Alternative Energy Status: Western US
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Telephone 781-296-7525 Fax 781-894-4185
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781-296-7525
Alternative vs. Renewable energy
• Alternative Energy: energy derived from sources that do not use up natural resources or harm the environment, can include nuclear (Dictionary.com)
• Renewable Energy: any naturally occurring, theoretically inexhaustible source of energy, that is not derived from fossil or nuclear (Dictionary.com, IPCC Intergovernmental Panel on Climate Change)
• States have their own definitions: – WV count waste coal and tire derived fuel
– NC counts municipal solid waste
– OH counts advanced coal technology
– ND counts all hydro, MN counts any <100mw
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Alternative Energy Drivers
• State
– RPS (Renewable Portfolio Standards)
– Tax credits
– Grants, loans, rebates
• Federal
– Production tax credits
– Corporate depreciation
– Grants, loans
• Carbon Policy – REGGI (Regional Greenhouse Gas initiative)
– AB32 (CA carbon cap and trade program) • First auction is November 2012
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Wind Challenges PNW
• Over generation
• Wind Forecast Error
• Block Scheduling
Price Volatility
Over Generation in the PNW
• During the spring when demand is low and hydro and wind are strong BPA forces wind units off the grid
• Wind generators lost over 2.1 MM in tax and energy credits in 2011
• June 2011 Iberdrola, NextEra, Invenergy and Horizon wind file petition against BPA with FERC and suit in the Ninth Circuit Court for BPA to pay damages
• Dec 2012 FERC rules BPA curtailment of wind “Discriminatory”
• BPA now revising policy structure
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Wind Challenges CA
• Lack of peaking capacity
• Negative Pricing
• Volatility
• Escalation of retail rates?
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Summation/ Thoughts
• Watch CA as the Guinea Pig for alternative energy integration
• Aggressive development of wind has consequences – Market Regulators work slow
• The queue of wind development is massive
• Federal Production Tax Credit continuation
• Solar a better fit?
• Renewables marketed cheap/ What effect on retail rates?
• Power is Politics/ In the end the people will decide
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