new hope power partnership...5 estimating the potential economic benefits of rps – a case study of...
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Agriculture & Renewable Energy:Agriculture & Renewable Energy:The Partnership for a New FrontierThe Partnership for a New Frontier
FPSC Workshop, July 26, 2007FPSC Workshop, July 26, 2007
New Hope Power PartnershipNew Hope Power Partnership
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New Hope Power Plant:New Hope Power Plant:Size and Operations:Size and Operations:
Located in Palm Beach county; adjacent to Located in Palm Beach county; adjacent to Florida Crystals sugar mill and refineryFlorida Crystals sugar mill and refinery140 MW: Largest Biomass140 MW: Largest Biomass--toto--Electricity Facility in Electricity Facility in the Countrythe CountryOperating for > 10 yearsOperating for > 10 years24/7, 90+% availability on firm contracts24/7, 90+% availability on firm contractsAbility to expandAbility to expand
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Benefits of Electricity Benefits of Electricity from Biomass:from Biomass:
1.1. Renewable FuelRenewable Fuel−− We Grow Our Fuel EverydayWe Grow Our Fuel Everyday
2.2. Home GrownHome Grown−− Florida FuelFlorida Fuel
3.3. Environmentally FriendlyEnvironmentally Friendly−− No Impact on Global WarmingNo Impact on Global Warming
4.4. Sensible Waste DisposalSensible Waste Disposal−− Recycles Waste ProductsRecycles Waste Products…… Saves Landfill SpaceSaves Landfill Space
5.5. Plus for Florida EconomyPlus for Florida Economy−− 85% of Money Spent Stays in Florida85% of Money Spent Stays in Florida−− 10 x More Florida Economic Activity Than Fossil Fuels10 x More Florida Economic Activity Than Fossil Fuels
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The Potential Economic The Potential Economic Benefits of a Renewable Benefits of a Renewable
Portfolio Standard for Portfolio Standard for FloridaFlorida
The Washington Economics Group, Inc.Presentation to FPSC
August 2002
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Estimating the Potential Economic Estimating the Potential Economic Benefits of RPS Benefits of RPS ––A Case Study of Biomass TechnologyA Case Study of Biomass Technology
Methodology Methodology –– Extended, economic inputExtended, economic input--output (Ioutput (I--O) model of FloridaO) model of Florida’’s economy (same approach s economy (same approach used by state agencies to estimate impacts).used by state agencies to estimate impacts).
The IThe I--O approach explicitly considers interO approach explicitly considers inter--industry industry linkages and linkages and ““leakagesleakages”” of spending.of spending.
Strong interStrong inter--industry linkages mean greater industry linkages mean greater ““recyclingrecycling”” of spending within economy, and larger of spending within economy, and larger economic impacts.economic impacts.
Comparison of biomass to combined cycle (natural Comparison of biomass to combined cycle (natural gas) technologies.gas) technologies.
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Annual Cost Comparisons: Combined Cycle vs Biomass Equivalent
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
CombinedCycle Unit
Equivalent(2.94) Biomass
Units
CombinedCycle Unit
Equivalent(2.94) Biomass
Units
Tho
usan
d $
Fixed Fuel Other Variable Florida Non-Florida
By Type of Cost By Location of Purchase
$47,623
$63,623
91%
14%
86%
9%
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Benefits of Electricity from Biomass:Benefits of Electricity from Biomass:Plus for Florida Local EconomyPlus for Florida Local Economy
Fossil FuelFossil FuelBiomassBiomass($/MWH of electricity)($/MWH of electricity)
$0.26$0.26$3.55$3.55State & Local Tax State & Local Tax Revenues Revenues (2001 Prices)(2001 Prices)
$5.00$5.00$70.70$70.70Total RevenuesTotal Revenues(Gross Output, 2001 Prices)(Gross Output, 2001 Prices)
$3.04$3.04$40.84$40.84Gross State ProductGross State Product($ at 2001 Prices)($ at 2001 Prices)
$2.19$2.19$28.32$28.32Labor IncomeLabor Income($ at 2001 prices)($ at 2001 prices)
6969791791EmploymentEmployment(Jobs per Million MHW)(Jobs per Million MHW)
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2007 2012 2017RPS % 2% 5% 7%Generation by Renewable Fuels (Million MWH) 3.773 11.195 18.186
Employment (Jobs)Biomass 2,660 7,896 12,825Displaced Comb. Cycle Tech. & Adverse Price Impact -522 -1,548 -2,512Net Impact on Employment 2,138 6,348 10,312
Compensation to Workers ($000)Biomass 95,273 282,720 459,263Displaced Comb. Cycle Tech. & Adverse Price Impact -15,932 -47,278 -62,682Net Impact on Compensation 79,341 235,442 396,581
Gross State Product (Value Added, $000)Biomass 137,389 407,696 662,280Displaced Comb. Cycle Tech. & Adverse Price Impact -24,544 -72,833 -118,313Net Impact on GSP 112,845 334,864 543,968
Gross Revenues (Output, $000)Biomass 237,872 705,874 1,146,654Displaced Comb. Cycle Tech. & Adverse Price Impact -45,341 -134,549 -218,567Net Impact on Gross Revenues 192,530 571,325 928,087
Economic Impact of RPS for Florida: Input-Output Simulation Analysis