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International Energy Policy Trends. Dennis Scanlin Appalachian State University March 2011. Energy Policy Trends. Renewable energy policy is the principal driver of the growth in renewable energy use. Regulatory Policies Incentive Policies Disincentive Policies

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international energy policy trends

International Energy Policy Trends

Dennis Scanlin

Appalachian State University

March 2011

energy policy trends
Energy Policy Trends
  • Renewable energy policy is the principal driver of the growth in renewable energy use.
    • Regulatory Policies
    • Incentive Policies
    • Disincentive Policies
    • Feebates (combined fee & rebate program)
  • DSIRE data base good source for information about US policies
regulatory policies
Regulatory Policies
  • Renewable Portfolio Standards
  • Permitting Policies
  • Zoning Ordinances
  • Building Codes & Sustainable Building Requirements
  • Equipment & Installer Certification programs
renewable portfolio standards rps
Renewable Portfolio Standards (RPS)
  • Mandated requirement that electric utilities source a portion of their electricity supplies from renewable energy sources
    • Australia, Japan, Korea, Sweden, & US
slide7

RPS Policies

www.dsireusa.org / March 2011

ME: 30% x 2000

New RE: 10% x 2017

VT: (1) RE meets any increase in retail sales x 2012; (2) 20% RE & CHP x 2017

WA: 15% x 2020*

MN: 25% x 2025

(Xcel: 30% x 2020)

MT: 15% x 2015

NH: 23.8% x 2025

MA: 22.1% x 2020 New RE: 15% x 2020(+1% annually thereafter)

MI: 10% + 1,100 MW x 2015*

ND: 10% x 2015

OR: 25% x 2025(large utilities)*

5% - 10% x 2025 (smaller utilities)

SD: 10% x 2015

WI: Varies by utility; 10% x 2015 statewide

RI: 16% x 2020

NY: 29% x 2015

CT: 23% x 2020

NV: 25% x 2025*

IA: 105 MW

OH: 25% x 2025†

PA: ~18% x 2021†

CO: 30% by 2020(IOUs)

10% by 2020 (co-ops & large munis)*

IL: 25% x 2025

WV: 25% x 2025*†

NJ: 22.5% x 2021

CA: 33% x 2020

KS: 20% x 2020

UT: 20% by 2025*

VA: 15% x 2025*

MD: 20% x 2022

MO: 15% x 2021

DE: 25% x 2026*

AZ: 15% x 2025

DC

OK: 15% x 2015

NC: 12.5% x 2021(IOUs)

10% x 2018 (co-ops & munis)

DC: 20% x 2020

NM: 20% x 2020(IOUs)

10% x 2020 (co-ops)

PR: 20% x 2035

TX: 5,880 MW x 2015

HI: 40% x 2030

29 states + DC and PR have an RPS

(7 states have goals)

Renewable portfolio standard

Minimum solar or customer-sited requirement

*

Renewable portfolio goal

Extra credit for solar or customer-sited renewables

Solar water heating eligible

Includes non-renewable alternative resources

north carolina renewable energy and energy efficiency portfolio standard reps
North Carolina Renewable Energy and Energy Efficiency Portfolio Standard (REPS)

August 2007

First state in the Southeast

12.5%by 2021 from renewable energy resources or energy efficiency measures.

Rural electric cooperatives and municipal electric suppliers are subject to a 10% REPS requirement

Approx 20,000 Million KWH/year

reps requirements for ious
REPS Requirements for IOUs
  • Acceptable methods of attaining goals
  • Generate at new RE facility
  • Use a RE resource to generate electric power
  • Reduce consumption (up to 25% up to 2021 & 40% after)
  • Purchase power from new RE facility (outside state)
  • Purchase RE certificates (up to 25%)
  • Requirements for solar & biomass
nc reps
NC REPS

140 applications received by PUC since October, 2008

107 facilities registered

2 KW to 300,000 KW

39 hydro projects

27 PV projects

17 wind projects

7 solar thermal

6 landfill gas

8 biomass

2 swine & poultry waste

2,980,327 KW registered with NC Utilities Commission

permitting of wind energy facilities house bill 809 senate bill 1068
Permitting of Wind Energy FacilitiesHouse Bill 809; Senate Bill 1068

> 2 MW

Permitting requirements defined

$2,000 application fee

Impact assessment work required

Public hearing(s) required

Defines who gets to evaluates permit application and decide whether a permit is issued or not.

model county ordinance for nc
3 size classifications

Under 20 kW

20 kW to 100 kW

Over 100 kW

Setbacks from 1.1 to 2.5 times height of turbine

Includes standard definitions, permit application recommendations, noise & shadow flicker maximums & decommissioning

Model County Ordinance for NC
codes sustainable building requirements
Codes & Sustainable Building Requirements
  • Requirements for new buildings
    • Australia, Canada, Switzerland, Denmark, Germany, Spain, Korea, Portugal, Turkey, & US
    • New public buildings in Korea must spend 5% of budget installing RE
incentives
Incentives
  • Feed-In Tariffs (FIT)
  • Rebates
  • Tax Credits
  • Net Metering
  • Low Interest Loans
  • Grants
  • Accelerated Depreciation
feed in tariffs fit
Feed-In Tariffs (FIT)
  • Government guarantees a high price for green energy with a long term contract
  • Most common incentive program
  • Australia, Austria, Canada, Switzerland, Germany, Spain, France, Israel, Italy, Japan, Korea, Portugal, Netherlands, Sweden, US
example fits
Example FITs
  • Canada’s 2009 program provides 20 year contracts for up to $.80/kWh. (price varies by energy source)
  • Italy’s 2007 program pays up to $.52 - $.67/kWh with a long term contract and quota
  • Israel’s 2009 program pays $.55/kWh with quota
rebates
Rebates
  • Provides cash back after the completion of project (50% of installed cost common)
    • California- $2.50/watt for PV & Solar thermal
    • New York - $1.75/watt for PV with maximums; $3.50 per kWh for expected annual wind energy production up to 10,000 kWh and less after that
    • Australia provides a 50% rebate
slide20

Rebate Programs for Renewables

www.dsireusa.org / March 2011

DC

23 states + DC & PR

offer rebates for renewables

State program(s) only

Puerto Rico

Utility, local and/or non-profit program(s) only

State program(s) + utility, local and/or non-profit program(s)

Notes: This map does not include rebates for geothermal heat pumps or other energy efficiency technologies. The Virgin Islands also offers rebates for certain renewable energy technologies.

tax credits
Tax Credits
  • Reduces tax liability based on a percentage of installed cost of renewable energy system
    • Canada, Switzerland, France, Japan, Malaysia, Portugal, & US
    • North Carolina offers a 35% state tax credit up to $10,500 for residential renewable energy systems
    • US government offers a 30% tax credit for solar thermal, wind & geothermal heat pumps
system costs incentives for 3 panel s olar water heating s ystem
System Costs & Incentives for 3 Panel Solar Water Heating System
  • Installed costs can range from $90 to $120 per square foot
  • Incentives available
    • 35% NC State Tax Credit
      • Federal tax is paid on state tax credit
    • 30% Federal Tax Credit
    • Accelerated depreciation of renewable energy system
slide23

Tax Credits for Renewables

www.dsireusa.org / March 2011

DC

23 states offer tax credits for renewables

Personal tax credit(s) only

Puerto Rico

Corporate tax credit(s) only

Personal + corporate tax credit(s)

Notes: This map does not include corporate or personal tax deductions or exemptions; or tax incentives for geothermal heat pumps.

netmetering
Netmetering
  • Provides the retail rate for electricity by either allowing the electric meter to turn backwards or providing a credit for renewable energy produced
    • Demark, Australia, Austria, Canada, Italy, Mexico & US have programs
    • NC program
      • Residential and commercial up to 1 MW
      • Excess generation is carried forward until summer billing season at then surrendered. No cash payments
      • Only investor owned utilities have to make net metering available
slide25

Net Metering

www.dsireusa.org / February 2011

ME: 660co-ops & munis: 100

WA: 100

VT: 20/250/2,200

MT: 50*

ND: 100*

NH: 100

OR: 25/2,000*

MN: 40

MA: 60/1,000/2,000/10,000*

WI: 20*

RI: 1,650/2,250/3,500*

MI: 150*

WY: 25*

CT: 2,000*

IA: 500*

NY: 10/25/500/2,000*

NE: 25

OH:no limit*

NV: 1,000*

IL: 40*

PA: 50/3,000/5,000*

UT: 25/2,000*

IN: 10*

NJ: no limit*

CA: 1,000*

KS: 25/200*

VA: 20/500*

CO: no limitco-ops & munis: 10/25

KY: 30*

DE: 25/100/2,000

co-ops & munis: 25/100/500

DC

MO: 100

NC:1,000*

OK: 100*

AZ: no limit*

MD: 2,000

AR: 25/300

WV: 25/50/500/2,000

NM: 80,000*

GA: 10/100

DC: 1,000

LA: 25/300

AK: 25*

43 states + DC & PR have adopted a net metering policy

FL: 2,000*

HI: 100KIUC: 50

State policy

PR: 25/1,000

Voluntary utility program(s) only

*

State policy applies to certain utility types only (e.g., investor-owned utilities)

Note: Numbers indicate individual system capacity limit in kW. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.

green power schemes
Green Power Schemes
  • Allows customers to purchase green electricity from renewable energy usually at a premium price
    • Australia, Austria, Canada, Switzerland, Germany, Spain, Italy, Japan, & US
nc greenpower
NC GreenPower (NCGP) is a statewide program designed to improve the quality of the environment by encouraging the development of renewable energy resources and the mitigation of greenhouse gas emissions through consumers’ voluntary funding. NC GreenPower
nc greenpower program
NC GreenPower Program

Started in 2003

Voluntary program

Advanced Energy administers program

First Statewide green power program in US

Involves IOUs, electric cooperatives and municipalities

1,000 KW in 2010

$.15/KWH for PV < 10 KW

$.09/KWH for Wind < 10 KW

sources of nc greenpower
Sources of NC GreenPower

Haw River

Raleigh

Nags Head

Asheville

disincentives
Disincentives

Carbon Tax – an environmental tax on the carbon content of fuels

South Africa, India, South Korea, Denmark, Finland, Germany, Italy, Netherlands, Norway, Slovenia, Sweden, Switzerland, UK, some US states

Many countries considering the carbon tax concept

feebates
Feebates
  • Self financing (revenue neutral) system of fees and rebates that are used to shift the cost of externalities onto the responsible companies or individuals
  • Used to shift buying habits
  • California “Clean Car Discount” program taxes the purchase of high emission vehicles and using the fees to rebate the buyers of low emission vehicles
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