Capturing the Environmental Value of PV

1. Capturing the Environmental Value of PV Renewable Energy Vermont Annual Conference September 21, 2005 South Burlington, VT Sam Swanson Pace Energy Project & Renewable Energy Services

2. Key Points • What is the environmental value of PV? • How can we capture the environmental benefits?

3. Environmental Value of PV -- a no-brainer? Most people understand that PV is a clean/green energy supply source. It may not be so obvious though how much cleaner & greener PV is compared to currently available alternatives.

4. What is the environmental value of PV? Two perspectives – 1. The environmental impact of PV . . . PV impacts and impacts of options 2. Air pollution avoided by PV

5. Environmental Value of PV A Power Scorecard Perspective The Power Scorecard • A rating system designed to compare the relative environmental impacts of different electricity generation options – • including coal, natural gas, nuclear hydropower, biomass (e.g., wood/landfill gas), wind, and solar • See www.PowerScorecard.org

6. Power Scorecard framework Rates electricity supply options against eight environmental issues • Climate Change impact • Acid Rain impact • Ozone & Fine Particulate impacts • Air Toxics impact • Water Use • Water Quality • Local land impacts • Fuel cycle impacts (including waste disposal and fuel mining/processing)

7. Power Scorecard assessment of Distributed PV - Air • Climate Change – no greenhouse gas CO2 emissions • Acid Rain – no sulfate or nitrate emissions • Ozone & Fine Particulates – no NOx or other fine particulate emissions • Air Toxics – no mercury, cadmium, other heavy metals, volitile organic compounds, or dioxin emissions

8. Power Scorecard assessment of Distributed PV- Water Water • Electric generation the second largest user of water – primarily for cooling systems for steam electric plants • No water use and therefore no impact on water quality

9. Power Scorecard assessment of Distributed PV – Land Local (on-site) Land Use • PV requires huge area to collect the widely diffuse energy from sunlight – about 5 acres per MW • Distributed PV - typically does not occupy land resources because it usually is located on or built into structures that occupy the space • Distributed Ground Mounted PV – (see NRG systems in Hinesburg) can be integrated in landscaping, minimizing impact Fuel Cycle (off-site) Land Impact • no fuel to mine, process or transport • No solid waste generated

10. Comparing Environmental Value of Options

11. PV is displacing dirty power During summer peak periods emissions are higher Acid rain emissions – 24 % higher than New England average Ozone / Fine Particulates – 8 % higher Climate Change – 2 % higher Contrast greater in VT where average emissions are much lower. Vermont contrast is GREATER – average emissions in VT much lower

12. How to Capture the Environmental Value Two approaches • Utility/Public Policy Actions • Consumer Actions

13. How to Capture the Environmental Value: Public Policy/Utility Actions Vermont Utility/Public Policy Actions • Adjust cost to include environmental value • i.e., “monetization of externalities” in utility planning  influences resource selection in utility planning • Set renewable portfolio goals • Set renewable energy development goals (i.e., SPEED program)

14. How to Capture theEnvironmental Value: Consumer Actions Consumer can . . . 1. Build PV systems themselves . . . (about 115 in last year) 2. Purchase cleaner/greener supply from their utility via Green Pricing Programs & Green Tag Marketers • Examples: BED Solar on Schools, CVPS CowPower, GMP green tariff --- Native Energy’s CleanHome & Windbuilder products • Problem: choice limited by program design – few solar only 3. Purchase RECs from PV systems directly – • Problem: REC market not easy to access in VT (see NJ solar REC tracking program

15. What is a Solar REC? Solar Renewable Energy Certificate • PV facility produces two products: • electricity and • the package of environmental benefits resulting from the PV system • Electricity sold as generic power at wholesale market price for power • Solar REC can be sold separately to consumers wanting the environmental value offered by PV

16. New Jersey Solar REC Tracking New Jersey Solar Renewable Energy Certificate (SREC) Program Functions: • Supports SREC sales by solar owners -- valuable revenue source for solar system owners • Enables people wanting SRECs to hook up with sellers • Issues SRECS & tracks ownership from creation to retirement • Will be expanded to process RECs from other distributed generation

17. Assessment of Options • Public Policy/Utility actions powerful • but must address strong opposition & solar may be neglected because cost is higher than wind & biomass • Consumer action – people get what they want, • but achieves change in total impacts slowly – separate purchase decisions by thousands of consumers • Both options should be pursued!

18. Thanks!

19. Portal to NJ SREC Program

20. NJ SREC Program Status • SREC Program now serves New Jersey • Can easily be expanded to cover RECs from behind-the-meter facilities in other areas … • Now tracks only solar RECs (SRECs)… soon to begin tracking RECs from other behind the meter generators • i.e., small wind, landfill gas and ag- manure digester systems

21. RECs issued in last year

22. REC Tracking Program features (1) • Users establishelectronic accounts • CPM receives periodic updates of new facilities • CPM calculates engineering estimate of expected production from each facility • An engineering estimate table is linked to each facility

23. REC Tracking Program features (2) • In NJ, CPM provides facility to upload meter / inverter readings for facilities >10 kW and any others who wish to do this • CPM also imports meter readings from facilities that utilize automated data loggers

24. REC Tracking Program features (4) Verification/validation • A critical component of a successful program – needed to assure credible TRCs • Maintains the integrity of the program and the integrity of the TRC/SREC market • Includes audits -- to check that • Facilities are actually operating • Reported meter readings are accurate • Estimated production and actual production is within a reasonable margin of error

25. NJ SREC Program - Status • Now serving 532 of active users • Provides easy to use Internet interface for a diverse community of users: • small & large solar system owners, • aggregators, • PV system marketers, • SREC purchasers, including load-serving entities • utilities • NJ solar RPS program administrators at the NJ Bureau of Public Utilities (www.njsep.com/srec)

26. What does administering entail? • Regular database updates – weekly in NJ; monthly in WI • Estimating output from for each facility in database • User support responding to phone and e-mail, from individual solar users, aggregators, brokers, LSEs, utilities and other interested parties – • Verifying output estimates & reports, that systems are operating, and accuracy of meter readings • checks of a random number of systems to verify meter readings w/ reports • Periodic trainingof system users

27. TRC Tracking Program features (3) • TRCs are issued monthly • Bulletin board facilitates trading • Once deals are made, the users transfer TRCs to other accounts • System tracks transfer of ownership from generation to final retirement – from one account owner to another