Integrating Renewables – Integrating Renewables – A Utility PerspectiveA Utility Perspective

Jennifer S. SzaroJennifer S. Szaro

OUC ~ The OUC ~ The ReliableReliable One One

OUC’s Renewable Energy Business OUC’s Renewable Energy Business ObjectivesObjectives

• Balance sustainability with affordability and reliability

• Provide a hedging strategy against potential regulatory requirements through the acquisition of renewable energy credits (RECs) and Carbon Offsets

• Leverage state and federal incentives offered to encourage the development of customer-sited assets

• Offer an option to customer requests for environmentally-friendly energy and water investments

• Pursue least-cost planning for future energy investments

Key TechnologiesKey Technologies

• Biomass Energy Technologies– Gasification– Co-Firing with Traditional Fuels– Anaerobic Digestion– Stand-Alone Biomass

Generators• Biomass Energy Resources

– Landfill Gas– Municipal Solid Waste– Biomass Residues– Energy Crops (Including Algae)

• Solar Energy– Photovoltaics– Solar Hot Water– Concentrating Solar

Biomass for ElectricityBiomass for Electricity• Benefits:

– Can be co-fired – Can be used 24 hours/day– Carbon neutral fuel– Can be burned as solid or gas

using conventional technologies– Relatively low cost if available– Creates local jobs

• Challenges:– Lower BTU value– Lower density/higher moisture

content– Competing uses– Short-term vendor contracts– Uncertain availability– Handling challenges

Landfill GasLandfill Gas• Benefits:

– Can be co-fired – Can be used 24 hours/day– Extremely low cost– Carbon reduction benefits

• Challenges:– Lower BTU value– May need to be cleaned– Location specific

Solar (Electric and Thermal)Solar (Electric and Thermal)• Benefits:

– No fuel costs– Carbon free– Can be distributed near the user– Thermal is low cost– Creates local jobs

• Challenges:– Not dispatchable– Intermittent resource– PV is still expensive compared

with conventional fuels– Minimal impact to winter peak

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STN A 06/22/2009

STN #2 06/22/2009

STN #1 06/22/2009

MP #3 06/22/2009

IR CTD 06/22/2009

IR CTC 06/22/2009

IR CTA 06/22/2009 Natural Gas

Coal and LandfillLandfill Gas

Summer Peak DaySummer Peak Day

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PhotovoltaicsSTN A 06/22/2009STN #2 06/22/2009STN #1 06/22/2009MP #3 06/22/2009IR CTD 06/22/2009IR CTC 06/22/2009IR CTA 06/22/2009

PV Contribution

Biomass Co-Firing Opportunities

Biogas Opportunities

Summer Peak Day with RenewablesSummer Peak Day with Renewables

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1600STN A 01/11/2010

STN #2 01/11/2010

STN #1 01/11/2010

MP #3 01/11/2010

IR CTB 01/11/2010

IR CTA 01/11/2010

Winter Peak DayWinter Peak Day

Winter Peak Day with RenewablesWinter Peak Day with Renewables

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STN A 01/11/2010

STN #2 01/11/2010

STN #1 01/11/2010

MP #3 01/11/2010

IR CTB 01/11/2010

IR CTA 01/11/2010

PV Contribution

Biogas Opportunities

Biomass Co-Firing Opportunities

A Balanced ApproachA Balanced Approach

Orlando’s Green Future AllianceOrlando’s Green Future Alliance

• Received USDOE Solar Cities Grant to promote solar

• Established an integrated energy alliance with the City of Orlando and Orange County Government to promote green market transformation in Central Florida

• Conducting a series of energy training courses and stakeholder workshops to determine best practices and needs of our community

OUC’s Current Solar ProjectsOUC’s Current Solar Projects• 1-MW solar array on Convention

Center– Partnership with OC, DOE and

DEP– Largest PV array in the Southeast

on a building– Provides electricity for 100 homes

• Solar on Schools Program– 5 existing sites – Partnership with Orlando Science

Center to develop and deliver curriculum

– PV system on Orlando Science Center

• Jetport Solar RFP– 10 MW located on OUC property– PPA with solar developer– Operational by late 2010

OUC’s Customer Solar ProgramsOUC’s Customer Solar Programs

• Solar Production Incentive– Provides incentives for

producing energy from solar hot water and PV

– Over 300 customer participants

• Solar Billed Solution– Provides no/low interest

loans through the Orlando Federal Credit Union (OFCU)

OUC Customer Solar Production IncentivesOUC Customer Solar Production Incentives

• $.03/KWH for all energy produced from solar thermal systems

• $.05/KWH for all energy produced from solar PV systems

• Requires customer contract• OUC now offers a $250

credit to customers to compensate for the cost of the BTU meter installation.

OUC/OFCU Solar Loan ProgramOUC/OFCU Solar Loan Program

Solar Thermal Systems

(Up to $7,500)

Term Rate

36 Months 0.00%

60 Months 2.75%

84 Months 4.00%

Solar PV Systems

(Up to $20,000)

Term Rate

36 Months 2.00%

60 Months 4.00%

84 Months 4.75%

120 Months 5.50%

Biomass Energy ProjectsBiomass Energy Projects

• Landfill Methane Recovery Projects– Orange County Landfill displaces 3% of fuel

required for either of Stanton’s coal units ~ expanding to 22 MW

– St. Cloud Landfill 1 MW project being planned– Holopaw Landfill Project recently approved (~ 15

MW)

• Harmony Hybrid Solar/Biomass Power Plant– 5 MW Plant will be located in Harmony’s Florida

Sustainable Energy Research Park– Uses biomass gasifiers and concentrating solar

to generate electricity– Includes educational partnership with FSU

• City of Orlando MSW Gasification Project– Could process up to 300 tons of waste daily– City plans to release RFP this year– OUC plans to purchase syngas from project– To be located at Orange County landfill

On the Horizon…On the Horizon…

New Solar Business ModelsNew Solar Business Models

• Community Solar Farm– 500 KW to 1 MW depending on

customer participation

– OUC holds PPA with vendor and acts as billing agent

– No upfront cost to participate

– Fixed monthly rate for 20+ years

– Virtual net metering

– Allows for multi-family participants

– Removes siting barriers

– OUC owns RECs

• Commercial Solar Aggregation Pilot– OUC holds PPA with vendor

and acts as billing agent

– No upfront cost to participate

– Fixed monthly rate for 20+ years

– Customer retains demand savings and any net metering

– Sited on the customer’s rooftop

– Price reductions from project aggregation

– OUC owns RECs

New Biomass OpportunitiesNew Biomass Opportunities

• Algae Biomass Project– Opportunities to use algae to

treat wastewater– Fed CO2 from post-

scrubbed flue gas– Algae is “cracked” to obtain

biofuels and biomass feedstock for co-firing.

• Biomass Co-Firing– Possibly up to 10% of boiler

capacity– Ship biomass feedstock via

rail cars from longer distances

– Consider torrefaction to improve BTU content and moisture content

CONTACT INFORMATION

Jennifer Szaro

jszaro@ouc.com

(407) 423 – 9100 Ext. 2086