Pegeen Hanrahan, PE - conference.EnergySmartPlanning.org

TRANSFORMATIONAL POLICIES IN
ENERGY EFFICIENCY
AND RENEWABLES:
GAINESVILLE’S EXPERIENCE
NOVEMBER, 2011
Pegeen Hanrahan, P.E.
Local Government Actions
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Local Governments manage:
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Transportation
Infrastructure
Land use and zoning
Building codes
Landscaping
Waste management
Land conservation
Power generation
Gainesville
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Home to the University of
Florida (Gators)
Fifth largest university in the
United States, 50,000+
Also home to Santa Fe College,
17,000+
Low tax base - rely heavily on
municipal utility GRU
Transfer $36.4 million per year
from GRU to General
Government
Gainesville
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City population of 130,000
More than 60 square miles
14th largest city in Florida
County population of almost
250,000 and 930 square miles
Our Focus on Saving Energy, Increasing
Renewables, Creating Jobs, Reducing Carbon
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Requires ambitious action, particularly given our
population growth since 1990.
Four key strategies:
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Energy conservation
Energy supply
Transportation
Land use planning
US Mayors Climate Protection Agreement
Signed by 78 Cities in Florida, 1054 Nationwide
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Meeting Kyoto by 2013
A Three Pronged Approach
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1. Maximize energy efficiency. Gainesville has
been investing approx. $5.6 million per year in
rebates and incentives for insulation, HVAC,
lighting, roofing, water heating, and many other
options. GRU matches business investment on a
1-for-1 basis, up to $100,000 per site.
2. Dramatically increase solar deployment, up to
32 MW by 2016.
3. Shift from a power purchase contract with
Progress, replace with 100 MW biomass plant
using waste from forestry, urban tree trimming.
A Rigorous Approach –
The Results May Surprise You
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Almost everything we’ve done that reduces carbon had a
primary purpose OTHER than reducing carbon.
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Comparison of Annual Carbon Reduction
Impacts by 2013
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Biomass Power Plant
334, 219
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Energy Conservation Programs
177,650
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Traffic Light Synchronization
82,701
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Acquiring Land and Development Rights
31,824
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Repowering Natural Gas Plant
31,801
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Combined Heat and Power Plant
22,557
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Landfill Gas to Energy Plant
19,678
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Solar Photovoltaic Electricity
7,682
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LED Traffic Signals
2,967
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Total
In Metric Tons CO2
711,079
Public Utility, Public-Private Partnerships Key
Gainesville Renewable Energy Center
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100-megawatt plant fueled by woody biomass,
waste products from forestry operations and urban
tree trimming debris. GRU contracted with private
industry to reduce financing costs, reduce fuel risk,
get 30% tax incentive.
Most of the feedstock is today composted or burned
in the field. Trees and vegetation absorb carbon
during growth, release it during combustion or
rotting, but carbon in = carbon out, with no net
increase, and we are offsetting burning of fossil fuels
that increase carbon and other pollution.
Renewable Energy Creates
LOCAL Jobs
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Biomass Plant is projected
to create 525 local jobs,
490 in the forestry industry
35 in the generating plant.
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Currently about 200
laborers are working onsite,
over six months into
construction; will be about
900 at peak.
Gainesville’s Energy Conservation Programs
Program
Incentive
Number of
Participants
MWh Saved and
kW Reduced
Overall – Could
power 6,510 Homes
See Below
24,738
64,450 MWh
13,644 kW
Insulation
Up to $375
1,631
2,508 MWh
876 kW
Duct Leak Repair
Up to $375
2,704
3,483 MWh
1398 kW
Central A/C 15 SEER
$300 Rebate
856
467 MWh
311 kW
Central A/C Super
SEER
$550 Rebate
2,235
3,760 MWh
2,318 kW
GRU has about 90,000 electricity customers –
1 incentive for every 3.7 customers
Gainesville’s Energy Conservation Programs
Program
Incentive
Number of
Participants
MWh Saved and
kW Reduced
Refrigerator Buy-back $75 incentive
2,256
3,752 MWh
562 kW
High Efficiency Pool
Pump
Up to $350
621
1,104 MWh
271 kW
Home Performance
with Energy Star
Up to $1,435
1,288
Included in other
listed programs
Low Interest Loans
3% Fixed up to
$10,000
262
301 MWh
98 kW
Irrigation Tune Up
Up to $75
150
6 MWh
5 kW
Gainesville’s Energy Conservation Programs
Program
Incentive
Number of
Participants
MWh Saved and
kW Reduced
CFL’s
Free or reduced cost
188,007
distributed
12,770 MWh
109 kW
Heat Pump Water
Heater Pilot
$200
3
5 MWh
1 kW
Natural Gas
Appliances
Up to $850
1,200
4,185 MWh
509 kW
E Star for Affordable
Housing
$300
66
99 MWh
42 kW
Low Income Energy
Efficiency Program
(LEEP)
Average $3,000
486
Savings included in
other programs
Gainesville’s Energy Conservation Programs
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Program
Incentive
Number of
Participants
MWh Saved and
kW Reduced
Customized Business
Programs
50% up to $100,000
450
26,852 MWh
4,939 kW
Smart Vendor
Free devices
($135 Value)
928 units
1,625 MWh
Currently deploying about $3.4 million annually in GRU incentives. If on
average the incentive is 25% of project costs, this is $13.6 million in direct
expenditures in our community. That is equivalent to about 68 single family
homes at $200,000 per home, several hundred person-years of labor.
Phased Out Incentive Programs
Program
Incentive
Number of
Participants
Central A/C
Maintenance
4,171
High Efficiency Room
A/C
928
Reflective Roof
Coating
18
Heat Recovery Water
Heater
4
LED Exit Signs
4,481
Total for Phased Out:
MWh Saved and
kW Reduced
3,185 MWh
1,192 kW
Customer Information
Conservation Costs Less
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Average cost of energy
conservation measures:
$17.75 per MWh
Average cost of GRU
generation mix:
$61.00 per MWh
GAINESVILLE WAS DESCRIBED BY
MONEY MAGAZINE AS “THE
EFFICIENCY LEADER OF ALL FLORIDA
UTILITIES,” AND THE CITY IS ALWAYS
STRIVING TO MAINTAIN THAT
STANDARD.
Gainesville’s Renewables Revolution
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In 2009 Gainesville became the first city in the
United States to adopt a feed-in-tariff policy to
encourage development of renewable energy
Since then there have been hundreds of new solar
installations, with a total installed capacity now
approaching 9 MW, an increase of over 2600%.
We have become a model for other municipal
utilities and some states.
Gainesville Adopted the First True
Feed-in-Tariff (CLEAN Program) in U.S.
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Feed-in Tariffs Best to Deal with Climate Change Say
IPCC Working Group
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FITs Least Costly--Most Competitive Mechanism Says Climate
Researchers
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November 8, 2011
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The 135-page report by the Intergovernmental Panel on Climate Change,
makes it clear that the overwhelming weight of academic studies
conclude that feed-in tariffs--or fixed-price mechanisms--perform better
at delivering renewable energy quickly and equitably than quota systems,
such as Renewable Portfolio Standards in the US or the Renewable
Obligation in Britain. This is not the unsurprising conclusion from a
surprising source: the IPCC's Working Group III on Renewables.
The Most Effective Renewable Energy Policy
Clean Local Energy Accessible Now (CLEAN) Programs
are the most effective policy solution for spurring
renewable energy installations around the world
Source: Navigant Consulting
CLEAN Programs are responsible for 45% of all
wind energy and 75% of all solar PV capacity
installed in the world before 2008
(National Renewable Energy Laboratory)
CLEAN Programs are responsible for 86% of the
solar capacity deployed in the world in 2009
(Navigant Consulting, Meister Consultants Group)
Making Clean Local Energy Accessible Now
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GRU provides 20
year fixed price
contracts to solar
investors
Solar investors finance, fund
and build projects, feed
energy into grid
GRU pays solar
investors fixed rate
for energy
produced for
20 years
GRU adds solar
costs to all retail
customers’ fuel
adjustments
Why Solar?
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Customer survey of 400 residential customers
Would you support or oppose GRU’s efforts to encourage
solar energy investments in your community if it would add
one dollar or less per month to all customers’ utility bills?
Support: 75 percent
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Strong community environmental ethic
Largest single source of energy on planet
Great faith in continued advances in costeffectiveness
How does our FIT work?
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Cap of 4 MW a year to manage
rate impact , hit first year’s
capacity limit two days prior to
implementation date of March 1
Capacity queue filled through
2016 for 32 MW
Backed by excellent credit of our
public utility:
“AA” rated by Moody’s, Fitch and
S&P
CLEAN-Gainesville Seeds a US Solar Revolution
8,000
7,000
kW
6,000
5,000
4,000
Before Gainesville, Florida, launched its CLEAN
Program in October 2008, Gainesville Regional
Utilities (GRU) had 328 kW of installed solar
capacity. During the first 2.5 years of the
program, GRU experienced 2,600% solar growth.
Current capacity is over 9 MW and growing. The
growth has been driven by the CLEAN program
(75% direct; the majority of remainder indirect).
The rate impact has been 1 to 2%.
3,000
GRU Installed Solar Capacity After
October 2008
2,000
GRU Installed Solar Capacity
Before October 2008
1,000
328 kW
0
9,000 kW
Solar Benefits
Not Just Environmental
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Job creation
Energy independence
Fuel diversity, reliability and security
Democratizing the grid
Civic pride and publicity
Contributing toward a green industry economic
development cluster
Building our innovation reputation
Indirect Benefits
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New solar companies and business models came
to Gainesville
Capital infusion into community
New solar-friendly zoning rules
Solar print and radio advertising
Dramatic improvement in $/watt
 2008
~$8.00/watt
 2010 ~$6.50/watt
 2011 ~$5.30/watt
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New market in leasing rooftops
Indirect Benefits
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Invited by the White House
Office of
Intergovernmental
Relations to be on a Panel
at the U.S. Center in the
Bella Center in
Copenhagen
Named a Green Global
Capital Challenge City by
Carbon War Room
Gainesville Chamber of
Commerce has embraced
green tech
US has far better solar resource than Germany
Making Clean Local Energy Accessible Now
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Clean Local Energy Accessible Now (CLEAN) = Success
Solar Markets: Germany vs California (RPS + CSI + other)
20000
15000
10000
California
Germany
5000
0
2002 2006 2007 2008 2009 2010
Sources: CPUC, CEC, SEIA and
German equivalents.
Germany added 28 times more solar than California in 2010.
Even though California’s solar resource is 70% better!!!
Making Clean Local Energy Accessible Now
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Commission “Signing Day”
Feed in Tariffs Deliver Results
Over 50% of Wind Worldwide
Over 75% of Solar PV Worldwide
Over 90% of Farm Biogas
Worldwide
Paul Gipe, Windworks.org
With No RPS, No Carbon
Laws (YET….)
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We will meet Kyoto Standard by 2013
Fuel Mix 2013 (Reduced Overall Demand):
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62.6% Coal (same production capacity)
10.4% Natural Gas (cut in half)
5.2% Nuclear (same)
0% Oil (eliminated)
22% Renewable Energy
0% Purchased Power (eliminated)
Our costs are comparable to other like utilities….
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Thank You!
Contact:
Pegeen Hanrahan, P.E.
[email protected]
352-665-5939 mobile
www.communityconservationsolutions.com