Renewable Energy in the U.S.: Lessons Learned
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Renewable Energy in Renewable Energy in the U.S.: the U.S.: Lessons Learned Lessons Learned Paul Komor University of Colorado [email protected] 27/05/03
description
Renewable Energy in the U.S.: Lessons Learned. Paul Komor University of Colorado [email protected]. 27/05/03. Outline of presentation. 1. Description of U.S. energy situation 2. Renewable energy policies: What works, what doesn’t 3. Lessons learned. - PowerPoint PPT Presentation
Transcript of Renewable Energy in the U.S.: Lessons Learned
Renewable Energy in the U.S.: Renewable Energy in the U.S.: Lessons LearnedLessons Learned
Paul Komor
University of Colorado
27/05/03
Outline of presentationOutline of presentation
1. Description of U.S. energy situation
2. Renewable energy policies: What works, what doesn’t
3. Lessons learned
U.S. energy mix: 6% renewablesU.S. energy mix: 6% renewables
U.S. electricity generationU.S. electricity generation7% Hydro~1% other renewables
Coal
Nuclear
Gas
HydroOil Other
U.S. restructuring: curious mixU.S. restructuring: curious mix
Unexpected success story: WindUnexpected success story: Wind
Unexpected success story: WindUnexpected success story: Wind
3000 MW installed in U.S. 1999-2002
0
500
1000
1500
2000
2500
3000
3500
4000
4500
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1975 1980 1985 1990 1995 2000 2005
Year
MW
Unexpected success story: WindUnexpected success story: Wind
4.7 GW spread over 31 states
Wind economicsWind economics
New wind competes against new natural gas
Natural gas prices very volatileWind contracts now typically €0.03 -
€0.06 / kWhWind’s intermittency emerging as the
key barrier
Renewable policies: what worksRenewable policies: what works
Federal wind production tax credit (PTC)
State renewable portfolio standards (RPS)
Green pricing Bond fundsState system benefit charges (SBC)
National wind production tax National wind production tax creditcredit
Only significant national policy€0.016/kWh for generatorGood for 10 years of operationSet to expire 12/03, may be renewed Wind developer: ‘I’m dead without it’Wise use of public funds?
State Renewable Portfolio State Renewable Portfolio Standards (RPS)Standards (RPS)Similar to UK’s RO16 U.S. states have RPSsSome are using green tags (RECs)Usually tied to restructuring
(liberalisation) Vary widely in goals, rules
RPS example: TexasRPS example: Texas
Restructuring legislation in 1999Required 2000 MW of new
renewables (~2% of total generation) by 2009
Requirement on retailers, not generators
Active green tag (REC) programOver 1000 MW of new wind already
Green pricingGreen pricing
Voluntary, higher price electricity100+ utility green pricing programsMany active green marketersGreen Mountain: 600,000 customers980 MW of new renewables (mostly
wind) built to serve green pricing markets
Bond fundsBond funds
San Francisco: borrowed €100 million for solar.
Projects cannot increase net costs (including loan repayment)
Package solar with efficiencyModel program, other cities are
considering it
System benefit charges (SBC)System benefit charges (SBC)
15 states have SBCsUsually passed as part of
restructuringA per-kWh tax, used to support
renewables, efficiency, other public goods
Allocation of funds contentious and occasionally ugly
Renewable policies: Renewable policies: what what doesn’tdoesn’t work work
Subsidies for capacity, not generation
Using RPS to target specific technologies
Requiring green programs without incentives for success
Failing to protect renewable funds
Policy challengesPolicy challenges
Cost of uncertainty vs. need to update/improve/fine-tune policies
Goals: install new generation? Reduce costs? Promote economic development? Boost a lagging technology?
Political challengesPolitical challenges
Lack of public interestPolitical power of entrenched
fossil fuel interestsUtility culture: risk-averse, few
incentives for innovation
ConclusionsConclusions
Work towards agreement on policy goals, then clarify and stick to them
Learn from others’ mistakes If establishing renewable funding
pots, have rigorous allocation agreements in place first
Set boundaries carefully, but promote/pursue private investment
