The View From the Ridge: Looking Back at Progress made in Alaska s Renewable Energy

Transcription

1 Photo by Chuck Berray The View From the Ridge: Looking Back at Progress made in Alaska s Renewable Energy Sean Skaling, Deputy Director, Alaska Energy Authority Alaska Rural Energy Conference September 24, 2014

2 Statewide Impacts $1.4B Requested $398M Recommended (27%) $250M Funded (62%) $151M Spent (66% of R1 6) 227 Grants 140 Active 2

3 Active REF Grants 3

4 Renewable Energy Fund: Annual Fuel Savings 4

5 Renewable Energy Fund: Value Generated For first 36 projects in operation Fund Investment of $82M Total NPV cost of $290M NPV Benefits: $840M NPV Benefits/ NPV Costs 2.9 5

6 Looking back at the start of the REF journey 6

7 The Steep Climb 7

8 What have we learned: Technologies An amazing amount of learning in wind and biomass Good modeling is key Good engineering is key Integration is key: Will existing heating system work with new system? Is powerhouse and distribution system set to optimize renewable use? Good utility management and O&M is key First year of operation is challenging 8

9 What have we learned: Technologies Need properly sized (more) heat storage for biomass The secondary load rule of thumb changed: Need secondary loads at 8% wind penetration, not 20%. Need properly sized secondary loads for wind, and maximize the value with good placement: Choice of public building, heat loop, residences There is an economically optimal level for producing heat from wind 9

10 Wind Lesson Learned Average wind penetration of greater than 8% will produce excess energy in small grids. We now require secondary loads and controllers over 8% average penetration. 10

11 What we have learned: Technologies Moved most of the fine analysis into the conceptual design phase Learned how to better deal with icing data from meteorological towers We know of several biomass systems that meet the high efficiency, low emission standard. Some emerging technologies were tested through early REF funding Let s learn from mistakes only once! 11

12 What have we learned: Process No more full meal deals Funding from reconnaissance through construction ties up funding that could otherwise go to immediate use Cost estimates are not accurate from early stage What if project found not feasible or poor economically Pre screening projects works (biomass) REF is a long process Applications have gotten stronger and more selective 12

13 What have we learned: Social Good systems take time and patience Community must be ready and wanting the system Community champions make projects successful Involving kids is great educational opportunity RE systems require work More elbow grease, less fuel This can also mean local jobs 13

14 What we have learned: Economic When looking at project economics, look at the whole community, not just impact to immediate user Flat energy cost = lower cost of energy (inflation effect) We re getting better at estimating O&M costs in the base case and for the renewable energy system We have developed an outstanding economic evaluation tool The technical and economic evaluations are valuable 14

15 What have we learned: Portfolio Emerging Energy Technology Fund Allows REF to focus on producing lots of renewable energy while EETF focuses on helping commercialize new ideas Utility upgrades provide needed base for renewable system Alternative Energy program feeds the pipeline, reduces turbulence, supports success of REF Met tower loan program, pre feasibility, resource studies, hydro database, community training and support, permitting Energy efficiency ensures that RE is used efficiently 15

16 Diesel is easy Renewables take effort It is a dense, convenient energy source to savor Renewables take effort and commitment, but have many benefits Coffman Cove School Garn boiler. Photo courtesy of Karen Petersen 16

17 We ve made great progress How many projects would have moved without REF? We can see trail below and obstacles we ve climbed There s a long way to go, but we re all warmed up and moving fast Ready for the next ridge Where we sit today 17

18 St. Paul Island Wind Thank you. Questions? Sean Skaling Alaska Energy Authority (907)

19 Appropriated Renewable Energy Fund Grants Rounds I VI By Energy Region By Resource Type Hy dro $72.2 Biomass $19.3 Heat Recov ery $15.9 Geothermal $14.4 Transmission $12.5 Ocean/ River $3.9 Wind $85.8 Other $0.1 Solar $0.5 Millions $ Millions $ 19