Transcript New Jersey’s Clean Energy Program General Overview Michael Winka, Director Lance Miller Chief of Staff New Jersey Board of Public Utilities Office of Clean Energy Clean.

New Jersey’s Clean Energy Program
General Overview
Michael Winka, Director
Lance Miller Chief of Staff
New Jersey Board of Public Utilities
Office of Clean Energy
Clean Air Council
Feb 14, 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.
Clean Air Council
Feb 14, 2007
New Jersey’s
Integrated Approach
Goals and Objectives
• EE (including CHP) and RE will provide energy
growth by 2012
• 20% annual increase in electric and natural gas
energy efficiency saving
• 785,000 MWh of electricity and 0.6 billion cubic
feet of gas will be saved through EE programs by
2012
• 300 MW of Class I RE facilities by 2008
• 90 MW PV by 2008
Clean Air Council
Feb 14, 2007
New Jersey’s New
Goals and Objectives
• 20% reduction in energy use by 2020
• 20% Class I Renewables by 2020
• 2% or 1500 MW solar by 2020
• 20% reduction in 1990 GHG by 2020
• 50% reduction in 2006 GHG levels by
2050
Clean Air Council
Feb 14, 2007
New Jersey’s New
Tools
• Energy Master Plan (code, standards
EE/RE CHP
• New Jersey’s Clean Energy Program
• Regional Greenhouse Gas Initiative RGGI
• State Energy Director
• Energy Certificate trading
• Energy Star – Zero Energy Buildings
USGBC – LEED other
Clean Air Council
Feb 14, 2007
New Jersey’s Clean Energy
Program 01 – 08 Funding Level
Non-bypassable fee - all electric
and natural gas customers
Year
2001
2002
2003
Total ($M)
$115
$119
$124
EE ($M)
$86.25
$89.25
$93
%
75%
75%
75%
RE ($M)
$28.75
$29.75
$31
%
25
25
25
2004
$124
$93
75%
$31
25
01 - 04
2005
2006
$482
$140
$165
$361.5
$103
$113
75%
74%
68%
$120.5
$37
$52
25
26%
32%
2007
2008
05 – 08
$205
$235
$745
$123
$133
$472
60%
56%
63%
$82
$102
$273
40%
44%
37%
$1,227
$153.4
$833.5
$104.2
68%
$393.5
$49.2
32%
Total
Avg
Clean Air Council
Feb 14, 2007
New Jersey’s Clean
Energy Program 05 – 08
Allocation Bill impact 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
•
•
•
$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
•
1-2% rate impact over 4 years (2005 – 2008) or 0.25 - 0.5% PER YEAR
Clean Air Council
Feb 14, 2007
NJCE Program
2003 – 2008 Annual
Reporting and Goals
Year
EE Electric
EE NG
RESolar
RE Class I
MWh
Dtherm
MW
MW
2003 A
285,586
408,583
1.7
76
2004 A
328,912
432,758
2.1
3.7
2005 A
382,845
617,261
5.5
15
2005 G
341,770
489,305
4
19
2006 G
409,454
586,206
14
38
2007 G
486,958
697,167
27
66
2008 G
575,568
824,028
39
89
Clean Air Council
Feb 14, 2007
New Jersey’s
Integrated Approach
for Renewable Energy
•
Net Metering/
Standard Interconnections
• Capital Cost
Incentives/Rebates
• Portfolio Standard –
Longer term financing
Clean Air Council
Feb 14, 2007
Renewable Energy
Incentives/Rebates
Lower the initial capital cost
Improve the payback period to
5-10 years or better – including REC value.
60% of capital cost for up to 1 MW
20% grants - 80% loan for RE Power Plants
Clean Air Council
Feb 14, 2007
New Jersey’s Net
Metering and
Interconnections
Standards
• Up to 2 MW – 125% of Annual Use
•
Small Commercial Business
Up to 10 MW peak
•
< 10 kW Inverter-based - No fee
•
Reduce barriers
•
Set timeframes for review
Clean Air Council
Feb 14, 2007
Onsite Renewable Energy
Program Rebates History
Solar Electric Systems 2005 PV Rebate per watt
# of
kW
2003 thru
06-24-05
08-05-05
in service
by 1/1/06
08-05-06 in
service after
12/31/05
1 to 10
$5.50
$5.30
$5.10
$4.35
$3.80
10.01
to 40
$4.00
$4.35
$3.90
$3.20
$2.75
40.01
to 100
$4.00
$3.75
$3.45
$3.00
$2.50
100.01
to 700
$3.75
$3.60
$3.20
$2.80
$2.25
500 to
700
0.30
Clean Air Council
03-16-06
09-01-06
$2.00
Feb 14, 2007
NJ’sCEP Solar
Rebates Installed, inConstruction and
Awaiting Approved
As of September 2006
Status
Number
Capacity
Rebate
Installed with
OCE rebate
2,042
36 MW
$147 M
Approved for
Rebate
511
23 MW
$88 M
Applications
in Queue
1,412
82 MW
$152 M
TOTAL
3,965
141 MW
$387 M
Clean Air Council
Feb 14, 2007
New Jersey Solar
Installations &
Capacity
4Q 2006 NJ Solar Market Stats as reported online at NJCleanEnergy.com
Clean Air Council
Feb 14, 2007
Renewable Energy
Portfolio Standard RPS
•
The RPS requires all NJ electric supplier 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
Clean Air Council
Feb 14, 2007
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 system RECs have a 1 year life and most be
used in the year they are generated plus a 3 month true up period
Current prices for RECs:
LFG REC $5, Wind REC $15, Solar REC $200
Clean Air Council
Feb 14, 2007
Solar Renewable Energy Certificates (RECs)
Renewable Generator:
Production of
Renewable Energy
Commodity Electricity
Environmental Benefits
(S02, NOX,CO2 )
Electric Supplier:
Retires the REC
New Jersey REC or
Solar REC
Certificates represent the environmental benefits and other attributes
associated with electricity generated from a renewable energy generator .
May be traded independently of underlying electricity.
Clean Air Council
Feb 14, 2007
New Jersey’s RPS
Value of RECs
Year
Class 1 – Class
2 and Solar
RECs
Solar RECS
2005
$ 14,009,400
$ 1,448,000
2009
2021
$ 48,746,600
$ 15,080,000
$ 222,275,800
$ 126,000,000
GHG Credits
REC
Clean Air Council
-> $25
-> $250
$15 -> $5 ($2.5) $200 -> $70
Feb 14, 2007
New Jersey SRECs
Clean Air Council
Feb 14, 2007
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
Clean Air Council
Feb 14, 2007
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
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 ….
Clean Air Council
Feb 14, 2007
New Jersey Residential 10 kw Solar Electric
System
Installed Cost: $77,500
Electric cost savings /
Net Metering: $1,500/ yr
NJCEP Rebate:
$38,000
Insert Residential Home
Federal Tax
Credit: $2,000
Out of Pocket
Expense: $37,500
Total savings :
$1,500
assuming a 12,000 kWh annual energy usage
Payback Period: 25 yrs
Clean Air Council
Feb 14, 2007
New Jersey Residential 10 kw Solar Electric System
Installed Cost: $77,500
NJCEP Rebate:
$38,000
2008
$5.00/hh/yr
Electric cost savings /
Net Metering: $1,500/ yr
Insert Residential Home
SRECs Income:
$2,400 / yr
2005 $0.14/hh/yr
2009 $1.40/hh/yr
2020 $23/hh/yr
Federal Tax
Credit: $2,000
Out of Pocket
Expense :$37,500
assuming a 12,000 kWh annual energy usage
Total savings :
$3,900
Payback Period: 9.6 yrs
Clean Air Council
Feb 14, 2007
New Jersey Residential 10 kw Solar Electric
System
Installed Cost: $77,500
Electric cost savings /
Net Metering: $1,500/ yr
NJCEP Rebate:
$0.00
Insert Residential Home
Federal Tax
Credit: $2,000
Out of Pocket
Expense : $75,500
Total savings :
$1,500
assuming a 12,000 kWh annual energy usage
Payback Period: 50.3 yrs
Clean Air Council
Feb 14, 2007
New Jersey
Residential 10 kW
Solar Electric System
Installed Cost: $77,500
Electric cost savings /
Net Metering: $1,500/ yr
NJCEP Rebate:
$0.00
Insert Residential Home
SRECs Income:
$6,050 / yr
Federal Tax
Credit: $2,000
$502/ SREC
Out of Pocket
Expense : $75,500
Total savings :
$7,550
assuming a 12,000 kWh annual energy usage
Payback Period: 10 yrs
Clean Air Council
Feb 14, 2007
2001 -2005 Energy
Efficiency Programs Residential
Program
Participants
MWh
Dtherms
Home Energy Analysis
Warm Advantage
129,021
Cool Advantage
129,021
1,095,661
NJ Energy Star Homes
20,800
376,554
NJ Energy Star Products
Comfort Partners
Clean Air Council
12,328,739
4,889,210
31,555
12,883,376
1,715,225
550,945
6,729,837
Feb 14, 2007
Energy Efficiency
Programs - Residential
Home Energy Analysis
is a free online audit to help
residential customers understand and reduce their home
energy use links the audit to our residential rebates
Home Performance with Energy Star – In home
audit - Contractors certified by the Building Performance
Institute work with homeowners to identify sources of energy
loses and recommend energy saving improvements linked to
utility financing and residential rebates – performed additional
incentives for affordable housing up to 300% of the federal
poverty level
Clean Air Council
Feb 14, 2007
2005 Energy Efficiency
Programs - Residential
Warm Advantage and Cool Advantage Programs
Provides rebates and promotes energy efficient heating and cooling
systems in homes 27,510 participants saved 15,000,000 kWh, 13 MW
and 1,400,000 therms.
Energy Star Homes Provides incentives for energy efficient
new construction that target NJ area designated for growth (Smart
Growth) 8,000 participants 20% market share for new homes
construction saved 6,100,000 kWh, 19 MW, and 2,395680 therms. An
Energy Star home certification is acceptable as the local energy
code costruction review
Clean Air Council
Feb 14, 2007
2005 Energy Efficiency
Programs - Residential
Energy Star Products Public education and incentives
for home energy efficient appliances and lighting over 1.2
million rebates provided for room air conditions and compact
fluorescents saving 63,500,000 kWh and 5 MW
Comfort Partners Provides 100% installation of energy
saving measures to low income customers at no cost to
improve their energy affordability linked with our other energy
assistance programs. Over 6,000 customers saving each
homeowner on average 880 kWhs and 76 therms for an annual
savings over $200.
Clean Air Council
Feb 14, 2007
2001 – 2005 & 2005
Energy Efficiency
Programs – C&I
Smart Start Buildings Program Provides technical
assistance and incentives for new and retrofit efficiency
upgrades for commercial office buildings, industrial facilities,
schools, hospitals and government building owners. Provided
rebates to 2,400 businesses and government building owners
that saved 288,439,000 kWh, 36.5 MW, and 1,900,000 therms
saving these building owners over $60,000,000 annually.
Over the last 5 years 21,394 participants have saved
10,858,892,000 kWh and 68,853,920 therms
Clean Air Council
Feb 14, 2007
Energy Efficiency
Programs – C&I
Combined Heat and Power Provides incentives up
to 30% to purchase and install various types of combined heat
and power systems up to 1 MW that have at minimum 68%
efficiency and meet all NJDEP State of the Art air quality
control limits – provided 10 rebates with commitments of $7.4
million.
Clean Air Council
Feb 14, 2007
Energy Efficiency
Programs – C&I
Larger Projects 50,000 sq ft - starting in planning stage are
eligible for for up to $12,000 in incentives :
Three step process to plan in overall energy efficiency into
and project in a coordinated approach:
Pre-Design Planning Session up to $2,000
Design Simulation and Screening up to $5,000
Detailed Analysis of Energy-Efficient Measures up to $5,000
And…Equipment Incentives
Additional Multiple Measures Bonus
(Two or More Approved Measures)
Clean Air Council
Feb 14, 2007
Energy Efficiency
Programs – C&I
Smaller Projects, 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
(Two or More Approved Measures)
Clean Air Council
Feb 14, 2007
Energy Efficiency
Programs – C&I
•Categories:
– Electric Chillers
– Natural Gas Cooling
– Desiccant Units
– Electric Unitary HVAC
Systems
– Natural Gas Heating
Systems
Clean Air Council
– Natural Gas Water
Heating
– Premium-Efficiency
Motors
– Prescriptive Lighting
– Lighting Controls
– LED Traffic Signals
– Variable Frequency Drives
– Ground Source Heat
Pumps
Feb 14, 2007
New Jersey SmartStart
Buildings® — The
Program
Customers May Request Technical Assistance and
Receive an Incentive for Qualified Energy-Efficient
Equipment Not on the Prescriptive Technologies List.
Custom Measures
• Customer project in New Jersey
• Custom Measure application
• Screening process
• Incentive Up to 80% of measure or 1.5 year
payback
Clean Air Council
Feb 14, 2007
New Jersey Clean
Energy Programs – New
Developments
• Local Government Energy Audits – up to 90% of
cost but will require all cost effective (LT 2 yr PB)
to be implemented.
• Demand Response – Load Management Incentives
Custom Measures
• Pay for Performance pilot
• Zero Energy Buildings (Energy Star Benchmarking)
• Linking EE and RE in congested areas
Clean Air Council
Feb 14, 2007
Power & Hot
Water from
Microturbine
Free
Fuel
Waste Heat
Natural Gas
MicroTurbine
~26%
Clean Air Council
+
Integrated
Heat
Exchanger
~45%
=
Feb 14, 2007
Total Energy
Utilization
70%+
PPT06287
032207
Energy Efficiency Portfolio Standard (EEPS) and EE
Certificates
Energy Efficiency:
Avoided Energy Use
Saved Energy
Energy Savings
Environmental Benefits
(S02, NOX,CO2 )
Electric Supplier:
Retires the EEC
New Jersey EEC
Certificates represent the environmental benefits and other attributes
associated with electricity generated from a energy efficiency system.
May be traded independently of underlying electricity.
Clean Air Council
Feb 14, 2007
New Jersey’s EEPS
Value of EECs
Year
2006
2012
2021
Class 1
Res EE
Class II
C&I EE
$ 5,124,000
$ 5,124,000
$ 38,024,000 $ 38,024,000
$ 84,900,000
EEEC
Clean Air Council
Class III
Class IV
Clean DG Load Mgmt
$ 5,124,000
$ 38,024,000 $ 38,024,000
$ 84,900,000 $ 84,900,000
2006 -> 2021
$ 5,124,000
$ 84,900,000
$70 -> $20
Feb 14, 2007
• New Jersey’s Clean Energy Program provides incentives
for investments in energy efficiency and renewable
energy
New Jersey’s Clean Energy Program
2001-2004 Results
– $492 million in energy efficiency investments
• 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
Clean Air Council
Feb 14, 2007
• The programs reduced electrical usage by
1,216,403
MWh over
5 years
New Jersey’s
Clean
Energy Program
2001-2004 Results
– 243,280 MWH of energy savings per year
• These savings are equivalent to the electric
usage of approximately 135,000 average homes
Clean Air Council
Feb 14, 2007
• These savings continue over the life of the
New
Jersey’s
Clean
Energy
Program
measures which averages 15 years
2001-2004 Results
• Savings over the life of the measures:
• 14,888,209 MWH of energy savings
Clean Air Council
Feb 14, 2007
• These programs also reduced natural gas usage
by 2,048,981 Dtherms per year
New Jersey’s Clean Energy Program
2001-2004
Results
• These savings
are equivalent
to the annual
usage of over 20,000 average homes heated
with natural gas
• Savings over the life of the measures:
– 38,943,822 Dtherms
Clean Air Council
Feb 14, 2007
• The programs have also reduced electric
demand
by 450 MW
New Jersey’s
Clean Energy Program
2001-2004 Results
• This has eliminated the need to site, build and
operate a mid-sized power plant
• Reducing demand also improves the reliability of
the electric transmission and distribution system
Clean Air Council
Feb 14, 2007
• Energy efficiency and renewable energy
generation also reduce emissions resulting in
New air
Jersey’s
Clean
Energy Program
cleaner
and other
environmental
and health
2001-2004 Results
benefits
• Annual Emission Reductions:
–
–
–
–
CO2: 317,467 metric tons
NOX: 550 metric tons
SO2: 1,217 metric tons
HG (mercury): 15 lbs
Clean Air Council
Feb 14, 2007
• Cumulative
emission
reductions
over
the life of
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
Clean Air Council
Feb 14, 2007
BOTTOM LINE
You 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
Clean Air Council
Feb 14, 2007
New Jersey’s
Integrated
Approach
•
•
New Jersey’s Clean Energy Program:
www.njcleanenergy.com
•
•
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
Clean Air Council
Feb 14, 2007
Thank you
Questions ??
YOUR POWER TO
SAVE
Energy, Money and the
Environment
Visit: NJCleanEnergy.com
Clean Air Council
Feb 14, 2007