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Renewable Working Group

Renewable Working Group. Renewable Power Purchases at Federal Facilities By David McAndrew Federal Energy Management Program. Why Purchase Renewable Power?. Demonstrates Federal Leadership Relatively easy way to meet energy conservation and greenhouse gas goals

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Renewable Working Group

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  1. Renewable Working Group Renewable Power Purchasesat Federal Facilities By David McAndrew Federal Energy Management Program

  2. Why Purchase Renewable Power? • Demonstrates Federal Leadership • Relatively easy way to meet energy conservation and greenhouse gas goals • Preferable for agencies with limited capital budgets • Allows generation to be sited in most economical location • Helps grow market to critical size • Promotes National Energy Security • Because you have to meet you RE goal somehow

  3. Federal Energy Management Goals Executive Order 13123 • Reduce energy consumption (renewable use counts) • Facility energy per square foot to be reduced by 30 percent in 2005 and 35 percent in 2010 relative to 1985 • Industrial/laboratory energy to be reduced by 20 percent in 2005 and 25 percent in 2010 relative to 1990 • Reduce greenhouse gas emissions 30 percent by 2010 compared to 1990 • Expand use of renewable energy • 2.5% of Federal facility electricity consumption by 2005

  4. WHAT PURCHASES COUNT TOWARDS GOAL • E.O. 13123, Sec 710. “Renewable Energy” means energy produced by solar, wind, geothermal, and biomass. • Does not give a preference to a specific technology • Does not differentiate between types of biomass • E.O. 13123 Guidance Requirements • Contract must specify renewable purchase requirement • Excludes system supply and state RPS requirements • Purchase must come from new renewable resource • On line after 1990 • Should have consistent standard for purchases and on-site

  5. Direct Assistance Individual agency initiatives Map correlating federal agencies with purchasing opportunities Guidance DESC and GSA Regional/Utility Aggregations WAPA FEMP Renewable Purchasing Program • Coordination • Federal agencies • DESC and GSA • Share experiences • Share resources • EPA GP Partnership • Free publicity • Demonstrate Leadership • Private Initiatives • Utility Green Pricing • Green-e • WRI

  6. Education & Outreach Workshops Presentations Communications Material Guidebook Green Power Toolkit Annual FEMP Awards Strategy Development Making a Federal case for renewable power Product development for Federal Agencies Identifying funding opportunities FEMP Renewable Purchasing Program

  7. Federal Purchasing Methods • Utility Green Pricing • Areawide Contract (AWC) Exhibit • Utility contract • “If it is a PUC approved rate then it must be just and reasonable” • Solicitation in competitive electricity market • General Services Administration (GSA) • Ken Shutika (202) 260-9713 • Defense Energy Support Center (DESC) • John Nelson 703-767-8333 • Renewable Energy Certificates Purchases • Can be a tough sell • Competitive Purchase?

  8. Select Federal Renewable Power Purchase Contracts Federal Agency LocationGwhResource Utility Green Pricing 18 Agencies Denver, CO 4.1 Wind DOE -WIPP (Sandia) White Sands, NM 1.5 Wind Retail Competitive Electricity Procurements NASA Johnson Texas 10 Wind DOE, GSA, DOA, Army Washington DC 44 LFG/Wind Wholesale Competitive Electricity Procurements Edwards AFB California 133 Wind/Bio Renewable Certificate Purchases EPA CA,OH,MA,WA 21.4 Various

  9. Premium Funding Sources • Direct Appropriations • Savings from competitive procurement of electricity or natural gas • Bundled into a “Best Value” electricity procurement • FAR Part 23.703(Environmentally Preferable Purchasing) can be used as justification for renewables purchase • Energy Efficiency Savings • SEPs ??

  10. Renewable Power PurchasingLessons Learned • Load aggregations can lead to big purchases but: • Target big users • Don’t herd cats • Keep it simple • Utility green pricing should be a Partnerships • Consider customizing product • Be upfront and clear on sources and benefits • “So, now I understand what renewable power is, What’s this certificate thing you’re trying to sell me?” • Anything that costs less than a penny must be a good deal!!! ($0.01 X 5% of load = .0005 per kwh)

  11. Assistance,Advice,Concerns • David McAndrew, FEMP HQ 202-586-7722, david.mcandrew@hq.doe.gov • Chandra Shah, National Renewable Energy Laboratory (NREL) 303-384-7557, chandra_shah@nrel.gov • Bill Golove, Lawrence Berkeley National Laboratory (LBNL) 510-486-5229, whgolove@lbl.gov

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