Democratic Energy

Report: Federal Barriers Are Limiting Renewable Energy Ownership Opportunities

2008-04-10T19:41:52Z

A typical 2 megawatt wind turbine provides enough electricity for around 600 average American homes. So why is it nearly impossible for those same 600 households to pool their resources and own a wind turbine? A new policy brief by the Institute for Local Self-Reliance (ILSR) shows how removing two barriers to owning and investing in renewable energy projects can pave the way for true energy independence.

]]> A typical 2 megawatt wind turbine provides enough electricity for around 600 average American homes. So why is it nearly impossible for those same 600 households to pool their resources and own a wind turbine?

A new policy brief by the Institute for Local Self-Reliance (ILSR) shows how removing two barriers to owning and investing in renewable energy projects can pave the way for true energy independence.

“Current federal law discriminates against people owning their own power plants,” says John Farrell, author of the policy brief. “The federal tax incentive is unavailable for the average person, and security regulations make local ownership difficult.”

A bill by Representative Tim Walz (D-MN), H.R. 2691, addresses part of the tax problem by making the federal tax incentive for wind power available to up to a third of all Americans.

“Removing this barrier to energy ownership makes smaller projects more accessible to the local community, and draws local investors back into the process,” says Farrell. “Plus, ownership brings more economic benefits to a community than an absentee firm putting up a turbine.”

The full report, Broadening Wind Energy Ownership by Changing Federal Incentives, is available online at: http://www.newrules.org/de/ptc-wind-ownership.pdf

UK Home Buyers Will Get Substantive Energy and Environmental Information

2008-03-18T17:01:29Z

Regulations coming into force in April and May 2008 will bring a wealth of energy and environmental information to homebuyers in the United Kingdom. Potential buyers will get an Energy Performance Certificate and a mandatory comparison of the new home to the requirements contained in the UK's Code for Sustainable Homes as part of home information packets (HIPs) prior to purchasing the home.

]]> Regulations coming into force in April and May 2008 will bring a wealth of energy and environmental information to homebuyers in the United Kingdom. Potential buyers will get an Energy Performance Certificate and a mandatory comparison of the new home to the requirements contained in the UK's Code for Sustainable Homes as part of home information packets (HIPs) prior to purchasing the home.

On February 27, 2008, the UK Government confirmed that by May 2008 it will require new homes to disclose how the home compares to the standards contained in the Code for Sustainable Homes. This replaces a voluntary program that has been in place since April 2007. The Code uses a 1 to 6 star rating system to communicate the overall sustainability performance of a new home including minimum standards for energy use at each star level.

Beginning in April, consumers will also be able to examine Energy Performance Certificates (EPCs) when looking for housing. For homes, two ratings will be shown. The energy-efficiency rating is a measure of a home's overall efficiency. The higher the rating, the more energy-efficient the home is, and the lower the fuel bills are likely to be. The environmental impact rating is a measure of a home's impact on the environment in terms of carbon dioxide (CO2) emissions - the higher the rating, the less impact it has on the environment.

Each rating is based on the performance of the building-wide operations (such as heating and lighting), rather than the domestic appliances within it. The EPC is accompanied by a report which includes recommendations to improve the energy ratings. Recommendations include cost effective improvements and further improvements (that achieve higher standards but are not necessarily cost effective). For each improvement the level of cost, typical cost savings per year and the performance rating after improvement are listed. The suggested measures will be tailored so that they are realistic for the particular building.

The two new components in HIPs will provide valuable information to home buyers, and offer builders and sellers a tool with which to differentiate themselves in sustainability terms.

More

The Code for Sustainable Homes: Setting the standard in sustainability for new homes - published by the UK Department for Communities and Local Government, February 28, 2008 [also more background]

Background on Energy Performance Certificates and an Example of an Energy Performance Certificate

Home Information Pack

Driving Our Way to Energy Independence

2008-03-13T16:56:43Z

Updating a pathbreaking 2003 report, ILSR's March 2008 report, Driving Our Way to Energy Independence, describes how commercially available technologies today could transform our petroleum powered transportation system into one powered by electricity and biofuels. Provisions in the recently passed Energy Act could accelerate that transformation. With the adoption of complementary policies, the revolution in our transportation sector can generate an equally profound revolution in our electricity sector. Hundreds of thousands of locally owned wind turbines and solar electric arrays supplying flexible fueled, plug-in hybrid vehicles can allow tens of millions of Americans to become energy producers not just energy consumers.

]]> Updating a pathbreaking 2003 report, ILSR's March 2008 report, Driving Our Way to Energy Independence, describes how commercially available technologies today could transform our petroleum powered transportation system into one powered by electricity and biofuels. Provisions in the recently passed Energy Act could accelerate that transformation. With the adoption of complementary policies, the revolution in our transportation sector can generate an equally profound revolution in our electricity sector. Hundreds of thousands of locally owned wind turbines and solar electric arrays supplying flexible fueled, plug-in hybrid vehicles can allow tens of millions of Americans to become energy producers not just energy consumers.

The technology is now available to replace our petroleum-based transportation system with high efficiency, electric biofueled vehicles. The key technology, the hybrid electric vehicle, was introduced in 2002 in the United States. Current hybrids do not travel far, if at all, on electricity and their batteries can be recharged only by the engine. Plug-in hybrids, however, have larger battery packs, allowing them to travel on electricity for the majority of vehicle miles traveled, and their batteries can be recharged from the electricity grid. In 2008, kits to convert a Prius into a plug-in vehicle will be widely available. By 2010, several car companies, including Toyota and General Motors, anticipate selling plug-in vehicles.

Another important, but more modest technological development is the flexible fueled vehicle that can use high or low blends of ethanol. The cost to the car manufacturers of adding a flexible fueled capability is very low, perhaps under $100.

These two technical developments allow us to build a transportation system primarily powered by electric motors, with backup engines fueled primarily by biofuels.

The 2007 energy bill will hasten the transition to a dual fueled transportation system. The bill mandates higher vehicle efficiencies that may well be achievable only by hybridizing most new vehicles. The bill also mandates a six fold increase in biofuels. Meanwhile, state mandates will boost six fold the production of renewable electricity, a key element in a sustainable electric transportation system.

A transformed transportation system can restructure electric power networks and agriculture. Hundreds of thousands of locally owned wind turbines and solar electric arrays, supplying a family plug-in hybrid vehicle capable not only of storing elecricity from intermittent generators, but also of supplying electricity on demand, could form the basis for a new electricity system. Thousands of farmer owned biorefineries can form the basis for a new agricultural system.

In 2007, Congress and state legislatures will be debating new policies for agriculture, energy and transportation. In designing those rules, policy makers should strive to marry energy security, environmental, economic development and social objectives.

More

Driving Our Way to Energy Independence - by David Morris, Institute for Local Self-Reliance, March 2008

A Better Way to Get From Here to There: A Commentary on the Hydrogen Economy and a Proposal for an Alternative Strategy- by David Morris, Institute for Local Self-Reliance, December 2003

New Anti-Ethanol Studies Reach Wrong Conclusion on Greenhouse Gases

2008-02-15T20:35:54Z

A new policy brief from Institute for Local Self Reliance criticizes the authors of two recent studies published in Science for advancing a conclusion not supported by their own studies. ILSR's paper notes that the vast majority of today’s ethanol production comes from corn cultivated on land that has been in corn production for generations. Since little new land has come into production, either directly or indirectly, the current use of ethanol clearly reduces greenhouse gas emissions.

]]> A new policy brief from Institute for Local Self Reliance criticizes the authors of two recent studies published in Science for advancing a conclusion not supported by their own studies. ILSR's paper notes that the vast majority of today’s ethanol production comes from corn cultivated on land that has been in corn production for generations. Since little new land has come into production, either directly or indirectly, the current use of ethanol clearly reduces greenhouse gas emissions.

“The studies usefully estimate how much carbon will be released when new land is brought into crop production,” says David Morris, ILSR’s Vice President and author of Ethanol and Land Use Changes. “But the authors’ declarations that ethanol increases greenhouse gas emissions, a conclusion that has made headlines around the world, is not supported, and may be contradicted, by their own data.”

“Since little new land has come into production, either directly or indirectly, the current use of ethanol clearly reduces greenhouse gas emissions,” says Morris, who served six years on an Advisory Committee on biomass to the U.S. Departments of Energy and Agriculture.

The studies fail to recognize the very low greenhouse gas emissions from advanced ethanol plants, plants that can reduce emissions by over 50 percent as compared to gasoline. Nor do the studies factor in the higher greenhouse gases that will be emitted when crude oil is extracted from unconventional sources like tar sands.

A controversial part of these studies examines the indirect impacts of growing energy crops. For example, if corn acreage displaces soybeans in the U.S., the authors assume that an equal amount of soybeans will have to be grown in the rest of the world to make up for that loss in animal feed. But a byproduct of corn ethanol production is a high protein animal feed called distiller’s grains. Indeed, distiller’s grains produce more protein per acre of corn harvested than is produced from an acre of soybeans.

The most contentious part of the studies may be the conclusion that when countries import less food and feed from the U.S., growing more themselves, that greenhouse gases increase. “The conclusion is not only counterintuitive, but will undoubtedly stir up considerable opposition by farmers and advocates of local food around the world,” says Morris, who also has served as an advisor to the energy administrations of Presidents Ford, Carter, Clinton and George W. Bush.

Similar critiques have been released by U.S. Department of Energy Researchers (see here and here)

More

Ethanol and Land Use Changes - by David Morris, Institute for Local Self-Reliance, February 2008

312 Projects Given Go-Ahead to Issue Clean Renewable Energy Bonds

2008-02-13T17:18:39Z

Last month the Internal Revenue Service today announced 312 projects that are now eligible to be financed with tax-credit bonds under the Clean Renewable Energy Bonds (CREB) program. Approximately, $477 million was available for this round of applications. The CREB program was created by the Energy Tax Incentives Act of 2005 and expanded under the Tax Relief and Health Care Act of 2006.

]]> Last month the Internal Revenue Service today announced 312 projects that are now eligible to be financed with tax-credit bonds under the Clean Renewable Energy Bonds (CREB) program. Approximately, $477 million was available for this round of applications. The CREB program was created by the Energy Tax Incentives Act of 2005 and expanded under the Tax Relief and Health Care Act of 2006.

The IRS reviewed applications for nearly twice the amount that was available. This second round of applications included 342 from 33 states, pertaining to 395 projects.

In November 2006, the IRS announced the first round of projects, which allocated $800 million of volume cap (some of which was subsequently relinquished) to 610 projects. State and local governments as well as electrical cooperatives are able to issue tax-credit bonds under the program.

Internal Revenue Code Section 54 authorized the total allocation of $1.2 billion of tax-credit bond volume cap to fund projects that can generate clean renewable energy. State and local government borrowers are limited to no more than $750 million of the volume cap with the rest going to qualified mutual or cooperative electric companies.

The other nice feature outside of favoring public entities is that CREB volume cap allocations are awarded on a “smallest-to-largest” project basis.

There were 156 proposed projects in California, 57 in Minnesota, 23 in New Jersey, 17 in Washington, 13 in Nebraska, 12 in Montana, 11 in Illinois and 10 in Wisconsin. Applications ranged in size from $15,000 to $38.5 million.

Governmental borrowers submitted applications totaling $728 million to finance 367 projects with an average project size of about $2 million. Governmental borrowers in 28 states will receive $263 million of volume cap allocations ranging from $15,000 to $2.95 million. Approved projects of governmental borrowers include: 138 solar facilities, 88 wind facilities, 41 landfill gas facilities, 12 hydropower facilities, three closed-loop biomass facilities, three trash combustion facilities and one open-loop biomass facility.

Cooperative borrowers submitted applications totaling about $170 million to finance 28 projects with an average project size of about $6.1 million. Cooperative borrowers will receive about $143 million of volume cap allocations for projects in 13 states ranging from $300,000 to $30 million. Approved cooperative projects include: 14 wind facilities, four landfill gas facilities, six hydropower facilities, one solar facility and one open-loop biomass facility.

The latest round of applicants were given the option for the IRS to disclose their information publicly and 310 projects signed the consent form. A list of projects can be found at the link below.

More

2007 Disclosure of CREB Allocations - published by the IRS

Carbon Caps With Universal Dividends: Equitable, Ethical & Politically Effective Climate Policy

2008-01-28T22:17:15Z

A new policy brief from the Institute for Local Self-Reliance concludes that universal dividends are a critically important tool to create the political will and public acceptance for a carbon cap. Universal dividends have the potential to hold harmless a large segment of consumers while we move to a low-carbon economy. Moreover, the universal dividend honors the principle that the sky belongs to all of us equally. Private investment in clean and efficient technologies will be driven by a carbon cap that leads to steady reductions over time of GHG emissions and carbon-based fuels.

]]> A new policy brief from the Institute for Local Self-Reliance concludes that universal dividends are a critically important tool to create the political will and public acceptance for a carbon cap. Universal dividends have the potential to hold harmless a large segment of consumers while we move to a low-carbon economy. Moreover, the universal dividend honors the principle that the sky belongs to all of us equally. Private investment in clean and efficient technologies will be driven by a carbon cap that leads to steady reductions over time of GHG emissions and carbon-based fuels.

Common to many proposals addressing climate change is a cap on carbon emissions or carbon content of fuels. A cap will generate a market value for carbon. A key issue is who will receive this value. Many agree that there should be a 100 percent auction of carbon permits, but there many opinions about how to disburse the money gained from selling these permits. This paper argues for a universal, equal dividend returned to each person.

A nationwide auction of carbon allowances conservatively could raise $50 - $200 billion annually or about $1 billion to $4 billion per year at the state level in a state like Minnesota (at the higher level, this represents about 15 percent of annual state government spending).

A universal dividend makes a carbon cap ethical, equitable and politically effective.

Ethical – If the sky is owned by all humanity equally, then any value created from carbon caps should be distributed in equal amounts to everyone.

Equitable – A cap on carbon will raise the price of energy and energy intensive goods and services. A universal dividend will especially help low and middle income households absorb and manage those cost increases. Indeed, lower income households, on average, should receive back more in dividends than they pay in higher prices for fuels and products.

Politically Effective – Per capita dividends will enhance public acceptance of a carbon cap by largely or completely offsetting the negative economic impacts on tens of millions of households. In the early years of the cap, the price of carbon (along with energy and most consumer products) will increase as we establish a market price that will encourage supplies and manufacturers to substitute existing energy sources for low carbon fuels. But since the dividends rise as the value of carbon rises, the net impact on most households will be small.

More

DOWNLOAD - Carbon Caps With Universal Dividends: Equitable, Ethical & Politically Effective Climate Policy - by John Bailey, Institute for Local Self-Reliance, January 2008

New Study Proposes Powerful Strategy to Expand Renewable Energy and Boost Local Economies

2008-01-17T22:43:11Z

Several European countries and the Canadian province of Ontario have recently adopted feed-in tariffs, a mandated, long-term premium price for renewable energy paid by the local utility company to renewable energy producers. A new study by the Institute for Local Self-Reliance (ILSR) shows how feed-in tariffs could turbocharge Minnesota’s renewable electricity standard, reduce costs, and spread the economic benefits across the state.

]]> Several European countries and the Canadian province of Ontario have recently adopted feed-in tariffs, a mandated, long-term premium price for renewable energy paid by the local utility company to renewable energy producers. A new study by the Institute for Local Self-Reliance (ILSR) shows how feed-in tariffs could turbocharge Minnesota’s renewable electricity standard, reduce costs, and spread the economic benefits across the state.

“For years states have relied on federal tax credits or renewable mandates,” says study author John Farrell, “but feed-in tariffs combine the goal and the tool for boosting renewable energy production. It’s the perfect implementation tool for states that already have a renewable mandate.”

The report shows that this simple, yet powerful, strategy to expand renewable energy benefits local economies and achieves greater results at a lower cost than other strategies like tax incentives or renewable energy mandates alone.

“Evidence in European countries shows that feed-in tariffs encourage more renewable energy production for a lower cost. By enabling citizens to produce their own energy, it also helps retain the economic benefits of increasing renewables.”

Renewable Energy Feed-In Tariffs (REFITs) level the playing field by scaling renewable prices by the project size and the available resource (e.g. wind speed). The adjustable price supports small-scale projects while growing renewables on a large scale.

The full report, Minnesota Feed-In Tariff Could Lower Cost, Boost Renewables and Expand Local Ownership, can be viewed online at http://www.newrules.org/de/feed-in-tariffs.pdf. For more information, or to arrange an interview with John Farrell, please contact Brooke Gullikson.

Electric Avenue - PHEVs in Travel+Leisure Magazine

2007-10-23T22:05:25Z

A new kind of hybrid uses less gas and more electricity. All-electric cars are already here. What will this mean for the road trip of the future? ILSR's David Morris plugs in and gives us a little history lesson of the Plug-in Hybrid Electric Vehicle (PHEV).

]]> A new kind of hybrid uses less gas and more electricity. All-electric cars are already here. What will this mean for the road trip of the future? ILSR's David Morris plugs in and gives us a little history lesson of the Plug-in Hybrid Electric Vehicle (PHEV).

Read the full story at Travel+Leisure Magazine

New California Law Hopes For Dramatic Expansion of Solar Hot Water Systems

2007-10-15T15:14:04Z

The California Solar Water Heating and Efficiency Act of 2007 (AB 1470), creates a 10-year program aimed at installing 200,000 solar water heaters in homes and businesses using a $250 million fund. The law authorizes the California Energy Commission to “impose the surcharge at a level that is necessary to meet the goal ...” The surcharge will be applied to natural gas consumption on a per Btu basis and is estimated that it will cost the average residential natural gas user an additional 13 cents per month. The bill was signed into law on October 12, 2007.

]]> The California Solar Water Heating and Efficiency Act of 2007 (AB 1470), creates a 10-year program aimed at installing 200,000 solar water heaters in homes and businesses using a $250 million fund. The law authorizes the California Energy Commission to “impose the surcharge at a level that is necessary to meet the goal.." The surcharge will be applied to natural gas consumption on a per Btu basis and is estimated that it will cost the average residential natural gas user an additional 13 cents per month. The bill was signed into law on October 12, 2007.

The rebates for the systems established by the Commission “shall decline over time" providing early adopoters with larger incentives. Similar to California's incentives for solar electric projects, the declining incentives are structured in an effort to increase demand and drive down the cost of the solar water heating technologies. The payments are paid out as a performance-based incentive basis so that they are earned based on the actual energy savings, or on predicted energy savings as established by the commission.

The state level program is modeled after the San Diego Solar Water Heating Pilot Program approved by the California Public Utilities Commission in February of 2007. In San Diego's 18-month program the solar incentives are calculated in two ways: The Prescriptive Method, used for smaller businesses and residential systems, evaluates each solar water heating system based on performance and is capped at $1,500; and, The Area Method, used for larger more innovative systems, calculates incentives based on a "per square foot of collector" and is capped at $75,000.

AB 1470 will lower the upfront costs of purchasing these systems and allow for a quicker payback period on these systems. The average residential system costs from $3,000-$6,000. Depending on how much natural gas consumption is avoided and what the cost of that fuel is, paybacks could range between 5-10 years.

Analysis by Environment California shows that all natural gas consumers stand to gain from the solar program. In their publication, “Solar Water Heating: How California Can Reduce Its Dependence on Natural Gas,” they conclude that the program will help California reduce its current natural gas consumption by 5.1% and reduce the wholesale price of natural gas by 27%-37%.

The market for solar hot water systems is robust. Since 2000, about 9.2 million new water heaters are installed on average each year across the United States, with over half using natural gas.

More:

Full Text of the California Solar Water Heating and Efficiency Act of 2007 – signed into law October 12, 2007
Interview with California Assemblyman Jared Huffman, sponsor of AB 1470
Solar Water Heating: How California Can Reduce Its Dependence on Natural Gas - by Environment California Research & Policy Center
California Energy Commision
Department of Energy - Solar Heating
San Diego Solar Water Heating Pilot Program

Enhancing On-Site Solar Using Reasonable City Fees

2007-09-12T18:11:26Z

A survey in northern California reveals a wide range of fees assessed to homeowners that install on-site solar power systems. The Sierra Club's Loma Prieta, S.F. Bay and Redwood chapters compared the charges and fees in 131 municipalities. The report recommends on that a $300 fee is an appropriate ceiling level that would comply with state law.

]]> A survey in northern California reveals a wide range of fees assessed to homeowners that install on-site solar power systems. The Sierra Club's Loma Prieta, S.F. Bay and Redwood chapters compared the charges and fees in 131 municipalities. The report recommends on that a $300 fee is an appropriate ceiling level that would comply with state law.

The report found that as of July 2007, the permit fees varied from $0 to $1,298, or 0% to 7% of the total post-rebate cost ($18,600) of a standard photovoltaic (PV) installation. Out of 131 jurisdictions surveyed, 84 had fees of $300 or less, 10 had fees of $600 or more, and 14 charged nothing. The average fee was $282. The authors feel that $300 is the level at which a city can fully recover the administrative costs associated with inspection of the system. Flat fees vs. fees based on the value of the system are also encouraged. Cities that want to promote PV in their communities could waive fees for solar installations as an incentive.

More

Solar Electric Permit Fees in Northern California: A Comparative Study- By Carl Mills and Kurt Newick, July 2007

Column: On Renewable Energy, Go Local

2007-08-16T21:32:34Z

This column by ILSR's John Farrell argues that in their desire to expand renewable-energy production, activists and policymakers focus almost entirely on “more,” rather than “better.” Twenty-seven states have renewable-energy standards, requiring utilities to produce or sell 10, 20, even 30 percent of electricity from renewable sources in the next two decades. The U.S. House just passed an energy bill with a national renewable-energy standard and a drastically higher biofuels mandate. This tunnel vision on “more” overlooks the substantial benefits that local ownership can bring to our energy future.

]]> This column by ILSR's John Farrell argues that in their desire to expand renewable-energy production, activists and policymakers focus almost entirely on “more,” rather than “better.” Twenty-seven states have renewable-energy standards, requiring utilities to produce or sell 10, 20, even 30 percent of electricity from renewable sources in the next two decades. The U.S. House just passed an energy bill with a national renewable-energy standard and a drastically higher biofuels mandate. This tunnel vision on “more” overlooks the substantial benefits that local ownership can bring to our energy future.

More

On renewable energy, go local - by John Farrell, published in the Minneapolis Star Tribune, August 15, 2007

Woodruff Cooperative Pairs Up With Farmers to Collectively Save Members Money

2007-08-14T19:50:28Z

Through and attractive pricing arrangement, the Woodruff Electric Cooperative has enticed nearly 85 percent of area farmers to allow their irrigation systems to be shut off when electricity demand is high. The program certainly benefits the participating farmers but the other member owners also save since the cooperative can reduce its need to purchase expensive peak power during critical times of the year.

]]> Through and attractive pricing arrangement, the Woodruff Electric Cooperative has enticed nearly 85 percent of area farmers to allow their irrigation systems to be shut off when electricity demand is high. The program certainly benefits the participating farmers but the other member owners also save since the cooperative can reduce its need to purchase expensive peak power during critical times of the year.

Woodruff Electric Cooperative Corp, located in Forrest City, Arkansas, is the leading utility of 17 distribution-only electric cooperatives in Arkansas controlling the time when electric power can be used to save their customer's money. The member-owned electric cooperatives are using load controls to reduce peak demand by a total of 110 megawatts (MW). The cooperatives calculate that the program has allowed them to defer approximately $125 million in infrastructure costs they would have been incurred if their systems had to accommodate the extra demand. Woodruff Electric’s unique cooperation with area farmers has accounted for nearly half (51 MW) of the statewide reductions, preventing its 19,000 customers from paying an additional $5.1 million in 2006.

Woodruff Electric offers a load control electric rate of 11 cents/kWh to members that allow their irrigation systems or air conditioners to be taken off the grid for up to 5 hours per day. The rice, cotton, and soybeans in the area require heavy irrigation, and allowing the irrigation systems to be shut down between 2 and 7 p.m. trims the utilities peak demand. At the end of 2006, Woodruff Electric was able to control electricity to 84% of area irrigators (out of about 5,100 total irrigation accounts). Farmers who do not participate pay the non-controlled rate of 16.5 cents/kWh and typically grow crops that cannot bear fluctuations in water supply.

Currently there are 4,365 radio-controlled boxes in Woodruff Electric’s coverage area. Each box is connected to the control unit of the irrigation or air conditioning equipment. A computer at Woodruff Electric’s headquarters generates a radio signal that is relayed to the devices to control the power supply. The installation of these boxes takes about an hour.

Woodruff Electric’s wholesale billing from its generation and transmission partner, Arkansas Electric Cooperative Corporation, is based on how much Woodruff's customer base contributes to the peak demand of that year. Therefore when Woodruff can eliminate its contribution to the peak, it can save its members money from reduced wholesale power costs.

Arkansas Business reported that, in 2006, Woodruff Electric's engineers kicked in the load control systems and prevented the utility from peaking at 124 MW and brought the load down to 72 MW.

More

Woodruff Electric Cooperative

Demand Response and Dynamic Pricing Programs, Policies and Enabling Technologies Publications - Lawrence Berkeley National Laboratory

Report: Wind and Ethanol: Economies and Diseconomies of Scale

2007-08-07T16:02:57Z

Congress and most state legislatures have or are developing renewable energy policies with a single objective: get more renewables. Our new study, Wind and Ethanol: Economies and Diseconomies of Scale, finds that this single minded focus ignores the potential economic benefits from locally owned and more modestly scaled facilities. The focus should on better renewable energy projects not simply more.

]]> Congress and most state legislatures have or are developing renewable energy policies with a single objective: get more renewables. Our new study, Wind and Ethanol: Economies and Diseconomies of Scale, finds that this single minded focus ignores the potential economic benefits from locally owned and more modestly scaled facilities. The focus should on better renewable energy projects not simply more.

With Congress currently writing a new energy bill, the issue is a timely and important one. “Typically, policy makers focus too much on the quantity of renewable energy production, but this study blows a hole in the assumption that bigger is better,” explains John Farrell, Research Associate for the Institute for Local Self-Reliance (ILSR) and author of the new report. “Large facilities have a special class of costs that small facilities don’t, such as shipping vast quantities of electricity or biofuels to distant markets.”

The study finds that these transportation-related costs may offset a large part of the reduced production costs from large wind farms and ethanol plants. For the owner of a large facility, a tiny reduction in production costs leads to significantly increased profits. “But renewable energy policy is not about maximizing profits to owners-- it’s about maximizing benefits to society. And that occurs from locally owned and widely dispersed production units,” says Farrell.

More

Full report, Wind and Ethanol: Economies and Diseconomies of Scale - by John Farrell, ILSR, August 2007

New Rules Project section on Ethanol

New Rules Project section on Wind Energy

Small Wind Could Grow If Incentives Put On Par With Solar

2007-07-26T17:53:12Z

The American Wind Energy Association (AWEA) recently released the results from their Small Wind Turbine Global Market Study, reporting that high up –front costs are preventing small wind systems from reaching their growth potential. The small wind industry has been experiencing annual growth in the range of 14-25% since 1985. AWEA says that Increased federal incentives could double the growth rate.

]]> The American Wind Energy Association (AWEA) recently released the results from their Small Wind Turbine Global Market Study, reporting that high up –front costs are preventing small wind systems from reaching their growth potential. The small wind industry has been experiencing annual growth in the range of 14-25% since 1985. AWEA says that Increased federal incentives could double the growth rate. While homeowners and businesses are installing solar photovoltaic (PV) at an increasing rate in the past few years, small wind is lagging.

With about 7,000 small wind systems sold last year, AWEA claims that correcting the disparity in federal incentives between solar and wind would fix the problem, and further encourage larger investments in small wind systems.

The market for small wind systems, systems with capacities less than 100kW, has not seen significant federal policy changes since 1985. While the costs of electricity produced by small wind turbines has declined nearly 40% to 10 cents/kWh, hardware costs have not changed much and still inflict a high upfront burden on the consumer.

Purchasing and installing a small wind system typically cost $3,000 - $5,000 per kW for grid-connected installation. Residential friendly systems (3-5 kW) will shave 60%-80% off the owner’s electric bill. AWEA reports current payback periods for the average wind system range from 6 to 30 years, depending upon a number of factors (wind resource quality, siting, permitting costs, prevailing energy costs, and turbine performance).

Compared to small wind, barriers in the solar PV market have been significantly lessened on the federal level. The Business Energy Tax Credit and the Residential Solar and Fuel Cell Tax Credit (with a $2,000 cap) enacted in 2005, both provide up to 30% tax credits to commercial and residential solar users. These incentive policies are credited in part to the 36% solar PV growth rate in 2006.

Adopting similar incentives for small wind would result in similar gains, according to AWEA. A study performed by Lawrence Berkeley National Laboratory in 2004 estimated that a 30% federal investment tax credit with no cap would lower average payback period of small wind projects by 4.5 years. “The advent of a 30% federal Investment Tax Credit could lead to an estimated 40% annual growth for each year the credit is in place,” claims AWEA. Cap or no cap, a 30% incentive significantly helps homeowners reduce the initial costs.

Wind and solar are often complementary technologies, used at the same project site and would benefit even further from equity in incentives. AWEA reports that, "Over 80% of all grid-connected small wind systems 10kW of capacity and less include some PV component, indicating that two technologies share similar markets.” Wind and solar hybrid systems are currently being sold for around $7,000 per kW, with increasing popularity. Solar PV costs are projected to keep falling, and in order for small wind to keep pace and hybrid technology to be more attractive, federal incentives could prove effective.

AWEA’s study consisted of a survey distributed to manufacturers, individuals, organizations and companies. Respondents identified “Economics/cost to consumer”, “Restrictive zoning and permitting rules and/or costs, and “Lack of financial incentives” as the top 3 barriers to increased adoption of the technology.

More

2007 AWEA Small Wind Global Market Study

AWEA's web site on Small Wind

DSIRE's Section on Federal Renewable Energy Incentives

Evaluating state markets for residential wind systems - Lawrence Berkeley National Laboratory Study, 2004

New Connecting to the Grid Guide Released

2007-07-24T18:44:00Z

The Interstate Renewable Energy Council (IREC) has issued the 5th edition of its Connecting to the Grid guide. The report and survey addresses new and lingering interconnection issues relevant to all distributed generation (DG) technologies. The guide hopes to assist state regulators and other government officials, as well as utility representatives, DG stakeholders and consumers interested in the development of state-level interconnection standards.

]]> The Interstate Renewable Energy Council (IREC) has issued the 5th edition of its Connecting to the Grid guide. The report and survey addresses new and lingering interconnection issues relevant to all distributed generation (DG) technologies. The guide hopes to assist state regulators and other government officials, as well as utility representatives, DG stakeholders and consumers interested in the development of state-level interconnection standards.

"Government and consumer interest in renewables and other forms of clean DG is accelerating dramatically," said Jane Weissman, executive director of IREC. "IREC feels it's critical to provide an up-to- date, concise and informed resource on interconnection issues for those who are writing the rules of the game, and for those who want a clearer understanding of gaining access to our electric grid."

The lack of uniform interconnection standards significantly complicates the interconnection process and historically has deterred the deployment of customer-sited DG. On the other hand, well-designed uniform interconnection standards facilitate the deployment of renewables and other forms of DG by specifying the technical and institutional requirements and terms by which utilities and DG system owners must abide. For example, New Jersey's standards for interconnection and net metering have shown that when barriers are removed and adequate financial incentives are available, solar installations explode. Approximately 3,000 photovoltaic (PV) systems have been installed in New Jersey since 2004, catapulting the state into second place nationally.

The Connecting to the Grid guide includes discussions of:

Technical issues related to DG interconnection, such as safety, power quality, and national codes and standards;
Legal and procedural issues, such as insurance requirements, standard form agreements and recent trends in state-policy development;
Net-metering issues, such as the ownership of renewable-energy credits and the rapid evolution of state policy in the absence of federal guidance; and
Electrical and building inspectors.

In addition, IREC's Connecting to the Grid guide includes a description of IREC's model interconnection standards for generators up to 10 megawatts (MW) and IREC's model net-metering rules for generators up to 2 MW in capacity. IREC's model rules promote what it believes are the best practices developed by states, government entities and other non-governmental organizations.

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Connecting to the Grid - published by the Interstate Renewable Energy Council, July 2007