International Energy Policy Trends

Dennis ScanlinAppalachian State University

March 2011

Energy Policy Trends• Renewable energy policy is the

principal driver of the growth in renewable energy use.• Regulatory Policies• Incentive Policies• Disincentive Policies• Feebates (combined fee & rebate

program)• DSIRE data base good source for

information about US policies

Public Policies and Renewable Energy Technology

Program Best Solar Thermal Sales in 2002 TVA StatesCT NV CA AZ FL OR TN GA NC KY VA AL MS

Net Metering Rules

Rebate Programs

Contractor Liscensing Requirements

Generation Disclosure Rules

Renewable Portfolio Standards

Public Benefits Funds

Sales Tax Exemptions

Property Tax Exemptions

Income Tax Incentives

Grant Programs

Equipment Certification Requirements

Regulatory Policies• Renewable

Portfolio Standards

• Permitting Policies

• Zoning Ordinances

• Building Codes & Sustainable Building Requirements

• Equipment & Installer Certification programs

Renewable Portfolio Standards (RPS)

• Mandated requirement that electric utilities source a portion of their electricity supplies from renewable energy sources• Australia,

Japan, Korea, Sweden, & US

RPS Policies

Renewable portfolio standardRenewable portfolio goal

www.dsireusa.org / March 2011

Solar water heating eligible *† Extra credit for solar or customer-sited renewablesIncludes non-renewable alternative resources

WA: 15% x 2020*

CA: 33% x 2020

NV: 25% x 2025*

AZ: 15% x 2025

NM: 20% x 2020 (IOUs) 10% x 2020 (co-ops)

HI: 40% x 2030

Minimum solar or customer-sited requirement

TX: 5,880 MW x 2015

UT: 20% by 2025*

CO: 30% by 2020 (IOUs)10% by 2020 (co-ops & large

munis)*

MT: 15% x 2015 ND: 10% x

2015

SD: 10% x 2015

IA: 105 MW

MN: 25% x 2025

(Xcel: 30% x 2020)

MO: 15% x 2021

WI: Varies by utility;

10% x 2015 statewide

MI: 10% + 1,100 MW x 2015*

OH: 25% x 2025†

ME: 30% x 2000New RE: 10% x 2017

NH: 23.8% x 2025MA: 22.1% x 2020 New RE: 15% x 2020

(+1% annually thereafter)

RI: 16% x 2020CT: 23% x 2020

NY: 29% x 2015

NJ: 22.5% x 2021

PA: ~18% x 2021†

MD: 20% x 2022DE: 25% x 2026*DC: 20% x 2020NC: 12.5% x 2021 (IOUs)

10% x 2018 (co-ops & munis)

VT: (1) RE meets any increase in retail sales x

2012; (2) 20% RE & CHP x 2017

KS: 20% x 2020

OR: 25% x 2025 (large utilities)*

5% - 10% x 2025 (smaller utilities)

IL: 25% x 2025

29 states + DC and PR have an RPS(7 states have

goals)

OK: 15% x 2015

PR: 20% x 2035

WV: 25% x 2025*†VA: 15% x 2025*

DC

North Carolina Renewable Energy and Energy Efficiency Portfolio Standard (REPS)

• August 2007• First state in the

Southeast • 12.5%by 2021 from

renewable energy resources or energy efficiency measures.

• Rural electric cooperatives and municipal electric suppliers are subject to a 10% REPS requirement

• Approx 20,000 Million KWH/year

REPS Requirements for IOUs

Acceptable methods of attaining goals

•Generate at new RE facility•Use a RE resource to generate electric power•Reduce consumption (up to 25% up to 2021 & 40% after)•Purchase power from new RE facility (outside state)•Purchase RE certificates (up to 25%)•Requirements for solar & biomass

NC REPS• 140 applications received

by PUC since October, 2008

• 107 facilities registered• 2 KW to 300,000 KW

• 39 hydro projects• 27 PV projects• 17 wind projects• 7 solar thermal• 6 landfill gas• 8 biomass• 2 swine & poultry waste

• 2,980,327 KW registered with NC Utilities Commission

Permitting of Wind Energy FacilitiesHouse Bill 809; Senate Bill 1068

• > 2 MW• Permitting

requirements defined• $2,000 application fee• Impact assessment

work required• Public hearing(s)

required• Defines who gets to

evaluates permit application and decide whether a permit is issued or not.

Model County Ordinance for NC

• 3 size classifications• Under 20 kW• 20 kW to 100 kW• Over 100 kW

• Setbacks from 1.1 to 2.5 times height of turbine• Includes standard definitions, permit application

recommendations, noise & shadow flicker maximums & decommissioning

Codes & Sustainable Building Requirements

• Requirements for new buildings• Australia,

Canada, Switzerland, Denmark, Germany, Spain, Korea, Portugal, Turkey, & US

• New public buildings in Korea must spend 5% of budget installing RE

Installer Certification Programs

Equipment Certification

Incentives• Feed-In Tariffs

(FIT)• Rebates• Tax Credits• Net Metering• Low Interest

Loans• Grants• Accelerated

Depreciation

Feed-In Tariffs (FIT)• Government guarantees a high

price for green energy with a long term contract

• Most common incentive program• Australia, Austria, Canada,

Switzerland, Germany, Spain, France, Israel, Italy, Japan, Korea, Portugal, Netherlands, Sweden, US

Example FITs• Canada’s 2009 program provides

20 year contracts for up to $.80/kWh. (price varies by energy source)

• Italy’s 2007 program pays up to $.52 - $.67/kWh with a long term contract and quota

• Israel’s 2009 program pays $.55/kWh with quota

Rebates• Provides cash back after the

completion of project (50% of installed cost common)• California- $2.50/watt for PV &

Solar thermal• New York - $1.75/watt for PV with

maximums; $3.50 per kWh for expected annual wind energy production up to 10,000 kWh and less after that

• Australia provides a 50% rebate

Rebate Programs for Renewableswww.dsireusa.org / March 2011

Utility, local and/or non-profit program(s) onlyState program(s) + utility, local and/or non-profit program(s)

Notes: This map does not include rebates for geothermal heat pumps or other energy efficiency technologies. The Virgin Islands also offers rebates for certain renewable energy technologies.

State program(s) onlyPuerto Rico

DC

23 states +

DC & PRoffer

rebates for renewables

Tax Credits• Reduces tax liability based on a

percentage of installed cost of renewable energy system• Canada, Switzerland, France,

Japan, Malaysia, Portugal, & US• North Carolina offers a 35% state

tax credit up to $10,500 for residential renewable energy systems

• US government offers a 30% tax credit for solar thermal, wind & geothermal heat pumps

System Costs & Incentives for 3 Panel Solar Water Heating System

• Installed costs can range from $90 to $120 per square foot

• Incentives available• 35% NC State Tax Credit

• Federal tax is paid on state tax credit• 30% Federal Tax Credit• Accelerated depreciation of renewable energy system

3 - 4x10 with 120 gallon tankSystem Costs $10,99935% State Tax Credit $3,849.6530% Federal Tax Credit $3,299.7Federal Tax on State Credit (34%) $1,308.88MACRS Present Worth (8%/yr) $3,034.08

Final Costs $2,124.45

Tax Credits for Renewableswww.dsireusa.org / March 2011

Corporate tax credit(s) onlyPersonal + corporate tax credit(s)

Notes: This map does not include corporate or personal tax deductions or exemptions; or tax incentives for geothermal heat pumps.

Personal tax credit(s) onlyPuerto Rico

DC

23 states offer tax credits for renewables

Netmetering• Provides the retail rate for

electricity by either allowing the electric meter to turn backwards or providing a credit for renewable energy produced• Demark, Australia, Austria,

Canada, Italy, Mexico & US have programs

• NC program• Residential and commercial up to 1 MW• Excess generation is carried forward

until summer billing season at then surrendered. No cash payments

• Only investor owned utilities have to make net metering available

Net Metering

State policyVoluntary utility program(s) only

www.dsireusa.org / February 2011

*State policy applies to certain utility types only (e.g., investor-owned utilities)

WA: 100

OR: 25/2,000*

CA: 1,000*

MT: 50*

NV: 1,000*UT: 25/2,000*

AZ: no limit*

ND: 100*

NM: 80,000*

WY: 25*

HI: 100KIUC: 50

CO: no limitco-ops & munis:

10/25OK: 100*

MN: 40

LA: 25/300

AR: 25/300

MI: 150*WI: 20*

MO: 100

IA: 500*

IN: 10*IL: 40*

FL: 2,000*

KY: 30*

OH: no limit*

GA: 10/100

WV: 25/50/500/2,000

NC: 1,000*

VT: 20/250/2,200

VA: 20/500*

NH: 100MA:

60/1,000/2,000/10,000*RI: 1,650/2,250/3,500*CT: 2,000*NY: 10/25/500/2,000*PA: 50/3,000/5,000*NJ: no limit*DE: 25/100/2,000

co-ops & munis: 25/100/500 MD: 2,000

DC: 1,000

Note: Numbers indicate individual system capacity limit in kW. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.

NE: 25

KS: 25/200*

ME: 660co-ops & munis:

100

PR: 25/1,000

AK: 25*

43 states + DC & PR have adopted a net

metering policy

DC

Green Power Schemes• Allows customers to purchase

green electricity from renewable energy usually at a premium price• Australia, Austria, Canada,

Switzerland, Germany, Spain, Italy, Japan, & US

NC GreenPowerNC GreenPower (NCGP) is a statewide

program designed to improve the quality of the environment by encouraging the development of renewable energy resources and the mitigation of greenhouse gas emissions through consumers’ voluntary funding.

NC GreenPower Program

• Started in 2003• Voluntary program• Advanced Energy

administers program• First Statewide green

power program in US• Involves IOUs, electric

cooperatives and municipalities

• 1,000 KW in 2010• $.15/KWH for PV < 10 KW• $.09/KWH for Wind < 10

KW

Sources of NC GreenPower

Raleigh

Asheville Nags Head

Haw River

Disincentives• Carbon Tax – an environmental tax on

the carbon content of fuels• South Africa, India, South Korea,

Denmark, Finland, Germany, Italy, Netherlands, Norway, Slovenia, Sweden, Switzerland, UK, some US states

• Many countries considering the carbon tax concept

Feebates• Self financing (revenue neutral)

system of fees and rebates that are used to shift the cost of externalities onto the responsible companies or individuals

• Used to shift buying habits• California “Clean Car Discount”

program taxes the purchase of high emission vehicles and using the fees to rebate the buyers of low emission vehicles