Development of a Thermal EnergyStandard for Colorado       Richard P. Mignogna, Ph.D., P.E.Renewable & Alternative Energy ...
Renewable Energy Standards & Public Policy GoalsWhat do you hope to achieve? Energy security Conservation of scarce reso...
How Will You Do This?                    Legislature                       Voter Referendum                       Executiv...
...or perhaps,R. Mignogna, 2012
Understand Stakeholder GroupsBalance competing interests  Utilities       Will they lose revenue?  Renewable energy dev...
Thermal Energy Standard AdministrationWho will oversee the program and ensure compliance?      Utility      PUC      St...
Financial Incentives for Solar Water Heating                                                                              ...
Principles for Incentivizing Distributed GenerationHB07-1228, PUC Docket 07M-230E (page 1 of 2) 1. Programs should be foun...
Principles for Incentivizing Distributed GenerationHB07-1228, PUC Docket 07M-230E (page 2 of 2) 5. The policy goals for pr...
Creating a Thermal Energy StandardApproaches to incentivizing thermal energy Add thermal technologies to list of eligible...
Can DSM/EE Support a Thermal Energy Standard?  HB07-1037 (§40-3.2-101 C.R.S. et. seq.)      Directs Colorado’s investor-...
Can DSM/EE Support a Thermal Energy Standard?  There are six regulated gas utilities in Colorado      Atmos Energy      ...
Can DSM/EE Support a Thermal Energy Standard?  GSHP to serve heating load:                                   Decrease    ...
Creating a Thermal Energy StandardApproaches to incentivizing thermal energy Add thermal technologies to list of eligible...
Opportunities for Third-Party Providers  Principal barrier is high first cost  Learn from experience with another techno...
Promoting and Deploying GSHP  Rebates (utility)      Buy down first cost  Loop tariff programs (utility)  Loop lease p...
Geothermal Heat Suppliers Act§40-40-101 et. seq., C.R.S.    (page 1 of 3) Defines Geothermal Heat Supplier as any person ...
Geothermal Heat Suppliers Act§40-40-101 et. seq., C.R.S.       (page 2 of 3) The Act lists several requirements that must...
Geothermal Heat Suppliers Act§40-40-101 et. seq., C.R.S.            (page 3 of 3) First application for registration at P...
Moving Forward on a Thermal Energy StandardNext Steps  Thermal standard working group as per SB12-180 &   SR12-003.      ...
306 Berthoud Way                       Golden, Colorado 80401 USA                            Thank you                    ...
Upcoming SlideShare
Loading in …5
×

Thermal energy standard for colorado, mignogna, 28 jun2012

376 views

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
376
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Thermal energy standard for colorado, mignogna, 28 jun2012

  1. 1. Development of a Thermal EnergyStandard for Colorado Richard P. Mignogna, Ph.D., P.E.Renewable & Alternative Energy Management, LLC Golden, Colorado 80401 USA Tel: +1.303.875.0857 Rich.Mignogna@gmail.com 28 June 2012 Colorado Geothermal Working Group Denver, Colorado USA
  2. 2. Renewable Energy Standards & Public Policy GoalsWhat do you hope to achieve? Energy security Conservation of scarce resources Fuel Water Reduce environmental impacts Economic development Technological advancement Cost reduction Promote specific resources & technologies (e.g. GSHP, biomass, etc.) R. Mignogna, 2012
  3. 3. How Will You Do This? Legislature Voter Referendum Executive Order Utility CommissionR. Mignogna, 2012
  4. 4. ...or perhaps,R. Mignogna, 2012
  5. 5. Understand Stakeholder GroupsBalance competing interests  Utilities Will they lose revenue?  Renewable energy developers  Environmental groups  Ratepayers/taxpayers  Recipients of incentive programs  Funding sourceR. Mignogna, 2012
  6. 6. Thermal Energy Standard AdministrationWho will oversee the program and ensure compliance?  Utility  PUC  State energy office  Third party administrator  Recharge Colorado?R. Mignogna, 2012
  7. 7. Financial Incentives for Solar Water Heating NH U www.dsireusa.org / May 2012 U $ VT $ MA $ D U $$ D U U U RI $ U $ $U U CT $ U $ U $ NJ $ U U $ U U DC MD $ U $ U U $ D$ U Puerto Rico D U U U.S. Virgin Islands $ U U 40 states + DC, PR & USVIDirect Cash Incentive offer financial D Tax Deduction U Utility Direct Cash Incentive(s) incentives forTax Credit $ Sales Tax Incentive $ Local option to provide sales tax incentive solar waterDirect Cash Incentive Property Tax Incentive Local option to provide property tax heatingand Tax Credit incentive
  8. 8. Principles for Incentivizing Distributed GenerationHB07-1228, PUC Docket 07M-230E (page 1 of 2) 1. Programs should be founded on measurable and transparent goals. Evaluation, measurement, and verification are critical to providing accountability to ratepayers and policy makers. 2. Responsibility for compliance should be borne equally by all consumers and companies. 3. There should be congruence between the population that pays for incentive programs and the population that benefits from them. 4. In order for renewable credits to be applicable to the Renewable Energy Standard, a distributed generation technology should displace electric energy from the grid. R. Mignogna, 2012
  9. 9. Principles for Incentivizing Distributed GenerationHB07-1228, PUC Docket 07M-230E (page 2 of 2) 5. The policy goals for promoting renewable energy should address societys need for clean energy considering environmental consequences, energy security, efficient use of scarce resources, and economic development at lowest cost. Incentives should be aligned accordingly. 6. Good public policy should focus on societal needs, not on specific technologies or the associated proprietary interests. 7. The policy should consider a broad range of possible incentives and funding sources, including tax credits and exemptions, rebates, cost sharing, grants, low interest loans, etc., in addition to ratepayer surcharges. 8. The goal of incentives should be to stimulate sufficient marketplace activity and induce cost reductions. The incentives should be designed to be eventually removed, not become permanent. R. Mignogna, 2012
  10. 10. Creating a Thermal Energy StandardApproaches to incentivizing thermal energy Add thermal technologies to list of eligible energy resources for compliance with the RES Incentives in utility DSM/EE programs Alternatively, state administered rebate program State tax credits based on installed cost of thermal Sales and/or property tax Refundable income tax credits Require that a portion of the thermal load of new construction be met with clean thermal energy technologies Rather than add to the RES, TES would be a companion focused on thermal energy R. Mignogna, 2012
  11. 11. Can DSM/EE Support a Thermal Energy Standard?  HB07-1037 (§40-3.2-101 C.R.S. et. seq.) Directs Colorado’s investor-owned electric and gas utilities to pursue energy efficiency (Demand Side Management) o §40-3.2-103 C.R.S. Gas DSM o §40-3.2-104 C.R.S. Electric DSM Utilities now file biennial DSM plans o PSCo combined DSM Plan for 2012-2013 (Docket 11A-631EG) o Black Hills DSM o Electric 2012-2015 (Docket 12A-100E) o Gas 2011 (Docket 10A-082G)  HB08-1107 similarly attempted to require DSM for coops & munis but failed in the legislature. R. Mignogna, 2012
  12. 12. Can DSM/EE Support a Thermal Energy Standard?  There are six regulated gas utilities in Colorado Atmos Energy Colorado Natural Gas Public Service Company of Colorado SourceGas Black Hills Energy Corp Eastern Colorado  There are two regulated electric utilities in Colorado Black Hills Colorado Electric Utility Public Service Company of Colorado (PSCo or Xcel)  None make any appreciable mention or use of GSHP (or any thermal energy technologies) in their DSM plans R. Mignogna, 2012
  13. 13. Can DSM/EE Support a Thermal Energy Standard?  GSHP to serve heating load: Decrease in gas Btu Increase in kWh None of the utility DSM plans submitted to the PUC integrate gas and electric usage for a total energy DSM R. Mignogna, 2012
  14. 14. Creating a Thermal Energy StandardApproaches to incentivizing thermal energy Add thermal technologies to list of eligible energy resources for compliance with the RES Incentives in utility DSM/EE programs Alternatively, state administered rebate program State tax credits based on installed cost of thermal Waive sales and/or property tax Refundable income tax credits Require that a portion of the thermal load of new construction be met with clean thermal energy technologies. Note: Tiered electric rates serve as disincentive for thermal technologies such as GSHP. To be fully effective, must waive tiered rates associated with operation of clean thermal energy equipment. R. Mignogna, 2012
  15. 15. Opportunities for Third-Party Providers  Principal barrier is high first cost  Learn from experience with another technology that has high first cost and long payback PV solar services model  Geothermal Heat Suppliers Act, 1984 (§40-40-101 et. seq., C.R.S.) Only exclusion for thermal technologies from certificated utility monopoly(1)  Third party would own and install system Sell metered thermal energy to customer (1) SB09-051 now allows PV (but not solar thermal) suppliers to sell electrical energy directly to end use customers R. Mignogna, 2012
  16. 16. Promoting and Deploying GSHP  Rebates (utility) Buy down first cost  Loop tariff programs (utility)  Loop lease programs (utility or third-party provider)  Low interest loan programs (state, utility, or third-party provider) Decrease monthly payment, improve cash flow  Target replacement of heating technologies where there is a clear benefit in cost and CO2 (electric, propane)  Direct sale of metered thermal energy (utility or third-party provider)  Colorado has already taken the first step in this direction – Geothermal Heat Suppliers Act, §40-40-101 et. seq., C.R.S. R. Mignogna, 2012
  17. 17. Geothermal Heat Suppliers Act§40-40-101 et. seq., C.R.S. (page 1 of 3) Defines Geothermal Heat Supplier as any person who supplies geothermally heated groundwater or other substances to the public or other customers for industrial process heat, commercial use, space heating, or other purposes. The term includes systems which enhance the thermal content of the substance supplied through the use of heat pumps, solar assistance, or other means. Exemptions for wholesale and publicly owned providers Requires the Commission to “establish a system of operating permits for geothermal heat suppliers. Before commencing construction of distribution facilities, a geothermal heat supplier must obtain an operating permit from the commission.” An operating permit “may not be denied because the area which the applicant proposes to serve is already being served by a gas or electric utility.”R. Mignogna, 2012
  18. 18. Geothermal Heat Suppliers Act§40-40-101 et. seq., C.R.S. (page 2 of 3) The Act lists several requirements that must be met by the operator to obtain an operating permit including that the operator enter into a contract with the customer specifying: The period of time service will be provided Rates or method for determining rates to be charged That the operator will submit to complaint procedures contained in 40-6-108, C.R.S. Before issuing an operating permit, the commission must find that: The applicant is fit, willing, and able to provide the proposed services; and The applicant has made an adequate showing that the geothermal heat supply and distribution system appears reasonably capable of delivering the proposed services.R. Mignogna, 2012
  19. 19. Geothermal Heat Suppliers Act§40-40-101 et. seq., C.R.S. (page 3 of 3) First application for registration at PUC under the Geothermal Heat Suppliers Act recently received at PUC: PanTerra Energy, PUC Docket 12A-478ST Application for registration only, not an operating permit Decision C12-0684 o Finding: “…PanTerra is found to be fit, willing, and able to provide geothermal heat supply services.” o Operating permit to require separate application o Registration expires in 5 years if no operating permit is obtained Implementation of a thermal energy standard could foster additional penetration via the GSHAR. Mignogna, 2012
  20. 20. Moving Forward on a Thermal Energy StandardNext Steps  Thermal standard working group as per SB12-180 & SR12-003. Focus on thermal energy separate from the RES Establish goals for a thermal energy program Define program characteristics Identify technologies for consideration o Define parameters for qualified thermal facility (commercial & residential) Identify thermal energy incentive programs nationally that may serve as models Align incentives with o Program goals o Available funding Policy recommendations R. Mignogna, 2012
  21. 21. 306 Berthoud Way Golden, Colorado 80401 USA Thank you Richard P. Mignogna, Ph.D., P.E. Tel: +1.303.875.0857 Email: rich.mignogna@gmail.com Blog: richmignogna.blogspot.comR. Mignogna, 2012

×