Clean Energy Trends in North Carolina www.energync.org
Agenda Background North Carolina Clean Energy Resources & Technologies North Carolina Clean Energy Policies North Carolina Clean Energy Trends Generation Portfolio Clean Energy Infrastructure Clean Energy Industry Discussion Questions
North Carolina Clean Energy Resources & Technologies
Energy Efficiency Cost effective energy resource Options range from simple to complex Lighting v. boiler replacement Several certifications and programs exist
New Home Construction Certifications Energy Star qualification requires homes to be 20 30% more efficient than standard homes. Improvements include insulation, windows, tight construction and ducts, efficient HVAC, and Energy Start qualified lighting & appliances. SystemVision Home Program A certification geared toward affordable housing. All homes in program carry a heating and cooling energy guarantees -- specific to the home -- ensuring that energy costs will range from $16-$40 per month, with most falling between $25 to $30.
New Home Construction Certifications (continued) Promotes strategies that reduce energy and water usage, promote renewable energy use, help protect the land and natural resources, and reduce pollution and the waste of natural resources. Program measures the overall performance of the home in eight categories: Innovation & Design Process Location & Linkages Sustainable Sites Water Efficiency Energy & Atmosphere Materials & Resources Indoor Environmental Quality Awareness & Education
Biomass Biomass resources include agricultural waste, animal waste, wood waste, spent pulping liquors, combustible residues, combustible liquids, combustible gases, energy crops, or landfill methane. (Session Law 2007-397). Forest resources are most abundant biomass resource in North Carolina. Southeast Agricultural and Forestry Energy Resources Alliance Southern Bioenergy Roadmap www.saferalliance.net
Geothermal NC lacks geothermal resources for utilityscale applications. Geothermal heat pumps are viable in residential and commercial settings.
Hydroelectric Fontana Dam - Tennessee Valley Authority
Solar Energy Non-Electric Solar Power Passive Solar (e.g. building orientation) Solar Thermal Hot Water Space Heating Swimming Pools
Solar Energy Electric Generating Solar Power Photovoltaic (PV) Concentrated Solar Power (CSP)
Wind Energy Turbine height is important. Greater wind speeds, steadier winds, & less obstructions
Wind Energy - Offshore DOE: 20% Wind by 2030 Denmark 2MW Wind Capacity Total Installed (2030) (GW) 0.0-0.1 0.1-1 1-5 5-10 > 10 Includes offshore wind. The black open square in the center of a state represents the land area needed for a single wind farm to produce the projected installed capacity in that state. The brown square represents the actual land area that would be dedicated to the wind turbines (2% of the black open square).
North Carolina Clean Energy Policies
Economics Three Revenue Streams: 1. Sale of electricity (or cost savings) 2. Sale of Renewable Energy Certificates (RECS) 3. Federal & state tax credits
Economics (continued) 1. Sale of Electricity Capacity factor compares actual output over a period of time to the output if plant operated at full capacity the entire time. Capacity Factor for Renewable Energy Technologies (2008)
Economics (continued) 2. Sale of renewable energy certificates 1 REC = 1 Megawatthour of Electricity Can be sold in voluntary or mandatory markets Electricity: Flow of electrons Renewable Energy Certificates: Renewable energy attributes
Economics (continued) 3. State and federal tax credits 30% federal investment or production tax credit Federal accelerated depreciation for commercial projects 35% North Carolina investment tax credit Database for State Incentives for Renewables & Efficiency www.dsireusa.org
Renewable Energy Portfolio Standards 29 states have an RPS; 7 states have an RE goal State RPS State Goal
North Carolina REPS Renewable Energy and Energy Efficiency Portfolio Standard (REPS): Requires a minimum amount of electricity to be generated from renewable energy or energy efficiency measures. Passed into law August 2007 (Senate Bill 3 / Session Law 2007-397)
North Carolina REPS (continued) Investor-owned utilities: 12.5% of output must come from renewable energy or energy efficiency by the year 2021. Energy efficiency capped at 25% through 2018; 40% in 2021 Demand response cannot be used to meet requirement Electric cooperatives and municipal utilities: 10% of output must come from renewable energy or energy efficiency by the year 2018 Energy efficiency is not capped Demand response is an option to meet compliance
North Carolina REPS (continued) Incremental requirements 2012 3% of retail sales 2015 6% of retail sales 2018 10% of retail sales 2021 12.5% of retail sales (IOUs) Minimum requirements for solar, swine waste, and poultry waste Solar 0.2% of electric sales by 2018 Swine Waste 0.2% of electric sales by 2018 Poultry Litter 900,000 MWh by 2018 Flexible compliance mechanisms to guard against high prices or lack of supply (known as cost caps )
North Carolina REPS (continued) Compliance - NC Utilities Commission: Mechanism - Renewable Energy Certificates (RECs) RECs expire after 7 years of utility ownership ¼ of RECs can come from out-of-state Tracking North Carolina Renewable Energy Tracking Systems (NC-RETS): www.ncrets.org Trading a public trading system does not exist; transactions occur through bi-lateral agreements Utilities must submit annual compliance plans and reports
Other Notable North Carolina Policies Details: www.dsireusa.org NC GreenPower voluntary RECs market in NC Typically supports small renewable generators 35% renewable energy investment tax credit 25% renewable energy manufacturing tax credit Good interconnection policies Poor net metering policies Utility residential energy efficiency programs Energy conservation in NC Building Code
Clean Energy Trends
New NC Electricity Resource Options Relative Cost Over Time New NC Electricity Resource Pre-1970 1971-02 03-07 08-13 14-20 Coal Low Mid Mid High High Oil Low Low High High Legacy Hydropower Low Low Low Low Low Natural Gas Varied Varied Varied Varied Low? Wood & Agricultural Wastes Low Mid Mid Mid Mid-High Energy Efficiency Low Low Low Low Low Nuclear High Mid High High Solar Hot Water Very High Very High Mid Low Solar PV Very High Very High Mid Low Landfill Gas Low Low Low Geothermal Low Low Low Wind Mid Mid Mid Combined Heat & Power Mid Mid 28
Market Dynamics Re-alignment of energy cost dynamics Renewable costs falling Utility fuel, plant construction costs rising Efficiency potential largely untapped Stronger building codes EE, RE, Smart Grid, EV can be scaled up 29
North Carolina s electricity distribution landscape
Residential electric rates across North Carolina cooperatives
NC Renewable Energy Systems By Renewable Energy Resource Type Source: NCSEA. Clean Energy Data Book. June 2011 32
NC Energy Efficiency By LEED and Energy Star Certifications Source: NCSEA. Clean Energy Data Book. June 2011 33
Energy Efficiency Potential (Retrofitting) in NC Homes built prior to 1970 as a proportion of county housing stock
Energy Efficiency Potential (Retrofitting) in NC Manufactured homes as a proportion of county housing stock.
Clean Energy Sector Firms in NC Firm s Primary Business Activity 2011 = 18% growth 14,800 workers There are four distinct industry clusters in North Carolina: 1. Research Triangle 2. Charlotte 3. Asheville 4. the Triad Smaller clusters exist in Wilmington, Boone and Hickory.
Clean Energy Research Opinion Poll 79% of voters think the REPS law, requiring renewables and efficiency, is a good idea. 75% support doubling amount of renewable power from alternative sources. 45% support using coal power to meet growing needs for energy & electricity. 46% support using nuclear power to meet growing needs for energy & electricity. Rep Dem Ind < 29 > 60 73 84 78 94 74 66 80 80 81 70 Rep Dem Ind Men Wom 57 37 41 51 40 56 38 49 59 36 Digging Deeper into Coal generational transition: 26% of 18 to 29 year olds support using coal to meet growing needs, compared to 52% of people 60 years and over. Fallon Research Poll, April 27-29, 2011 Poll results online at: http://bit.ly/norpig 37
NC s Clean Energy Projects - Buildings From the Mountains to the Coast Washington Montessori Public Charter School, Little Washington Boone Reedy Fork Elementary School, Greensboro
NC s Clean Energy Projects From the Mountains to the Coast Charlotte Food Lion at the Mayfair Plaza Shopping Center, Cary Kanuga Conference Center, Hendersonville
NC s Clean Energy Projects - Raleigh Electric Car Charging Station Raleigh Convention Center LEED & Solar Neuse River Wastewater Treatment Plant
Thank You! Paul Quinlan Managing Director NCSEA paul@enegync.org www.energync.org Follow NCSEA on Twitter: @nccleanenergy Do not replicate content without permission of NCSEA. 41