Clean, Local Energy
The Value and Power of Distributed Renewable Energy in Kentucky




                             John Farrell, Director
             Energy Self-Reliant States and Communities program
                                jfarrell@ilsr.org
                              612.276.3456 x210
                       Presentation on Aug. 31, 2011
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
                                                                             power
Factory                   Commercial                                         plant
                           building
Why Clean, Local Energy?

        Enormous Potential




       31 states could be electricity self-reliant
Why Clean, Local Energy?

       Enormous Potential?



                           26%
Why Clean, Local Energy?

   KY Renewable Potential
                 CHP
             Hydro3%
               2%
            Wind
            2%
                 Rooftop Solar
                     19%




    Other
    74%
Why Clean, Local Energy?

   KY Renewable Potential
               CHP
           Hydro3%
             2%                  10% of right-of-way
          Wind
          2%                   on 23,000 miles of roads
               Rooftop Solar
                   19%

  Other
  51%

             Highway Solar
                 23%
Why Clean, Local Energy?

    KY Renewable Potential
                    CHP
                Hydro3%
                  2%
               Wind
               2%
                    Rooftop Solar
                        19%

Ground Solar
   51%

                  Highway Solar
                      23%
Value of Clean, Local Power

• Cost for power
• Value of energy
• Value of jobs and economic
  development
• Value of local ownership
Value of Clean, Local Power


                     Price per kWh
                              Includes federal incentives
                     CHP
                 Hydro

              Wind
                                          5 cents

                                          7 cents

                                          17 cents

         All Solar
Value of Clean, Local Power


                                              Energy




                                 $5 per Watt




           Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
Value of Clean, Local Power


                              Grid Benefits




           Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
Value of Clean, Local Power


                          Social Benefits




           Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
Value of Clean, Local Power


             Ex// Grid Benefits
                                     4 cents per kWh
                                      in addition to
                                        electricity




                  Palo Alto, CA, municipal utility
Value of Clean, Local Power


                                           Jobs




      Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)
Value of Clean, Local Power


                     Local Benefits
     Local Ownership Boosts Impact of Renewables
Value of Clean, Local Power


                        Public Support
                                                 No local ownership (–44)
    50%
                                                 Local ownership    (+33)
    40%                                     41
              36
    30%                                               33


                            24
    20%                                21


    10%                                          11                 12
                                 10
                                                              5
      0%            2                                                        3     2
            very negative   negative   neutral   positive   very positive   don’t know



 Attitude towards increased use of local wind energy
Addressing Barriers to Clean, Local Power



   • Backup / intermittency
   • Local grid capacity
   • Economies of scale
   • Policy
Barriers


                   Intermittency
 Geographic Dispersion Lowers Solar Backup Costs
                     $0.04
           $0.04


           $0.03

                                $ per kWh
           $0.02

                                    $0.01
           $0.01

                                                   $0.00
             $0
                   1 location     5 locations   25 locations
Barriers


           Intermittency
Barriers


                Distribution Grid
                         no bust
                    15%, or
           • Utilities in California (and elsewhere)
             generally agree that 15% distributed
             generation on a local distribution
             circuit is the threshold for any problems.


       Democratizing the Electricity System (ILSR, 2011)
Barriers


           Economies of Scale
           Smaller Wind Projects are Cheapest
Barriers


           Economies of Scale
                          Most solar
                      economies of scale
                        captured small
Barriers


                    Local Policy

                                           17%




           Solutions from Vote Solar’s Project:Permit
Illustrations of Clean, Local Power

   • Local wind: Willmar Municipal Utility
   • Community solar
    • Sol Partners by United Power co-op
    • SimpleSolar by FL Keys Electric Co-op
    • SunSmart by City of St. George
   • Kandiyohi Power Cooperative
Illustrations


    Willmar Municipal Utility

   • Willmar, MN:
     population 20,000

   • Two 2-MW turbines

   • 3% of city electricity

   • Self-financed
Illustrations


                United Power co-op

   • Sol Partners lease

   • 10 kW solar farm

   • Members can lease
     210 W panel for
     $1,050


      Featured in Community Solar Power: Obstacles and Opportunities (ILSR, 2009)
Illustrations


Florida Keys Electric Co-op

   • Simple Solar lease

   • 120 kW solar farm

   • Members can lease
     175 W panel for
     $999, 25 years


      Featured in Community Solar Power: Obstacles and Opportunities (ILSR, 2009)
Illustrations


         City of St. George, UT
   • SunSmart lease

   • 100 kW solar farm

   • Members can lease
     500 W for $3,000, 19
     years

   • Partnership with
     Dixie Escalante
     Electric (co-op)
      Featured in Community Solar Power: Obstacles and Opportunities (ILSR, 2009)
Illustrations


                Kandiyohi Power

           • Rural cooperative
           • Wants to emulate United Power solar
             model
Thank you!
John Farrell
  energyselfreliantstates.org
  jfarrell@ilsr.org
  johnffarrell
  612-276-3456 x210

Clean Local Power for Kentucky

  • 1.
    Clean, Local Energy TheValue and Power of Distributed Renewable Energy in Kentucky John Farrell, Director Energy Self-Reliant States and Communities program jfarrell@ilsr.org 612.276.3456 x210 Presentation on Aug. 31, 2011
  • 2.
    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 power Factory Commercial plant building
  • 3.
    Why Clean, LocalEnergy? Enormous Potential 31 states could be electricity self-reliant
  • 4.
    Why Clean, LocalEnergy? Enormous Potential? 26%
  • 5.
    Why Clean, LocalEnergy? KY Renewable Potential CHP Hydro3% 2% Wind 2% Rooftop Solar 19% Other 74%
  • 6.
    Why Clean, LocalEnergy? KY Renewable Potential CHP Hydro3% 2% 10% of right-of-way Wind 2% on 23,000 miles of roads Rooftop Solar 19% Other 51% Highway Solar 23%
  • 7.
    Why Clean, LocalEnergy? KY Renewable Potential CHP Hydro3% 2% Wind 2% Rooftop Solar 19% Ground Solar 51% Highway Solar 23%
  • 8.
    Value of Clean,Local Power • Cost for power • Value of energy • Value of jobs and economic development • Value of local ownership
  • 9.
    Value of Clean,Local Power Price per kWh Includes federal incentives CHP Hydro Wind 5 cents 7 cents 17 cents All Solar
  • 10.
    Value of Clean,Local Power Energy $5 per Watt Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
  • 11.
    Value of Clean,Local Power Grid Benefits Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
  • 12.
    Value of Clean,Local Power Social Benefits Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
  • 13.
    Value of Clean,Local Power Ex// Grid Benefits 4 cents per kWh in addition to electricity Palo Alto, CA, municipal utility
  • 14.
    Value of Clean,Local Power Jobs Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)
  • 15.
    Value of Clean,Local Power Local Benefits Local Ownership Boosts Impact of Renewables
  • 16.
    Value of Clean,Local Power Public Support No local ownership (–44) 50% Local ownership (+33) 40% 41 36 30% 33 24 20% 21 10% 11 12 10 5 0% 2 3 2 very negative negative neutral positive very positive don’t know Attitude towards increased use of local wind energy
  • 17.
    Addressing Barriers toClean, Local Power • Backup / intermittency • Local grid capacity • Economies of scale • Policy
  • 18.
    Barriers Intermittency Geographic Dispersion Lowers Solar Backup Costs $0.04 $0.04 $0.03 $ per kWh $0.02 $0.01 $0.01 $0.00 $0 1 location 5 locations 25 locations
  • 19.
    Barriers Intermittency
  • 20.
    Barriers Distribution Grid no bust 15%, or • Utilities in California (and elsewhere) generally agree that 15% distributed generation on a local distribution circuit is the threshold for any problems. Democratizing the Electricity System (ILSR, 2011)
  • 21.
    Barriers Economies of Scale Smaller Wind Projects are Cheapest
  • 22.
    Barriers Economies of Scale Most solar economies of scale captured small
  • 23.
    Barriers Local Policy 17% Solutions from Vote Solar’s Project:Permit
  • 24.
    Illustrations of Clean,Local Power • Local wind: Willmar Municipal Utility • Community solar • Sol Partners by United Power co-op • SimpleSolar by FL Keys Electric Co-op • SunSmart by City of St. George • Kandiyohi Power Cooperative
  • 25.
    Illustrations Willmar Municipal Utility • Willmar, MN: population 20,000 • Two 2-MW turbines • 3% of city electricity • Self-financed
  • 26.
    Illustrations United Power co-op • Sol Partners lease • 10 kW solar farm • Members can lease 210 W panel for $1,050 Featured in Community Solar Power: Obstacles and Opportunities (ILSR, 2009)
  • 27.
    Illustrations Florida Keys ElectricCo-op • Simple Solar lease • 120 kW solar farm • Members can lease 175 W panel for $999, 25 years Featured in Community Solar Power: Obstacles and Opportunities (ILSR, 2009)
  • 28.
    Illustrations City of St. George, UT • SunSmart lease • 100 kW solar farm • Members can lease 500 W for $3,000, 19 years • Partnership with Dixie Escalante Electric (co-op) Featured in Community Solar Power: Obstacles and Opportunities (ILSR, 2009)
  • 29.
    Illustrations Kandiyohi Power • Rural cooperative • Wants to emulate United Power solar model
  • 30.
    Thank you! John Farrell energyselfreliantstates.org jfarrell@ilsr.org johnffarrell 612-276-3456 x210