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World Wind Energy Conference - Notes

World Wind Energy Conference - Notes. Kingston, ON June 23-26 th , 2008 Kristina Donnelly, Great Lakes Commission. Conference Resolutions.

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World Wind Energy Conference - Notes

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  1. World Wind Energy Conference - Notes Kingston, ON June 23-26th, 2008 Kristina Donnelly, Great Lakes Commission

  2. Conference Resolutions • The World Wind Energy Association (WWEA), in association with the Ontario Sustainable Energy Association (OSEA) and the St. Lawrence College, acknowledges and welcomes the presence of those 800 participants attending this Conference from wind and associated renewable energy technologies and especially from many community power organisations. The interests include all aspects of sustainable wind, solar, hydro, bioenergy and geothermal technology development, design, manufacturing, operation and implementation.  • The Conference recognises the support of the governments, especially of the province of Ontario, Germany and Cuba, as well as UNESCO and all organisations supporting the Conference, and applauds their continued support and vision for the accelerated deployment of renewable energy, in particular wind energy, to tackle climate change, increase energy security and create new jobs. • The Conference calls on governments and the private sector to recognise communities as key enablers and partners in the development of renewable energy and to give them the necessary support to achieve a smooth transition towards a renewable energy future. • The Conference welcomes the proposal of a Green Energy Act in Ontario, of a national feed-in bill as presented today in the USA by Congressman Jay Inslee and of a feed-in bill in Michigan as well as the preparation of similar legislation in further states, provinces and countries which are based on the internationally proven successful feed-in principles.

  3. Conference Resolutions • In addition to this, and in the pursuit of renewable energy resources, the Conference resolves to pursue the following objectives, policies and actions: 1.  remove all subsidies and enforce the internalisation of all externalities to achieve a level playing field; 2.  until this is achieved, pursue compensatory regulatory frameworks such as sufficient and effective feed-in tariffs that encourage renewable energy developments, and that provide sufficient financial security to promote long-term investment, especially for smaller, community-based investors; 3.  raise the political and social awareness to foster the political will towards the inevitable use of renewable energy, especially by engaging and enabling individual citizens, community power proponents and the youth;

  4. Conference Resolutions 4.  create new human, industrial, administrative and financial capacities and strengthen appropriate supportive and dedicated structures and institutions for renewable energy; 5.  increase energy supply security and system stability through a balanced supply mix of renewable energy and geographically distributed generation and increase interaction of local, national, regional and global networks and alliances that contribute to greater cooperation between renewable energy technologies such as International Renewable Energy Alliance; 6.  reduce overall costs for energy supply through the increased deployment of renewable energy power as already proven successfully in various jurisdictions such as Brazil, Denmark, Germany and Spain;

  5. Conference Resolutions 7. call on all governments and the private sector to support the creation of a new independent international renewable energy agency IRENA as prepared by the German Government, already supported by numerous governments from around the world; 8. develop, use and expand appropriate national, regional and international financing mechanisms for the exclusive realisation of renewable energy, like funds that are supporting community power investment such as a community power fund; 9.  enhance developing countries to get easier access to technology transfer in order to realise the full benefits of renewable technologies such as sustainable jobs through local manufacturing, direct economic benefits through community based ownership and accessible energy for increased wealth and productivity;

  6. Conference Resolutions 10. take into account the key role of renewable energies and to create the long-term frameworks for their full deployment for the success of Post-Kyoto arrangements and goals on mitigation of climate change; such new frameworks should especially be designed in order to support smaller scaled, decentralised and community based investment; 11. note that the next International Governmental Renewable Energy Conference will take place in India in 2010, hosted by the Indian Government, and encourage governments and the private sector to proactively contribute to its preparatory process; 12. note that the next World Wind Energy Conference will be held on Jeju Island, South Korea, in June 2009, and encourage all members of the Association, others involved in wind power and other renewable energy development, operation and financing as well as the exhibitors to further the cause of wind power development and the expansion of the role of Renewable Energy by participating in the Korean Conference.

  7. How to pay for renewables • Renewable Energy Certificates/Credits (RECs) • Renewable Energy Certificates/Credits: can be sold and traded and the owner of the REC can claim to have purchased renewable energy. • AKA Renewable Obligation Certificates (ROCs), Green Tags • Renewable Tariffs • Capital Subsidies • Production Subsidies • PTC or WPPI

  8. RPS • uses a target or quota for renewable that is legislated and determined by policy regulations. • In many cases, RPS is based on a system of tradeable renewable credits and bidding processes for companies, with the value of the credits determined by a wide range of factors. • companies are less likely to invest in alternative energy technologies under the RPS system because it is impossible to know what the price for that energy will be in 20 years. • There are high failure rates for companies in the RPS scheme, as the system favors large oligarchies, not small start-ups. • “While quotas set a minimum, then also inadvertently set a de facto cap, which needs political will and engagement to continually revisit.”

  9. RPS’s in the Great Lakes • MN • Xcel Energy: 30% by 2020Other utilities: 25% by 2025 • Technology Minimum: Of the 30% renewables required of Xcel Energy by 2020, "at least" 25% must be generated by wind power and "the remaining" 5% by other eligible renewables • WI • statewide goal of 10% by 2015 • IL • 25% by 2025 • Technology Minimum:75% wind • PA (AEPS) • 18% during compliance year 2020-2021 (8% Tier I and 10% Tier II) • NY • 24% by 2013 • LIPA:25% by 2013 • OH (AERS) • 25% alternative energy resources by 2025, at least half of which must be generated from renewable energy resources by 12/31/2024 • MI: Lansing • 7% by 2016

  10. Feed-in Tariff • specify a guaranteed price for renewable energy and are usually long-term, fixed rates that are not pegged to the retail price of energy. • AKA StrG, ARTs, EEG, MPS, Renewable Energy Payments • Contracts • No program limits • Costs are spread across all rate payers • Are implemented when “there is a political desire to make renewable energy a priority, combined with a willingness to share the cost of doing so until it becomes cost-competitive.” • “Assumption that the benefits of renewable energy are worth paying for.” • “The prospect of lower renewable energy costs in the future, coupled with the pricing of conventional energy sources to reflect their true environmental costs, will make feed-in tariffs unnecessary in the long run.”

  11. A Good FIT Law… • Access • Ensuring connection to the grid • Extending and reinforcing the grid • Who pays the costs of connecting and reinforcing? • Transparency • Price • Technologies and plants to be covered • Imposing a priority purchase obligation • Getting the tariff (or price) right • Financing the FIT law • Combination with other support mechanisms • Supplementary • Combining with targets • Progress reports • Meeting technical and safety standards • Local content • Minimizing administrative barriers • Law not a policy • Legal nuts and bolts

  12. FIT Policy Models • Market Independent • Minimum Price Model • Minimum Price Model with Inflation • Minimum Price Model with Stepped Tariff Design • Minimum Price Model with Tariff Degression • Market Dependent • Premium Price Model • Percentage Price Model

  13. FIT Policy Models • Benefits of being Market Independent • Community financing is easier • Rate stabilization premium (good with fluctuating fossil fuel prices) • Lower cost of RE deployment • Purchase guarantee offers guaranteed grid access • Facilitates small/medium projects

  14. FITs in the Great Lakes • Ontario: Renewable Energy Standard Offer Program • Michigan: HB 5218 • September 17th 2007 • Kathleen Law, (Dem-23rd District) • Minnesota: HF 3537 • February 28, 2008 • David Bly, (DFL 25B) • Illinois: HB 5855 • March 14, 2008 • Illinois Renewable Energy Sources Act • Karen May (D-Highland) • Wisconsin: Thinking about it • HI, CA, FL, WA, RI also have existing legislation or are looking into feed-in tariffs for renewable energy (not necessarily wind). • Federal: H.R. 6049 • Renewable Energy Jobs and Security Act (Inslee Bill) • June 27, 2008

  15. Ontario RESOP • Commercial versus Community Participants • Mid-size energy companies developing commercial projects instead of local proponents building community-based projects • Some larger projects divided up to qualify for RESOP contracts • Problem of grid access & capacity • Monopolization of Local Grid Capacity • Commercial proponents have been successful in locking up grid capacity at the expense of smaller and community based projects • In particular, this has been a challenge faced by farm-based biomass projects • Over 95% of overall contract capacity to date is from commercial wind and solar facilities • Not a subsidy – “support scheme” • In the process of being re-examined. • Prices are not specific to production or technology. • Review process should be over by the end of September • Milestones to clense the queue, which ties up space on the grid • Limit developers to 1 x 10MW project per transfer station, 5 projects in 10 years. • Orange zone is frozen from lack of capacity. This capacity is lacking because of a recent commitment to a new nuclear plant. • Yellow zones are moderately constrained. These are reserved for other energy sources first.

  16. RESOP – OPA’s current tasks • Making the RESOP more efficient • requiring that projects meet certain interim project deadlines. • This will enable other project developers to move ahead in the standard offer program in order to get new renewable generation online more quickly. • Making the RESOP open to more participants • restricting proponents to a single 10 MW project per transformer station. • The new procurements announced today create new opportunities for larger developers.  • Encouraging broader participation in the RESOP • limiting any proponent to a maximum of 50 MW under development per energy source at any one time.  • Implementing a number of administrative revisions to the RESOP, to improve overall efficiency and simplify the program.

  17. Ontario’s Green Energy Act 2008 • Ontario needs a policy framework that will eliminate the barriers and maximize conservation and renewable energy production – that will enable the rapid deployment of renewable energy and conservation projects. • The Ontario Power Authority (OPA) filed an application for approval of the Integrated Power System Plan (IPSP) – Ontario’s 25-year electricity system plan. • Ontario is set to re-build its electricity industry and infrastructure with an expenditure of $60 billion. • How we upgrade our grid will profoundly affect how Ontarians produce and use electricity, the cost in the long term, and whether or not local individuals and communities will have the choice to directly participate and benefit from their renewable energy resources. • almost half of Ontario’s budget for rebuilding our electricity sector (26 billion) is committed to building 14,000 MW of new nuclear generation. • Ontario’s Renewable Energy Standard Offer Program (RESOP) was the most progressive green energy initiative in North America for more than twenty years. • Potential renewable energy producers are unable to access the grid in certain areas of Ontario. • Communities are having difficulty obtaining financing to investigate the feasibility of renewable resource projects in their area.

  18. Ontario’s Green Energy Act 2008 • The Green Energy Act campaign welcomes the participation of citizens, businesses and the public sector to: • Reinforce the commitment to conservation and renewable energy • Establish a ‘roadmap’ to conservation and green energy and address gaps in the present plans including removing barriers to ensure renewables get on line • Take advantage of the clean slate that is Ontario’s electricity system, which requires an estimated $60 billion to expand and reinforce the grid and bring on new generation • Identify our opportunities and copy best practices to capitalize on them, just as we did with the RESOP

  19. Total Electricity Usage • Canada: • 530 TWH/yr • 33 million people • =16 GWH/person/yr • US: • 4,000 TWH/yr (3,000 TWH/yr in Fossil Fuels) • 304 million people • =13 GWH/person/yr

  20. Renewables by Country

  21. Installed Wind Power, 2007

  22. Canada v. Germany

  23. Community Wind • Distributed systems are more efficient • Help build community independence • Contribute to local economic development • Benefits from community acceptance and political buy-in • Controversy slows permitting • Reduced cost of community impact study. • Communities are frequently more maneuverable than large corporate partners • They are not distracted by other projects and business matters • There is a relatively low cost equity investment for capital funding. • Minnesota: • 281 MW of distributed wind • Represents 31% of wind capacity in the state.

  24. Community Choice Aggregation • Following energy deregulation in Ohio, about 90% of the residential and commercial customers who switched from their utility companies joined a community choice program. • The Northeast Ohio Public Energy Council (nopecinfo.org) is the state’s largest public aggregation program, with 118 cities serving more than 600,000 customers. • Their energy supply contract guarantees a discount ranging from 4% to 6% when compared with investor-owned utility rates. • http://www.lgc.org/cca/docs/cca_energy_factsheet.pdf • NOPEC Extends Contract With Green Mountain Energy Company (GMEC) Through 2008 http://findarticles.com/p/articles/mi_m0OXD/is_2005_March_30/ai_n13503441

  25. Grid Integration Process

  26. Software • WindPRO • design and planning of wind farm projects • WAsP • program for predicting wind climates, wind resources and power productions from wind turbines and wind farms.

  27. GIS • Two levels of analysis: • Macro-siting: GIS – consult & travel, local conditions • Candidate wind power project • Development planning • Government and business • Micro-siting: WAsP/WindFarmer – cost & construction • Siting • Construction • Business Renewable and Clean Energy

  28. GIS • Siting Procedure • Establish factor hierarchy model • Determine factor weight • FW: analytic hierarchy process. Determine the relative importance between two factors • Single factor assessment • Integrated wind farm siting

  29. General Notes • Measures of cost: Should be calculating benefits as a % of revenue, not $/MW • O&M Cost information is private in the United States. • Windenergieanlagen: price & manufactures, yearly publication • World Wind capacity: 90,000MW, 160 TWH/yr, 110,000 units, 750 TWH cumulative generation. • 2007: $50 billion U.S. • 64% project development • 4% O&M • Convert heavy truck industry in the US to the manufacturing of wind turbines. • Wind cannot efficiently time production to maximize $$$. • Overview of the development process: Anntonette Alberti from TetraTech (ppt)

  30. Offshore Wind in Germany – Live & Learn • Offshore wind in Germany likely to see increased M&A activity. http://www.energy-business-review.com/ARTICLE_FEATURE.ASP?GUID=BB0F73F3-4199-4604-92E8-B1BA62EE37E6 • Germany, Denmark and Sweden intensify cooperation in offshore wind energy deployment. http://www.bmu.de/english/current_press_releases/pm/40570.php • European Policy Workshop on Offshore Wind Power Deployment. http://www.bmu.de/english/europe_and_environment/downloads/doc/38773.php • Europe is moving offshore: member states discuss electricity generation from offshore wind energy. http://www.bmu.de/english/current_press_releases/pm/38782.php • Amendment of the Renewable Energy Sources Act (EEG). http://www.wind-energie.de/en/news/article/amendment-of-the-renewable-energy-sources-act-eeg/166/

  31. Great Websites • http://www.wind-works.org • Paul Gipe’s website • www.renewwisconsin.org • Michael Vickerman • www.onlinepact.org • Policy Action on Climate Toolkit – Assistance for those developing or advocating for FIT Laws • http://www.irena.org/index.htm • Information on the proposed International Renewable Energy Agency • http://www.windstats.com/ • quarterly international wind energy publication with news, reviews, and wind turbine production and operating data • http://www.dsireusa.org/ • comprehensive source of information on state, local, utility, and federal incentives that promote renewable energy and energy efficiency. • http://www.ren21.net/pdf/RE2007_Global_Status_Report.pdf • Renewable Energy Global Status Report • http://re.pembina.org/sources/wind • Our Mission: To advance sustainable energy solutions through innovative research, education, consulting and advocacy. • http://www.canwea.ca/index_e.php • Canadian Wind Energy Association • http://www.canrea.ca/ • An alliance of Canadian civil society organizations from the non-profit or voluntary sector that hold a common interest in promoting a global transition to energy conservation and efficiency and use of low-impact renewable energy. • http://solarvillage.blip.tv/posts?view=archive&nsfw=dc • Conference presentations

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