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International Energy Policy Trends

International Energy Policy Trends. Dennis Scanlin Appalachian State University March 2011. Energy Policy Trends. Renewable energy policy is the principal driver of the growth in renewable energy use. Regulatory Policies Incentive Policies Disincentive Policies

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International Energy Policy Trends

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  1. International Energy Policy Trends Dennis Scanlin Appalachian State University March 2011

  2. Energy Policy Trends • Renewable energy policy is the principal driver of the growth in renewable energy use. • Regulatory Policies • Incentive Policies • Disincentive Policies • Feebates (combined fee & rebate program) • DSIRE data base good source for information about US policies

  3. Public Policies and Renewable Energy Technology

  4. Regulatory Policies • Renewable Portfolio Standards • Permitting Policies • Zoning Ordinances • Building Codes & Sustainable Building Requirements • Equipment & Installer Certification programs

  5. Renewable Portfolio Standards (RPS) • Mandated requirement that electric utilities source a portion of their electricity supplies from renewable energy sources • Australia, Japan, Korea, Sweden, & US

  6. RPS Policies www.dsireusa.org / March 2011 ME: 30% x 2000 New RE: 10% x 2017 VT: (1) RE meets any increase in retail sales x 2012; (2) 20% RE & CHP x 2017 WA: 15% x 2020* MN: 25% x 2025 (Xcel: 30% x 2020) MT: 15% x 2015 NH: 23.8% x 2025 MA: 22.1% x 2020 New RE: 15% x 2020(+1% annually thereafter) MI: 10% + 1,100 MW x 2015* ND: 10% x 2015 OR: 25% x 2025(large utilities)* 5% - 10% x 2025 (smaller utilities) SD: 10% x 2015 WI: Varies by utility; 10% x 2015 statewide RI: 16% x 2020 NY: 29% x 2015 CT: 23% x 2020 NV: 25% x 2025* IA: 105 MW OH: 25% x 2025† PA: ~18% x 2021† CO: 30% by 2020(IOUs) 10% by 2020 (co-ops & large munis)* IL: 25% x 2025 WV: 25% x 2025*† NJ: 22.5% x 2021 CA: 33% x 2020 KS: 20% x 2020 UT: 20% by 2025* VA: 15% x 2025* MD: 20% x 2022 MO: 15% x 2021 DE: 25% x 2026* AZ: 15% x 2025 DC OK: 15% x 2015 NC: 12.5% x 2021(IOUs) 10% x 2018 (co-ops & munis) DC: 20% x 2020 NM: 20% x 2020(IOUs) 10% x 2020 (co-ops) PR: 20% x 2035 TX: 5,880 MW x 2015 HI: 40% x 2030 29 states + DC and PR have an RPS (7 states have goals) Renewable portfolio standard Minimum solar or customer-sited requirement * Renewable portfolio goal Extra credit for solar or customer-sited renewables † Solar water heating eligible Includes non-renewable alternative resources

  7. North Carolina Renewable Energy and Energy Efficiency Portfolio Standard (REPS) August 2007 First state in the Southeast 12.5%by 2021 from renewable energy resources or energy efficiency measures. Rural electric cooperatives and municipal electric suppliers are subject to a 10% REPS requirement Approx 20,000 Million KWH/year

  8. REPS Requirements for IOUs • Acceptable methods of attaining goals • Generate at new RE facility • Use a RE resource to generate electric power • Reduce consumption (up to 25% up to 2021 & 40% after) • Purchase power from new RE facility (outside state) • Purchase RE certificates (up to 25%) • Requirements for solar & biomass

  9. NC REPS 140 applications received by PUC since October, 2008 107 facilities registered 2 KW to 300,000 KW 39 hydro projects 27 PV projects 17 wind projects 7 solar thermal 6 landfill gas 8 biomass 2 swine & poultry waste 2,980,327 KW registered with NC Utilities Commission

  10. Permitting of Wind Energy FacilitiesHouse Bill 809; Senate Bill 1068 > 2 MW Permitting requirements defined $2,000 application fee Impact assessment work required Public hearing(s) required Defines who gets to evaluates permit application and decide whether a permit is issued or not.

  11. 3 size classifications Under 20 kW 20 kW to 100 kW Over 100 kW Setbacks from 1.1 to 2.5 times height of turbine Includes standard definitions, permit application recommendations, noise & shadow flicker maximums & decommissioning Model County Ordinance for NC

  12. Codes & Sustainable Building Requirements • Requirements for new buildings • Australia, Canada, Switzerland, Denmark, Germany, Spain, Korea, Portugal, Turkey, & US • New public buildings in Korea must spend 5% of budget installing RE

  13. Installer Certification Programs

  14. Equipment Certification

  15. Incentives • Feed-In Tariffs (FIT) • Rebates • Tax Credits • Net Metering • Low Interest Loans • Grants • Accelerated Depreciation

  16. Feed-In Tariffs (FIT) • Government guarantees a high price for green energy with a long term contract • Most common incentive program • Australia, Austria, Canada, Switzerland, Germany, Spain, France, Israel, Italy, Japan, Korea, Portugal, Netherlands, Sweden, US

  17. Example FITs • Canada’s 2009 program provides 20 year contracts for up to $.80/kWh. (price varies by energy source) • Italy’s 2007 program pays up to $.52 - $.67/kWh with a long term contract and quota • Israel’s 2009 program pays $.55/kWh with quota

  18. Rebates • Provides cash back after the completion of project (50% of installed cost common) • California- $2.50/watt for PV & Solar thermal • New York - $1.75/watt for PV with maximums; $3.50 per kWh for expected annual wind energy production up to 10,000 kWh and less after that • Australia provides a 50% rebate

  19. Rebate Programs for Renewables www.dsireusa.org / March 2011 DC 23 states + DC & PR offer rebates for renewables State program(s) only Puerto Rico Utility, local and/or non-profit program(s) only State program(s) + utility, local and/or non-profit program(s) Notes: This map does not include rebates for geothermal heat pumps or other energy efficiency technologies. The Virgin Islands also offers rebates for certain renewable energy technologies.

  20. Tax Credits • Reduces tax liability based on a percentage of installed cost of renewable energy system • Canada, Switzerland, France, Japan, Malaysia, Portugal, & US • North Carolina offers a 35% state tax credit up to $10,500 for residential renewable energy systems • US government offers a 30% tax credit for solar thermal, wind & geothermal heat pumps

  21. System Costs & Incentives for 3 Panel Solar Water Heating System • Installed costs can range from $90 to $120 per square foot • Incentives available • 35% NC State Tax Credit • Federal tax is paid on state tax credit • 30% Federal Tax Credit • Accelerated depreciation of renewable energy system

  22. Tax Credits for Renewables www.dsireusa.org / March 2011 DC 23 states offer tax credits for renewables Personal tax credit(s) only Puerto Rico Corporate tax credit(s) only Personal + corporate tax credit(s) Notes: This map does not include corporate or personal tax deductions or exemptions; or tax incentives for geothermal heat pumps.

  23. Netmetering • Provides the retail rate for electricity by either allowing the electric meter to turn backwards or providing a credit for renewable energy produced • Demark, Australia, Austria, Canada, Italy, Mexico & US have programs • NC program • Residential and commercial up to 1 MW • Excess generation is carried forward until summer billing season at then surrendered. No cash payments • Only investor owned utilities have to make net metering available

  24. Net Metering www.dsireusa.org / February 2011 ME: 660co-ops & munis: 100 WA: 100 VT: 20/250/2,200 MT: 50* ND: 100* NH: 100 OR: 25/2,000* MN: 40 MA: 60/1,000/2,000/10,000* WI: 20* RI: 1,650/2,250/3,500* MI: 150* WY: 25* CT: 2,000* IA: 500* NY: 10/25/500/2,000* NE: 25 OH:no limit* NV: 1,000* IL: 40* PA: 50/3,000/5,000* UT: 25/2,000* IN: 10* NJ: no limit* CA: 1,000* KS: 25/200* VA: 20/500* CO: no limitco-ops & munis: 10/25 KY: 30* DE: 25/100/2,000 co-ops & munis: 25/100/500 DC MO: 100 NC:1,000* OK: 100* AZ: no limit* MD: 2,000 AR: 25/300 WV: 25/50/500/2,000 NM: 80,000* GA: 10/100 DC: 1,000 LA: 25/300 AK: 25* 43 states + DC & PR have adopted a net metering policy FL: 2,000* HI: 100KIUC: 50 State policy PR: 25/1,000 Voluntary utility program(s) only * State policy applies to certain utility types only (e.g., investor-owned utilities) Note: Numbers indicate individual system capacity limit in kW. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.

  25. Green Power Schemes • Allows customers to purchase green electricity from renewable energy usually at a premium price • Australia, Austria, Canada, Switzerland, Germany, Spain, Italy, Japan, & US

  26. NC GreenPower (NCGP) is a statewide program designed to improve the quality of the environment by encouraging the development of renewable energy resources and the mitigation of greenhouse gas emissions through consumers’ voluntary funding. NC GreenPower

  27. NC GreenPower Program Started in 2003 Voluntary program Advanced Energy administers program First Statewide green power program in US Involves IOUs, electric cooperatives and municipalities 1,000 KW in 2010 $.15/KWH for PV < 10 KW $.09/KWH for Wind < 10 KW

  28. Sources of NC GreenPower Haw River Raleigh Nags Head Asheville

  29. Disincentives Carbon Tax – an environmental tax on the carbon content of fuels South Africa, India, South Korea, Denmark, Finland, Germany, Italy, Netherlands, Norway, Slovenia, Sweden, Switzerland, UK, some US states Many countries considering the carbon tax concept

  30. Feebates • Self financing (revenue neutral) system of fees and rebates that are used to shift the cost of externalities onto the responsible companies or individuals • Used to shift buying habits • California “Clean Car Discount” program taxes the purchase of high emission vehicles and using the fees to rebate the buyers of low emission vehicles

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