Transcript ZGlobal Inc. Template

Green Energy
Overview of Renewable
Development on a Global Scale
Who, How and How Much?
Ziad Alaywan P.E.
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Topics
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Background on the Western and California Grid
Summary of activities since the 2000/2001 California Energy Crisis
Locations of Green Power
Summary of Green Energy progress by State
Comparison of the advances in Green Policies between the US and
other countries
• Who are the players
• ZGlobal offerings
North American Electric Reliability
Council (NERC)
NERC is composed of the
following regions:
WECC – Western Electricity
Coordinating Council
ERCOT – Electric Reliability
Council of Texas
MRO – Midwest Reliability
Organization
SPP – Southwest Power Pool
SERC – Southern Electric
Reliability Council
FRCC – Florida Reliability
Coordinating Council
RFC – Reliability First
Corporation
NPCC – Northeast Power
Coordinating Council
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Background on the Western & California Grid
• Western Electricity Coordinating Council (WECC) – (formerly WSCC)
was formed in 1967 by 40 electric power systems
• 1.8 million square miles
• 14 Western States, two Canadian Provinces, and Baja Norte, Mexico
They support the following:
– Coordination and promotion of electric system reliability
– Efficient competitive power markets
– Assure open and non-discriminatory transmission access amongst
members
– Provide a forum for resolving transmission access disputes
– Providing an environment for coordinating the operating and
planning activities of its members
– California represents 1/3 of the demand for electricity in the west
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What Happened Since the 2000/2001 Energy Crisis?
1. A boom in building generation in California: over 10,000 MW of new
Combined-Cycle plants.
2. A boom in old generation retirements in California: over 7000 MW.
3. Healthy transmission infrastructure incentives, taking advantage of
FERC’s ROR of up to 15% (However: Transmission development is
hampered by environmental, jurisdictional and cross-state politics)
4. New, very aggressive state renewable policies (20% by 2010 and 33%
by 2020).
5. Federal Energy Policy Act of 2005 – Mandatory Reliability Standards.
6. FERC 2007 Order 890 Ruling – Regional Planning Process.
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A picture is worth a thousand words!
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Renewable Locations Across the States
Source: CEC RETI report by Black & Veatch, March 2008
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Comparison Among States
http://www.westgov.org/wga/initiatives/wrez/brief5-28/Barbose.pdf
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United States Wind Power Ranking:
Top 20 States
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International Rankings of Wind Power Capacity
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On a worldwide basis, roughly 20,000 MW of wind capacity was added in 2007, the highest
volume achieved in a single year, and up from about 15,000 MW in 2006, bringing in the
cumulative total to approx. 94,000 MW.
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For the third straight year, the U.S. led the world in wind capacity additions, capturing
roughly 27% of the worldwide market, up from 16% in 2006. China, Spain, Germany and
India rounded out the top five countries in 2007 for annual wind capacity additions.
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Regulatory Mandates and Goals
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Renewable Incentives
A. Twenty-one states and the District of Columbia have adopted mandatory
renewable portfolio standards (RPS) over the last ten years.
B. Renewable Energy Attributes – such as the energy source, conversion
technology, plant location and vintage, and emissions – are usually required to
verify compliance with these policies, sometimes through attributes bundled
with electricity, and sometimes with the attributes unbundled from electricity and
traded separately as renewable energy credits (REC’s).
Incentives include:
1. Federal Production Tax Credit (PTC) and Investment Tax Credit (ITC).
2. Federal Accelerated Depreciation and Substance State-Wide Incentives.
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Renewable Incentives
1. As you are all very much aware, the U.S. Congress has a long history of
providing tax incentives for energy development, including renewable electricity.
The PTC was established by the Energy Policy Act of 1992 to stimulate use of
renewable technologies for power production. At the present time, the PTC
provides a 10 year credit of 1.9¢/kWh (adjusted upwards, in future years, for
inflation) for wind.
2. Presumably, the PTC reduces the cost of wind power by roughly one-third
(~2¢/kWh), thereby making wind more attractive to electric utilities and other
investors.
3. Greater Reliance on Foreign Manufacturing: Uncertainty in the future scale of the
U.S. wind power market has limited the interest of both U.S. and foreign firms in
investing in wind turbine and component manufacturing infrastructure in the U.S.
Instead, the U.S. remains reliant, to a significant degree, on wind turbines and
components manufactured in Europe and, in the future, perhaps China and
elsewhere, thereby reducing opportunities to grow the domestic manufacturing
sector.
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More than 7,000 MW of Contracts with New Renewable
Generators Signed in California Since 2002
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U.S. Wind Power Capacity Surged by 46% in 2007,
with 5,329 MW Added and $9 Billion Invested
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Location of Installed Wind Generation*
*(Source:AWEA)
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Cost of Renewable is Approaching
Competitive Levels!
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Relative Contribution of Generation Types
to Annual Capacity Additions
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Types of Companies Investing in Renewables
A. Private Independent Power Producers (IPPs) continued to dominate the wind industry through
2007, owning 83% of all new capacity. In a continuation of the trend begun several years ago,
however, 16% of total wind additions made in 2007 are owned by local electrical utilities, split
between investor-owned utilities (IOUs) and publicly owned utilities (POUs) roughly 2-1.
B. Of the cumulative 16,904 MW of installed wind capacity at the end of 2007, IPPs owned 84%
(14,280 MW) with utilities contributing 14% (1,7980 MW for IOUs and 526 MW for POUs) and
community ownership just 2% (308 MW).
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Acquisition and Investment Activity
Among Wind Developers
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Summary
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At least 11 significant transactions involving roughly 37,000 MW of
in-development wind projects (also called the development “pipeline”) were
announced in 2007.
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In 2005, 8 transactions totaling nearly 12,000 MW were announced, while
only 4 transactions totaling less than 4,000 MW were completed from 20022004.
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A number of large companies have entered the U.S. wind development
business in recent years, some through acquisitions, and others through
their own development activity or through joint development agreements
with others. Particularly striking in recent years has been the entrance of
large European energy companies into the U.S. market.
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The two largest developer acquisitions in 2007, for example, were the
purchase of Horizon Wind by Energias de Portugal (from Portugal) and the
acquisition of Airtricity North America by E.ON AG (from Germany),
summing to nearly $4 billion in aggregate.
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A Sampling of ZGlobal Inc. Renewable Relationships
and Clients Domestic and International
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Enfinity: is a Belgium-based company developing and financing renewable energy projects, with an
emphasis on Solar projects. enfinity has joined with SunPower for development of solar project
throughout Europe. SunPower has completed solar power plants projects in Asia, North America and
Europe, including more than 55 MW completed or in construction in Spain.
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Horizon Wind Energy: Following its acquisition on July 2, 2007 by Energias de Portugal, S.A.
(“EDP”), a major Portuguese utility headquartered in Lisbon, Portugal, the Company is now owned by
EDP Renováveis, S.A. (“EDPR”), making the Company a vital part of an integrated strategic
renewable energy company currently ranked third in the United States in wind energy by net installed
capacity. We assisted Horizon wind with several of their wind development projects in California.
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Eurus Energy Holdings: In Japan, Eurus Energy Japan Corporation performs comprehensive
management of wind power generation. At present, Eurus Energy Group is operating wind farms with
a total output capacity of 1,491 MW in six countries in Asia, America and Europe. It also is operating
the largest wind farm in Gangwon-do, South Korea, and is promoting the development and
construction of wind farms at various other parts of the country. ZGlobal is assisting Eurus entering
the US market.
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ZGlobal Inc. Provides Services to…
4.
enXco: Since 2002, enXco has been an affiliate of EdF Energies Nouvelles (formerly SIIF
Energies). EdF Energies Nouvelles is a member of the EdF (Électricité de France) Group, with the
charter of becoming a world leader in renewable energy. enXco is a large developer of Wind and
Solar projects. ZGlobal is assisting enXco with wind development projects in the West.
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Cogentrix Energy, LLC: A leading independent power producer headquartered in Charlotte,
North Carolina. Cogentrix owns and operates a number of electric generating facilities, located
predominately in the United States. ZGlobal is assisting Cogentrix on many aspects of Solar
development projects in the West.
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Raser Technology: Based in Utah, Raser is a publicly traded technology, Industrial and
Geothermal Power Generation. ZGlobal is assisting Raser in developing their Geothermal plant in
Northern Nevada.
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Solenergis: A developer of significant utility scale Solar power production, Solenergis utilizes
ZGlobal services and experience in transmission systems, utility interconnections, energy sales
strategies, and regulatory compliance.
8. Terra-Gen Power: A large and still expanding Renewable centric power producer, TGP was
recently selected as the successful bidder to acquire Allco Wind Energy’s US assets located in
the Tehachapi region of California for ~$360M. TGP has significant investments in Geothermal,
Wind, and Solar projects here in California and abroad.
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