Local Energy Choice with Community Choice Aggregation

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with Community Choice Aggregation Clean, Local Energy John Farrell, Director Energy Self-Reliant States and Communities program [email protected] 612-808-0888 Presentation on Feb. 10, 2012

Transcript of Local Energy Choice with Community Choice Aggregation

Page 1: Local Energy Choice with Community Choice Aggregation

with Community Choice Aggregation

Clean, Local Energy

John Farrell, DirectorEnergy Self-Reliant States and Communities program

[email protected]

Presentation on Feb. 10, 2012

Page 2: Local Energy Choice with Community Choice Aggregation

ILSR’s Unique Perspective

Centralized PowerYesterday Tomorrow

Transmission network

Distribution network

House

Storage

Local CHP plant

Commercialbuilding

Factory

Storage

Storage

Storage

Solar PV power plant

Windpowerplant

House with domestic CHP

Clean, local power

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Centralized Power

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CCAs Break Monopoly

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CCAs Lower Rates

Fulton, IL - 20%Oak Park, IL - 2¢/kWh

NOPEC, OH - 4-6%

REAP, RI - $18m saved over 10 yrs

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CCAs Green Electricity

Oak Park, IL - 400% more

NOPEC, OH - 50% moreMEA, CAup to 590% more

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Greater CCA Potential

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Total Economic Impact

CCAs Localize Electricityshould

^Local Ownership Boosts Impact of Renewables

Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

1.5x (low)

3.4x (high)

Absentee

Local

Local

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Solar

Wind

Coal

Natural Gas

0 2 4 6 8 10

Jobs per Megawatt

CCAs Localize Electricity

Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)

Construction, manufacturing and installationOngoing maintenance and fuel

should

^Local Ownership Boosts Jobs from Renewables

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Solar

Wind

Coal

Natural Gas

0 2 4 6 8 10 12 14 16 18 20

Jobs per Megawatt

CCAs Localize Electricity

Construction, manufacturing and installationOngoing maintenance and fuel

Local Ownership Boosts Jobs from Renewables

should

^

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CCAs Localize Electricity

Attitude towards increased use of local wind energy

No local ownership

Local ownership

0 25 50 75 100

very negative negative neutral positive very positive

45% positive

60% negative

Local Ownership Boosts Support for Renewables

should

^

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CCAs do Feed-in Tariffs

• Long-term, standard contract

• Fixed price

• Grid connection*

should

^

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CCAs do Feed-in Tariffsshould

^

Risk

Return

FIT

Auction

REC Market

low risk = low cost

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CCAs do Feed-in Tariffsshould

^

Risk

Return

Germany

U.S.$5.20/W

Avg. Cost of Solar (2011 3Q)

$2.80/W

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•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices•prevent blackouts•reduce pollution•create jobs

-20 cents

-15 cents

-10 cents

-5 cents

0 cents

5 cents

10 cents

Cost of solar Energy value Grid benefits Social benefits

CCAs Support DG

4 cents

$4/Watt

should

^

How the utility valuesdistributed generation

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•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices•prevent blackouts•reduce pollution•create jobs

-20 cents

-15 cents

-10 cents

-5 cents

0 cents

5 cents

10 cents

Cost of solar Energy value Grid benefits Social benefits

DG Grid Benefits

4 cents

8.5 cents$4/Watt But it’s

worth more

Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

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-20 cents

-15 cents

-10 cents

-5 cents

0 cents

5 cents

10 cents

Cost of solar Energy value Grid benefits Social benefits

DG Social Benefits

Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh

•avoided cost•on-site/near demand•lower transmission losses•reduce dist. system stress•hedge against fuel prices•prevent blackouts•reduce pollution•create jobs

12.5 cents

$4/Watt

and more

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How Munis Value DG6 cents per kWh

in addition to electricity

Palo Alto, CA, municipal utility

$0

$0.03

$0.06

$0.09

$0.12

$0.15

Brown energy replacementTime-of-deliveryEnvironmentalAvoided transmission accessAdditional local value

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CCA Landscape

Active CCAsNo active CCAs

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Clean Energy Potential

100% or more75 to 100%50 to 75%25 to 50%25% or less

31 states could be electricity self-reliant

Enormous

Energy Self-Reliant States, 2nd Edition | ILSR, 2010

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State Renewable Policy

Renewable mandate (29)Renewable goal (8)No RPS policy (13)

29 states have a clean energy mandate

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State Electricity Markets

Deregulated (13)Suspended (7)Regulated (30)

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State Electricity Markets

Deregulated + CCASuspended + CCARegulated (30)

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CCA Opportunities

burst of activity

“going Boulder”

“storm of interest”

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John Farrellenergyselfreliantstates.orgjfarrell@ilsr.orgjohnffarrell612-808-0888

Thank you!