~22% nuclear – ~4% hydro –Less than 2% solar…?! • Total in-state solar: ~450 MW as of 06/12
  3. 3. AZ Imports 90% of Fossil Fuels• AZ imports all Nat Gas and 2/3 of coal• AZ spent a total of $2.5-3 BILLION on coal, natural gas and uranium in 2010. – AZ spent $1.5 billion importing Natural Gas (NG) for electricity – $800 million spent on NG for heating – AZ spent $500 million in 2007 importing coal, and $280 million on coal from in-state
  4. 4. AZ: Only 1-2% of Non-hydro Generation is Renewable in 2011 Only 4 states 17 states were less than 1%less than 1% RE in RE in 2011,2001, including AZ including AZ!
  5. 5. Renewable Portfolio Standards RPS Policies www.dsireusa.org / February 2012 VT: (1) RE meets any increase ME: 30% x 2000 WA: 15% x 2020* New RE: 10% x 2017 MN: 25% x 2025 in retail sales x 2012; MT: 15% x 2015 (Xcel: 30% x 2020) (2) 20% RE & CHP x 2017 NH: 23.8% x 2025OR : 25% x 2025 (large utiliti es )* ND: 10% x 2015 MI: 10% & 1,100 MW MA: 22.1% x 2020 x 2015* New RE : 15% x 2020 5% - 10% x 2025 (smaller utilities) (+1% annually thereafter) SD: 10% x 2015 WI : Varies by utility; NY: 29% x 2015 RI: 16% x 2020 NV : 25% x 2025* CO: 30% by 2020 CT: 27% x 2020 IA: 105 2015 statewide (IOUs) ~10% x OH : 25% x 2025 † 10% by 2020 (co-ops & large munis)* MW PA: ~ 18% x 2021 † IL: 25% x 2025 WV: 25% x 2025*† NJ: 20.38% RE x 2021 IN: 15% x 2025†CA: 33% x 2020 UT: 20% by 2025* KS: 20% x 2020 VA: 15% x 2025* + 5,316 GWh solar x 2026 M O: 15% x 2021 MD: 20% x 2022 AZ: 15% x 2025 OK: 15% x 2015 NC : 12.5% x 2021 (IOUs) DE: 25% x 2026* 10% x 2018 (co-ops & munis) NM: 20% x 2020 (IOUs) DC 10% x 2020 (co-ops) DC: 20% x 2020 TX: 5,880 MW x PR: 20% x 2035 2015 HI: 40% x 2030 29 states ++ 29 states Renewable portfolio standard Minimum solar or customer-sited requirement DC and PR DC and PR have an RPS * Renewable portfolio goal Extra credit for solar or customer-sited renewables have an RPS (8 states have goals) (8 states have goals) Solar water heating eligible † Includes non-renewable alternative resources
  6. 6. AZ Renewable Energy Standard (RES) is 15% by 2025AZ’s RES means that 15%of the kilowatt-hours Year Requirementgenerated by regulatedutilities come from ‘clean 2008 1.75 %energy’: solar, wind, 2011 3.00 %biomass, solar hot water, 2014 4.50 %concentrating solar etc.by 2025… 2017 7.00 %AZ’s RES is far lower than 2020 10.00 %Colorado (30% by 2020), 2024 14.00 %California (33% by 2020), After 2024 15.00 %Nevada (25% by 2025)New Mexico (20% by 2020)
  7. 7. 24 States Generate More Clean Electricity Than AZ!A list of the states/jurisdictions with more clean energy than AZ: Oregon, Wisconsin, Michigan, Rhode Island, Illinois, Washington D.C., Delaware, Maryland, Hawaii, Kansas, New Mexico, Pennsylvania, New Hampshire, Massachusetts, Nevada, Connecticut, California, Maine, Iowa, Colorado, Minnesota, Texas, North Carolina, New York and New Jersey. Each of these states generates MORE clean energy than Arizona! See the next slide for details, from www.dsireusa.org/library by Justin Barnes, 3/6/12, RPS Update at Renewable Energy Markets Ass’n webinar
  8. 8. 24 States Generate More Clean Electricity Than AZ! Why do each of these states generate MORE clean energy than Arizona? Because the U.S. has nearly 10 times more wind than solar – 50 GW (50,000 MW) of wind v. 5.7 GW (5,700 MW of solar PV and CSP or Concentrating Solar Power). In most other states, solar is far more expensive than in AZ because they don’t generate as much electricity per installed watt of solar.
  9. 9. 24 States Generate More Clean Electricity Than AZ at 3.5%! Oregon 5.0% Wisconsin 5.6% Michigan 5.6% Rhode Island 6.5% Illinois 7.0% Washington D.C. 7.5% Delaware 8.0% Maryland 9.0% Hawaii, Kansas, New Mexico, Pennsylvania and New Hampshire and New Jersey 10% Massachusetts, Nevada, Connecticut, Colorado 14-16% California, Iowa, Minnesota 18-20%
  10. 10. AZ REST is 15% by 2025 – low! 2009 MWh 2009 (% 2012 % State Obligation 2010 MWh Obligation Comp) 2010 (% Comp) Obligation 2013 % Obligation AZ 824,430 1,015,858 90% 93% 3.50% 4.00% CA 29,537,501 34,116,201 89% 86% 20.00% 20.00% CO 1,646,899 1,520,066 100% 99% 15.00% (IOUs) 15.00% (IOUs) CT no data no data no data no data 16.00% 17.00% DC 591,576 699,887 100% 100% 7.50% 9.00% DE 291,451 410,618 100% 99% 8.50% 10.00% HI 0 957,857 n/a 100% 10.00% 10.00% IA 295,800 295,800 100% 100% 105 MW 105 MW IL 2,283,383 2,747,874 100% 100% 7.00% 8.00% KS 0 0 n/a n/a 10.00% 10.00% MA 3,096,274 5,468,563 82% 74% 14.10% 15.10% MD 2,770,353 3,539,778 100% 100% 9.00% 10.70% ME 3,514,043 3,832,365 100% 100% 35.00% 36.00% MI 0 0 n/a n/a 5.60% 6.80% MN 3,860,255 7,093,647 100% 100% 18% (Xcel); 12% 18% (Xcel); 12% MO 0 0 n/a n/a 2.00% 2.00% MT 346,261 692,167 100% 98% 1.00% 1.00% NC 0 24,867 n/a 100% 3.00% (IOUs) 3.00% (IOUs) NH 608,000 830,347 93% 90% 10.65% 11.70% NJ 5,733,633 6,841,213 99% 100% 9.64% (non-solar) 10.48% (non-solar) NM 852,285 858,705 100% 100% 10.00% 10.00% NV 3,551,815 3,493,644 100% 100% 15.00% 18.00% NY 4,868,849 3,061,948 61% 96% 4.54% (new) 5.60% (new) OH 333,809 602,196 100% 100% 1.50% 2.00% OR 0 0 n/a n/a 5.00% 5.00% PA 829,374 no data 100% no data 10.22% 10.72% RI 316,424 no data 100% no data 6.50% 7.50% TX 6,799,347 9,053,544 100% 100% 3,384 MW 3,384 MW WA 0 0 n/a n/a 3.00% 3.00% WI 2,501,915 3,850,101 100% 100% 5.55% 5.55%Sources: MWh and compliance % data from Lawrence Berkeley National Lab; 2012 and 2013 compliance obligations from DSIRE.
  11. 11. Arizona v. New Jersey: Solar InvestmentArizona• 448 MW total installed solar• $637 million was spent on solar photovoltaic installations in Arizona in 2011- nearly twice as much as was spent in 2010.New Jersey• 775 MW total installed solar; 2nd in U.S.• In 2011, $1.2 billion was invested in New Jersey to install solar for homes. http://www.seia.org/policy/state-solar-policy
  12. 12. Solar Module Costs: From $7/watt Down to ~$1.25/watt
  13. 13. Installed System Price per Watt, 3Q10 Breakout 2008-2011 $5.92 $3.72 $3.17 $2.83Source: Deutsche Bank, January 2011; Systems are global (i.e., blended across geographies) 14
  14. 14. APS’ RW Beck Study on the Value Of Distributed Energy Operating Impacts and Valuation study RW Beck study says the value of distributed solar is 7.9 to 14.11 cents/kWh in avoided costs for fuel, trans- mission, line losses, etc.5
  15. 15. Worldwide PV Shipments PV has historically been a marginal power source, but incentives drove steep growth in demand from ’01-’05 Foreign incentives and R&D programs have driven worldwide competition past U.S. producers U.S. supplied over 30% ofworldwide PVuntil 1998; now only 5-7%
  16. 16. Total Installed Solar Power Per MillionPeople Very Low In the U.S. Relative to Germany, Spain, Czech Republic (what?!) – even Canada!
  17. 17. Germany Has Nearly Half of the World’s Installed Solar PV
  18. 18. Germany has installed 15 times more solar per person than the U.S.!
  19. 19. AZ Wins in Clean Energy Future• AZ: not living up to clean energy potential• AZ exports about 30% of our electricity: why not export clean electrons?• AZ’s Renewable Energy Standard and Tariff (REST) is far behind CA, CO, NM and NV.• Financing mechanisms currently available for fossil fuels must be extended to clean energy; also developing policies that recognize the true benefits of solar/clean electricity.• Good financing structures are key!
  20. 20. Solar Has CreatedJobs Almost 10xFaster Than the National Average
  21. 21. Sadly, not many of these projects are in AZ! See this map from SEIA:http://www.seia.org/research-resources/solar-me
  22. 22. Global Renewable Energy 2011: $257 billion invested ($147B Solar)http://newenergynews.blogspot.com/2012/06/solar-leads-world-new-energy-investment.html
  23. 23. Federal Policies That Help Clean Energy• Level the playing field for subsidies• Reduce/end subsidies for fossil fuels• Extend the Production Tax Credit (wind) and the Investment Tax Credit (solar, expires 2016).• Allow the use of Master Limited Partnerships for clean energy – not just oil, gas and biofuels.• Extend Section 1603 cash in lieu of tax credit. Arizona has benefited enormously from Section 1603!• Allow PACE (Property Assessed Clean Energy) to be applied to residential as well as commercial solar – especially great for Arizona!
  24. 24. Section 1603: $409 Million Worth of Projects in Arizona To Date• Section 1603 is a cash grant in lieu of taking a 30% solar tax investment tax credit.• Section 1603 was extended for ONE year in 12/31/10, but has not been renewed since it expired on 12/31/11.• AZ has rec’d $409 million in Section 1603 projects, mostly solar. http://www.treasury.gov/initiatives/recovery/Pages/1603.aspx• The Solar ITC (Investment Tax Credit) expires in 2016 and should be extended.http://www.pv-magazine.com/news/details/beitrag/us-congress-pulls-the-plug-on-secti
  25. 25. Wind PTC (Production Tax Credit) In Danger; U.S. Wind Market Could Fall 80%U.S. wind market could fall by 80% without PTC extension.U.S. has enormous wind and solar potentialWind has suffered boom and bust cycles; why are we doing this?!Solar means good jobs!
  26. 26. $72.5 billionfor FossilFuels $12.2 billion for Wind and Solar
  27. 27. Cumulative Historical Federal Subsidies Heavily Favor Oil and Gas Cumulative Historical Federal Subsidies 2010$, billions $5.93 1994-2009 $32.34 1980-2009 O&G $185.38 1947-1999 Nuclear Biofuels Renewables $446.96 1918-200929
  28. 28. Key Finding - Average Annual Subsidies to Each Energy Sector Over Their Lifetime Historical Average of Annual Energy Subsidies: A Century of Federal Support 6 5 4 2010$, 3 billions $4.86 2 $3.50 1 $1.08 $0.37 0 O&G, 1918-2009 Nuclear, 1947-1999 Biofuels, 1980-2009 Renewables, 1994-200930
  29. 29. Coal, Electric Utilities Spend Heavily on Lobbyinghttp://www.motherjones.com/environment/2012/04/beyond-coal-plant-activism?page=
  30. 30. Health Effects from Burning Fossil Fuels are Enormous

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