john saintcross, program manager energy and environmental markets nyserda
DESCRIPTION
New York State Renewable Portfolio Standard. John Saintcross, Program Manager Energy and Environmental Markets NYSERDA. Renewable Portfolio Standard. Goal: 30% of the power consumed in the state to come from renewable sources by 2015 - f rom a 2003 baseline of ~ 19.5% - PowerPoint PPT PresentationTRANSCRIPT
John Saintcross, Program ManagerEnergy and Environmental MarketsNYSERDA
New York State Renewable Portfolio Standard
Renewable Portfolio Standard Goal: 30% of the power consumed in the state to come from Goal: 30% of the power consumed in the state to come from
renewable sources by 2015renewable sources by 2015 - f- from a 2003 baseline of ~ 19.5%
Nearly $ 3Nearly $ 3 billion total funding authorizationbillion total funding authorization
- - $ 868m committed – ($ 740m grid-scale/$ 128m retail sited)$ 868m committed – ($ 740m grid-scale/$ 128m retail sited) - $ 532 million retail sited ; $ 2.47 billion grid - scale - $ 532 million retail sited ; $ 2.47 billion grid - scale
NY RPS adopted as tool to:NY RPS adopted as tool to: - Stimulate economic development- Stimulate economic development - Improve the environment- Improve the environment - Pursue energy independence- Pursue energy independence
Spier Falls HydroSpier Falls Hydro 22
TargetsTargets
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Total renewable target: 45.7 million MWh by 2015
Baseline: 31.5 million MWh count toward target : 31.5 million MWh count toward target PSC expects balance of target to be met through:
- state agency purchases (0.3 million MWh) - voluntary competitive green power markets (1.6 million MWh)- voluntary LIPA supported renewable energy (1.9 million MWh)
- new grid-scale and behind-the-meter resources (administered by NYSERDA)
Main Tier (grid-scale):Main Tier (grid-scale): (9.8 million MWh) (9.8 million MWh)Customer-Sited Tier: Customer-Sited Tier: (0.6 million MWh) (0.6 million MWh)
Key Program Design FeaturesKey Program Design Features
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Rules set forth by PSC; not legislated
Centrally managed by NYSERDA (public authority)- utilities have exited generation business- utilities discouraged from entering long-term contracts- ratepayers pay equally for program (administratively efficient)
Funding based on supply/demand/costing analyses- utilities collect funds/by contract transfer to NYSERDA
NYSERDA contracts long term on basis of collections from utilities and cash flow timing
Ratepayer collections and resource costs effectively govern scale/pace of compliance
targets are non-binding
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Key Program Design FeaturesKey Program Design Features PSC established eligible fuel /resource types Projects can seek determination of eligibility
- Request advisory opinion of NYSERDA- NYSERDA evaluates/prepares recommendation to DPS- DPS responds directly to project within 30 days- Directly petition PSC
Projects must be provisionally certified to qualify to bid Contract payments subject to Operational Certification
- NYSERDA evaluates compliance/prepares recommendation to PSC
Baseline (existing)resources can petition for hardship relief- PSC determines eligibility for and form of relief/NYSERDA contracts accordingly
Projects compete for contracts via RFP in pay-as-bid auctionNYSERDA purchases renewable attributes (aka RECs)
- energy delivered to NYISO/municipality/on-site- settled in New York for end use consumption
Payments made on the basis of energy deliveredFixed-price REC contracts of up to 10 years employedPrice weighted at 70 % /economic benefits to NYS at 30%
RPS Implementation: Grid Scale ResourcesRPS Implementation: Grid Scale Resources
77Clinton Wind FarmClinton Wind Farm
RFP funding cap set for each RFP - maximum price trigger is applied
Achievement is function of funding/bid prices
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Contract security provided for commercial operation date Projects can pay additional security to defer on-line date Alternate bids per facility encouragedAlternate bids per facility encouraged Bid quantity per facility limited to 95% of actual outputBid quantity per facility limited to 95% of actual output REC’s can be diverted to voluntary market in NYSREC’s can be diverted to voluntary market in NYS Payments subject to realization of economic benefits (yrs 4-10)Payments subject to realization of economic benefits (yrs 4-10) Implications of non-performance(in service date, quantity and Implications of non-performance(in service date, quantity and expected economic benefits:expected economic benefits:
- forfeiture of contract security- forfeiture of contract security- reduced quantity obligation for NYSERDA- reduced quantity obligation for NYSERDA- reduced REC prices - reduced REC prices - Default /possible termination- Default /possible termination
RPS Implementation: Grid Scale ResourcesRPS Implementation: Grid Scale Resources
Lyonsdale Lyonsdale BiomassBiomass
Main Tier Progress (January 2011)Main Tier Progress (January 2011)
TTotal new capacity - about 1,546 MWotal new capacity - about 1,546 MW New Facilities involvedNew Facilities involved - 39 projects/38 in New York- 39 projects/38 in New York Resource type - 21 hydro/4 biomass/14 windResource type - 21 hydro/4 biomass/14 wind Wind Capacity (installed) - 1,348 MW / ranked 8Wind Capacity (installed) - 1,348 MW / ranked 8th th in US in US RECs under contract annuallyRECs under contract annually - approx. 3.9 - approx. 3.9 millionmillion Progress against target of 9.8 million MWhProgress against target of 9.8 million MWh 40% 40%
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Steel Winds Wind Farm, Buffalo, NY
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Procured through technology-specific solicitationsProcured through technology-specific solicitations Governed by CST Operating Plan and approved PSC fundingGoverned by CST Operating Plan and approved PSC funding Mix of capacity and performance based incentives Mix of capacity and performance based incentives Rights to REC acquired for 5 year termRights to REC acquired for 5 year term Installers subject to certification processInstallers subject to certification process Quality assurance/control provided by 3 rd party contractorsQuality assurance/control provided by 3 rd party contractors
- Technical reviews/commissioning- Technical reviews/commissioning
- Inspection of installs (function of experience)- Inspection of installs (function of experience)
- Remote metering /data archivingRemote metering /data archiving
PSC requires confidence: 90 % +/-10PSC requires confidence: 90 % +/-10
RPS Implementation CST ResourcesRPS Implementation CST Resources
NYS DEC BuildingNYS DEC Building
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RPS Implementation: CST ResourcesRPS Implementation: CST Resources Unspent funds by technology must be re-allocated annually Unspent funds by technology must be re-allocated annually NYSERDA prepares filing for PSC consideration 30 days from NYSERDA prepares filing for PSC consideration 30 days from close of previous yearclose of previous year
- recommendation on allocation by technology- recommendation on allocation by technology
Programs can continue using current year budget funding - Programs can continue using current year budget funding - subject to decision/adjustment by PSC subject to decision/adjustment by PSC
Alfred University Alfred University TurbineTurbine
Customer On-Site Resource Development Customer On-Site Resource Development
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CST ProgramCST ProgramPending Pending
ContractsContracts
Actual Installed Actual Installed CapacityCapacity Total Pending and Total Pending and
Installed Capacity Installed Capacity
Solar PhotovoltaicSolar Photovoltaic 13.113.1 17.717.7 30.830.8
Fuel CellsFuel Cells .4.4 ---- .4.4
Anaerobic DigestersAnaerobic Digesters 6.06.0 3.93.9 9.99.9
On-site WindOn-site Wind .5.5 .4.4 .9.9
Program TotalProgram Total 20.020.0 22.022.0 42.042.0
CST ProgramCST Program
Expected Expected Production: Production:
Pending Pending ContractsContracts
Actual Actual Production:Production:
Installed Installed CapacityCapacity
Total Expected Total Expected ProductionProduction
Solar PhotovoltaicSolar Photovoltaic 15,42615,426 20,82320,823 36,24936,249
Fuel CellsFuel Cells 1,7011,701 1,7011,701
Anaerobic DigestersAnaerobic Digesters 42,17442,174 27,09027,090 69,26469,264
On-site WindOn-site Wind 624624 508508 1,1321,132
Program TotalProgram Total 59,92559,925 48,42148,421 108,346108,346
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NYS does not recognize REC (as a tradable, standalone commodity)NYS does not recognize REC (as a tradable, standalone commodity)
NYSERDA “purchases” RPS Attributes as proxy for REC NYSERDA “purchases” RPS Attributes as proxy for REC
- seller transfers seller transfers allall rights /claims to environmental credits to NYSERDA rights /claims to environmental credits to NYSERDA
One RPS-Attribute created upon generation of one MWHOne RPS-Attribute created upon generation of one MWH
NYS disclosure system used to account for complianceNYS disclosure system used to account for compliance- energy sold in ISO bundled with RPS-Attributes energy sold in ISO bundled with RPS-Attributes - purchased RPS-Attributes are allocated on basis of utility funding of RPSpurchased RPS-Attributes are allocated on basis of utility funding of RPS- utility disclosure labels reflect increasing renewable energy fraction (CST utility disclosure labels reflect increasing renewable energy fraction (CST counted separately-on energy production basis only)counted separately-on energy production basis only)- disclosure labels signify RPS-Attributes “retirement”disclosure labels signify RPS-Attributes “retirement”
NYSERDA contract provides for the assignment of REC should REC-based NYSERDA contract provides for the assignment of REC should REC-based system be recognized eventually in NYSsystem be recognized eventually in NYS
PSC counts existing/baseline, agency purchases and voluntary market sales PSC counts existing/baseline, agency purchases and voluntary market sales
Accounting for AchievementAccounting for Achievement
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Thank You
John [email protected](518) 862-1090; ext 3384
Maple Ridge Wind FarmMaple Ridge Wind Farm