Clean Energy Progress

Clean energy progress in Nevada and the West in 2011.
View more...
   EMBED

Share

Preview only show first 6 pages with water mark for full document please download

Transcript

CLEAN ENERGY PROGRESS IN NEVADA AND THE WEST Powering the clean energy economy. Dear Nevadans: Powering the clean energy economy is powering Nevada. Unlike other states in the west, Nevada does not have coal or natural gas reserves and we do not have enough water for nuclear energy development. In 2008, Nevada spent over $1.7 billion on purchasing fuel from other states. With the renewable energy and energy efficiency technology available today, it no longer makes sense for Nevada to continue our dependence on resources we do not have in our state. Fortunately, in 2011 projects supported by public and private investments laid the foundation to sustain a lucrative new industry already beginning to bloom in Nevada and the West. In “Clean Energy Progress,” we hope to give a snapshot of successful projects that have moved forward, why they moved forward, and how to further support this beneficial industry in Nevada and the region. It is not intended to be a full, comprehensive list, as the full picture would include hundreds of stories about clean energy’s progress throughout the year. I ask you to join Clean Energy Project, its board of directors, and most importantly its Nevada allies in supporting the future of Nevada by helping to power our clean energy economy. Lydia Ball, Executive Director, Clean Energy Project UTILITY-SCALE GENERATION Top row: Tuscarora Geothermal Power Plant (Ormat Technologies, Inc.), Amonix Solar Manufacturing Facility (Amonix) Bottom row: Crescent Dunes Solar Energy Project (Solar Reserve, LLC), Stillwater Solar-Geothermal Hybrid Power Plant (Enel Green Power) 3 UTILITY-SCALE GENERATION Nevada’s Clean Energy Economy is anchored by several large (utility)-scale generation projects that take advantage of the Silver State’s wealth of solar, geothermal, and wind resources to power the economy. Driven by public policies requiring the utilities to produce a percentage of their energy from renewable sources, and combining public and private investment to build this infrastructure, several projects broke ground, moved through construction, and neared completion in 2011. Several more secured financing, signed purchase agreements with utilities, and moved through planning stages, with some soon to break ground. Here are a few of the key projects that made progress in 2011: Stillwater Hybrid Geothermal/Solar Plant Company: Enel Green Power Location: Churchill County, near Fallon Description: In 2011 Enel added a large-scale solar project to its existing geothermal facility. The 24 MW solar PV installation will provide an energy supply for peak hours when the 47 MW Stillwater geothermal plant is dealing with maximum demand. Financing: $40.3 million in American Recovery and Reinvestment Act (ARRA) funding under the US Department of Energy (DOE) Section 1603 program Job creation: 150 installation jobs, 25 permanent operation jobs Customer: NV Energy Spring Valley Wind Company: Pattern Energy Group Location: White Pine County, 30 Miles East of Ely Description: Pattern Energy completed financing and began construction on the 150 MW wind farm, consisting of 66 Siemens turbines. Spring Valley Wind will be Nevada’s first utility-scale wind project and will power 45,000 homes. Financing: Privately funded, eligible for the Production Tax Credit (PTC) Job Creation: 225 construction jobs, 13 permanent operation jobs Customer: NV Energy Ormat Geothermal Power Generation Project Company: Ormat Technologies Location: Jersey Valley in Pershing County, McGinness Hills in Lander County and Tuscarora in Elko County Description: The project is expected to produce 121 MW of clean, baseload power from 3 geothermal facilities that will increase geothermal production in Nevada by 25% and power 88,000 homes. Financing: Partial loan guarantee of $350 million under DOE Section 1705 program Job Creation: 332 construction jobs, 64 permanent operation jobs Customer: NV Energy 4 Crescent Dunes Solar Energy Project Company: Solar Reserve LLC Location: Nye County, 14 miles Northwest of Tonopah Description: Crescent Dunes is a 110 MW concentrating solar power tower generating facility with molten salt as the primary heat transfer and storage medium, allowing for overnight energy generation. It includes 17,500 heliostats (mirror assemblies) that collect and focus the sun’s thermal energy to heat molten salt flowing through an approximately 640-foot tall tower. The facility will produce enough electricity to power over 43,000 homes. Financing: $737 million loan guarantee under DOE Section 1705 program Job Creation: 600 construction jobs, 45 permanent operation jobs Customer: NV Energy Silver State North Solar Project Company: First Solar Location: Clark County Description: 50 MW PV plant that will power 9,000 homes and generate $250,000 in property tax revenue annually to the county. Heralded to be the first large-scale solar project on public lands, this project is located next to NV Energy’s Walter M. Higgins Generating Station and will tie into the plant’s existing substation. Financing: $50 million in Recovery Act funding under the DOE Section 1603 program Job Creation: 300 construction jobs, 10 permanent operation jobs Customer: NV Energy Binary Geothermal Technology Facility Company: Terra-Gen Power and TAS Location: Beowawe, Nevada Description: Another “first” for Nevada, this innovative facility will generate renewable energy from waste heat in geothermal brine which will result in an extra 2 MW of generation for the plant, achieving an almost 20% increase in electrical capacity. Financing: $1.68 million in Recovery Act funding under the DOE Section 1603 program Job Creation: 19 jobs added or sustained during 2010 Customer: NV Energy 5 Amonix Solar Manufacturing Facility Company: Amonix, Inc. Location: North Las Vegas Description: In May, Amonix opened a 214,000 square foot facility in North Las Vegas, manufacturing concentrated photovoltaic (CPV) solar power systems. It will bring $580 million in overall economic development to the region over five years. On-site modules manufactured in the plant help generate power for the plant. Financing: $5.9 million clean energy manufacturing tax credit from Recovery Act under Section 48C program Job Creation: Over 333 permanent operation jobs Customer: Customers in Nevada and Southwestern states Lockwood Landfill Waste-to-Energy Company: Waste Management Location: Washoe County, East of Sparks Description: A garbage-to-energy plant that will use methane from decomposing trash to generate 3.2 MW of electricity, enough to power nearly 1,900 homes in the area. The plants will run 24 hours a day. Financing: Privately financed Job Creation: 30 construction jobs, 1 operational job Customer: NV Energy Fast Fact: Nevada is 2nd highest geothermal capacity in U.S. behind California (Source: Geothermal Energy Association) in per-capita installed solar capacity (Source: NV Energy) FAST FACT: Nevada is the #1 state 6 COMMUNITY-SCALE PROGRAMS Top row: Las Vegas City Hall (Clean Energy Project, Inc.), Clark County Government Center (Clean Energy Project, Inc.) Bottom row: Innovations Charter School (Ben Robertson of Clean Result), Jennifer Craig, IBEW Solar Installer (Clean Energy Project, Inc.) 7 COMMUNITY-SCALE PROGRAMS Thanks to rebate programs established by the legislature and federal incentives to assist homeowners, business owners, local governments, and community organizations in becoming energy producers themselves, communityscale clean energy projects have thrived in recent years. In addition to creating high-paying jobs in construction and installation, rooftop solar and wind turbines on homes, schools, and public buildings are creating strong markets and are rapidly driving down costs in these industries. Here are some of the programs bringing clean energy to a location near you: NV Energy RenewableGenerations The RenewableGenerations Program was created in 2003 by passage of AB 431, the “Solar Energy Systems Demonstration Program.” According to the DOE, “Rebates are now available for grid-connected PV installations on residences, small businesses, public buildings, non-profits and schools; small wind systems on residences, small businesses, agricultural sites, schools and public buildings; and small hydroelectric systems installed at grid-connected agricultural sites.” Renewable Generations was made permanent in 2007 and is instrumental in helping the utility meet its goals under Nevada’s renewable portfolio standards (RPS). According to NV Energy’s November 2011 RenewableGenerations report, there have been 1296 total solar electric projects installed on homes, small businesses, schools and other public buildings to date. These projects total over 26,173 kW and have received just over $112.5 million in rebates. NV Energy has also installed 6 solar hot water heating systems, awarding almost $17,000 in rebates to Nevadans. In addition, Southwest Gas’ “Smarter Greener Better” Solar Water Heating Program installed 36 residential and one public system, leading to 5,214 therms saved annually. In terms of wind generation, there have been 76 total projects to date; including 56 homes and small businesses in Northern and Southern Nevada. These wind projects total over 1100 kW and have received just over $3.1 million in rebates. In 2011, there were 392 projects installed through the SolarGenerations Program, producing 17,473.87 kW of capacity. This year there were also 20 WindGenerations projects producing 908.6 kW installed. (Sources: NV Energy, Southwest Gas) Bombard Renewable Energy Provides Nevada Non-Profits with Clean Energy At No Cost 2011 was a prolific year for photovoltaic installations at Bombard Renewable Energy (BRE). Perhaps one of BRE’s most prominent contributions to Nevada’s clean energy economy was accomplished via a unique partnership with Nevada Solar Solutions through the Zero Cost Energy Services Agreement Program. Beginning in May of 2010 and culminating in September of 2011, Bombard was able to complete 48 solar PV installations at 27 community schools, churches, and public buildings in Nevada. The scale of this project alone is worthy of recognition; however, what makes this project truly unique is the creative financing mechanism utilized to provide these systems at absolutely no cost to the participating nonprofits. The Zero Cost Energy Services Agreement Program is built around combining rebates provided through NV Energy’s solar rebate program with federal tax benefits made possible by the Recovery Act. The solar systems total 3.2 MW (approximately 1/6th of the entire state-wide RenewableGenerations capacity added in 2011) and are saving community non-profits over half a million dollars in energy costs each year - allowing these important groups to increase the services they provide to our community. 8 In addition to the cost-saving benefits to these community groups, Bombard’s program is a job creator, providing 50 full-time Nevada IBEW electricians with good, clean, high-quality jobs for over a year. Furthermore, the program created even more jobs for the IBEW workers in Tennessee that manufactured the Sharp Solar PV systems used, as well as full-time administrative, design, engineering and project management staff. The systems range in size between the large, 318 kW installation for Opportunity Village to a 15 kW system installed at Reformation Lutheran Church. (Source: Bombard Electric LLC) Rooftop Solar Challenge A team led by the Nevada State Office of Energy was selected as one of 22 winners of the Department of Energy’s (DOE) Rooftop Solar Challenge under the DOE’s Sun Shot Initiative aiming to make solar energy cost competitive with other forms of energy by the end of the decade. Nevada’s $765,000 prize will go towards the Nevada Rooftop Solar Initiative (NRSI), which aims to install panels on at least five percent of Nevada’s residences and businesses by 2020. The grant will help streamline installation and improve cost-effectiveness of residential and commercial solar panels, while creating or retaining more than 1,000 jobs. (Source: Nevada State Office of Energy) Fast Fact: Nevada is 2nd highest geothermal capacity in U.S. behind California FAST FACT: Nevada has seven times the concentration of jobs in green architecture and building (Source: Geothermal Energy Association) (“Sizing the Clean Energy Economy,” Brookings Metropolitan Policy Program) Fast Fact: Nevada is 2nd highest geothermal capacity in U.S. behind California FAST FACT: Nevada is the #1 state (Source: Geothermal Energy Association) in per-capita green building space: 10.92 square feet per capita LEED-certified green building space (Source: U.S. Green Building Council) 9 TRANSMISSION Right: One Nevada Transmission Line (ON Line) (NV Energy) 10 TRANSMISSION One of the significant obstacles to building the clean energy economy is that the best resources are often located far from where people live and work. Add in the intermittency of some renewable sources, and a 21st century power grid capable of transmitting and balancing energy from an advanced system is necessary. The Recovery Act funded new transmission lines and smart meters that will help utilities, and regions, ensure that power supplies match demand at the lowest costs to ratepayers. Many of these upgrades began in 2011, as well as plans to explore transmission across state lines that will allow Nevada to export some of its vast clean energy resources to neighboring states. Projects and programs that made an impact include: One Nevada (ON) Line: Company: LS Power and NV Energy Location: Ely, Nevada to Harry Allen Substation in Clark County Description: A 235-mile, 500 kv transmission line that broke ground in October of 2010 and is scheduled to be completed in 2013. It will connect the Northern and Southern energy grids in the state, leading to lower operating costs through better balance of geothermal and solar resources, while also facilitating clean energy development in the eastern/central part of the state. It is the largest transmission project to receive funding from the DOE’s Loan Guarantee program. Financing: $343 million loan guarantee under DOE Section 1705 program Job Creation: 400 construction jobs, 15 permanent operation jobs Customer: NV Energy NV Energize Program Company: NV Energy Location: NV Energy Service Territory – Northern and Southern Nevada Description: The NV Energize project includes deployment of smart meters and communications infrastructure for all residential and commercial customers in NV Energy’s service territory, bringing Nevada’s electric infrastructure into the 21st century. The project includes a new meter data management system (MDMS) and advanced demand response management systems (DRMS). These energy management systems link control of the electric transmission, distribution, and generation facilities between the northern and southern Nevada grids, thereby consolidating operations statewide across all of NV Energy’s service territory. By empowering ratepayers with more control of their bills, and helping the utility reduce operations costs with a more balanced approach to meeting energy demand in Nevada, NV Energize will lead to reduced consumer costs and allow for more renewable energy on the grid system. Financing: $137,877,906 of Smart Grid Investment Grants under the Recovery Act was given to NV Energy, Inc. Total investment - $275,755,812. (Source: NV Energy) 11 Renewable Transmission Initiative (RTI) After NV Energy first proposed out-of-state transmission plans in the 2011 state legislature, they released the Renewable Transmission Initiative (RTI) process to determine which of the state-identified renewable energy zones (REZs) are the most desirable for development of transmission infrastructure and clean energy export from those zones. The utility identified four “Points of Receipt” (PORs) and three “Points of Delivery” (PODs) and is now soliciting statements of interest (SOIs) from participants that may be interested in exporting to and from these areas. (Source: NV Energy) 12 ENERGY EFFICIENCY Left and right: Building America Retrofit Alliance (Clean Energy Project, Inc.) 13 ENERGY EFFICIENCY The quickest, and cheapest, way to achieve our clean energy goals is to reduce the amount of energy we use to power our everyday quality of life. Using existing technologies, the state’s energy use could be reduced by nearly a third, while creating high-paying jobs in building retrofits and design. Because much of Nevada’s housing and building stock was built quickly and without regard to efficiency, there are significant opportunities to upgrade these buildings and cut down energy use. Thanks to certification programs and efficiency funding from the Department of Energy and the Recovery Act, dozens of projects and thousands of rebates delivered in 2011 increased efficiency throughout the state: Leadership in Energy and Environmental Design (LEED) Few people know that Nevada is home to dozens of high-performance buildings, including some of the largest in the country, that achieved LEED certification. In fact, we lead the nation at 10.92 square feet per capita. 2011 saw the addition of one LEED Platinum, eight LEED Gold, six LEED Silver, and three LEED certified facilities in the state. (Source: http://www.usgbcnv.org/leed-in-nevada) Building America Retrofit Alliance The Building America Retrofit Alliance (BARA) is a DOE initiative partner that focuses on the home renovation and retrofit market, emphasizing home performance improvements. Nevada Energy Star Partners-Green Alliance, a local coalition of green-minded organizations, participated in the BARA program by utilizing two foreclosed properties from the City of Las Vegas’ Neighborhood Stabilization Program. These 1980’s-era homes were retrofitted to be as energy efficient as possible during trainings of local contractors and construction workers on ENERGY STAR appliance options, efficient HVAC systems, insulation, etc. Once the retrofits are completed in early 2012, the homes will be used as models to educate homeowners on what measures can be taken to improve the health, comfort and energy performance of their own homes. This effort’s multi-pronged approach of home retrofit, green job training and public education is exemplary of the methods that help the Silver State maintain its leadership position in energy efficiency. (Source: Nevada Energy Star Partners) 14 State Energy Program – American Recovery and Reinvestment Act The State Energy Program (SEP) was awarded $34,714,000 from the American Recovery and Reinvestment Act (ARRA) in 2010 for energy efficiency projects and upgrades. Much of the construction, installation, and renovation work occurred in 2011. The projects funded are expected to create 242 new positions and retain 175 existing jobs. According to the Nevada State Office of Energy, the program made great progress in 2011: • Clean Energy Projects: Nevada was the first state to allocate all of its funding under an $8.2 million revolving loan fund for renewable energy developers. Projects assisted include three anaerobic digesters in Lyon and Churchill Counties, four wind turbines in Reno and Washoe Valley, two hydropower plants in Kingston and Nye County, and six solar PV systems in Washoe and Clark Counties, including the Cornerstone Christian Academy and Good Shepherd Lutheran Church and School in Las Vegas. State Buildings: Energy efficiency upgrades and renewable energy projects for existing state buildings will save the state 5,700,000 kWh annually. $7 million funded construction of 124 projects, and created or retained 75 jobs. Schools: School districts throughout the state will save 7,721,448 kWh of energy annually, thanks to $9.5 million in energy efficiency projects, which created or retained 75 jobs. Local governments: Cities and counties will save $128,954 annually through LED upgrades to street lighting and signals, at a cost of $1.5 million. • • • (Source: Nevada State Office of Energy) Local Energy Grants – American Recovery and Reinvestment Act The American Recovery and Reinvestment Act (ARRA) made grants and programs available for local cities and counties, including Weatherization grants, Energy Efficient and Conservation Block Grants (EECBG), and New Clean Renewable Energy Bonds (NCREB). While many were awarded in 2009-10, many of the projects helped by these funds moved forward in 2011. Here are a few highlights: • Clark County: Clark County was awarded $7.6 million in EECBG funding and in 2011 completed efficiency retrofits on two county facilities, while beginning work on two more. Additionally, two solar PV projects were completed on county properties, and the county made significant progress in replacing 5,400 streetlights with energy-efficient lighting. These projects created 53 jobs. (Source: Recovery.gov) City of Las Vegas: Las Vegas received $4.97 million in New Clean Renewable Energy Bonds (NCREB) under ARRA, and in 2011 moved forward with its second phase of solar installations atop covered parking structures. By years end, the city completed 15 projects at community centers, fire stations, parks, and the new City Hall, while creating or retaining 41 jobs. The panels will provide 10 to 60 percent of energy demand at each facility. (Source: City of Las Vegas) City of North Las Vegas: North Las Vegas is using $1.9 in EECBG funds to move 12 efficiency-related projects forward. In 2011 these included electric vehicle charging stations, solar PV installations at the new City Hall, and residential retrofits through Home Free Nevada. (Source: Recovery.gov) City of Henderson: The city received $2.3 million in EECBG funds and $1.1 in weatherization funds through a state grant to perform energy efficiency retrofits at city facilities, install solar panels at a police substation, and assist individuals with home retrofits. Most of the work was completed by the end of 2011. (Source: Recovery.gov) City of Reno: Reno received $2.1 million in EECBG funds, and leveraged the funds to perform energy efficiency retrofits and solar PV and wind installations now under construction, creating 21 jobs. (Source: Recovery.gov) • • • • 15 WORKFORCE EDUCATION Left: Jaime Cruz, Workforce Connections (Clean Energy Project, Inc.) Right top: Jeff Pinster, installing solar on the Windmill Library (Clean Energy Project, Inc.) Right bottom: Solar Installation Training (Clean Energy Project, Inc.) 16 WORKFORCE EDUCATION An important factor in the success of the clean energy economy is developing a workforce capable of building and maintaining renewable capacity while reducing energy waste. In order to train the 21st century workforce in clean energy and efficiency, the U.S. Department of Energy and Department of Labor issued several grants and funding from the Recovery Act to create programs to give Nevada’s workforce the tools to succeed in this new industry. A few of the new programs in 2011 included: National Geothermal Academy at UNR Founded in 2011, the National Geothermal Academy (NGA) is the first geothermal academy of its kind in the United States, and offers an 8-week course for 40 students selected from around the country. The NGA is a consortium of several leading geothermal research universities and is hosted by University of Nevada, Reno (UNR), which was awarded a $995,000 grant from the Department of Energy to develop and operate the Academy. (Learn more at: www.unr.edu/geothermal/NGA.htm) Geothermal Plant Operator Program at TMCC Truckee Meadows Community College (TMCC) secured $500,000 from the Department of Energy to establish a program to train geothermal plant operators, beginning in early 2012. According to the Geothermal Energy Association, every megawatt of geothermal creates 1.7 operator jobs. Given the thousands of megawatts currently in development in Nevada, nearly 5,000 jobs could be created and these workers will need such training. (Learn more at: www.tmcc.edu/geothermal) Nevada State Energy Sector Partnership The Nevada State Energy Sector Partnership (SESP) is funded by a grant from the Department of Labor through the American Recovery and Reinvestment Act (ARRA). SESP provides programs and services to train Nevada’s current and future workforce for jobs in the green economy in three sectors: Job Seekers, Incumbent Workers, and Youth. The program will run through 2013. • Job Seekers: This grant strategy was implemented to provide an integrated system of services to assist the unemployed, underemployed and dislocated workers with a goal of training and/or placing 610 job seekers. As of the end of 2011, 250 participants have been trained and/or placed into employment, representing 42% of total projected number of participants. Incumbent Workers: This grant strategy was implemented to deliver training courses for employers who wish to upgrade the skills of their existing employees. The goal is to ensure that current employees can be more retainable, promotable and valuable to their employers with an overall goal of training 1,500 workers statewide. As of the end of 2011, 300 workers in southern NV, and 250 workers in northern NV, representing 37% of the total projected number of participants, were trained in energy assessment and efficiency improvements as well as green manufacturing, distribution, IT processes, and horticulture. Youth: This grant strategy was implemented to train the future workforce of Nevada by introducing young people, ages (14-21) to green career pathways. An educational program, entitled “What’s It Mean To Be Green?” has been developed that introduces youth to the basic principles of sustainability, energy efficiency, renewable energy, resource conservation, and green design/construction. The goal is to train 1,390 youth statewide through the program. As of the end of 2011, 6 Workforce Investment Act (WIA) funded youth serving agencies, 7 Clark County School District High Schools, and 5 community based organizations are in different stages of implementing the program and working to reach out to students and teachers. The currently identified participant pool is 700 youth, representing 50% of the total projected number of participants. (Learn more at: www.nvsesp.org) • • 17 POLICY UPDATES / REGIONAL SUCCESS Top row: Western Governors Panel, National Clean Energy Summit 4.0 (Clean Energy Project, Inc.) 18 POLICY UPDATES Federal policy initiatives unveiled in 2011 will help speed up development of utility-scale solar energy projects on public lands, while also bringing order to regional planning efforts to share clean energy resources across state lines. Here in Nevada, the Governor established a task force to explore Nevada’s potential for success in a regional clean energy market. Solar Energy Zones The Obama administration revised their plans to identify “solar energy zones” in six western states, including five in Nevada. The US Department of the Interior committed 60,400 acres in those zones for solar development based off the potential for development and limited environmental impacts. (Source: US Department of the Interior) Nevada State Office of Energy - New Energy Industry Task Force The New Energy Industry Task Force, announced November 2011, will examine energy transmission issues and assess a regional market for Nevada’s renewable energy resources. The Nevada State Office of Energy and New Industry Task Force will coordinate the efforts of the task force with other state, regional, and federal organizations to achieve several goals, including identifying and establishing corridors for the transmission of electricity in Nevada, recognizing the renewable energy zones adopted by the Public Utilities Commission of Nevada (PUCN); promoting the development of transmission facilities and renewable energy resources in Nevada and neighboring states that is reasonable, considers the impacts to Nevada citizens, and creates an environment that invites development; coordinating with stakeholders on the development of regional transmission planning and cost allocation strategies for interstate transmission facilities; and developing a business case to develop Nevada’s renewable resources and related industries with the lowest possible risk to ratepayers. (Source: Nevada State Office of Energy) Clean Energy Project expects that the task force will fulfill Governor Sandoval’s vision for Nevada becoming the “Clean Energy Capital of the World.” FERC Order 1000 The Federal Energy Regulatory Commission (FERC) released new guidelines for transmission planning. It lays out new requirements for regional planning and cost allocation principles that focus on beneficiaries, while also opening up competition for development of new transmission capacity. The new guidelines lay out a framework within which Nevada and the region can better plan for interstate transmission and integration of renewable and intermittent energy resources, keeping costs low for ratepayers. (Source: Federal Energy Regulatory Commission) Fast Fact: Nevada is 2nd highest geothermal capacity in U.S. behind California FAST FACT: Nevada’s Association) (Source: Geothermal Energy5.8 percent annual growth rate in green jobs from 2003 to 2010 was eighth highest in the nation (Source: “Sizing the Clean Energy Economy,” Brookings Metropolitan Policy Program) Fast Fact: Nevada is 2nd highest geothermal capacity in U.S. behind California FAST FACT: Northern Association) (Source: Geothermal EnergyNevada’s geothermal jobs density is nearly 100 times the national average (Source: “Sizing the Clean Energy Economy,” Brookings Metropolitan Policy Program) 19 REGIONAL SUCCESS While new policies began to take shape in 2011, several other events advanced Nevada’s move into a regional clean energy market in the past year. A new California law and the National Clean Energy Summit inspired conversations between the states about how to find regional solutions to meeting our energy needs with renewables, while one Nevada utility took major steps to start sharing its resources with California by the end of the year: Valley Electric Association Joins California Independent System Operator The Valley Electric Association (VEA) became the first out-of-state member of the California Independent System Operator (CAISO) balancing authority area in California, which operates 80 percent of the power grid in the Golden State. Approved by the Federal Energy Regulatory Commission (FERC) in late 2011, the new agreement allows VEA to transport renewable energy resources to the California market, which instituted a 33% Renewable Portfolio Standard in 2011. The agreement, which will go into place January 1, 2013, is expected to help stabilize energy prices for customers in both states while driving further renewable energy development. (Source: California ISO) Western Governors Discuss Regional Clean Energy Markets At the National Clean Energy Summit 4.0 (NCES), Governors Brian Sandoval of Nevada, Jerry Brown of California, and Christine Gregoire of Washington talked about their state’s renewable energy efforts and the potential for regional cooperation in clean energy markets. All three states boast clean energy goals and are determined to develop their own clean energy industries, yet want to ensure reliability and affordability. Governors Brown and Sandoval resolved to study transmission issues between the states, while Brown called for consistency of policy at the local and federal level and promised to crush the opposition from older, more polluting fuels. CEP looks forward to a long and productive working relationship between the states moving into 2012 and beyond. (More info at: cleanenergysummit.org) California’s RPS and its impacts on Nevada Generation As of December 15, 2011, The California Public Utilities Commission (CPUC) passed a decision implementing content categories for the state’s Renewable Portfolio Standard requiring California retail energy providers to obtain 33% of their retail energy sales from eligible renewable sources by 2020. This rulemaking is significant because it impacts market availability of RPS projects through establishing a three-bucket framework for this procurement: 1. In-State or In-State Equivalent Products – Beginning in 2013 as a majority of the REC market share and increasing to 75% by 2017, these Bucket 1 transactions have a competitive advantage over Bucket 2 and 3 transactions that will ultimately only comprise up to 25% of the market. To qualify as a Bucket 1 transaction, RECs bundled with renewable energy must either be generated within a California balancing authority or, if generated outside, must be scheduled into one via transmission. Firmed and Shaped Products - Bundled energy and REC transactions that provide incremental electricity. Unbundled RECs and Other Products – All other RPS products such as unbundled RECs, DG, etc. (For more information: www.cpuc.ca.gov) 2. 3. National Geothermal Summit The Geothermal Energy Association held their first-ever national event in Reno in August. The GEA held the event in Northern Nevada due to the area’s dense cluster of geothermal companies, existing project sites, new educational programs such as the National Geothermal Academy at University of Nevada, Reno, and dozens of projects in various stages of development, establishing the region as the nation’s premier hub for the industry. (Source: National Geothermal Association) 20 CEP POLICY RECOMMENDATIONS 21 CEP POLICY RECOMMENDATIONS Clean Energy Project (CEP) supports policies that cut tax burdens on clean energy development and attract private investments in the industry, keeping Nevada and the US competitive in the market. Our federal tax policies for clean energy development have been summersaulting on an on-again, off-again cycle. As any businessperson will tell you, having inconsistent policies increases risks to a level too high for growth in the industry. The lack of clear, consistent policies has led to the lack of investments in domestic production of clean energy. This has given our competitors more time to leap ahead of the US in the 21st century clean energy global economy. The US must demonstrate our dedication to the clean energy economy by implementing or extending the following policies at the federal level: 1. Production Tax Credit (PTC) –The PTC is based on the electricity generated from a project, meaning for every electron that is created, the project gets a tax credit. The PTC is most beneficial for wind generation but also valuable for geothermal, biomass and small hydroelectric projects. The sustained growth of the wind industry, employing over 85,000 people, has been directly attributed to the PTC for wind. (Source: Center for American Progress) Investment Tax Credit (ITC) – The ITC is a tax credit that is given at the beginning of a project based on the initial investment for the project. The ITC is mostly used on solar power, where the credit is worth 30% of the initial investment; however, the project is not allowed to claim other tax credits for the life of that specific project. This government investment has contributed to the creation of 100,000 jobs, over 5,000 businesses, and the cost of solar decreasing over 30%. (Source: Solar Foundation) Department of Energy Treasury Cash Grant (DOE 1603 Program) – The 1603 Program allowed PTC technologies eligible for the ITC to receive a grant instead of a tax credit. Project developers could get a cash grant from the Treasury for 30% of their initial investment in their project, giving access to much-needed cash and allowing for a reinvestment of those funds. Federal Energy Efficiency Resource Standard (EERS) – A federal EERS would work similarly to Nevada’s Renewable Portfolio Standard (RPS) law, where there is a minimum level of energy efficiency savings achieved by helping customers reduce energy use through efficiency programs, including rebates and other incentives. McKinsey & Company found that our nation wastes $130 billion annually on energy costs from inefficient buildings and appliances, which could cost-effectively be saved using today’s existing technology. (Source: McKinsey & Company) In effect, a federal EERS would complement existing state-level energy efficiency standards by setting a national goal for energy savings that would be implemented over a specific period of time. 2. 3. 4. (continued) 22 At the regional level, Nevada has the opportunity to be the heartbeat of the regional clean energy economy or the donut hole it merely passes through. Luckily, our state leaders have already decided to be the former. Developing Nevada’s Clean Energy Resources, CEP and McKinsey & Company’s study published in 2010, found many positive economic benefits to Nevada’s existing clean energy development plan. We found that the current path of renewable development and energy efficiency will increase state GDP by $256 million by 2025, generate thousands of jobs in renewable generation and energy efficiency measures and actually decrease household energy bills. However, we also found that without a strategy of selling energy outside of the state, Nevada would not be taking full advantage of the opportunity and would start to see a decrease in job creation in 2025. In order to tap into the regional market, Nevada should implement the following policies and goals to continue the establishment of a clean energy economy: 1. 2. 3. 4. 25% Renewable Portfolio Standard by 2025 that is only met by renewable energy. No portion of the standard is met by energy efficiency. Create a goal of at least 3000 GWhs of renewable export by 2025. Create a Energy Efficiency Resource Standard of 10% by 2025. Add an additional 400 miles of 350 MW transmission lines by 2025. According to CEP and McKinsey & Company’s study, if this plan is achieved Nevada would see the following benefits: 1. 2. 3. Increase in Nevada Gross Domestic Product by $540 million. Creation of 9,000 jobs. A decrease in household energy bills by ~ $40 a year. To read the full report, go to www.cleanenergyprojectnv.org Fast Fact: Nevada is 2nd highest geothermal capacity in U.S. behind California FAST FACT: Nevada has the 2nd highest geothermal capacity in U.S. behind California (Source: Geothermal Energy Association) (Source: Geothermal Energy Association) 23 cleanenergyprojectnv.org