Professional Documents
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Ted Bronson
Power Equipment Associates, for US Environmental Protection Agency
CHP and Sustainability Workshop – The role of CHP in Florida’s Energy Future
August 10, 2008
Overview of Presentation
Introduction
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What is Clean Energy?
• Clean energy includes demand- and supply-side
resources that deliver clean, reliable, and low-cost ways
to meet energy demand and reduce peak electricity
system loads. Clean energy resources include:
–Energy Efficiency reduces demand for energy and peak
electricity system loads. Common energy efficiency
measures include hundreds of technologies and processes
for practically all end uses across all sectors of the
economy.
–Renewable Energy is partially or entirely generated from
non-fossil energy sources. Renewable energy definitions
vary by state, but usually include solar, wind, geothermal,
biomass, biogas, and low-impact hydroelectric power.
–Combined Heat & Power, also known as cogeneration,
is a clean, efficient approach to generating electric and
thermal energy from a single fuel source. Inherently an
energy efficiency measure.
Clean Energy Benefits
Clean energy can reduce electricity demand and meet load growth
to help address many state energy challenges
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Standard Interconnection Encourages
Clean Energy
1.http://www.naruc.org/associations/1773/files/dgiaip_oct03.pdf
2.http://www.energetics.com/madri/pdfs/inter_modelsmallgen.pdf
Examples of current “State of the Art”
Interconnection Rules
• The Oregon PUC is moving forward with uniform
interconnection technical standards, procedures and
agreements
• Process started in 2006 with the MADRI model rule -
year-long stakeholder process
• Currently, a draft Standard Small Generator Rule is
open for comment
• There have been several key improvements to the
MADRI model rule: "field certification", non-inverter
based Level 2 fast tracking up to 2 MW, and an
increase of Level 1 to up to 25 kW
• http://www.puc.state.or.us/PUC/admin_rules/intercon.shtml
Examples of current “State of the Art”
Interconnection Rules (2)
• Maryland PSC interconnection standards;
– Built on Oregon’s draft rule
– Standard interconnection applications, agreements, and
reasonable timelines for application approval have been
drafted
– Four levels of interconnection and systems up to 10 MW
would be allowed to interconnect
– For each interconnection level, the PSC has drafted well-
defined technical and procedural requirements, along with
reasonable application fees
Florida’s status on interconnection
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Standby Rates
70%
62.5%
60%
50%
37.5% 42.3%
40%
30%
20.0%
20%
13.0%
10%
0%
Mid-Atlantic Midwest New Southeast West
England
Results: Frequency of Demand Based
Standby Rates
70%
62.5%
60%
53.8%
50%
37.5%
40%
30.0%
30%
21.7%
20%
10%
0%
Mid-Atlantic Midw est New England Southeast West
Innovative Standby Rate Elements (2)
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Renewable Portfolio Standards (RPS)
and Clean Energy
• Policy Advantages:
– Due to market-based approach, has potential to achieve policy
objectives efficiently and at relatively modest cost (ratepayer
impacts generally range from less than 1% increases to 0.5%
savings).
– Spreads compliance costs among all customers.
– Functions in both regulated and unregulated state electricity
markets.
– Provides a clear and long-term target for clean energy generation
that can increase investors’ and developers’ confidence in the
prospects for renewable energy.1
1. Provided the state sends strong signals that this is a policy that will last.
States With RPS Requirements (1 of 2)
Through August 2008, RPS requirements or goals have been established in
32 states plus the District of Columbia
ME: 30% by 2000
MN: 25% by 2025 VT: (1) RE meets any 10% by 2017 - new RE
increase in retail sales by
(Xcel: 30% by 2020)
*WA: 15% by 2020 2012; (2) 20% by 2017 ☼ NH: 23.8% in 2025
ND: 10% by 2015
WI: requirement varies by MA: 15% by 2020 +
utility; 10% by 2015 goal 1% annual increase
MT: 15% by 2015 (Class I Renewables)
OR: 25% by 2025 (large utilities)
5% - 10% by 2025 (smaller utilities) RI: 16% by 2020
SD: 10% by 2015
CT: 23% by 2020
☼ *NV: 20% by 2015 ☼ OH: 25%** by 2025
*UT: 20% by 2025 IA: 105 MW ☼ NY: 24% by 2013
IL: 25% by 2025 ☼ NJ: 22.5% by 2021
☼ CO: 20% by 2020 (IOUs)
CA: 20% by 2010 ☼ PA: 18%** by 2020
*10% by 2020 (co-ops & large munis) MO: 11% by 2020
☼ MD: 20% by 2022
☼ NC: 12.5% by 2021 (IOUs)
☼ AZ: 15% by 2025 10% by 2018 (co-ops & munis) ☼ *DE: 20% by 2019
☼ DC: 11% by 2022
☼ NM: 20% by 2020 (IOUs)
10% by 2020 (co-ops) *VA: 12% by 2022
• HB 7135 cont’d:
• An appropriate period of time for which RECs may be used for
purposes of compliance with the RPS.
• A means of ensuring that energy credited toward compliance with the
provisions of the RPS not be credited toward any other purpose.
• Development of procedures to track and account for RECs, including
ownership of RECs that are derived from a customer-owned renewable
energy facility as a result of any action by a customer of an electric
power supplier that is independent of a program sponsored by that
supplier.
• Provides that the rule may give added weight to energy provided by
wind and solar PV over other forms of renewable energy.
• Requires the PSC to present the draft rule for legislative consideration
by February 1, 2009.
• Authorizes the PSC to approve projects and power sales agreements
with renewable power producers, and the sale of RECs which are
needed to comply with the RPS.
• Directs municipal electric utilities and rural electric cooperatives to
develop standards for the promotion, encouragement, and expansion of
the use of RE resources and energy conservation and efficiency
measures.
EPA RPS Resources
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EPA and Combined Heat and Power
Ted Bronson
Power Equipment Associates
President
(630) 248-8778
TLBronsonPEA@aol.com
www.peaonline.com