Transcript Michael Dobson, Renewable Energy Producers Association

FLORIDA RENEWABLE
PORTFOLIO STANDARDS:
IMPACTS AND
OPPORTUNITIES
Florida Renewable Energy Producers Association
Presented by Michael Dobson
ABOUT FREPA
The Florida Renewable Energy Producers Association
represents renewable energy producers interested in project
development in Florida. FREPA’s main goal is to advocate for
policy and fiscal incentives, a favorable regulatory environment,
and programs that promote research and spur growth in the use
of renewable energy sources in the Sunshine State.
RPS = ECONOMIC GROWTH & CLEANER ENVIRONMENT
Renewable energy generated from the sun
or biomass can supply a greater portion of
Florida’s energy needs – while improving our
environment, increasing fuel diversity, and
spurring economic development.
To increase and benefit from the use of renewable
energy, many experts concur that renewable
electricity standards are an effective tool.
RPS
A renewable electricity standard—also known as a renewable
portfolio standard or RPS—is a cost-effective, market-based policy
that requires electric utilities to gradually increase their use of
renewable energy resources such as wind, solar, and bioenergy.
Currently, 23 states and the District of Columbia have enacted
renewable energy standards - and evidence shows those states are
meeting the standards, realizing positive environmental impacts and
generating economic growth.
Florida is positioned to be THE leader in the Southeast.
Renewable Portfolio Standards
E V E R Y O N E E L S E A N D T H EN , T H E R E IS F L O R ID A
CONCERNS ABOUT RPS

Rate payers may see an increase in their monthly bills.

The standards will be impossible to reach because there are not
enough resources in the state or there is not enough renewable
energy activity.

It’s a mandate and no one likes mandates.
A QUESTION OF RESOURCES AND DEVELOPMENT
The Governor’s executive order proposes a RPS standard of 20% by
2020---- can Florida meet such a goal?
Does Florida have available homegrown resources that are plentiful
enough to reach the Governor’s goal?
What are Florida’s renewable resources?
What is Florida’s track record in renewable energy projects?
What has contributed to Florida’s track record with regard to renewable
energy projects being realized?
What will need to change in the regulatory environment and business
attitudes that will make Florida an attractive place for renewable energy
development?
THE FUTURE IS NOW

Nature offers a variety of freely available options for producing energy.
It is mainly a question of how to convert sunlight, wind, biomass or
water into electricity, heat or power as efficiently, sustainably and costeffectively as possible.

Decades of technological progress have seen renewable energy
technologies such as wind turbines, solar photovoltaic panels, biomass
power plants and solar thermal collections move steadily into the
mainstream.

The global market for renewable energy is growing dramatically; in
2006 its turnover was US$ 38 billion, 36% more than in the previous
year .
U S R e s o u rc e s
S o u r c e : N a t io n a l R e n e w a b le E n e r g y L a b o r a t o r y
IM M ED IA T E O P P O R T U N IT IES IN FLO R ID A/T H E H ER E A N D N O W
BEST KEPT SECRET RENEWABLE SOURCE “THE SUN”
FLORIDA NATURAL RESOURCES TO
ENERGY USING PROVEN TECHNOLOGY
Agricultural Community
Develop an agricultural resource map that provides expected
available resources for biomass electric generation.
Provide incentives that will encourage investors and developers
to pursue and develop projects in the state of Florida.
The Sunshine State
Create incentives for large scale solar projects so that the
economics have a better chance at working.
KEY ELEMENTS OF A SUCCESSFUL RPS PROGRAM
IN FLORIDA
•Identify feedstocks and resources that can generate power today.
•Obtain an up- to- date and usable catalog of available feedstock and
resources
•Develop incentives geared toward helping developers with the
economics of a renewable energy project.
•Make sure that incentives are long-term and consistent from year to
year to secure investor interest into the state.
•Put more focus and investment into proven technologies.
•Promote flexibility from utilities on price (i.e., utilities must work with
renewable producers to make projects work),
•Encourage utilities to factor in the lifespan of a project in cost
considerations.
COST OF DOING BUSINESS AS USUAL/ECONOMIC IMPACT
Cost and accessibility of renewable energy must be tempered by the
fact that:
•Costs for providing electricity in Florida based on natural gas, coal
or fossil fuels will continue to increase due to our growing economy
and population.
•The increased demand for power, fossil fuel prices and the
abundance of our natural resources requires us to diversify Florida’s
energy portfolio.
WHEN UTILITIES TAKE THE LEAD
JEA - Clean Power Program
Last DSIRE Review: 01/23/2007
In November 1999, JEA signed a Memorandum of Understanding with the Sierra Club and the
American Lung Association of Florida that details the municipal utility's commitment to generate at
least 7.5% of its electric capacity from "clean and green energy sources" by 2015. Eligible
renewable-energy resources include solar, biomass, biogas (methane from landfills and sewage
treatment plants), and wind.
In addition, under the Solar Incentive Program, JEA assumes part of the cost of residential and
commercial solar water heaters and photovoltaic (PV) systems. JEA has noted that it is the largest
producer of solar power in Florida and the only utility in the United States to install solar systems in
every high school in its service territory. In addition, JEA provides training and curricula to high
school teachers to educate students about solar energy.
WHAT DOES RPS COST UTILITIES?
FACT IS:
The cost of renewable is not easily quantified because each
renewable energy technology is different, with a different set of
economic variables.
WHAT WE KNOW IS:
The cost to build a new renewable facility plant has significant
cost , however, the life cycle and the cost of natural resources
for fuel more than makes up for it (i.e., solar panels last up to
40 years and sun is free)
ALSO CONSIDER:
During the life cycle of a renewable project operation, the cost
of fossil fuel and natural gas will continue to rise and so will the
population of Florida and demand for energy.
RPS-WHAT’S IN IT FOR FLORIDA?

We become good stewards of our planet by reducing emissions.

We create a new industry in Florida.

We generate an alternative to conventional energy sources.

We contribute to national and economic security.
RPS ECONOMIC IMPACT IN
THE STATE FLORIDA
Job Creation
3,500 new jobs in Florida.
Economic Development
$ 1.2 billion in new capital investment
$ 1.4 billion in income to farmers and rural landowners,
$ 10 million in new local tax revenue
Consumer Savings
$ 110 million in lower electricity and natural gas bills by 2020
$ 820 million by 2030
SOURCE: Union of Concerned Scientists
WHO IS KEY TO MAKING RPS WORK IN
FLORIDA?
PUBLIC SECTOR
• Governor
• Florida Legislature
•Florida Public Service Commission
•Florida Energy Commission
PRIVATE SECTOR
•Investment community
•Renewable energy developers
•Utilities
•Florida businesses
CONSUMERS
•You and me
ENVIRONMENTAL IMPACT OF RPS
HUGE!!!

It will allow nature to provide our energy as it should be –naturally,

Our children will have cleaner air and ultimately cleaner water,

Fewer pollutants are released into the ozone layer, therefore reducing
green house gas emissions
MORE RENEWABLE ENERGY=RPS
More renewable energy will become a
reality in our state when we create the right
business and political climate to make
renewable energy development a part of
the Florida economy.
Renewable energy investors and
developers need to know that we are a
friendly state to do business in. An RPS will
change our image, regardless of the
percentage.
LET’S MAKE IT WORK!