Renewable Energy Vermont
Vermont Perspectives, Activities, and Plans
September 21, 2005J. Riley Allen
Vermont Department of Public Service
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Topics Current Electricity Situation (National,
Regional, State) Renewable Energy in Vermont – Influences
from Beyond Implementation of Act 61 Vermont Clean Energy Fund
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US Electricity Source Mix 1999 and 2003
C oal
51%
P etr ol eum
3%
Natur al G as
17%
Other G as es
0%
Nuc l ear
20%
Hydr oel ec tr i c
7%
Other
0%
Other R enewabl es
2%
C oal
52%
P etr ol eum
3%
Natur al G as
15%
Other G as es
0%
Nuc l ear
20%
Hydr oel ec tr i c
8%
Other R enewabl es
2%
Other
0%
1999 2003
Source: DOE EIA
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Regional Electric Mix 1990, 1999, and 2003
C oal
15%
P etr ol eum
10%
Natur al Gas
35%
Other Gas es
0%
Nuc l ear
27%
Hydr oel ec tr i c
6%
Other R enewabl es
7%
Other
0%Coal
15%
Petroleum
24%
Natural Gas
19%
Other Gases
0%
Nuclear
26%
Hydroelectric Conventional
7%
Other Renewables
9%
Other
0%
1999 2003
C oal
17%
P etr ol eum
27%
Natur al G as
8%Other G as es
0%
Nuc l ear
33%
Hydr oel ec tr i c
8%
Other R enewabl es
7%
Other
0%
1990
Source Data: DOE EIA
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Vermont Electricity Mix 2003
V er mon t I n st at e M ix ( in s ide bor der s)
Nuclear
74%
Hydr oelectr ic
19%
Coal
0%
P etr oleum
0%Other Renewables
7% Natur al Gas
0%
Instate Source Mix Committed Resource Source Mix
Oil
1%
Gas
1%
Nuclear
36%
Hydro
9%Renewable
6%
HQ
28%
System
19%
Source: DOE EIA Source: DPS
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Vermont Monthly Avg Wholesale Price (March-03 to Aug-05)
$302
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
Mar -03 Apr -03 May-03 J un-03 J ul -03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 J an-04 Feb-04 Mar -04 Apr -04 May-04 J un-04 J ul -04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar -05 Apr -05 May-05 J un-05 J ul -05 Aug-05
M onths
Monthly Average Average Peak Average
$55
Source: ISO-NE
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Electricity Cost/Price Projections
Electricity Cost and Price Projectsions Wholesale to Vermont (DPS Preliminary Estimates Sept. 2005)
0.000
0.020
0.040
0.060
0.080
0.100
0.120
0.140
0.160
0.180
Energy Energy plus Capacity Energy Real $2005 Energy Plus Capacity $2005Source: DPS
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Future Contract Prices in New England Average Contract Price for Energy January
and February are approximately $150/MWh
REC prices in Massachusetts for ’06 are about $40/MWh
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National Legislation Energy Policy Act of 2005 (Signed August 8,
2005) Conditionally rescinds PURPA
(conditioned on access to markets and/or appropriate interconnection)
National assessment of renewables inventory potential Minimum requirements for Federal Government
Purchases Tax Incentives for New Renewables State regulators shall conduct certain investigations
(smart metering, interconnection, utility fuel diversification)
Encourages development of additional generation at existing dams
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Regional Activity ISO-NE market for installed capacity Interconnection Standards (ISO-NE, Draft 12/05) Regional Greenhouse Gas Initiative (Stakeholder
meeting 9/21/05 – Target 2009 Initially a 9 state initiative)
Neighboring State Renewable Portfolio Standards (ME, MA, RI, CT)
Regional Clean Energy Funds (esp. MA and CT)
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Vermont Renewables Law Act 61 (key provisions)
SPEED (Section 8005 encourages Vermont utilities to engage in long term contracts with instate renewable developers)
Renewable Portfolio Standard (establishes a renewable portfolio standard if targets for SPEED contracts are not met)
Interconnection Standards for Renewable Generation
Tradable Credits for Renewables Disclosure Standards for Renewable
Technologies
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Other Vermont Renewable and Related Activities Vt. Clean Energy Development Fund (funding
approx. 2007 through 2012) Transmission Planning Investigation (Docket
7081) Green Pricing (GMP and CVPS’s “Cow Power”) Small Wind and Solar Incentive Fund ($800,000) Net Metering (approx. 830 kW) Mediated Modeling (Stakeholder discussion
focused on electricity policy in Vermont)
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Small Wind and Solar Incentive Fund $800,000 in funding for small wind and solar
projects. Incentives are expected to support the installation of approximately 250 renewable energy systems in the state, which will generate an estimated 540 MWh of electricity
Originally established pursuant to Vermont Renewable Energy Legislation in 2003 with funding for $840,000 (approximately 200 projects)
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VT Net Metering as of Sept ‘05 TOTAL Wind Solar PV Methane Fuel Cell
TOTAL kW APPROVED
834kW AC 422 346.5 65 0
NUMBER SYSTEMS
184 Systems 49 134 1 0
AVERAGE SIZE kW AC 8.6 2.6 65
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Act 61 ImplementationEarly Priorities SPEED Program (proposed rule 9/1/06) Interconnection Standards (proposed rule 9/1/06) Disclosure (no timeframe but needs to be
addressed in context of SPEED issues)Other Activities RPS (if SPEED threshold is not met 2013) Tradable Credits (RECs)
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Vermont Clean Energy Development Fund Established pursuant to Act 74 (2005) Annual Funding levels likely to exceed $4
million per year through 2012
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Vermont Clean Energy Development FundProcess DPS Draft and Public Comment Fall 2005 DPS Report to Legislature Due Jan. 2006 Major Funds likely to Begin March 2007?Funding Levels Estimated at >$4 million per year through March
2012
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Vermont Clean Energy Development FundPreliminary Goals and Objectives Sustainability of fund Efficient use of funds/market discipline Leverage other programs and incentives (federal, other
state, and Vermont) Equitable distribution of funds throughout VT Benefits flowing to Vermont ratepayers Focus on technologies closer to market and/or feasibility
potential high in Vermont Programs and studies directed at reducing
barriers/developing the sector
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Vermont Clean Energy Development FundLikely Approaches Revolving loans/equity investment; Grants/production credits for subsidy buy-down; Infrastructure developmentAdministration Independent third party? DPS Partnerships with other state agencies?
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Vermont Clean Energy Development FundTechnologies and Use of
funds? Fuel Cell Photovoltaics Solar/Hot Water Landfill Methane Farm Methane Energy Efficiency
Technologies? (cont’d) Biomass
enhancements Wind Hydro enhancements CHP Biodiesel
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Infrastructure Development Application of Funds Potentials and barriers analyses; Site pre-permitting and mitigation (aesthetic,
environmental, historic, sound); Strategies for enabling infrastructure and support
markets; Information, public awareness, and public
participation; Technical assistance; Demonstration.
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Vermont Clean Energy Development Fund Other State Funds in New England/NY
Massachusetts ($20 M) Connecticut ($30 M) New York Rhode Island
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Opportunities for Public Participation and Information Act 61 Implementation (PSB sponsored workshops)
www.state.vt.us/psb Mediated Modeling (DPS sponsored initiative)
www.publicservice.vermont.gov Vermont Clean Energy Fund (DPS study)
www.publicservice.vermont.gov Transmission Planning Investigation (PSB)
www.state.vt.us/psb Regional Greenhouse Gas Initiative
www.rggi.org
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Conclusion