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Local Energy Choice with Community Choice Aggregation
The document discusses the benefits of community choice aggregation (CCA) for promoting clean, local energy sources such as solar and wind power. It highlights the potential for economic savings and increased job creation associated with local ownership of renewable energy projects. Additionally, the document emphasizes the importance of localized electricity to enhance the impact of renewables on community development and energy independence.
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Local Energy Choice with Community Choice Aggregation
- 1. Clean, Local Energy with Community Choice Aggregation John Farrell, Director Energy Self-Reliant States and Communities program [email protected] 612-808-0888 Presentation on Feb. 10, 2012
- 2. ILSR’s Unique Perspective Yesterday Tomorrow Centralized Power Clean, local power Solar PV power plant Storage Storage Transmission network Storage Storage House Local CHP plant Distribution network House with domestic CHP Wind power Factory Commercial plant building
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- 5. CCAs Lower Rates NOPEC, OH - 4-6% REAP, RI - Fulton, IL - 20% $18m saved Oak Park, IL - 2¢/kWh over 10 yrs
- 6. CCAs Green Electricity MEA, CA NOPEC, OH - 50% more up to 590% more Oak Park, IL - 400% more
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- 8. should CCAs Localize Electricity ^ Local Ownership Boosts Impact of Renewables Absentee Local 1.5x (low) Local 3.4x (high) Total Economic Impact Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)
- 9. should CCAs Localize Electricity ^ Local Ownership Boosts Jobs from Renewables Solar Wind Coal Natural Gas 0 2 4 6 8 10 Jobs per Megawatt Construction, manufacturing and installation Ongoing maintenance and fuel Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)
- 10. should CCAs Localize Electricity ^ Local Ownership Boosts Jobs from Renewables Solar Wind Coal Natural Gas 0 2 4 6 8 10 12 14 Jobs per Megawatt Construction, manufacturing and installation Ongoing maintenance and fuel
- 11. should CCAs Localize Electricity ^ Local Ownership Boosts Support for Renewables No local ownership 60% negative Local ownership 45% positive 0 25 50 75 100 very negative negative neutral positive very positive Attitude towards increased use of local wind energy
- 12. should CCAs do Feed-inTariffs ^ • Long-term, standard contract • Fixed price • Grid connection*
- 13. should CCAs do Feed-inTariffs ^ low risk = low cost REC Market Risk Auction FIT Return
- 14. should CCAs doFeed-in Tariffs ^ Avg. Cost of Solar (2011 3Q) U.S. $5.20/W Risk Germany $2.80/W Return
- 15. should CCAs Support DG ^ •avoided cost 10 cents •on-site/near demand •lower transmission losses 5 cents •reduce dist. system stress 0 cents •hedge against fuel prices •prevent blackouts -5 cents •reduce pollution -10 cents $4/Watt •create jobs -15 cents How the utility values 4 cents -20 cents Cost of solar Energy value distributedSocial benefits Grid benefits generation
- 16. DG Grid Benefits •avoided cost 10 cents •on-site/near demand •lower transmission losses 5 cents •reduce dist. system stress 0 cents •hedge against fuel prices •prevent blackouts -5 cents •reduce pollution -10 cents $4/Watt •create jobs 8.5 cents But it’s -15 cents 4 cents worth more -20 cents Cost of solar Energy value Grid benefits Social benefits Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
- 17. DG Social Benefits •avoided cost 10 cents •on-site/near demand •lower transmission losses 5 cents •reduce dist. system stress 0 cents •hedge against fuel prices 12.5 cents •prevent blackouts -5 cents •reduce pollution -10 cents $4/Watt •create jobs -15 cents -20 cents Cost of solar Energy value Grid benefits Social benefits and more Distributed Solar Power Worth Far More Than Electrons | Energy Self-Reliant States - http://tinyurl.com/3tqmerh
- 18. How Munis ValueDG $0.15 6 cents per kWh $0.12 in addition to electricity $0.09 $0.06 Additional local value Avoided transmission access $0.03 Environmental Time-of-delivery Brown energy replacement $0 Palo Alto, CA, municipal utility
- 19. CCA Landscape Active CCAs No active CCAs
- 20. m o us or En Clean Energy Potential 31 states could be electricity self-reliant 100% or more 75 to 100% 50 to 75% 25 to 50% 25% or less Energy Self-Reliant States, 2nd Edition | ILSR, 2010
- 21. State Renewable Policy 29 states have a clean energy mandate Renewable mandate (29) Renewable goal (8) No RPS policy (13)
- 22. State Electricity Markets Deregulated (13) Suspended (7) Regulated (30)
- 23. State Electricity Markets Deregulated + CCA Suspended + CCA Regulated (30)
- 24. CCA Opportunities “storm of interest” “going Boulder” burst of activity
- 25. Thank you! John Farrell energyselfreliantstates.org [email protected] johnffarrell 612-808-0888