www.gro‐wnc.org

GroWNC Energy WG‐1

Existing Conditions

Outline

• Energy Plan and Report Evaluation– Local (GroWNC):  County Plans, Comprehensive Economic Development Strategy (CEDS)

– Regional:  Western North Carolina (AdvantageWest, EvolveEnergy Partnership, MRC)

– State• Current Energy Conditions/Trends• Issues• Opportunities• Goals

Energy Baseline

• How and where is energy consumed in the GroWNC region produced (fuel type, location)?

• How much energy is consumed by sector (residential, commercial, industrial, government, transportation)?

• How much does energy cost the consumer?• What are the trends?

Energy Generation• Duke Energy and Progress Energy generate 96% of state's electricity

– Considerable amount sold to munis and EMCs via wholesale electricity markets

• Western NC (MRC 27‐county region) in 2008:– 2,435 megawatts of electricity generation capacity (8.3% of state’s total) – 50% powered by coal, about 31% by hydroelectric, and 17.4% natural gas

Sources: 2011 North Carolina Clean Energy Data Book, NC Sustainable Energy Association, June 2011; Understanding the Impact of Electric Generation Choices on North Carolina Residential Electricity Rates, NC Sustainable Energy Association, November 2011; Western North Carolina Vitality Index, 2012

Energy Consumption

Source: Western North Carolina Vitality Index, 2012

• NC has over 9.5 million residents• NC has no local deposits of coal, petroleum, or natural gas – vast 

majority of energy resources for the state must be imported

Energy Consumption in NC

Sources: North Carolina State Energy Report, March 2010; Western North Carolina Vitality Index, 2012

Energy Costs

Source: Understanding the Impact of Electric Generation Choices on North Carolina Residential Electricity Rates, NC Sustainable Energy Association, November 2011

7% rate increase for Duke Energy approved by NC Utilities Commission in January 2012 (15% requested initially)

• Residential electric bill increases mainly attributable to cost recovery for new conventional power plants, air pollution control retrofits, and for increasingly expensive fuels

Installed Green Power Systems

Source: NC GreenPower, http://www.ncgreenpower.org, last updated March 9, 2012

Current Energy Trends• Clear shift in focus to clean and efficient energy and energy 

conservation nationally as well as locally• Number of firms in North Carolina’s clean energy sector by 

reported year entering the sector, 2011:

Source: North Carolina Renewable Energy & Energy Efficiency Industries Census, NC Sustainable Energy Association, November 2011

Clean Energy Cluster & Growth• A cluster of renewable energy and energy efficiency‐focused businesses 

has formed in Henderson & Buncombe counties – 3rd largest in the state• Renewable energy industry employment is growing

Source: 2011 North Carolina Clean Energy Data Book, NC Sustainable Energy Association, June 2011

Source: Western North Carolina Clean Energy Cluster Analysis, September 2011

Codes & Ordinance Review

Locality Solar

Wind

Biom

ass

Geo

thermal

Hydro

Build

ing

Lightin

g

Definition

s

Other

Asheville

Brevard

Buncombe Co.

Haywood Co.

Hendersonville

Madison Co.

Marshall

Transylvania Co.

Waynesville

• Remove Barriers• Create Incentives• Enact Standards

• Range of use classifications and definitions 

• = direct• = indirect

Plan Evaluation IssuesIssue Region

Increasing energy prices (electricity, gasoline, natural gas) All

Air quality impacts due to conventional electricity production, transportation – effects on resident health, appeal to visitors

GroWNC, Western NC

Energy security & reliability – WNC fuel shortages following Hurricanes Katrina & Rita in 2005– NC imports all of its energy supply, except for a small amount of wood, hydro and solar energy

Western NC, State‐wide

National recession affecting markets for clean energy sector products, most exported to other states or countries

GroWNC, Western NC

Shortage of engineers, lack of opportunities to retain young professionals

Western NC

Energy baseline for GroWNC counties/municipalities?

Local Codes/Ordinances?

Identified OpportunitiesOpportunity Region

Cost avoidance/limiting costs by changing energy demand GroWNC

Alternative/clean energy industry growth = jobs GroWNC

Large biomass resource, strong wind resources, solar and geothermal firm expansions, expansion of electricity production from landfill gases

GroWNC, Western NC

Residential energy efficiency – 35% of homes in region built prior to 1970

Western NC

Workgroup IdentifiedIssues & Opportunities

Energy Workgroup IssuesIssues

Access to Financing • Key obstacle to continued development of multiple clean energy  sectors; interrelated to 

other key issues (finance stakeholders, data); educating finance professionals

Documented Data on Energy Savings• Lack of data on documented energy savings; information gap with regard to direct financial 

savings from investments; communication is key to reaching wider audience

Uncertain Regulatory Environment• Ensure local decision makers aware of relevant state & federal regulatory issues (market 

barriers); concerns regarding weakened state and federal support; opportunities to streamline public performance contracting should be identified and explored

Limited Resources and Capacity• Issue common to many smaller localities and organizations; need to clearly communicate 

local government’s need for policy & supporting resources & the benefits of investments

Aging (residential) Infrastructure • Older and low‐income residential structures present energy challenges, direct and 

immediate need for energy upfits

Others?

Energy Workgroup OpportunitiesOpportunities

Cross‐sector collaborations & leading‐by example• Educational Institutions – Unique opportunity to implement projects and lead‐by‐

example; resources for partnerships • Local Government – Lead‐by‐example through demonstration projects, innovative 

deployments, and public‐private partnerships • Agriculture – Decline of farming presents opportunities (biomass, biofuels)• Finance – Continue to push financial sector

Public outreach and awareness campaign • Outreach should start at educational level and emphasize local community; key to 

catalyzing regional shift

More effectively addressing rural‐urban gap • Opportunity to more effective address rural‐urban gap• Recognizing differences and developing programs that leverage unique resources of both

Others?

Goals and Objectives

Plan Evaluation Goals & Objectives• Implement greater % of renewable energy sources (utility‐scale and 

distributed generation) to improve environmental performance and reduce dependence on outside sources of energy and fuels

• Continue to attract clean energy sector businesses and retain existing jobs• Improve the energy efficiency of existing buildings (all sectors) and construct 

new buildings using sustainable design, e.g. LEED standards• Improve energy conservation and energy efficiency measures outreach to 

residents and businesses• Implement energy conservation plans and policies for local governments• Reduce vehicle miles traveled and promote alternative transportation fuels to 

improve environmental performance of energy use in the transportation sector and reduce costs

• Double avg. fuel efficiency of the region’s transportation fleet by 2025

Adopt, modify, remove, add, set specific targets?

Wrap‐up/Next Steps

• Nominate Steering Committee representative• Next Steps

– Explanation of Reality Check #1– Preview of WG‐2 meeting

• Keypad polling to assess Energy Workgroup composition

QUESTIONS?