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Renewable Energy in North America Renewable Energy Development and Transborder Exchange April 2011 Rick Van Schoik Director, NACTS AGENDA Who we are: NACTS, BRP, SCERP Energy: Worldwide, MX, US Why Renewable Energy (RE) Why the exchange in borderlands Why states have a role Status and opportunities Obstacles and roadmap NACTS Consortium of US, Canadian and Mexican universities: Promote concept of North America, Prosperity and Competitiveness, Borders and Security, Environmental Commons/Future ASU RENEWABLE ENERGY Largest solar test facility in the U.S. Light Works top research in world Several algae fuel projects Next generation energy research Massive investment in powering campus with wind, solar, etc. as we move to become carbon-neutral PARTNERS Border Research Partnership Waste Tires Human Trafficking Southwest Consortium for Environmental Research and Policy BIG PICTURE: CONNECTIONS Energy Is: Quality of life Water supply and quality Economic development Pollution and health impacts Greenhouse gases and climate Local, regional, and gobal ENERGY Energy is NOT indigenous to all parts of the border (Coal, oil and gas in east) Generation and sources are connected: Electricity (power lines) Natural Gas (pipelines) Petroleum (pipelines) Siting of LNG plants SUSTAINABLE ENERGY Reduced health-impacting air pollutants Contained water pollution Greenhouse climate shifting gases Wild land defense ENERGY SECURITY Inter- not In-dependent Local not global Diversity of sources Renewable (free) Overall renewable sources promise security and sustainability Mexico and RE What’s in it for Mexico apart from exporting electricity to US? • Widespread ignorance about Mexico’s RE potential • There is no ideological problem with trading electricity to the US • There must be the belief that local communities win too Jobs, investment, etc Can RE green the north? • Employment – jobs, wages, skills • Investment & profitability: CFE & private firms • Knowledge spillovers • Social participation and benefits • RE must be part of energy matrix • US states’ RPS will be driver • Role for NADBank • Methane as an important component Multiple gains from RE at the border Economic benefits • Direct creation of temporary and permanent jobs • Indirect creation of temporary and permanent jobs – services sectors. • Local and state government energy savings through selfsupply projects– benefits passed on to tax payer • Electricity subsidies for local inhabitants. • Electricity supply to off grid communities • Infrastructure investment (roads, water, etc) Knowledge spillover and development of human capital • Knowledge and information networks that permeate through multiple social spheres • Specialization in institutes of higher education. • Creation of research and training centers. • Increased interaction between government, business and civil society. Social participation • Communication between government, business and local populations. • Make sure local community becomes stakeholder • Acceptance of projects as driver of local development • Lessons from Oaxaca Wind energy employment 6 jobs per MW of turbine production 100-450 jobs/yr/TWh installed For every job created in manufacturing installation and operation of wind energy, at least one more created in research, financing, consulting services. Texas example: 10,000 jobs from wind STATE OF ENERGY TODAY Peak oil or peak cheap oil or peak clean oil Petro-dictators in MENA Climate change/greenhouse gases Watergy, foodergy, Uneven binational relations ALTERNATIVES Threat from Fukushima seen as “indefinite’ with further damage “probable” and costs possibly into the trillions The same week the renewable energy index hit RENIIX an all time high STATE OF UNION Clean energy standard: 80% by 2035 (Implies supply from friendly sources) President Obama January 2011 BACKDROP In my own view 2010 was probably the greatest year of pain in terms of oil and gas development…all across the world. Interior Secretary Salazar Mexico City, April 4, 2011 CONGRESS “The nation is going to need 40 to 50% more electricity before the end of the decade. We’re not prepared. We need a long-term energy plan.” Congressman Fred Upton Chair, Energy & Commerce NUMBERS Oil over $110 per barrel Arizona will need: 1 quadrillion BTUs just for transportation by 2030 10 new gigawatts of electricity by 2016 $100 billion for new infrastructure FEDERAL FRAMEWORK North American Energy Work group Bilateral Framework on Clean Energy and Climate Change North American Carbon Storage Atlas Cross Border Task Force Transboundary reservoir negotiations OVERALL OBJECTIVE The Merida Initiative and Beyond Merida support a 21st Century borderlands including strong, resilient communities. Explore need, feasibility, and market for renewable energy development and transborder exchange Now and in 2020, 2050, 2100 VISION 10 giga-watts of new RE 10% (1GW) exchanged 30,000 new jobs Return on Investment Investment Return on Investment Investment Profit Return on Investment Investment Profit Jobs Return on Investment Investment Profit Jobs Air Qual Return on Investment Investment Profit Jobs Air Qual GHG GCC Return on Investment Investment Qual of Life Profit Jobs Air Qual GHG GCC Return on Investment Investment Profit Qual of Life Water Jobs Air Qual GHG GCC Return on Investment Investment Profit Jobs Qual of Life Water Price Stab’y Air Qual GHG GCC Return on Investment Investment Profit Jobs Qual of Life Water Price Stab’y Air Qual Safety GHG GCC Return on Investment Investment Profit Jobs Qual of Life Water Price Stab’y Air Qual GHG GCC Safety Security WHY TRANSBORDER? The region is a common economy with a common market for most products. The region is an indigenous fuel pauper; most is imported. Renewable energy can provide the linkage between the sides of the border and to the future. JUXTAPOSITION Presidents’ Cross Border Electricity Task Force Top Down VALUE ADDITION Bottom Up WORKshop Transborder Renewable Energy Subnational Actors ROLE OF SUBNATIONALS Land use/siting Tax incentives for manufacture, jobs, installation, “Sell to grid” Feed in Tariff (FIT) or Renewable Portfolio Standard (RPS) Enterprise Zones NOW AND NEXT Some doing well (Californias) Some doing OK (ERCOT) Some not doing (Void in AZ/NM-SO) All can do better HISTORY Energy interdependence has evolved NAFTA accommodated NAEWG facilitated SPP embraced Northern BC, MX is in WECC and electrons flow both ways Why not for renewable energy as well? PARADYGM We are in emission and transmission transition Recent transmission was built to locate generation in Mexico (energy maquiladora) Connections are built just for RE PROGRESS State legislative scan Geographic database Price elasticity Survey Workshop Trip to US-Canada border SURVEY 83% believed RE would be cost competitive within 10 years Clean jobs, economic development, and foreign direct investment Lack of comprehensive policy/plan Benefits of cross border exchange far outweigh costs and disadvantages Wind, PV solar, geothermal WORKshop PROCESS Five complementary sessions: Decision Science Scenario Planning Tours HomeWORK Plan for a Roadmap GIS DATABASE Interactive maps http://174.129.155.124/layervis.html ASU DECISION THEATER Creation of a policy space through application of decision science to complex problems SCENARIO PLANNING Sustainability Competencies How do we solve complex problems? FutureScenarios: Scenarios: Future Non-intervention CityofofPHX PHX City future scenarios Complex problem constellations in the current situation and their history Intervention Point Sustainable Sustainable Development Straies Sustainability Developme Strategies transition strategies Visions: Visions: Sustainability SustainablePHX PHX Sustainable visions LONG-TERM VIEW OUTSIDE THE BOX Mexico exports virtual water when it sends tomatoes north and Arizona exports water when it sends electrons to California from power plants. Even if RE cannot be exchanged is it worth developing since we export virtual energy in the products, services and commerce that we exchange. BE CREATIVE Imagination is everything!…A Einstein The role of the individual WIND TUNNEL ROADMAP Level of governance International and transboundary Federal, constitutional, sovereign Regional Subnational (state, tribes, municipio) Local Private sector, NGO, trade, advocacy Now 1 year 5 years 10 years REGIONAL POLICY Eneregionalism Regional transmission siting authority Regional RPS and tradeable REC Regional clearinghouse (ASU DT) Regional TEIA Regional enereducation CANADA INSIGHTS Rocky road to integration Natural north south orientation Potential is not reality Significant investment motivated by GCC and GHG concerns Recognition of huge profits possible by directing excess, cheap RE south Crown corporations make it happen CONTACT INFO WWW.NACTS.ASU.edu [email protected] 480-965-1846