An Energy Conversion:An Energy Conversion:Making Renewable Energy Making Renewable Energy
America’s EnergyAmerica’s EnergySponsored by:Sponsored by:
U.S. Congressman Jeff Fortenberry and U.S. Congressman Jeff Fortenberry and the University of Nebraska - Lincolnthe University of Nebraska - Lincoln
Alan L. DostalAlan L. DostalNebraska Public Power DistrictNebraska Public Power District
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NPPD’s Renewable Energy NPPD’s Renewable Energy HistoryHistory
NPPD has a rich history in the use of NPPD has a rich history in the use of hydropowerhydropower
North Platte Hydro - the largest NPPD-owned North Platte Hydro - the largest NPPD-owned hydro in terms of capacity, the North Platte hydro in terms of capacity, the North Platte hydro has been operating since 1937hydro has been operating since 1937
Spencer Hydro - Situated in northern Spencer Hydro - Situated in northern Nebraska on the Niobrara River, the Spencer Nebraska on the Niobrara River, the Spencer hydro has been operating since 1927hydro has been operating since 1927
Kearney Hydro - The Kearney hydro has Kearney Hydro - The Kearney hydro has been in operation since 1886been in operation since 1886
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NPPD’s Renewable NPPD’s Renewable Energy HistoryEnergy History
Springview Wind TurbinesSpringview Wind Turbines In 1998 NPPD joined other Nebraska utilities to In 1998 NPPD joined other Nebraska utilities to
determine the efficiency and reliability of wind determine the efficiency and reliability of wind generation in Nebraskageneration in Nebraska
The project was completed through the combined The project was completed through the combined efforts of NPPD, LES, MEAN, the City of Grand Island, efforts of NPPD, LES, MEAN, the City of Grand Island, the City of Auburn, KBR Rural Public Power District, the City of Auburn, KBR Rural Public Power District, the DOE and EPRIthe DOE and EPRI
The two wind turbines have a maximum capacity of 1.5 The two wind turbines have a maximum capacity of 1.5 megawatts megawatts
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NPPD’s Renewable Energy NPPD’s Renewable Energy HistoryHistory
Ainsworth Wind Energy FacilityAinsworth Wind Energy Facility The Facility consists of 36 wind The Facility consists of 36 wind
turbines each rated at 1.65 turbines each rated at 1.65 megawatt turbine size for an megawatt turbine size for an actual nameplate capacity of 59.4 actual nameplate capacity of 59.4 megawattsmegawatts
The Nebraska Power Review The Nebraska Power Review Board and NPPD’s Board of Board and NPPD’s Board of Directors approved the project in Directors approved the project in August 2004August 2004
Installation of the facility’s 36 wind Installation of the facility’s 36 wind turbines was complete on Aug. 1, turbines was complete on Aug. 1, 2005.2005.
Commercial operation of the Commercial operation of the facility began Sept. 15, 2005. facility began Sept. 15, 2005.
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NPPD Energy Center ServicesNPPD Energy Center ServicesSupport for Ethanol IndustrySupport for Ethanol IndustryNPPD can provide coal and operate NPPD can provide coal and operate coal-fired boilers for ethanol plant coal-fired boilers for ethanol plant operatorsoperators
Contract with Mid America Bio Energy & Contract with Mid America Bio Energy & Commodities for such servicesCommodities for such services
Ground breaking on December 19, Ground breaking on December 19, 2005, for the Madrid, Nebraska facility2005, for the Madrid, Nebraska facility
Ground breaking on April 24, 2006 for Ground breaking on April 24, 2006 for a second, identical ethanol project in a second, identical ethanol project in Cambridge, NebraskaCambridge, Nebraska
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Methane RecoveryMethane Recovery- Use of Alternative Fuels- Use of Alternative Fuels
OLean Energy Facility, owned and operated OLean Energy Facility, owned and operated by Danny Kluthe of Dodge, Nebr., is the first by Danny Kluthe of Dodge, Nebr., is the first methane recovery project in Nebraska that methane recovery project in Nebraska that uses animal waste as a renewable energy uses animal waste as a renewable energy source to generate electricitysource to generate electricityThe generator will produce up to 549,000 The generator will produce up to 549,000 kilowatt-hours of electricity annually. This kilowatt-hours of electricity annually. This would power approximately 35 homes for would power approximately 35 homes for one year based on the state of Nebraska’s one year based on the state of Nebraska’s average consumption average consumption
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New InitiativesNew InitiativesClean Renewable Energy Bonds (CREBs)Clean Renewable Energy Bonds (CREBs)
CREBs are tax credit bonds created by the CREBs are tax credit bonds created by the Energy Tax Incentive Act of 2005.Energy Tax Incentive Act of 2005.The Act provides for $500 million in The Act provides for $500 million in “interest free” financing for governmental “interest free” financing for governmental authorities for qualifying projects through authorities for qualifying projects through the use of tax credits in lieu of interest for the use of tax credits in lieu of interest for investorsinvestorsQualifying projects include among others:Qualifying projects include among others: WindWind HydropowerHydropower
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Potential CREB Funded ProjectsPotential CREB Funded Projects
On April 26, 2006 NPPD submitted On April 26, 2006 NPPD submitted applications for:applications for: Expansion of the Ainsworth Wind Expansion of the Ainsworth Wind
Energy Facility by an additional 15 MWEnergy Facility by an additional 15 MW Installation of a small hydropower facility Installation of a small hydropower facility
at the Gerald Gentleman Station at the Gerald Gentleman Station circulating water outfall structurecirculating water outfall structure
Potential output is estimated at 3.6 MWPotential output is estimated at 3.6 MW
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Additional Options for NPPDAdditional Options for NPPD
Ongoing discussions with potential Ongoing discussions with potential third party owners, operators:third party owners, operators: 40 MW, expect 44% capacity factor40 MW, expect 44% capacity factor 20-year Power Purchase Agreement20-year Power Purchase Agreement
Outside Nebraska but near an NPPD Outside Nebraska but near an NPPD transmission linetransmission line 30 MW, expect 40% capacity factor30 MW, expect 40% capacity factor 25-year Power Purchase Agreement25-year Power Purchase Agreement
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NPPD Build at new GREENFIELD SiteNPPD Build at new GREENFIELD Site Order of Magnitude estimate for NPPD Order of Magnitude estimate for NPPD
construction at a Greenfield site using an construction at a Greenfield site using an adjusted cost derived from the Ainsworth adjusted cost derived from the Ainsworth Build-out costBuild-out cost
40 MW, 40-44% Capacity Factor40 MW, 40-44% Capacity Factor
Near NPPD Transmission SystemNear NPPD Transmission System
Financed with tax-exempt bonds for 20 years Financed with tax-exempt bonds for 20 years at 5% interestat 5% interest
Additional Options for NPPDAdditional Options for NPPD
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Renewable Production Incentive (REPI) Renewable Production Incentive (REPI) CreditsCredits $??.00 per MWhr. (when funded)$??.00 per MWhr. (when funded)
Renewable Energy Production Tax Credit Renewable Energy Production Tax Credit (PTC)(PTC) $19.00 per MWhr.$19.00 per MWhr. Not available to state and local governments Not available to state and local governments
and nonprofit electrical cooperativesand nonprofit electrical cooperatives
Renewable Production Renewable Production Incentives and CreditsIncentives and Credits
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Renewable energy certificates (RECs) or Renewable energy certificates (RECs) or “Green” Tags“Green” Tags $1.00 up to $5.00 per MWhr.$1.00 up to $5.00 per MWhr.
LB 872 Mercury Cap & Trade/Renewable LB 872 Mercury Cap & Trade/Renewable Tax CreditTax Credit Credit per MWhr. – 75 cents 2010, 50 cents Credit per MWhr. – 75 cents 2010, 50 cents
2013, 25 cents 2018 per MWhr2013, 25 cents 2018 per MWhr Maximum of $400,000 renewable tax credit Maximum of $400,000 renewable tax credit
payoutpayout
Renewable Production Renewable Production Incentives and CreditsIncentives and Credits
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NPPD’s Domestic Energy ResearchNPPD’s Domestic Energy Researchand Application Initiativeand Application Initiative
MissionMission To learn how to use domestic energy To learn how to use domestic energy
resources in a clean, low-cost way to maintain resources in a clean, low-cost way to maintain our standard of living for our children and our standard of living for our children and grandchildren.grandchildren.
Consistent with NPPD’s VisionConsistent with NPPD’s Vision
NPPD Board adopted Charter on October NPPD Board adopted Charter on October 14, 200514, 2005
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Domestic Energy AlternativesDomestic Energy AlternativesAlternative Fuels Alternative Fuels Energy efficiency to include energy conservationEnergy efficiency to include energy conservationWind development and utilizationWind development and utilizationClean coal alternativesClean coal alternativesNitrogen and carbon sequestrationNitrogen and carbon sequestrationBiomassBiomassSolarSolarOther opportunities as identifiedOther opportunities as identified
Domestic Energy ResearchDomestic Energy ResearchAnd Application InitiativeAnd Application Initiative
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Utility Initiative ParticipationUtility Initiative Participation
Hydrogen Utility GroupHydrogen Utility Group Eleven Utility ParticipantsEleven Utility Participants Four sponsoring organizationsFour sponsoring organizations LB 139 allows any public power district LB 139 allows any public power district
to participate in this areato participate in this area
Plug-In Partners ParticipationPlug-In Partners Participation A national grass-roots initiative to A national grass-roots initiative to
demonstrate to automakers that a demonstrate to automakers that a market for flexible-fuel Plug-in Hybrid market for flexible-fuel Plug-in Hybrid Electric Vehicles exist todayElectric Vehicles exist today
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Other Activities NPPD is SupportingOther Activities NPPD is Supporting
Application for a U.S Department of Energy Application for a U.S Department of Energy (DOE) sponsored Feasibility Study of Hydrogen (DOE) sponsored Feasibility Study of Hydrogen Production at Existing Nuclear Power Plants.Production at Existing Nuclear Power Plants.
Project Scope:Project Scope: Provide technical/economic performance data on Provide technical/economic performance data on
currently available technologiescurrently available technologies Conduct assessments to determine the best system for Conduct assessments to determine the best system for
large scale production of hydrogen at existing nuclear large scale production of hydrogen at existing nuclear plantsplants
Domestic Energy Research and Domestic Energy Research and Application InitiativeApplication Initiative
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Domestic Energy Research and Domestic Energy Research and Application InitiativeApplication Initiative
Other Activities NPPD is SupportingOther Activities NPPD is Supporting
"Nebraska - Kansas Demonstration of Enhanced "Nebraska - Kansas Demonstration of Enhanced Oil Recovery and Value-Added Carbon Oil Recovery and Value-Added Carbon Sequestration from Biofuels (Ethanol) Sequestration from Biofuels (Ethanol) Production" project proposal submitted by the Production" project proposal submitted by the Center for Research, Inc., at the University of Center for Research, Inc., at the University of Kansas to the U.S. Department of EnergyKansas to the U.S. Department of Energy
University of Nebraska - Lincoln supports this University of Nebraska - Lincoln supports this projectproject
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Domestic Energy Research and Domestic Energy Research and Application InitiativeApplication Initiative
Other Activities NPPD is SupportingOther Activities NPPD is Supporting
"Tools for Managing Water Resources in the "Tools for Managing Water Resources in the Great Plains" project proposal being submitted Great Plains" project proposal being submitted by the University of Nebraska - Lincoln for by the University of Nebraska - Lincoln for consideration of Fiscal Year 2007 Congressional consideration of Fiscal Year 2007 Congressional Earmark fundingEarmark funding
This project is not sponsored by the Nebraska This project is not sponsored by the Nebraska Center for Energy Sciences Research; it is Center for Energy Sciences Research; it is consistent with the Chartered direction for the consistent with the Chartered direction for the new Center and warrants the District's supportnew Center and warrants the District's support
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Domestic Energy Research and Domestic Energy Research and Application InitiativeApplication Initiative
Other Activities NPPD is SupportingOther Activities NPPD is SupportingNPPD entered into an agreement with UNL on April NPPD entered into an agreement with UNL on April 1, 2006 to establish the Nebraska Center for Energy 1, 2006 to establish the Nebraska Center for Energy Science ResearchScience Research Five year agreementFive year agreement $5.0 million investment over the five year term$5.0 million investment over the five year term
Mission Statement of the CenterMission Statement of the Center To conduct energy research that produces new To conduct energy research that produces new
technologies, processes and systems that provide new or technologies, processes and systems that provide new or significantly enhanced energy sources and improve the significantly enhanced energy sources and improve the quality of life and economic opportunity for all Nebraskansquality of life and economic opportunity for all Nebraskans
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Public Power and Public Education Public Power and Public Education Come TogetherCome Together
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Thank YouThank You
