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The Municipal Perspective Renewable Energy Workshop January 19, 2007 Kim Owens, P.E. JEA Clean Power Coordinator Prepared with input from Gainesville Regional.

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Presentation on theme: "The Municipal Perspective Renewable Energy Workshop January 19, 2007 Kim Owens, P.E. JEA Clean Power Coordinator Prepared with input from Gainesville Regional."— Presentation transcript:

1 The Municipal Perspective Renewable Energy Workshop January 19, 2007 Kim Owens, P.E. JEA Clean Power Coordinator Prepared with input from Gainesville Regional Utilities Lakeland Electric OUC City of Tallahassee Florida Municipal Electric Association

2 PSC Renewable Workshop Questions How much renewable energy is available in Florida? How much renewable energy is available in Florida? What are the barriers to renewable energy development? What are the barriers to renewable energy development? What is required from the public and private sector to increase deployment of renewables? What is required from the public and private sector to increase deployment of renewables? Should there be renewable goals for Florida? Should there be renewable goals for Florida?

3 Florida Renewables Renewables – solar, wind, biomass, hydropower Renewables – solar, wind, biomass, hydropower 680 MW of renewable capacity (3% of capacity) 680 MW of renewable capacity (3% of capacity) –38% MSW –24% biomass –33% waste heat –5% hydro Most projects a result of 1978 PURPA Most projects a result of 1978 PURPA To fully assess potential for renewables: To fully assess potential for renewables: –Quantify fuel resources –Address higher energy costs of renewables –More focus on technology development –Approach strategies for demand-side programs such as solar separately from supply side Source: Florida PSC, Renewable Assessment, Jan 2003.

4 Renewables Portfolio Standards State Goal PA: 18%¹ by 2020 NJ: 22.5% by 2021 CT: 10% by 2010 MA: 4% by % annual increase WI: requirement varies by utility; 10% by 2015 Goal IA: 105 MW MN: 10% by 2015 Goal + Xcel mandate of 1,125 MW wind by 2010 TX: 5,880 MW by 2015 *NM: 10% by 2011 AZ: 15% by 2025 CA: 20% by 2010 NV: 20% by 2015 ME: 30% by 2000; 10% by 2017 goal - new RE State RPS *MD: 7.5% by 2019 Minimum solar or customer-sited requirement * Increased credit for solar or customer-sited ¹PA: 8% Tier I, 10% Tier II (includes non-renewable sources) HI: 20% by 2020 RI: 15% by 2020 CO: 10% by 2015 DC: 11% by 2022 DSIRE: November 2006 NY: 24% by 2013 MT: 15% by 2015 *DE: 10% by 2019 IL: 8% by 2013 VT: RE meets load growth by 2012 SWH eligible *WA: 15% by 2020

5 Renewable Energy Generation Technologies

6 Renewable Energy Technology Costs Technology Levelized Costs Landfill Gas $47/MWH Biomass$99/MWH Municipal Solid Waste Incineration $100/MWH New coal $58/MWH Natural Gas CT CC $92/MWH Offshore Wind * Developmental Tidal, Gulf Stream, Wave Developmental *$30-40/MWH for onshore wind (TX, CA, MN) ** Solar and Hydrogen/geothermal will be covered under conservation

7 Landfill Gas/Biogas Mature technology Mature technology Cost competitive JEA, OUC and GRU all have LFG to energy projects Cost competitive JEA, OUC and GRU all have LFG to energy projects JEA WWTS solids facility uses gas to energy JEA WWTS solids facility uses gas to energy Florida has 12 gas to energy landfill projects; potential for 20 more (per EPA LMOP database) Florida has 12 gas to energy landfill projects; potential for 20 more (per EPA LMOP database) Barriers – Gas rights contracts Barriers – Gas rights contracts Idea – Build on 2005 Florida landfill gas conference and/or require each landfill gas owner to submit feasibility study Idea – Build on 2005 Florida landfill gas conference and/or require each landfill gas owner to submit feasibility study

8 Wood waste – yard waste, tree trimming, land clearing, etc Energy crop – Can we grow our own? Gasification and IGCC emerging as new technologies for biomass Upcoming projects: JEA (yard waste – 20 MW), GRU (fuel supply RFI), TAL (wood waste – 30 MW) Barriers: Fuel availability and variability is biggest concern (100 mile transportation radius) DEP/FSEC – Biomass Survey Idea – Ownership and refinement of Florida biomass resource map BIOMASS

9 MSW Incineration 20% of Floridas waste is incinerated (driven by policy and land issues) 20% of Floridas waste is incinerated (driven by policy and land issues) Barrier - Opposition to MSW has increased over years and few new plants built Barrier - Opposition to MSW has increased over years and few new plants built New plasma arc technology emerging such as Geoplasma in St Lucie County New plasma arc technology emerging such as Geoplasma in St Lucie County Idea – support for research of cleaner destruction technologies for MSW. Idea – support for research of cleaner destruction technologies for MSW.

10 Offshore Wind RPS compliance attained largely through onshore wind (6,800 MW now to 28,000 MW in 2010). None in Florida RPS compliance attained largely through onshore wind (6,800 MW now to 28,000 MW in 2010). None in Florida FPL Energy is leading owner of wind farms FPL Energy is leading owner of wind farms National NREL wind maps miss Floridas coastal, offshore, and ridge wind resources National NREL wind maps miss Floridas coastal, offshore, and ridge wind resources Initial resources show that Class 3,4 and 5 wind speeds (6.5 to 8.5 m/s) near Pensacola, Miami and Jacksonville Initial resources show that Class 3,4 and 5 wind speeds (6.5 to 8.5 m/s) near Pensacola, Miami and Jacksonville Barrier – Older low-resolution maps for Florida showing low wind speeds Barrier – Older low-resolution maps for Florida showing low wind speeds Idea - High resolution wind mapping is necessary to determine actual resources. Request state funding for this study. Idea - High resolution wind mapping is necessary to determine actual resources. Request state funding for this study.

11 Energy Costs Most renewable energy costs usually above avoided costs. Technologies are not dispatchable increasing overall costs Most renewable energy costs usually above avoided costs. Technologies are not dispatchable increasing overall costs Federal production tax credits are not reliable Federal production tax credits are not reliable State production tax credit – minimal funding State production tax credit – minimal funding Idea – encourage long term extension of federal tax credit and increase funding of state production tax credit and/or apply investment tax credit to renewables other than hydrogen and biofuels Idea – encourage long term extension of federal tax credit and increase funding of state production tax credit and/or apply investment tax credit to renewables other than hydrogen and biofuels

12 Technology Development Florida Renewable Request for Grants Florida Renewable Request for Grants –183 proposals requesting $215 Million –Only $15 Million appropriated for 2007 FSEC – Minimal focus on supply-side resources such as biomass, MSW, wind or hydro FSEC – Minimal focus on supply-side resources such as biomass, MSW, wind or hydro Idea – continue to appropriate R&D funding for future years, proportion funding to technologies with near term potential Idea – continue to appropriate R&D funding for future years, proportion funding to technologies with near term potential

13 Other Additional Needs: Potential transmission constraints into FL limits fuel resources to only FL. Conduct transmission study Potential transmission constraints into FL limits fuel resources to only FL. Conduct transmission study Create model interconnection standards for all size interconnections Create model interconnection standards for all size interconnections Create a business development infrastructure to assist developers with financing, proposals, business plans Create a business development infrastructure to assist developers with financing, proposals, business plans

14 Demand Side - Solar Focus on solar thermal systems (JEA, GRU, OUC, LAK, TAL programs) Focus on solar thermal systems (JEA, GRU, OUC, LAK, TAL programs) Florida Municipal Energy Efficiency Committee (FMEC) solar workshop with FLSEIA Florida Municipal Energy Efficiency Committee (FMEC) solar workshop with FLSEIA –Marketing, consumer education and workforce development Idea – state-wide marketing/education program Idea – state-wide marketing/education program

15 Summary Landfill Gas – feasibility study for each candidate landfill in Florida Landfill Gas – feasibility study for each candidate landfill in Florida Biomass – build on current biomass survey Biomass – build on current biomass survey MSW – development money to further plasma arc and other high temperature MSW destruction technologies MSW – development money to further plasma arc and other high temperature MSW destruction technologies Offshore Wind – prepare high resolution map Offshore Wind – prepare high resolution map Transmission study, common interconnection standards, business development infrastructure Transmission study, common interconnection standards, business development infrastructure Increase state production tax credit Increase state production tax credit Increase funding for research and development Increase funding for research and development Identify a research institute to focus on supply side technologies Identify a research institute to focus on supply side technologies

16 Summary Explore energy efficiency and demand-side management first Explore energy efficiency and demand-side management first Activate the Florida Energy Commission Activate the Florida Energy Commission Energize the 2006 Florida Energy Plan and develop a Strategic Plan for development of renewables Energize the 2006 Florida Energy Plan and develop a Strategic Plan for development of renewables Strategic Plan should focus on: Strategic Plan should focus on: –Fuel resource study –Financial incentives to reduce costs –Technology and development –Transmission issues –Interconnection Standards –Business Development –Solar marketing and continued financial incentives Establishing goals is premature Establishing goals is premature –If established, take into consideration the inequity across state for fuel resources

17 Questions Contact me: Kim Owens 21 West Church Street,T-12 Jacksonville, FL (904)


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