2012 Program DesignDiscussion

Charlie Garrison, David Hill and Ron ReismanRenewable Energy Market Manager Team

Renewable Energy Committee MeetingSeptember 20, 2011

Process Timeline

Events to Date

June 7 – Initial presentation of 2012 plans

July 12 – Identification of key issues & focus areas / input requested

August 9 – Framing specific program changes / add’l input requested

September 16 – Discuss draft overview of program changes with OCE

September 20 – Final draft presentation to REC

Process Timeline

Events to Come

Sept. 26 – Complete draft of Compliance Filing submitted to BPU

October – BPU Solicits public feedback on filing

November – MM incorporates feedback into final filing as needed

December – BPU adopts MM’s plan

Reflecting EMPPolicy Priorities

• Continue transition of solar market from rebate-based programs to long-term financing options and power purchase agreements

• Continue market/financial analyses to determine appropriate initiatives for addressing market barriers and gaps

• Assist OCE in assessing market conditions and seeking ways to reduce the barriers to broad-based program participation

• Streamline processes to continue stimulating investment with lower costs

SREC Registration Program (SRP)Modifications

• Transitioning to electronic registration and processing• Need to assess scope of work and implementation timeframe

• New paperwork requirements for 2012• One recent EDC electric bill

• Site map

• Contract (key items)

• Construction schedule

• Maintain 10% rate of project verifications for SRP• Conduct meter verifications as requested by OCE

Solar Program Outreach

• Solar Technical Working Group• Ideal forum to address questions relating to rules, inspections, meter

placement and other technical issues.

• Fire safety training for firefighting community and solar industry

• Assess number of meetings needed and value of localized versus centralized sessions

• Financing webinars• Explore innovative financing options

• Use webinar format to reduce costs, maximize reach and archive content

• Outreach to realtors and appraisers (both RE and EE)• Assessing added value of solar on residential and commercial buildings

• Educate the public on importance of “Efficiency First”• Include in all presentations and public appearances

Wind Program

• REIP wind program still temporarily closed due to safety concerns stemming from blade failure and fire

• Need to assess the impact of the lengthy program shutdown

• MM provided draft recommendations to OCE revising 2011 program requirements and structure based on working group input and written comments

• Revised 2011 program will become 2012 program recommendation

• Small Wind Working Group meeting scheduled for 3rd week in Oct.

REIP Wind Program

Program revisions currently under review include:

• Turbine certification status to determine eligibility

• Contractor and manufacturer insurance and bonding requirements for participation

• More accurate estimated production calculation for rebate level determination

• Rebate levels and rebate payment structure

• MM reviewing alternative calculations to put more focus on performance-based incentives

Wind Program Outreach

Recommending more segment focus and outreach to the high wind target area and contractors

• More marketing and education

• Host quarterly small wind working groups

• Grow partnerships with NJ manufacturers and universities

• More proactive outreach to qualified contractors and manufacturers

• Municipality focus – small wind ordinance adoption

• Highlight incentive structure for Wind System Feasibility studies

REIP Biopower Program

• Program expected to remain similar to 2011 program

• Proactive outreach and industry engagement

• Target high potential industries (i.e., food processing, wastewater treatment, etc.) for project development

Biopower ProgramOutreach

Recommending more segment focus and outreach to high potential, high value industries and contractors:

• Partner with the Rutgers EcoComplex and other NJ universities and colleges to expand industry knowledge and opportunities for biopower systems in NJ.

• Review and update statewide feasibility studies that could serve as a basis for site- and project-specific feasibility studies

– Highlight Rutgers’ 2007 “Assessment of Biomass Energy Potential in NJ”

• Promote availability of funds for project and site-specific feasibility studies

Biopower Program Outreach (continued)

• More proactive outreach to qualified contractors and manufacturers

• Align biopower efforts with NJCEP’s EE programs for Industrial and Water/wastewater customers

• Re-establish biopower working group and schedule at least two MM-facilitated meetings

Preliminary 2012 RE New Funding

PROGRAM ($Million)

Offshore Wind $ .500

REIP $10.000

RE Direct Grid Supply (non-solar) $ 9.500

Total $20.000

NOTE: These amounts are in addition to any uncommitted carryover that will be identified by the end of year true-up during Q1, 2012.