Renewable Energy Basics West Central CERT

1. Renewable Energy BasicsWest Central CERT

2. www.CleanEnergyResourceTeams.org Our Mission Giving community members a voice in energy planning by connecting them with the technical resources necessary to identify and implement community-scale energy efficiency and renewable energy projects

3. Derived from natural resources that are continually replenished by the earth’s systems Most come either directly or indirectly from the sun Geothermal energy taps the earth’s internal heat Renewable Energy

4. Wind Solar Photovoltaic (electricity) Solar Thermal (heat) Biomass Biogas Biofuels Geothermal Renewables

5. But Remember: Efficiency First! • Efficiency improvements MUST be the first step in any renewable energy project. • Estimated $1 : $3 savings ratio • Get an energy audit from your utility’s Conservation Improvement Program (CIP)

6. Benefits local communities Economic development opportunities Local ownership Environmental benefits System reliability Fossil fuels are finite Why Renewable Energy?

7. Minnesota Energy Policy 2007 • Renewable Energy Standard of 25% by 2025 • 7% by 2010; 12% by 2012; 17% by 2016 • 30% by 2020 for Xcel • Next Generation Energy Act • Reduce greenhouse gas emissions 80% by 2050 • Aggressive energy savings goal—1.5% of revenues • Community-Based Energy Development Tariff • Economy-wide climate change action plan • Required reductions in CO2 from power sector

8. Focus on: C-BED Community-Based Energy Development • Requires utilities to consider (but not necessarily commit to) community wind projects • Provides for a special payment structure (for electricity sold to the utility) to make financing for the community developer easier: •  Higher payments during the first 10 years of the project •  Lower payments in second 10 years • Provides definitional guidelines for what constitutes a “community wind” project

9. Did you know… …In the United States during 2007, only 1% of large scale wind projects were locally owned. In Minnesota, 27% of large scale wind projects were locally owned!

10. Wind Energy Minnesota has tremendous wind potential. For any project, however, you will need site specific monitoring to determine the best location.

11. Focus on: Wind Ownership Models • Arne Kildegard of UM Morris wrote a paper comparing and contrasting the costs and benefits between community owned wind projects and corporate wind projects. He found there were 3 times the economic benefits from local ownership.

12. Focus on: Wind Ownership Models • In the summer of 2008, CERTs partnered with Initiative Foundations and others to address various issues that land owners interested in wind development should be aware of when approached by wind developers. In general: • Land leases = lower risks and lower rewards • Local ownership = greater risks and greater rewards

13. The Southwest Initiative Foundation’s Rural Energy Development Initiative (REDI) aims to provide assistance to rural entities seeking to develop wind energy projects. Focus on: REDI

14. Small Wind Small wind = <100 kW Residential, farm or small business application • It costs roughly $3,000-$5,000 for every kilowatt hour of generating capacity • Roughly 15-year payback for well-sited systems • Net metering available for systems <40 kw

15. Focus on: Kandiyohi County Guide In 2005 CERTs worked with partners to create the Model Wind Ordinance

16. Large Wind (Utility Scale) • Utility-scale electrical production • Greater than 100 kW – current generation is 2 MW per turbine • Average cost $1,000,000 per MegaWatt

17. USDA Renewable Energy Program • The USDA Rural Development Renewable Energy Grants can cover up to 25% of an eligible project’s costs.

18. Solar Photovoltaic • Photovoltaic systems (PV) produce electricity from sunlight • Benefits? PV system output (sunny summer days) correlates with periods of peak electric demand • Hurdles? Cost (15 cents/kWh after incentives) • Return on Investment is determined by net metering prices

19. Focus on: Prairie Woods ELC The Environmental Learning Center recently installed a two panel solar PV system on their property with funding from the West Central CERT. www.prairiewoodselc.org

20. Solar thermal – using the sun’s energy to heat water or air. Passive solar design integrates a combinations of building features to reduce the need for heating, cooling, and daytime lighting. Solar Thermal & Passive Solar

21. Solar Manufacturer – Starbuck, MN • Manufactures solar thermal collectors, domestic hot water heaters, and space heating systems. • Two 4’x8’ collectors can produce 50% to 70% of the annual hot water needed for a family of four in MN. • Return on Investment differs for what kind of water heating system you currently use

22. Biomass • Biomass is any organic material not derived from fossil fuels that can be converted to a fuel useful for generating electricity. • Dedicated crops: woody hybrid poplars, switchgrass, etc. • Waste products: wood residues, agricultural residues, animal waste Co-firing biomass with coal • Gasification – community digesters

23. In Brooten, MN (Stearns County) a couple has installed a methane digester on their 160 cow dairy farm to turn manure into electricity. The digester will produce 400 to 460 KwH of electricity per day. 95 kwh will be used per day to operate the system Focus on: Brooten, MN Digester

24. U of M Morris Biomass Gasifier • The plant is used to explore the gasification technology in converting plant-based fuel stocks into energy in the form of synthetic gas that is intended to replace the use of fossil fuels such as natural gas. • http://renewables.morris.umn.edu/biomass/

25. Biofuels • Generally refers to ethanol and biodiesel that are primarily used in transportation, but can be burned to produce electricity • Ethanol is generally derived from corn • E85 is a blend of 85% ethanol and 15% gasoline • Biodiesel is generally from soybean oil

26. http://www.cleanairchoice.org/E85InCounty.asp?State=MN Grant: 3 Douglas: 3 Traverse: 2 Big Stone: 2 Stevens: 5 Pope: 2 Stearns: 16 Meeker: 4 Kandiohi: 6 Swift: 4 Chippewa: 4 Lac Qui Parle: 2 Yellow Medicine: 4 Renville: 9 McLeod: 3 Sibley: 3 Nicollet: 3 Biofuel Stations in WC MN

27. Geothermal This technology uses the earth’s constant temperature below the surface to heat or cool a home and to provide hot water. • A typical 2400 square foot house will need a five ton system;  • Installation cost of the conventional system = $ 6,500 (LP gas furnace) • installation cost of the Geothermal system  = $21,000 • Reduction of operating cost per year = $1,800 • Payback (21,000-6,500)/ 1,800 = 8.1 year  or  12% Return on Investment

28. Focus on: ECONAR Heat Pumps • Located in Appleton and Elk River, MN • Manufacture ground-source heat pumps designed for MN’s cold weather climate. • ECONAR Geothermal Heat Pumps may qualify for a Federal Energy Tax Credit of up to $300.

29. Renewable Energy Resources • www.cleanenergyresourceteams.org – CERTs • www.commerce.state.mn.us – MN Energy Office • www.mnrenewables.org - Minnesota Renewable Energy Society (MRES) • www.fresh-energy.org – Fresh Energy • www.windustry.org – Windustry

30. Renewable Energy Resources • www.dsireusa.org – Database of State Incentives for Renewables and Efficiency • www.eere.energy.gov – Office of Energy Efficiency and Renewable Energy (DOE) • www.nrel.gov – National Renewable Energy Laboratory • www.eere.energy.gov/consumerinfo/tech_reports.html

31. Renewable Energy Resources • www.focusonenergy.com • www.awea.org – American Wind Energy Association • www.ucsusa.org - Union of Concerned Scientists • http://analysis.nrel.gov/repis/online_reports.asp - REPiS Online • http://www.state.mn.us/mn/externalDocs/Commerce/Can_I_have_a_wind_turbine_100807042643_WindFAQ.pdf Department of Commerce: Can I Have a Wind Turbine

32. www.CleanEnergyResourceTeams.org For More Info on WC CERT Visit our Web site at www.CleanEnergyResourceTeams.org