New Jersey Board Of Public Utilities Office of Clean Energy Air Innovations - Chicago August 10,2004...

New Jersey Board Of Public Utilities Office of Clean Energy

Air Innovations - Chicago August 10,2004 NJBPU - OCE

New Jersey’s Solar ProgramAn Integrated Approach

Plugging into the Sun for Clean Emission-free Energy

• New Jersey has Good Solar

• Relatively High Rates

• Persian Gulf of Flat Roofs

• Integrated Program to Support and Advance Solar

Why - Solar


• Societal Benefit Charges•Incentives and Financing

• Net Metering and Interconnection Standards

• Renewable Portfolio Standards

• Renewable Energy Certificates

New Jersey’s Integrated Approach


New Jersey’s Societal Benefits Charge


Non-By-passable charge on all electric use

Average Funding Level - $ 124 Million per year - 4th year75% for EE and 25% for RE$ 14/HH/yr

Rebate for Capital Cost< 10kW system up to 70 % rebate

Grants and long term financing for EE/RE projectsGrants and long term financing for RE Power Plants

• Up to 2 MW – 125% of Annual Use

• Small Commercial Business Up to 10 MW peak

• < 10 kW Inverter-based - No fee

• Reduce barriers

• Limit timeframe for review

New Jersey’s Net Metering and Interconnections Standards


New Jersey’s RPS

Renewable Portfolio Standard – Requirement that all suppliers provide a certain percentage of their electricity generated by renewable energy

Renewable Energy Certificate – Represents the attributes of the renewable energy separate from the electrons

Alternate Compliance Payment – Safety value


New Jersey’s RPS

• Doubled the Current RPS from 2% Class 1 in 2008 to 4% in 2008

• Established a Solar Set Aside of the Class 1 at 120,000 MWh (90 MW)

• Class 2 remains at 2.5%

• Established a 20% by 2020 Class 1 targetAir Innovations - Chicago August 10,2004 NJBPU - OCE

New Jersey’s RPSTechnology

• Class I Solar (PV), Wind, Landfill Gas, Sustainbly Grown and Harvested Biomass, Wave, Tidal.

• Class II Resource Recovery (MSWI) Small Hydro (< 30 MW)


New Jersey’s RPSPricing and Liquidity

• Class I REC Proxy $15/MWh - ACP $50/MWh• Solar REC Proxy $150/MWh – SACP $300/MWh

• Lifetime 1 year - June 1 – May 31 3 month true up period Air Innovations - Chicago August 10,2004 NJBPU - OCE

New Jersey’s RPS

Year Class 1 Solar Class 2 Total

% MWhX 1000

% MWhX 1000

% MWhX 1000

% MWhX 1000

2004 0.74 535 0.01 7.2 2.5 1810 3.25 2,352

2008 3.84 2,895 0.16 120 2.5 1,885 6.5 4,900

Best Engineering Estimate

2020 19.41 16,480 0.59 500 2.5 2,123 22.5 19,103

2003 Total Energy Usage 72,000,000 MWh increases at approx 1% per year


New Jersey’s RPSValue of RECs

YearClass 1 – Class 2 and Solar RECs

Solar RECS

2004 $ 14,009,400 $ 1,448,000

2008 $ 48,746,600 $ 15,080,000

2020 $ 131,275,800 $ 35,000,000


GHG Credits $25 - $10 $250 - $100

RPS Bill Cost to the NJ Customers

Year Household Commercial Industrial Rate

$ per year $/kWh

2004 $ 1 $ 10 $ 125 $ 0.00019

2008 $ 5 $ 50 $ 550 $ 0.00065

2020 $ 10 $ 120 $ 1400 $ 0.00155


• 3 MW Installed

• Over 30 MW Committed Funding

• Payments with SREC 5-7 years

• 100 – 250 MW by 2008 (REC price)

• $ 5.50 / HH / Yr - $20/ HH/ Yr

Results


Information on New Jersey’s Clean Energy Program: www.njcleanenergy.com

Evaluation Reports Rutgers’ Center for Energy, Economics and Environmental Policy (CEEEP)

http://policy.rutgers.edu/ceeep/images/NJ_REMA_Final_8-04.pdf

New Jersey’s Integrated Approach For Promoting and Advancing Clean Emission-free Solar Electric


NEXT STEPS

Generate Renewable HydrogenFrom Solar On-Site – Distributively Generated and Stored

Less Wires - More ReliabilityLess Pipes - More Security Less Mess - More Jobs

New Jersey’s Integrated Approach For Promoting and Advancing Clean Emission-free Solar Electric



James E. McGreevey, Governor NJ Board of Public Utilities

Office of Clean Energy

MAKE POWERFUL CHOICESMAKE POWERFUL CHOICES

New Jersey Board Of Public Utilities Office of Clean Energy Air Innovations - Chicago August 10,2004...

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