The Promise of Wind Power Is Aggressive Policy Enough ?. John Saintcross NYSERDA Cornell Wind Symposium June 2009. Outline. Overview of New York’s Energy and Environmental Policies and Goals Evolving Federal Policies Policy Valuation
Is Aggressive Policy Enough ?
John Saintcross NYSERDA
Cornell Wind Symposium June 2009
Cohocton Wind Farm
Goal: 25% of the power consumed in the state to come from renewable sources by 2013
From the 2003 baseline of ~ 19.3%
NY RPS was adopted in 2004 as a policy goal to:
Stimulate economic development
Improve the environment
Pursue energy independence
Spier Falls Hydro
Enough New Renewable Electricity to supply almost 2 million homes!
Lyonsdale Biomass Plant
Browns Falls Hydro
Eligibility: Projects or new fuel use after Jan. 2003, in-state and out-of-state
Wind, biomass and other bio-fuels, hydroelectric upgrades
NYSERDA purchases renewable energy attributes (aka RECs) only
Energy must be delivered to NYISO under specific requirements
Offer fixed-price REC contracts of up to 10 years
Prices are set competitively via Request for Proposals (“RFPs”)
*Over 20 year project life and include roll-over/multiplier effects and energy price suppression benefits
Maple Ridge Wind Farm
Total New capacity(at end 2009) - approaching 1,400 MW
Total available MWh annually - more than 3.5 million
Facilities involved 1 - 30 projects/28 in New York
Resource type 1 - 15 hydro/4 biomass/11 wind
New capacity under contract - 1,164 MW
RECs under contract annually - approx. 2.9 million
About 1,300 MW of wind installed in New York…over 8,000 MW in pipeline …
February 2009 milestone….1,000 at time of system peak
1includes two maintenance resources
Weighted average REC price - $ 17/MWh
% of 2009 program target achieved - approx. 63 %
% of 2013 program goal achieved - approx. 30 %
Total funds committed 1 - $ 637 million
About $110 million in funding available for new resources
Noble Clinton Windpark
1Excludes administration and fees
Steel Winds Wind Farm
Total tons = 188,076,976
Chicago Climate Futures Exchange
Allowance Price ($ per Ton)
At allowance cost of:
4$ /ton________________________ increase of $2.0 /MWh
$10/ton________________________increase of $5.0 /MWh
$20/ton________________________increase of $ 10.0 /MWh
$40/ton________________________increase of $20.0 /MWh
Carbon Valuation under Federal Program - a Better Proposition ?
1 Synapse 2008 CO2 Price Forecasts, July 2008
Policy Outlook: Promising Proposition ?
But is it Sufficient ?
Increased deployment of wind energy faces further challenges…not insurmountable …but real nonetheless.
Technology Challenge Proposition ?
Hard to convince the public that the technology is mature when machine failures are so noticeable…and warranties seemingly short .
Infrastructure/Reliability Challenge Proposition ?
Market Design/Implementation Challenges Proposition ?
Role of NYSERDA Proposition ?
NYSERDA will continue to centrally implement the RPS program, as long as so asked and allowed, in an agnostic, impartial manner.
NYSERDA will however, in its long standing tradition, continue to explore collaboration with others to address gaps in knowledge and other challenges, some mentioned earlier, to see that wind energy delivers on its promise of clean and affordable energy .