New Jersey’s Clean Energy Program Energy Efficiency and Renewable Energy for New Jersey Farms Dr Peter Mark Jansson, PP PE Rowan University New Jersey Wind &
Download ReportTranscript New Jersey’s Clean Energy Program Energy Efficiency and Renewable Energy for New Jersey Farms Dr Peter Mark Jansson, PP PE Rowan University New Jersey Wind &
New Jersey’s Clean Energy Program
Energy Efficiency and Renewable Energy for New Jersey Farms
Dr Peter Mark Jansson, PP PE
Rowan University New Jersey Wind & Energy Efficiency Symposium at Rowan College, Glassboro NJ, April 20, 2007
New Jersey’s Clean Energy Program is a statewide program administered by the New Jersey Board of Public Utilities that promotes energy efficiency and renewable energy for all New Jersey ratepayers including residences, businesses, schools and municipalities .
New Jersey’s Integrated Approach
New Jersey is employing an integrated set of Clean Energy Programs to • Improve the New Jersey economy • Increase New Jersey employment • Reduce dependence on fossil fuel • Reduce need for imported fuels • Reduce greenhouse gas emissions • Reduce air contaminant emissions
New Jersey’s Integrated Approach
• • • New Jersey Clean Energy Programs address:
Efficiency of energy use for residential, commercial and government to lower demand while maintaining service. Installation of renewable energy technologies that enhance local and regional electricity supply.
Promotion of markets for advanced efficiency and renewable technology to lower the cost of new technologies.
New Jersey’s Integrated Approach –
Program Goals:
• Energy Efficiency (including CHP) and Renewables will provide for growth in energy use by 2012 • 20% annual increase in electric and natural gas saved through energy efficiency • 785,000 MWh of electricity and 0.6 billion cubic feet of gas will be saved through efficiency by 2012 • 300 MW of Class I Renewable Energy facilities including 90 MW of PV will be installed by 2008
New Jersey’s Energy Efficiency Programs for Residential, Commercial and Industrial Sectors
New Jersey Clean Energy Programs that have been provided through the New Jersey investor owned utilities will soon be provided by Market Managers working under contract to the State of New Jersey. The programs will be administered by the Office of Clean Energy in the NJ Board of Public Utilities.
Entities that pay a utility bill to one of the NJ investor owned electric or gas utilities are eligible for the programs. Customers Served by a Municipal Utility Authority need to determine eligibility by calling the Office of Clean Energy at 973-648-7405.
New Jersey’s Energy Efficiency Programs for Commercial and Industrial Sector users
Commercial and Industrial website: www.njcleanenery.com
New Jersey’s Energy Efficiency Programs for Commercial and Industrial Sector users
New Jersey SmartStart Buildings (working name)
, http://www.njsmartstartbuildings.com/main/contact_us.html
New Construction in Smart Growth areas Retrofit of commercial buildings and schools Assistance for building design Support for Custom Measures Rebates for high efficiency equipment Combined Heat and Power Program (CHP)
Power & Hot Water from Microturbine
Natural Gas
MicroTurbine ~26% + Integrated Heat Exchanger ~45%
Waste Heat Free Fuel
= Total Energy Utilization 70%+ Typical Heat Transfer Rates
338,000 Btu/hr @ 200 o F inlet
392,000 “ 140 o F “
440,000 “ 80 o F “
delta T = +/- 20 o F 40 gal/min flow
PPT06287 032207
New Jersey’s Energy Efficiency Programs for Commercial and Industrial Sector users
Building Projects
Under 50,000 sq. ft.
Projects Past Preliminary Design Stage or Those Begun After the Design Stage, May Take Advantage of: – Project Review and Screening – Recommendations for Energy-Efficiency Measures – Equipment Incentives – Additional Multiple Measures Bonus
Large Building Projects
– comprehensive support http://www.njsmartstartbuildings.com/main/design_support.html
New Jersey’s Energy Efficiency Programs for Commercial and Industrial Sector users
Rebates for High Efficiency Equipment – To receive equipment incentives, you must submit an Application for the appropriate types of equipment, and accompanying Worksheet (for Performance Lighting, Prescriptive Lighting, and Lighting Controls Applications), and a Registration Form - all completed and signed - before equipment is purchased (a few exceptions apply - click here) .
–
eForms at your fingertips!
–
To complete forms on your computer to be mailed or faxed.
– Now there's an even faster, better way to participate in New Jersey SmartStart Buildings -
eForms you can complete right on your computer!
(Acrobat Reader 5.0 is required to use these forms.) –
Online Registration form
– To register your project, you can complete the Registration Form
online
right away. Natural Gas Cooling – Electric Chillers – Natural Gas Cooling – Desiccant Units – Electric Unitary HVAC Systems – Natural Gas Heating Systems – Natural Gas Water Heating – Premium-Efficiency Motors – Prescriptive Lighting – Lighting Controls – LED Traffic Signals – Variable Frequency Drives – Ground Source Heat Pumps
ECO #8 Raritan Millstone High Lift #8 and #9 Pump and Motor Replacement and VFD installation
• • • • • • • •
Economics (with VFD installation and #14/#15 engine shut down savings from ECO #24) Implementation Costs Annual Cost Savings
$842,000 $384,000
Simple Payback
2.2 years
Economics (with Pump and Motor Replacement only) Implementation Costs
$460,095
Annual Cost Savings
$110,000
Simple Payback
4.2 years
ECO #11 – Netherwood Lighting Retrofit • • • •
Implementation Costs
• $21,160
Annual Cost Savings
• $7,900
Simple Payback
• 2.7 years
Conversion of old T12 fixtures to T8 fixtures
Raritan Millstone Lighting
• • • • • • • •
Implementation Costs
$77,000
Annual Cost Saving
$23,000
Simple Payback
3.3 years Converting T-12 fluorescent fixtures to modern T-8 types.
Converting metal halide fixtures to T-8 types.
Converting high-pressure fixtures to T-8 types.
Sodium Converting incandescent fixtures to compact fluorescent types.
Replacing existing T-8 fixtures with high reflective fixtures to reduce bulb quantity.
Combined Heat &Power Program
On July 27, 2004 the New Jersey Board of Public Utilities approved the funding level of $5 million for the Office of Clean Energy’s Combined Heat and Power (CHP) Program
CHP INCENTIVE PROGRAM TECHNOLOGY AND INCENTIVE LEVELS
Eligible Technology
Incentive($/Watt) (Up To 1 MW) Maximum % of Project Cost
$2.50/W 40% Level 1 Fuel cells operating on non renewable fuel Level 2 Micro Turbines Internal Combustion Engines - Gas Turbines $1.00/W 30% Level 3 Heat Recovery or Other Mechanical Recovery Electric Generation Equipment $0.50/W 30%
Minimum System Size
None None None
120 kW Power, 700,000 Btu/hr Hot Water on skid
Integrated Cooling Heat & Power System: 240-360 kW
Integrated Cooling Heat & Power System: 240-360 kW
New Jersey’s Energy Efficiency Programs for Residences
Home Energy Analysis – a free computer based analysis of energy usage in a home and suggestions for savings.
WARMAdvantage – provides rebates for high efficiency furnaces, boilers, and water heaters.
COOLAdvantage – provides rebates for high efficiency central air systems, air to air and groundsource heat pumps.
NJ ENERGY STAR © Homes – certifies homes built to specifications that make them 30% more efficient than homes that meet present NJ building code requirements http://www.njcleanenergy.com/residential.html
New Jersey’s Energy Efficiency Programs for Residences
ENERGY STAR © labeled products are certified to meet specific high efficiency standards. http://www.energystar.gov
Home Performance with ENERGY STAR © http://www.njcleanenergy.com/homeperformance/index.html
• Offers state residents access to trained, certified home improvement contractors that deliver state-of-the-art energy-efficiency improvements to their home to save money, energy and the environment. • Provides extensive technical training, financial incentives and business development support to established contractors and building professionals, with the purpose of increasing market opportunities for energy-efficiency services within the state.
New Jersey’s Clean Energy Program 01 – 08 Funding Level Non-bypassable fee - all electric and natural gas customers
Year 2001 2002 2003 2004 01 - 04 2005 2006 2007 2008 05 – 08 Total Total ($M) $115 $119 $124 $124 $482 $140 $165 $205 $235 $745 $1,227 EE ($M) $86.25
$89.25
$93 $93 $361.5
$103 $113 $123 $133 $472 $833.5
% 75% 75% 75% 75% 75% 74% 68% 60% 56% 63% 68% RE ($M) $28.75
$29.75
$31 $31 $120.5
$37 $52 $82 $102 $273 $393.5
% 25 25 25 25 25 26% 32% 40% 44% 37% 32%
New Jersey’s Clean Energy Program 2005 – 2008 Allocation Bill and rate impact
• • •
SBC Allocation 44% of the SBC allocated for electric Energy Efficiency 17% of the SBC allocated for natural gas Energy Efficiency 37% of the SBC allocated for Renewable Energy
• •
Bill Impacts $18 per year per the average residential electric customer $14 per year yr per the average residential natural gas customer
• • •
Or as calculated by SBC allocation percent of $32 $14 per year per household for electric Energy Efficiency $ 5 per year per household for natural gas Energy Efficiency $12 per year per household for Renewable Energy 1% rate impact over 4 years – 0.25% PER YEAR)
New Jersey’s Clean Energy Program 2003-08 Annual Accumulated Savings and Renewable Capacity Achievements and Goals
Year 2003 A 2004 A 2005 A 2005 G 2006 G 2007 G 2008 G EE Electric MWh 285,586 328,912 382,845 341,770 409,454 486,958 575,568 EE NG Dtherm 408,583 432,758 617,261 489,305 586,206 697,167 824,028 RE Solar MW 1.7
2.1
5.5
4 14 27 39 RE Class I MW 76 3.7
15 19 38 66 89
New Jersey Wind Working Group for Terrestrial & Small Wind Energy Systems
•
The Office of Clean Energy through a grant provided by the United States Department of Energy has formed a Wind Working Group to conduct outreach activities on the use of small terrestrial wind systems.
•
The goal of the workshop is to solicit stakeholder input on how best to support and employ terrestrial small wind systems in New Jersey.
•
The NJ Wind working Group will provide input and recommendations to OCE on the support and use of small wind generation systems.
•
For more information including the minutes of the October 6, 2006 meeting go to http://www.njcep.com/wind/index.html.
New Jersey Anemometer Loan Program
The Anemometer Loan Program is funded by a federal grant from the US Department of Energy’s Wind Powering America Program.
USDOE, NJBPU/NJCEP, Rutgers and Rowan University have partnered to offer free wind energy analysis to farms seriously considering wind energy 1 – year onsite wind measurement Tower and anemometer installed at no charge
• • •
Contacts: NJCEP: Rowan: Rutgers:
Alma Rivera 1.973-648-7405 or email: [email protected]
Dr. Peter Mark Jansson 1.856.256.5373 or email: [email protected]
Dr. Michael R. Muller 1.732.445.3655 or email: [email protected]
New Jersey’s Integrated Approach for Renewable Energy
•
• •
Net Metering/ Standard Interconnections Capital Cost Incentives/Rebates Portfolio Standard – Longer term financing
New Jersey’s Standards for Net Metering and Interconnection
Standards Reduce barriers to installation
• • • •
Standards apply to systems
Up to 2 MW, <=100% of Annual Use Small Commercial (<=10 MW peak) < 10 kW Inverter-based - No fee and set timeframes for review
New Jersey’s Incentives/Rebates To Lower Capital Cost of Renewables
Lower the initial capital cost and, including the value of RECS, reduce the payback period to 5-10 years or better – Provide 50% of capital cost for up to 1 MW 20% grants - 80% loan for RE Power Plants
New Jersey’s Clean Energy Program Rebates for Onsite Renewable Energy
# of kW 1 to 10 Solar Electric (PV) Systems Rebate per watt
2003 thru 06-24-05
$5.50
08-05-05 in service by 1/1/06
$5.30
08-05-06 in service after 12/31/05
$5.10
03-16-06
$4.35
PRESENT Fr.09-01-06
$3.80
10.01 to 40 40.01 to 100 100.01 to 700 500 to 700 $4.00
$4.00
$3.75
0.30
$4.35
$3.75
$3.60
$3.90
$3.45
$3.20
$3.20
$3.00
$2.80
$2.75
$2.50
$2.25
$2.00
New Jersey’s Clean Energy Program Rebates for Onsite Renewable Energy
Wind and Sustainable Biomass Systems Rebate/ watt Systems < 10 kW
Maximum incentive is 60 percent of eligible system costs
$5.00
Maximum incentive is 30 percent of eligible system costs
Systems > 10 kW 1 - 10 kW $3.00
10 - 100 kW 100 - 500 kW $2.00
$1.50
500 kW up to - 1000 kW $0.15
New Jersey Wind Installations, Capacity and Rebate Cost
New Jersey Wind Installation Projects (CORE) 2001-2006 (through October 15, 2006)
*Total NJCEP + Utilities CORE program managed by utilities 2001 through mid-2003
New Jersey’s rebated Solar Systems Installed, in-Construction and Awaiting Approval
Status Installed with OCE rebate Approved for Rebate Applications in Queue TOTAL Number 1,706 638 894 3,238
As of September 2006
Capacity Rebate 22 MW $101 M 25 MW $84 M 37 MW 84 MW $110 M $295 M
New Jersey Solar Installations, Capacity and Rebate Cost
New Jersey’s Renewable Energy Portfolio Standard RPS
• • •
The RPS requires all NJ electric suppliers to provide a set percentage of their electricity as Class I renewable (wind, solar or sustainable biomass) EY 2005 0.75% including - 4 MW of PV EY 2009 4.0% including by 90 MW of PV EY 2021 20% including 2% solar PV or 1500 MW
• • •
Bill cost to the average electric residential customer EY 2005 -- $1.40 per year per household EY 2009 -- $4.50 per year per household EY 2021 -- $23.00 per year per household
New Jersey’s Renewable Energy Portfolio Standard
NJ’s RE goals will be achieved through the RPS and financed by RECs
Compliance with NJ’s RPS is through Renewable Energy Certificates (RECs) issued and tracked through either PJM’s Generator Attributes Tracking System (GATS) or NJCEP’s Behind the Meter system.
Each MWh of energy produced by a renewable energy generator creates 1 REC. This REC has a unique serial number. When it is traded and used for compliance, it is matched with a MWh or energy supply and retired. In NJ’s system RECs have a 1 year life and must be used in the year they are generated plus a 3 month true up period.
Current prices for RECs: Landfill Gas REC $5, Wind REC $15, Solar REC $200
New Jersey’s Renewable Energy Portfolio Standard
A Renewable Portfolio Standard (RPS) provides the basis for Renewable Energy Credits or RECs which gain value from the regulatory requirement that suppliers of electricity in New Jersey include a certain percentage of renewable energy. A Renewable Portfolio Standard specifically for wind supplied electricity would provide a source of capital for wind installations that could supplant the need for rebates.
Solar Renewable Energy Certificates (RECs)
represent environmental benefits and other attributes associated with electricity generated from a renewable energy generator and may be traded independently of underlying electricity.
Renewable Generator: Production of Renewable Energy Commodity Electricity Environmental Benefits (S0 2 , NO X ,CO 2 ) Electric Supplier: Retires the REC New Jersey REC or Solar REC
New Jersey’s RPS Renewable Energy Credit (REC)Values
Year 2005 2009 2021 Classes 1 & 2 and Solar RECs $ 14,009,400 $ 48,746,600 $ 222,275,800 Solar RECS $ 1,448,000 $ 15,080,000 $ 126,000,000 GHG Credits REC -> $25 $15 -> $5 ($2.5) -> $250 $200 -> $70
New Jersey Solar Renewable Energy Credit (REC)Values
New Jersey RECs Reporting in PJM GATS
• • • • • • •
PJM – Environmental Information Systems (EIS launched its Generator Attributes Tracking System (GATS) in Oct 2005 for the Mid-Atlantic States NJ, MD,PA, DE and DC all use GATS for their RPS Compliance Reporting Feb 2006 GATS reported 14,282,070 REC generated during the first 2005 trading period This represents 2.02% of PJM total system mix 82 account holders 734 generators More info available at www.pjm-eis.com
New Jersey RECs Reporting in PJM GATS
•
More info available at www.pjm-eis.com
New Jersey’s Transition to an Open Market RECs based System
• New Jersey’s 20 % by 2020 Renewable Energy Portfolio Standards (RPS) will require at a minimum approximately 4,400 MW of renewable energy capacity and 1500 MW of Solar capacity. • NJ cannot simply “buy” our way to the RPS goals by providing rebates or grants to construct this capacity. • We must consider other models ….
New Jersey Residential 10 kW Solar Electric System
Installed Cost:
$77,500
NJCEP Rebate: $38,000 Insert Residential Home Federal Tax Credit: $2,000 Out of Pocket Expense: $37,500 assuming a 12,000 kWh annual energy usage
Payback Period: 25 yrs
Electric cost savings / Net Metering: $1,500/ yr Total savings : $1,500
New Jersey Residential 10 kW Solar Electric System
Installed Cost:
$77,500
NJCEP Rebate: $38,000 Federal Tax Credit: $2,000 Out of Pocket Expense :$37,500 Insert Residential Home assuming a 12,000 kWh annual energy usage
Payback Period: 9.6 yrs
Electric cost savings / Net Metering: $1,500/ yr SRECs Income: $2,400 / yr 2005 $0.14/hh/yr 2009 $1.40/hh/yr 2020 $23/hh/yr Total savings : $3,900
New Jersey Residential 10 kW Solar Electric System
Installed Cost:
$77,500
NJCEP Rebate: $0.00
Insert Residential Home Federal Tax Credit: $2,000 Out of Pocket Expense : $75,500 assuming a 12,000 kWh annual energy usage
Payback Period: 50.3 yrs
Electric cost savings / Net Metering: $1,500/ yr Total savings : $1,500
New Jersey Residential 10 kW Solar Electric System
Installed Cost:
$77,500
NJCEP Rebate: $0.00
Insert Residential Home Federal Tax Credit: $2,000 Out of Pocket Expense : $75,500 assuming a 12,000 kWh annual energy usage
Payback Period: 10 yrs
Electric cost savings / Net Metering: $1,500/ yr SRECs Income: $6,050 / yr $502/ SREC Total savings : $7,550
New Jersey Energy Efficiency Portfolio Standard - Potential Value of EECs
Year 2006 2012 2021 Class 1 Res EE $ 5,124,000 $ 38,024,000 $ 84,900,000 Class II C&I EE $ 5,124,000 Class III Clean DG $ 5,124,000 Class IV Load Mgmt $ 5,124,000 $ 38,024,000 $ 38,024,000 $ 38,024,000 $ 84,900,000 $ 84,900,000 $ 84,900,000 EEEC 2006 -> 2021 $70 -> $20
New Jersey’s Clean Energy Program Achievements
• Provides incentives for investments in energy
New Jersey’s Clean Energy Program
– $
492
2001-2004 Results
• These investments help to: – reduce customers energy bills – reduce pollution levels – reduce reliance on imported fuels – stimulate the local economy and keep energy dollars in the State
New Jersey’s Clean Energy Program Achievements
• These savings equal the electric use of approximately 135,000 average homes or 243,280 MWh of energy savings per year
New Jersey’s Clean Energy Program Achievements
New Jersey’s Clean Energy Program
measures which averages 15 years.
2001-2004 Results
14,888,209 MWh of energy savings
New Jersey’s Clean Energy Program Achievements
• These programs reduced natural gas use by 2,048,981 Dtherms per year
New Jersey’s Clean Energy Program 2001-2004 Results
of over 20,000 average homes heated with natural gas • Savings over the life of the measures:
38,943,822 Dtherms
New Jersey’s Clean Energy Program Achievements
New Jersey’s Clean Energy Program
reduced electric demand by 450 MW and has
2001-2004 Results
mid-sized power plant and • Reduced demand also improves the reliability of the electric transmission and distribution system
New Jersey’s Clean Energy Program Achievements
• • Energy efficiency and renewable energy
New Jersey’s Clean Energy Program
air and other environmental and health benefits.
2001-2004 Results
Annual
Emission Reductions: CO2: 317,467 metric tons NOX: 550 metric tons SO2: 1,217 metric tons HG (mercury): 15 lbs
New Jersey’s Clean Energy Program Achievements
•
New Jersey’s Clean Energy Program
the measures over the five years of the program:
2001-2004 Results
CO2: 13,190,265 metric tons NOX: 21,798 metric tons SO2: 46,283 metric tons HG: 558 pounds
BOTTOM LINE
New Jersey can either incorporate more energy efficiency (including increased building energy codes and appliance standards) including combined heat and power and clean distributive and renewable energy into the over energy mix or pay for larger and larger transmission lines into NJ that will move your payments to out of state facilities and out of state jobs with the associated transport of out of state emissions contributing to the reasons NJ does not meet its clean air states putting more pressure on existing NJ business to reduce emissions
New Jersey’s Integrated Approach
• • • • •
• New Jersey’s Clean Energy Program: www.njcleanenergy.com
New Jersey Wind Working Group for Terrestrial and Small Wind Energy Systems: http://www.njcep.com/wind/index.html
Rutgers’ Center for Energy, Economics and Environmental Policy (CEEEP) http://policy.rutgers.edu/ceeep Clean Energy Council – Committees Portfolio Management Work Group State Energy Master Plan and Energy data management
Thank you Questions ??
www.bpu.state.nj.us
Visit: NJCleanEnergy.com