A presentation by ILSR Senior Researcher John Farrell to the Pedernales Electric Cooperative on April 2, 2012, about the opportunity of local clean energy generation.
1. The Clean Local Power Puzzle
John Farrell, Director
Energy Self-Reliant States and Communities program
jfarrell@ilsr.org
April 2, 2012 presentation to the Pedernales Electric Coop
2. Energy Transformation
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
3. Good Sun
Solar Insolation
(kWh/m2/day)
4.5 - 5.0
5.0 - 5.5
5.5 - 6.0
5. Renewable Energy Cost
Cost per kWh over project lifetime
15¢
15¢
12¢
9¢ Avoided Cost
Wind Power
Solar Power
6¢
6.4¢
3¢ 4.5¢
0¢
Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/day
Wind project installed at $2,000/kW; solar at $5,000/kW
Calculations include federal tax credits and depreciation
6. Renewable Energy Cost
Cost per kWh over project lifetime
15¢
15¢
Cost
12¢
9¢ Avoided Cost
Wind Power
Solar Power
6¢
6.4¢
“The Cooperative will pay a price for distributed
4.5¢
3¢
renewable generation that reflects its value”
0¢
Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/day
Wind project installed at $2,000/kW; solar at $5,000/kW
Calculations include federal tax credits and depreciation
12. Renewable Energy Value
Cost per kWh over project lifetime
15¢
15¢
12¢
9¢ Avoided Cost
Wind Power
Solar Power
6¢
6.4¢
3¢ 4.5¢
0¢
Wind speed of 7 m/s; solar insolation 5.4 kWh/m2/day
Wind project installed at $2,000/kW; solar at $5,000/kW
Calculations include federal tax credits and depreciation
13. Renewable Energy Value
Value of Distributed Solar
$0.15
6 cents per kWh in
$0.12 addition to electricity
$0.09
$0.06
Local capacity value
Avoided transmission access
$0.03 Environmental
Avoided transmission losses
Brown energy replacement
$0
Palo Alto, CA, municipal utility
Feed-In Tariff for PV in Palo Alto, Calif. Imminent: http://tinyurl.com/72sxgsb
16. Local Ownership
Absentee
Community 1.1x (low)
Community 2.8x (high)
Total Jobs
Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)
17. Local Ownership
Absentee
Community 1.5x (low)
Community 3.4x (high)
Total Economic Impact
Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)
19. Cost Value
Public Support Scale Ownership
No local ownership 60% negative
Local ownership 45% positive
0% 25% 50% 75% 100%
very negative negative neutral positive very positive