increasing the role of renewable energy sources bill abolt chicago district manager shaw...
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Increasing the Role of Increasing the Role of Renewable Energy Renewable Energy
SourcesSourcesBill AboltBill Abolt
Chicago District ManagerChicago District ManagerShaw Environmental & Shaw Environmental &
Infrastructure, Inc.Infrastructure, Inc.May 10, 2007May 10, 2007
Regulatory Climate and Regulatory Climate and Renewable EnergyRenewable Energy
Renewable Energy Portfolio Standards Renewable Energy Portfolio Standards (RPS) require that a specified amount (RPS) require that a specified amount of energy come from renewable sourcesof energy come from renewable sources
These portfolio requirements are often These portfolio requirements are often adopted by states and applied as adopted by states and applied as mandates to electricity providersmandates to electricity providers
Portfolio standards can also be Portfolio standards can also be adopted on a voluntary basis as adopted on a voluntary basis as purchasing preferencespurchasing preferences
Regulatory Climate and Regulatory Climate and Renewable Energy Renewable Energy
Renewable Energy Portfolio mandates Renewable Energy Portfolio mandates and preferences are being adopted in and preferences are being adopted in increasing numbersincreasing numbers
These programs often seek to achieve These programs often seek to achieve multiple objectives often associated with multiple objectives often associated with both improved energy performance and both improved energy performance and sustainability goalssustainability goals Economic DevelopmentEconomic Development Environmental ImprovementEnvironmental Improvement Energy Independence, Reliability and Cost Energy Independence, Reliability and Cost
ControlControl
Regulatory Climate and Regulatory Climate and Renewable EnergyRenewable Energy
Mandatory Mandatory and voluntary portfolio and voluntary portfolio programs promote the use of programs promote the use of renewable energy and energy-renewable energy and energy-efficient practicesefficient practices
Common Opportunities:Common Opportunities: These standards create new sources of These standards create new sources of
revenue for clean energy investmentsrevenue for clean energy investments Tax credits and emissions credits can Tax credits and emissions credits can
also support clean energy investmentsalso support clean energy investments Clean energy investments can reduce Clean energy investments can reduce
both capital and operating costsboth capital and operating costs
Regulatory Climate for Regulatory Climate for Renewable EnergyRenewable Energy
22 states and the District of 22 states and the District of Columbia have implemented Columbia have implemented Renewable Portfolio StandardsRenewable Portfolio Standards
Regulatory Climate for Regulatory Climate for Renewable EnergyRenewable Energy
State Programs often vary in policy State Programs often vary in policy objectives and regulatory designobjectives and regulatory design Mix of Renewable Energy ResourcesMix of Renewable Energy Resources Inclusion of Energy EfficiencyInclusion of Energy Efficiency Preferences for in-state or specific types of Preferences for in-state or specific types of
renewablesrenewables Increasingly, States are considering Increasingly, States are considering
Renewable Energy Policies in their Renewable Energy Policies in their environmental compliance strategiesenvironmental compliance strategies State Air Quality PlansState Air Quality Plans Climate Change StrategiesClimate Change Strategies
Regulatory Climate for Regulatory Climate for Renewable EnergyRenewable Energy
Tax expenditures and other government Tax expenditures and other government assistance also support the trend towards assistance also support the trend towards increased development of renewable energyincreased development of renewable energy
Voluntary Renewable Energy purchasing Voluntary Renewable Energy purchasing programs complement mandatory programs programs complement mandatory programs and aid market and political acceptanceand aid market and political acceptance Corporate and Government purchasing Corporate and Government purchasing
initiativesinitiatives Voluntary Utility ProgramsVoluntary Utility Programs Retail programsRetail programs
Regulatory Climate for Regulatory Climate for Renewable EnergyRenewable Energy
Existing regulatory schemes may not be Existing regulatory schemes may not be sufficient to address the increased sufficient to address the increased reliance on renewables to meet energy reliance on renewables to meet energy and environmental objectives and environmental objectives Measurement and verification of performanceMeasurement and verification of performance Integration of energy performance and Integration of energy performance and
environmental objectivesenvironmental objectives Proliferation of programs that splinter Proliferation of programs that splinter
incentives and increase transaction costs and incentives and increase transaction costs and complexitycomplexity
Illinois and Renewable Illinois and Renewable EnergyEnergy
State of Illinois is working to expand State of Illinois is working to expand renewable energy sources and account renewable energy sources and account for the full range of environmental for the full range of environmental benefits associated with those sourcesbenefits associated with those sources
State energy and environmental State energy and environmental officials are working closely with US officials are working closely with US Department of Energy and National Department of Energy and National Renewable Energy Lab (NREL) to Renewable Energy Lab (NREL) to evaluate the environmental impacts of evaluate the environmental impacts of RPS policies in a national pilot projectRPS policies in a national pilot project
Illinois Pilot—PurposeIllinois Pilot—Purpose
Determine the extent to which the Determine the extent to which the Illinois Sustainable Energy Plan - Illinois Sustainable Energy Plan - which includes a Renewable Portfolio which includes a Renewable Portfolio Standard and an Energy Efficiency Standard and an Energy Efficiency Portfolio Standard (EPS) - will result Portfolio Standard (EPS) - will result in emissions reductions that are in emissions reductions that are quantifiable, replicable and scaleable, quantifiable, replicable and scaleable, and that can be incorporated into the and that can be incorporated into the State Air Quality Plans.State Air Quality Plans.
Illinois Sustainable Energy Illinois Sustainable Energy Plan: RPSPlan: RPS
Percent of electricity sold to Percent of electricity sold to customers from renewable sources:customers from renewable sources:
2% by 20072% by 20073% by 20083% by 20084% by 20094% by 20095% by 20105% by 20106% by 20116% by 20117% by 20127% by 20128% by 20138% by 2013
Illinois Sustainable Energy Illinois Sustainable Energy Plan: EEPSPlan: EEPS
Procure energy efficiency and Procure energy efficiency and demand reduction to reduce demand reduction to reduce projected annual load growth by:projected annual load growth by:
10% in 2007 - 200810% in 2007 - 2008
15% in 2009 – 201115% in 2009 – 2011
20% in 2012 – 201420% in 2012 – 2014
25% in 2015 - 201725% in 2015 - 2017
Illinois Pilot—Illinois Pilot—ParticipantsParticipants
StateStateIL Dept. of Commerce & Econ. IL Dept. of Commerce & Econ. OpportunityOpportunity
IL Environmental Protection AgencyIL Environmental Protection AgencyIllinois Commerce CommissionIllinois Commerce Commission
FederalFederal U.S. Department of EnergyU.S. Department of EnergyU.S. Environmental Protection AgencyU.S. Environmental Protection AgencyNRELNREL
ResearchResearch Shaw Environmental, Inc.Shaw Environmental, Inc.UIC Energy Resources CenterUIC Energy Resources CenterPowerWorld CorporationPowerWorld CorporationWestern Illinois UniversityWestern Illinois University
Illinois Pilot—ProcessIllinois Pilot—Process
Determine the amount, type and Determine the amount, type and location of electric generation that location of electric generation that will be displaced by RPS/EEPS will be displaced by RPS/EEPS measures stipulated in the measures stipulated in the Sustainable Energy Plan (SEP)Sustainable Energy Plan (SEP)
Determine the impact of SEP Determine the impact of SEP measures on air emissions for:measures on air emissions for:
Sulfur dioxide (SOSulfur dioxide (SO22)) Nitrogen oxides (NOx)Nitrogen oxides (NOx) Mercury (Hg)Mercury (Hg) Carbon dioxide (COCarbon dioxide (CO22))
Modeling the Impact of Modeling the Impact of RPS Measures on Electric RPS Measures on Electric
GenerationGeneration Illinois is a significant exporter of powerIllinois is a significant exporter of power
Where air quality benefits specifically Where air quality benefits specifically from renewables will accrue is unknown; from renewables will accrue is unknown; increased use of renewables may result in increased use of renewables may result in emission reductions outside the non-emission reductions outside the non-attainment areasattainment areas
Regional model of economic dispatch of Regional model of economic dispatch of generation needed because power flows generation needed because power flows across state lines according to economics across state lines according to economics and the physical constraints of the systemand the physical constraints of the system
Illinois PilotIllinois Pilot Coal is the primary fuel that will be Coal is the primary fuel that will be
displaced by the Illinois RPS/EPSdisplaced by the Illinois RPS/EPS The RPS/EPS will result in pollution The RPS/EPS will result in pollution
reductions for all pollutants in a multi-reductions for all pollutants in a multi-state areastate area
The RPS/EPS displaces fossil fuel The RPS/EPS displaces fossil fuel generation in multiple statesgeneration in multiple states
The RPS/EPS produces emission The RPS/EPS produces emission reductions that may not be adequately reductions that may not be adequately captured under current air quality captured under current air quality regulatory schemesregulatory schemes
Illinois Pilot Illinois Pilot
Portfolio mandates can impact the order Portfolio mandates can impact the order in which power is dispatchedin which power is dispatched
The mix of renewable resources that are The mix of renewable resources that are deployed to the grid impact both the deployed to the grid impact both the extent and the timing of emission extent and the timing of emission reductionsreductions
A state’s RPS program can be structured A state’s RPS program can be structured to address specific air quality objectivesto address specific air quality objectives Improved modelingImproved modeling Increased collaboration between state energy Increased collaboration between state energy
and environmental officialsand environmental officials
Metropolitan Mayors Metropolitan Mayors Caucus Caucus
Initiated a pilot project to promote the Initiated a pilot project to promote the expansion of renewable energy and energy expansion of renewable energy and energy efficiency in municipal projectsefficiency in municipal projects
Seek to capture the energy and Seek to capture the energy and environmental attributes of municipal clean environmental attributes of municipal clean energy investmentsenergy investments
Created Created Clean TagsClean Tags for inclusion in both for inclusion in both Climate Change and Portfolio ProgramsClimate Change and Portfolio Programs
Caucus will serve as aggregator of Caucus will serve as aggregator of Clean Clean TagsTags
Questions?Questions?
Shaw E & I – ChicagoShaw E & I – Chicago
Bill AboltBill Abolt
Phone: (312) 499-3525Phone: (312) 499-3525
E-mail: [email protected]: [email protected]