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Taking Control of Maryland’s Energy Future

Taking Control of Maryland’s Energy Future. David Cronin, Assistant Director Maryland Energy Administration November 29, 2007. Maryland’s Electricity Challenges. Goal – Affordable, Reliable & Clean Energy How do we keep bills down? How do we keep lights on?

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Taking Control of Maryland’s Energy Future

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  1. Taking Control of Maryland’s Energy Future David Cronin, Assistant Director Maryland Energy Administration November 29, 2007

  2. Maryland’s Electricity Challenges Goal – Affordable, Reliable & Clean Energy • How do we keep bills down? • How do we keep lights on? • How do we meet our climate and environmental goals?

  3. Challenges to keeping bills down • Electricity – second most expensive residential electricity prices in the region. • Natural Gas – Maryland resident’s pay 21% more than the national mean price.

  4. Challenges to Keeping Bills Down • Demand Outpacing Supply • Significant Imports • Limited Diversity • Aging Infrastructure

  5. Challenges to Keeping Lights On • PJM has stated that, unless new transmission is built in region, Maryland could face brownouts as early as 2011. • New lines have been approved by PJM, but state and local siting process just beginning.

  6. Challenges to Meeting Climate and Environmental Goals • Climate – Maryland is particularly vulnerable, 3rd most exposed to sea level rise (behind FL and LA), • Environmental – Most of Maryland’s population lives in areas that fail to meet EPA’s health based air quality standards.

  7. Opportunities to Promote Affordable, Reliable & Clean Energy • Reduce demand • Increase supply • Improve transmission

  8. Reduce Consumption – EmPOWER Maryland Initiative • Most ambitious energy efficiency goal in nation to reduce state-wide consumption 15% per capita by 2015. • If successful, EmPOWER Maryland will • Save consumers $1.8 billion in electricity costs; • Avoid 25 Billion kWh of electricity consumption; and • Eliminate 35 Billion pounds of pollution

  9. How? Go To The Hardware Store • Existing Technologies - Programmable thermostats, Energy Star appliances, modern windows, interruptible load devices, etc. • Emerging Technology – • Smart meters that enable critical use pricing and two-way communications. • Smart grid to improve performance from generator to plug.

  10. Government – Lead by Example Governor O’Malley announced a plan to help State Government lead by example, including: • Zero interest loans to state agencies • Below market loans to local governments and non-profits; • Expanded use of energy performance contracting; • Improved building operations; • Constructing energy efficiency state buildings; & • Purchasing ENERGY Star products.

  11. Statewide Savings Needed • Least expensive kilowatt is the one not needed. • Energy efficiency investments often cost 3-4 cents/kW, compared to over 10 cents for new generation. • Massive investment needed. • In ’05, Maryland utilities spent roughly 0.01 cent per person on energy efficiency (47th out of the 50 states). • In contrast, Vermont spent $22 per person

  12. Opportunities to Increase Supply • Increased Interest in Traditional Fossil and Nuclear Generation • Significant Interest in Renewable Projects • Enhanced Transmission – new lines ordered by PJM

  13. Climate and Environmental Opportunities • Climate – • Joined Regional Greenhouse Gas Initiative • Created a Climate Commission charged with preparing Maryland’s Plan of Action • Clean Cars – adopted CA’s Clean Car standard • Healthy Air Act – one of the toughest air quality laws in nation.

  14. Wind Energy Vital Statistics • 11,000 MW installed today nationwide (placing 3,000 MW more in 2007) • ~180 MW proposed in Maryland • Three sites: U.S. Windforce, Synergics, Clipper • MD (37th) Wind Energy Potential: 750 MW (PPRP) In comparison: • WV (32nd): 66 MW installed (300 MW planned) • PA (22nd): 179 MW installed (80 MW planned) • NJ (29th): 7.5 MW installed • VA (not ranked): 0 installed (1 project in the pipeline)

  15. Wind: Demo Projects & Incentives • State Anemometer Loan Program • Demo projects (Eastern Neck Wildlife Refuge, Frostburg State University) • Federal and state production tax credits, grants, loans (EPACT, CEIA, Farm Bill, and net-metering) Eastern Neck Wildlife Refuge -10kw turbine FPL Energy’s wind turbines in WVA, similar to those proposed in Western MD

  16. Solar Energy Grant Program • Residential – PV - 20% up to $3,000 • “ DHW - 20% up to $2,000 • Commercial -PV - 20% up to $5,000

  17. Geothermal • Grant Program $1,000 for residential or commercial systems Minimum 14 EER and 3.0 COP 150 applications since 9/06

  18. For more information, please contact the Maryland Energy Administration: 410-260-7655 or 800-72-ENERGY www.energy.state.md.gov

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