Transcript WIND POLICY OPTIONS - Kansas Energy Information Network

Wind Development &
Policy Options
Donna Johnson
Pinnacle Technology
March 2004
Sizes and Applications
Small (10 kW)
• Homes
• Farms
• Remote Application
Intermediate
(10-250 kW)
• Village Power
• Hybrid Systems
• Distributed Power
Large (660 kW - 2+MW)
• Central Station Wind Farms
• Distributed Power
• Community Wind
Large and Small Wind Turbines
are Different
 Large Turbines (500-2000 kW)
• Installed in “Windfarm” Arrays
Totaling 1 - 100 MW
• $1,000/kW; Designed for Low Cost of
Energy
• Requires 6 m/s (13 mph) Average
Sites
 Small Turbines (0.3-100 kW)
• Installed in “Rural Residential” OnGrid and Off-Grid Applications
• $2,500-5,000/kW; Designed for
Reliability / Low Maintenance
• Requires 4 m/s (9 mph) Average
Sites
Large:
300 kW
Turbine
Small:
10 kW
Turbine
Growth of Wind Energy
Capacity Worldwide
Actual
45000
40000
35000
Projected
Jan 2003 Cumulative MW
Rest of World
Rest of World
Rest of World = 2,803
North America
North America
North America = 5,018
Europe
Europe
Europe
= 21,319
30000
25000
20000
15000
10000
5000
0
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
Year
Sources: BTM Consult Aps, March 2001
Windpower Monthly, January 2003
Population
versus
Wind Resources
Wind Cost of Energy
COE (¢/kWh [constant 2000 $])
12
10
8
Low wind speed sites
6
Bulk Power Competitive
Price Band
High wind
speed sites
4
2
0
1990
1995
2000
2005
2010
2015
2020
Drivers for Wind Power
 Declining Wind Energy
Costs
 Fuel Price Uncertainty
 Federal and State Policies
 Economic Development
 Green Power
 Energy Security
Why Have a
Renewable Public Policy?
Resource Diversity:
plants of various sizes and
technologies, dispersed throughout the state, lowers risks
associated with unplanned outages & high required reserve
margins
Reduced Fuel-Price Risk:
price stability
energy security and
Environmental Protection: reduced air
emissions
Sustainability: renewables do not deplete resources,
nor are they susceptible to fossil fuel price increases
Vermont Public Service Board - 1996
Current Policies in Kansas
FEDERAL
Production Tax
Credit expired
12/31/03 $0.017/kWh
Renewable
Energy
Production
Incentive
FERC 888
STATE
 Renewable Energy exempt from
Property Tax
 25kW homeowner or 100kW
commercial systems will be paid
150% of utility’s monthly system
average cost
 Electric Generation Facility Siting does not apply to renewable energy
facilities that are 100 MW or less
 State Energy Program Grants
Four Different Wind Users - Each
has Different Policy Needs
Produce Power
Primarily for Own
Consumption
Produce Power
Primarily for Sale
Small Producers
1-5 MW
States Have Instituted a
Wide Range of Policies
Tax Incentives
Direct Cash Payments
Low Cost Capital Programs
Distributed Resource Policies
Customer Choice Opportunities
Environmental Regulations
Other Programs
Tax Incentives
Production Tax Credits
Investment Tax Credits
Property Tax Reduction
Accelerated Depreciation
Direct Cash Incentives
Production Incentives
Investment Incentives (Grants)
Low-Cost Capital Programs
Government Subsidized Loans
Project Loan Guarantees
Project Aggregation
Distributed Resource
Policies
Standard Contracts for Small Projects
Net Metering
Line Extension Policies
Net Metering Rules
25 kW
NH: 25 kW
50 kW
100 kW 40 kW
25 kW
25 kW
*
20 kW
10 kW
25 kW
No limit
50 kW
No limit
40kW *
30 kW
25 kW
10 kW
*
*
1,000 kW
*
100 kW 10 kW
* IN: 1,000 kWh/month
HI: 10 kW
VT: 15 kW, 150 kW for farm systems
VA: 10 kW (res.);25 kW (comm.)
KY: 10 kW (res.); 25 kW (comm.)
MA: 60 kW
RI: 25 kW
CT: 100 kW
NJ: 100kW
MD: 80 kW
DC: 100 kW
*
*
50 kW
ME: 100 kW
*
 37 states
LA: 25 kW (res.); 100 kW (comm. or ag.)
OK: 100 kW and 25,000 kWh
GA: 10 kW (res.); 100 kW (comm.)
AR: 25 kW (res.); 100 kW (comm. or ag.)
Customer Choice
Opportunities
Utility-Supplied Green Pricing Options
Green Marketing from Retail Electric Sellers
(deregulated or renewable deregulation)
Aggregate Consumer Purchases (deregulated)
Fuel Source Disclosure Requirements &
Certification
Fuel Mix and Emissions
Public Disclosure
Fuel Mix Only
Both
 22 States +
Washington D.C.
General Environmental
Regulation
Externality Valuation in Resource Planning
Externality Valuation in Environmental
Dispatch
Emissions Taxes
Emission Caps/Marketable Permits
Other
Government Purchases
Site Prospecting, Review & Permitting
Renewable Portfolio Standard
Auctioned Contracts
Performance Based Rate Making
Renewable Energy Standards
MN: 19% by 2015*
WI: 2.2% by 2011
NV: 15% by
2013, solar 5%
of total annually
CA: 20%
by 2017
AZ: 1.1% by
2007, 60% solar
ME: 30% by 2000
MA: 4% by 2009
IA: 2.6% by 1999
NM: 10%
by 2011
TX: 2.7% by 2009
* MN has a minimum requirement for one utility, Xcel.
CT: 10% by 2010
NJ: 6.5% by 2012
PA: varies by utility
 13 states – CA,
WI, IA, MN, NV
outside of
restructuring
 IL, NY up next?
Renewable Energy Funds
Cumulative 1998-2017
$14 mil
$95 mil.
$200 mil
MA: $494 mil
RI: $30 mil
$67 mil.
CT: $248 mil
$114 $25 mil.
NJ: $286 mil.
mil
DE: $18 mil.
$21 mil
$89 mil
$2,048 mil
$234 mil.
 15 state funds =
$4 billion by
2017
 8 states with
funds &
standards
26,000
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
17,310 MW new renewables
14.3 MMTCE reductions
CO2 reduction equivalent to
* 2.5 billion more trees
* 7.8 million less cars
Other*
California
New York
Nevada
AZ & NM
Texas
Minnesota
IA & WI
New Jersey
Connecticut
MA
Maine
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Megawatts
Renewable Energy Expected From
State Standards and Funds
*Includes Illinois, Montana, Oregon, Pennsylvania and Rhode Island.
Contact Information
•Turbine Manufacturer:
•Turbine Size: 660-750 kW
Donna Johnson, President
Vestas, NEG Micon
•Capacity: 31.5 MW
•Developer/owner:Pinnacle Technology, Inc.
•Commissioned:
1999
619 East 8th Street,
Suite D
DisGen/Xcel Energy
Lawrence, KS 66044
Tel: (785) 832-8866
Fax: (785) 749-9214
[email protected]
www.ksrenew.com