The Municipal PerspectiveThe Municipal Perspective Renewable Energy Renewable Energy

WorkshopWorkshopJanuary 19, 2007 January 19, 2007

Kim Owens, P.E.Kim Owens, P.E.

JEA Clean Power CoordinatorJEA Clean Power Coordinator

Prepared with input from Prepared with input from

Gainesville Regional UtilitiesGainesville Regional Utilities

Lakeland ElectricLakeland Electric

OUCOUC

City of TallahasseeCity of Tallahassee

Florida Municipal Electric Florida Municipal Electric AssociationAssociation

PSC Renewable Workshop PSC Renewable Workshop QuestionsQuestions

• How much renewable energy is available How much renewable energy is available in Florida?in Florida?

• What are the barriers to renewable energy What are the barriers to renewable energy development?development?

• What is required from the public and What is required from the public and private sector to increase deployment of private sector to increase deployment of renewables?renewables?

• Should there be renewable goals for Should there be renewable goals for Florida?Florida?

Florida RenewablesFlorida Renewables

• ““Renewables” – solar, Renewables” – solar, wind, biomass, wind, biomass, hydropowerhydropower

• 680 MW of renewable 680 MW of renewable capacity (3% of capacity (3% of capacity)capacity)– 38% MSW38% MSW– 24% biomass24% biomass– 33% waste heat33% waste heat– 5% hydro5% hydro

• Most projects a result Most projects a result of 1978 PURPAof 1978 PURPA

• To fully assess To fully assess potential for potential for renewables:renewables:– Quantify fuel resourcesQuantify fuel resources– Address higher energy Address higher energy

costs of renewablescosts of renewables– More focus on More focus on

technology technology developmentdevelopment

– Approach strategies for Approach strategies for demand-side programs demand-side programs such as solar separately such as solar separately from supply sidefrom supply side

Source: Florida PSC, Renewable Assessment, Jan 2003.

Renewable Energy Renewable Energy Generation TechnologiesGeneration Technologies

Landfill Gas/BiogasLandfill Gas/Biogas

• Mature technologyMature technology

• Cost competitive JEA, Cost competitive JEA, OUC and GRU all have OUC and GRU all have LFG to energy projectsLFG to energy projects

• JEA WWTS solids facility JEA WWTS solids facility uses gas to energyuses gas to energy

• Florida has 12 gas to Florida has 12 gas to energy landfill projects; energy landfill projects; potential for 20 more potential for 20 more (per EPA LMOP (per EPA LMOP database)database)

• Barriers – Gas rights Barriers – Gas rights contractscontracts

• Idea – Build on 2005 Idea – Build on 2005 Florida landfill gas Florida landfill gas conference and/or conference and/or require each landfill require each landfill gas owner to submit gas owner to submit feasibility studyfeasibility study

• Wood waste – yard waste, tree trimming, land clearing, etc

•Energy crop – Can we grow our own?

•Gasification and IGCC emerging as new technologies for biomass

•Upcoming projects: JEA (yard waste – 20 MW), GRU (fuel supply RFI), TAL (wood waste – 30 MW)

•Barriers: Fuel availability and variability is biggest concern (100 mile transportation radius)

• DEP/FSEC – Biomass Survey

•Idea – Ownership and refinement of Florida biomass resource map

BIOMASS

MSW IncinerationMSW Incineration

• 20% of Florida’s waste is incinerated 20% of Florida’s waste is incinerated (driven by policy and land issues)(driven by policy and land issues)

• Barrier - Opposition to MSW has Barrier - Opposition to MSW has increased over years and few new increased over years and few new plants builtplants built

• New plasma arc technology emerging New plasma arc technology emerging such as Geoplasma in St Lucie Countysuch as Geoplasma in St Lucie County

• Idea – support for research of cleaner Idea – support for research of cleaner destruction technologies for MSW.destruction technologies for MSW.

Offshore WindOffshore Wind• RPS compliance attained largely through onshore wind (6,800 RPS compliance attained largely through onshore wind (6,800

MW now to 28,000 MW in 2010). None in FloridaMW now to 28,000 MW in 2010). None in Florida• FPL Energy is leading owner of wind farmsFPL Energy is leading owner of wind farms• National NREL wind maps miss Florida’s coastal, offshore, and National NREL wind maps miss Florida’s coastal, offshore, and

ridge wind resourcesridge wind resources• Initial resources show that Class 3,4 and 5 wind speeds (6.5 Initial resources show that Class 3,4 and 5 wind speeds (6.5

to 8.5 m/s) near Pensacola, Miami and Jacksonvilleto 8.5 m/s) near Pensacola, Miami and Jacksonville• Barrier – Older low-resolution maps for Florida showing low Barrier – Older low-resolution maps for Florida showing low

wind speedswind speeds• Idea - High resolution wind mapping is necessary to Idea - High resolution wind mapping is necessary to

determine actual resources. Request state funding for this determine actual resources. Request state funding for this study.study.

Energy CostsEnergy Costs

• Most renewable energy costs usually above Most renewable energy costs usually above avoided costs. Technologies are not avoided costs. Technologies are not dispatchable increasing overall costsdispatchable increasing overall costs

• Federal production tax credits are not Federal production tax credits are not reliablereliable

• State production tax credit – minimal State production tax credit – minimal fundingfunding

• Idea – encourage long term extension of Idea – encourage long term extension of federal tax credit and increase funding of federal tax credit and increase funding of state production tax credit and/or apply state production tax credit and/or apply investment tax credit to renewables other investment tax credit to renewables other than hydrogen and biofuelsthan hydrogen and biofuels

Technology DevelopmentTechnology Development

• Florida Renewable Request for GrantsFlorida Renewable Request for Grants– 183 proposals requesting $215 Million183 proposals requesting $215 Million– Only $15 Million appropriated for 2007Only $15 Million appropriated for 2007

• FSEC – Minimal focus on supply-side FSEC – Minimal focus on supply-side resources such as biomass, MSW, wind or resources such as biomass, MSW, wind or hydrohydro

• Idea – continue to appropriate R&D funding Idea – continue to appropriate R&D funding for future years, proportion funding to for future years, proportion funding to technologies with near term potentialtechnologies with near term potential

OtherOther

Additional Needs:Additional Needs:• Potential transmission constraints into FL Potential transmission constraints into FL

limits fuel resources to only FL. limits fuel resources to only FL. Conduct Conduct transmission studytransmission study

• Create model interconnection standardsCreate model interconnection standards for all size interconnectionsfor all size interconnections

• Create a business development Create a business development infrastructureinfrastructure to assist developers with to assist developers with financing, proposals, business plans financing, proposals, business plans

Demand Side - SolarDemand Side - Solar

• Focus on solar thermal Focus on solar thermal systems (JEA, GRU, systems (JEA, GRU, OUC, LAK, TAL OUC, LAK, TAL programs)programs)

• Florida Municipal Florida Municipal Energy Efficiency Energy Efficiency Committee (FMEC) solar Committee (FMEC) solar workshop with FLSEIAworkshop with FLSEIA– Marketing, consumer Marketing, consumer

education and workforce education and workforce developmentdevelopment

• Idea – state-wide Idea – state-wide marketing/education marketing/education programprogram

Summary Summary

• Landfill Gas – feasibility Landfill Gas – feasibility study for each candidate study for each candidate landfill in Floridalandfill in Florida

• Biomass – build on current Biomass – build on current biomass surveybiomass survey

• MSW – development money MSW – development money to further plasma arc and to further plasma arc and other high temperature other high temperature MSW destruction MSW destruction technologiestechnologies

• Offshore Wind – prepare Offshore Wind – prepare high resolution maphigh resolution map

• Transmission study, Transmission study, common interconnection common interconnection standards, business standards, business development infrastructuredevelopment infrastructure

• Increase state production Increase state production tax credittax credit

• Increase funding for Increase funding for research and developmentresearch and development

• Identify a research Identify a research institute to focus on supply institute to focus on supply side technologiesside technologies

Summary Summary • Explore energy efficiency and demand-side management firstExplore energy efficiency and demand-side management first

• Activate the Florida Energy CommissionActivate the Florida Energy Commission

• Energize the 2006 Florida Energy Plan and develop a Strategic Energize the 2006 Florida Energy Plan and develop a Strategic Plan for development of renewablesPlan for development of renewables

• Strategic Plan should focus on:Strategic Plan should focus on:– Fuel resource studyFuel resource study– Financial incentives to reduce costsFinancial incentives to reduce costs– Technology and developmentTechnology and development– Transmission issuesTransmission issues– Interconnection StandardsInterconnection Standards– Business DevelopmentBusiness Development– Solar marketing and continued financial incentivesSolar marketing and continued financial incentives

• Establishing goals is prematureEstablishing goals is premature– If established, take into consideration the inequity across state for fuel If established, take into consideration the inequity across state for fuel

resourcesresources

QuestionsQuestionsContact me: Contact me:

Kim OwensKim Owens

21 West Church Street,T-1221 West Church Street,T-12

Jacksonville, FL 32202Jacksonville, FL 32202

(904) 665-4673(904) 665-4673

owenkc2@jea.comowenkc2@jea.com