dave s lamont - feed-in tariff example vermont

8/6/2019 Dave S Lamont - Feed-In Tariff Example Vermont

1/20

U.S. Feed-in Tariff Example:Vermont

The Regulatory Assistance Project Home Office (US)50 State Street, Suite 3Montpelier, VT 05602

Phone: 802-223-8199 web: www.raponline.org

ADB Renewables Conference

Manila, Philipines

June 22, 2011


2/20

Vermont FITContext

Legislative Foundation

2

Program designProgram results (to date)


3/20


4/20

US Experience

To date, limited active programsPURPA may have left a preference for

4

Legislation has been proposed in severalstatesVarying designsFocus today on Vermont


5/20

Vermont FIT LegislationVermont Energy Act of 2009 (Act 45) First statewide FIT program in the U.S.

Obligations apply to all electric distribution utilities (except one) A single program facilitator contracts with all project owners,

assists in development process, and distributes the power andcosts to each distribution utility

Legislation mandated rates be developed for 6 categories of -

5

, , ,Hydroelectric ,Solar PV, Wind

Left size differentiation and granularity to the Public Service Board 2.2MW size cap

Specified a very aggressive timetable Specified that rates include a return on equity (ROE) not less than

the highest ROE for a Vermont investor-owned electric utility onthe FIT effective date

5


6/20

Vermont FIT (continued)Standard offer contract program began 10/092.2 MW cap per project, 50 MW cap overall

No technology can occupy >25% of application queue Queue for solar and biomass filled immediately; 50 MW filled soon afterSolar rates do not change over contract term; resources withsignificant variable costs, a partial escalation is built in to account forcost increases

6

First-year prices (per kWh) for 2010 contracts Solar - $0.24 (25-year contract) Small wind - $0.2083 Large wind - $0.1125 Hydro - $0.1188

Farm methane - $0.1359 Landfill gas - $0.0869 Solid agricultural and 50%-efficient woody biomass - $0.1208

Must re-set prices at least every 2 years for new contracts6


7/20

Vermont FIT ProcessVermont Public Service Board Process

Stakeholder process with ultimate decision making remainingwith the Board

4 subgroups: Costing - to determine appropriate prices using the statutory

criteria; Contracts - to develop a draft standard contract

7

-connecting projects with the grid and transporting the power to theutilities

Settlement - to address the accounting of electricity and renewableenergy credits through purchasing agent

Workshops followed by position papers and more workshops Collaborative financial model development participants free touse their own data assumptions

7


8/20

Vermont FIT IssuesVermont Public Service Board Process

Prices and contract issues that you would expect. Limitedopportunity for price discovery. For some technologies(hydro) difficult to define a generic costHow to allocate other products that might be developedin the future

The process by which developers enter into the program

8

the queue ; followed by a lottery Should utility owned projects be allowed to participate How should project modifications be handled; Definition of a plant vis a vis 2.2 MW limit

Meter ownership Data collection to inform future rate setting financial,production, Capital costs

8


9/20


10/20

Vermont FIT Program Design 25-year contracts for solar, 15 years for landfill gas, 20

years for all other resources Application requires documentation of site control plus

$200 administrative fee and $10/kW refundable deposit

Renewable energy certificates transfer to utility (except forfarm methane)

Over 50 MW under contract (44 projects)

A little over 5 MW operational expect an additional 25MW by the end of the year

10


11/20

RESULTS

As of 6/8/2011

1111


12/20

TECHNOLOGY

PROJECTCAPACITY

(KW)LotteryOrder PROJECT NAME PROJECT LOCATION HOST UTILITY On-Line Date

SOLAR 2 1 Ammirato Family Farm Westford VEC

SOLAR 100 2 Park Place Housing Burlington BED

SOLAR 450 3 Hunt Middle School Burlington BED

SOLAR 2200 4 Green Mountain Energy Park Solar Pownal CVPS

SOLAR 32 5 Advance Transit Building Expansion White River Junction GMP 12/17/2010SOLAR 1005 6 Burlington PV Burlington BED

SOLAR 26 7 Leunig's Building Burlington BED 12/23/2010

SOLAR 1000 8 Ferrisburgh Solar Farm Project Vergennes GMP 11/30/2010SOLAR 2200 9 South Burlington Solar Farm South Burlington GMP 6/3/2011

SOLAR 2000 10 TriLand - Williamstown Williamstown WEC

SOLAR 150 11 Hannaford - 121 Middlebury CVPS

Solar Photovoltaic

Note: Relined Applications have been withdrawn or deleted from the queueProjects On-Line and generating

1212

SOLAR 125 12 Old Navy Burlington BED

SOLAR 2200 13 Cross Pollination One New Haven GMPSOLAR 60 14 The Maltex Building Solar Project Burlington BEDSOLAR 500 15 Braddleboro CVPS

SOLAR 2200 16 SunGen1 Sharon CVPS

Solar has been successful. Remaining projects expected to beonline by the end of the year, even at lower rate


13/20

TECHNOLOGY

PROJECTCAPACITY


BIOMASS 2000 1 Ludlow BioMass Power LLC Ludlow Ludlow ElectricBIOMASS 2200 2 VC Biomass Bennington CVPSBIOMASS 625 3 Landmark College Biomass Putney GMP

BIOMASS 2200 4 Cersosimo Lumber Biomass Brattleboro CVPSBIOMASS 330 5 Magic Hat Digester outh Burlington GMPBIOMASS 65 6 BCH Biosolids to Energy outh Burlington GMPBIOMASS 840 7 Delta Campus Biomass Braddleboro CVPSBIOMASS 2200 9 Casella Coventry Biomass Coventry VECBIOMASS 2200 10 Green Mountain Biomass Energy Park Lyndonville Lyndonville ElectricBIOMASS 2200 11 Riverside Biomass Brattleboro CVPS

Biomass


1313

BIOMASS 800 Cersosimo Lumber Biomass Brattleboro CVPS

BIOMASS 400 RPC Power Rutland CVPS

Biomass projects withdrawn mostly as a result of 50% efficiency requirementwhich required a 24/7 heat host


14/20

TECHNOLOGY

PROJECT

CAPACITY(KW)

LotteryOrder PROJECT NAME PROJECT LOCATION HOST UTILITY On-Line Date

WIND 100 Paradise Bay Wind South Hero VECWIND 2200 Casella Coventry Wind Coventry VECWIND 1951 New Boston Wind Farm Jacksonville Jacksonville ElectricWIND 2000 Catamount/Bolton Wind 2 Bolton GMPWIND 1951 tamford Wind Farm Stamford GMPWIND 995 Poultney State Line Wind Poultney CVPS

Wind

Note: Relined Applications have been withdrawn or deleted from the queue

Projects On-Line and generating

1414

WIND 100 Dynapower EMS S Burlington GMP

WIND 1800 Northeast Mountain Wells CVPSWIND 2200 Grandview Farm Wind Derby Line VECWIND 1800 Catamount/Bolton Wind 2 Bolton GMPWIND 100 Mrs. Coy's Organic Juice Richford VECWIND 1500 mugglers Hill Farm Wind Derby Line VECWIND 1500 Chimney Hill Wind Wilmington GMP

Wind projects withdrawn mostly as a result of inadequate preparation, resultingfrom limited project lead time incorporated in guidelines.


15/20

TECHNOLOGY

PROJECTCAPACITY

(KW)

Lottery

Order PROJECT NAME PROJECT LOCATION HOST UTILITY On-Line DateFARM METHANE 1173 Agnorth Alburgh VECFARM METHANE 450 Dubois Energy, LLC Addison CVPS 11/17/2010FARM METHANE 40 Joneslan Farm Digester Hyde Park VECFARM METHANE 100 EATON Energy Lunenburg CVPSFARM METHANE 350 Fillmore Digester Bennington CVPSFARM METHANE 100 Lanphears Digester Hyde Park Hyde Park Electric

FARM METHANE 180 Franklin VECFARM METHANE 225 Kane's Kilowatts Enosburg CVPS

FARM METHANE 100 Stowe Stowe ElectricFARM METHANE 150 Greensboro Hardwick ElectricFARM METHANE 155 Monument Farms Anaerobic Digestion System Weybridge CVPSFARM METHANE 300 Chaput Family Farms North Troy VEC 8/3/2010FARM METHANE 450 Bristol CVPS

FARM METHANE 375 Central Vermont Recovered Biomass Facility (CVRBF) Randolf CVPSFARM METHANE 300 SBCH Farm and Food Methane South Burlington GMP

Farm Methane

1515

FARM METHANE 600 Berkshire Cow Power, LLc - Existing Farm Richford VEC existing

FARM METHANE 200 Gervais Digester - Existing Farm Enosburg Falls Enosburg Water and Light existing

FARM METHANE 225 Westminster Energy Group - Existing Farm Westminster GMP existing

FARM METHANE 300 Green Mountain Dairy - Existing Farm Sheldon CVPS existing

FARM METHANE 225 Neighborhood Energy - Existing Farm Newport VEC existing

FARM METHANE 490 Audets Cow Power - Existing Farm Bridport CVPS existing

FARM METHANE 300 Montagne Cowpower - Existing Farm Swanton CVPS existing

FARM METHANE 75 Neighborhood Energy - additional eng./gen Newport VEC

FARM METHANE 225 Westminster Energy Group - additional eng./gen Westminster GMP

FARM METHANE 190 Audets Cow Power - Digester Upgrade Project Bridport CVPS

FARM METHANE 60 DeGraff Dairy Digester Richmond VEC

FARM METHANE 200 Gervais Farm Engine 2 Enosburg Falls Enosburg Water and Light

Farm projects have been successful. Limited dropout, expect most will becompleted. Several existing projects are adding engines.


16/20

TECHNOLOGY

PROJECTCAPACITY


LANDFILL METHANE 1000 Casella Coventry Heat Recovery Coventry WECLANDFILL METHANE 560 BCH Landfill Gas to Energy Brattleboro CVPS 8/19/2010LANDFILL METHANE 150 SBCH Landfill Gas to Energy South Burlington GMP

HYDROELECTRIC 675 West Charleston Hydro West Charleston VEC 4/12/2011HYDROELECTRIC 50 Butterfield Derby Line VECHYDROELECTRIC 816 Troy Hydro Project Troy VECHYDROELECTRIC 976 New Boston Hydropower Facility Jacksonville Jacksonville ElectricHYDROELECTRIC 995 Bennington Hydro Bennington CVPSHYDROELECTRIC 2200 Ball Mountain Hydroelectric Project Jamaica CVPSHYDROELECTRIC 960 Townshend Dam Hydroelectric Townshend CVPS

Landfill Methane and Hydro


1616

HYDROELECTRIC 100 100 River Street LLC Springfield CVPS

HYDROELECTRIC 700 Pownal Brownfield Hydro North Pownal CVPSHYDROELECTRIC 300 Northfield Falls Hydroelectric Northfield Falls NORTHFIELDHYDROELECTRIC 50 Candelora Hydro Pownal CVPSHYDROELECTRIC 1500 Middlebury Upper Middlebury CVPSHYDROELECTRIC 65 Candelora Hydro Pownal CVPSHYDROELECTRIC 138 North Hartland Hartland CVPS

Developing hydro is a challenge, involving the Federal Energy RegulatoryCommission. Limited development expected.


17/20

Conclusions

One size may not FIT allAllow sufficient time to create programdesi n and detail

1717

Assure sufficient skin in the game to getserious developers

Think of maximizing value, while offeringcost


18/20


19/20

For More Information Vermont

Lawhttp://www.leg.state.vt.us/DOCS/2010/ACTS/ACT045.PDF

Vermont Public Service Board proceeding

http://psb.vermont.gov/docketsandprojects/electric/7523 Third-party implementationhttp://vermontspeed.com/

Oregon Laws

19

p: www. eg.s a e.or.us reg measp . r .en.p

http://www.leg.state.or.us/10ss1/measpdf/hb3600.dir/hb3690.en.pdf Policies and initial rateshttp://apps.puc.state.or.us/edockets/orders.asp?ordernumber=10-198

Ruleshttp://apps.puc.state.or.us/edockets/orders.asp?ordernumber=10-200

Utility implementation

http://www.pacificpower.net/env/nmcg/osip.htmlhttp://www.portlandgeneral.com/renewables_efficiency/generate_power/home/solar_payment_option/default.aspx


20/20

About RAP

The Regulatory Assistance Project (RAP) is a global, non-profit team of experts thatfocuses on the long-term economic and environmental sustainability of the powerand natural gas sectors. RAP has deep expertise in regulatory and market policiesthat:

Promote economic efficiency Protect the environmentEnsure system reliability Allocate system benefits fairly among all consumers

Learn more about RAP at www.raponline.org

dave s lamont - feed-in tariff example vermont

Documents