Clean Energy Finance and Investment Authority Linking Clean Energy and Economic Development

Transcription

1 Clean Energy Finance and Investment Authority Linking Clean Energy and Economic Development Clean Energy States Alliance Fall Meeting October 25, 2011

2 Before there was Public Act subsidizing the market Community outreach/incentives Solar PV installations Fuel cell installations Clean energy technology development Grants and Incentives Wind energy installations Biomass installations Hydro installations Solar thermal/geothermal installations 2

3 Now there is Public Act financing the market Grants Equity Loans Loan guarantees Finance and Investments Energy efficiency financing Hydro Alternative fuel vehicles and infrastructure Biomass Wind Transmission, Storage and Distribution Solar PV Solar thermal and geothermal Fuel Cells Manufacturing 3

4 Overview of Public Act Bill received strong support in House and Senate House -139 to 8; Senate unanimous Creates centralized energy-environment department for State of Connecticut Features strong State support for renewable energy and energy efficiency initiatives ~ $3 billion public investment over next 10 years 4

5 Public Act Key Provisions of the New Deal Project 150 non-extension of extension date ( 91) New Quasi-Public Authority ( 99) Property Assessed Clean Energy ( 100) Combined Heat and Power and Anaerobic Digester Pilot Programs ( 103) Residential Solar PV Program ( 106) Zero Emission and Low Emission Generation Programs ( ) Condominium Program ( 111) Residential Heating System Financing and CHP ( 116 and 135) Energy Performance Contracting Leading by Example ( 118, 122 and 123) Virtual Net Metering ( 121) Green Connecticut Loan Guaranty Fund ( 124) Disclosure of Consumption Data ( ) Grid-Tied Procurement ( 127) Building Permit Fee Waiver for Clean Energy ( 128) 5

6 Technology Innovation and Clean Energy Deployment Gaps 6

7 From Technology Innovation to Local Manufacturing Daniel Halladay: Wind Turbine Owned the Halladay Windmill Company in Coventry, CT Built and manufactured the first commercially successful self governing new windmill in the U.S. in 1854 Relocated to Batavia, Illinois because of delays in production and shipping as a result of the Civil War. Albert Pope: Electric Vehicle Owned the Pope Manufacturing Co. in Hartford, CT Built electric vehicles under the Columbia Automobile Co. in 1897 Was bought out by the Electric Vehicle Co. and went under in 1899 Bernard Baker: Fuel Cell Founder, president and CEO of ERC in Danbury, CT Builds molten carbonate fuel cells for low emission, baseload, distributed generation applications Receives a two-year 70 MW order from POSCO Power, a South Korean independent power producer in

8 More Capital and Consumers = More Jobs from Clean Energy Deployment Direct and Indirect Job Years Created per Million $ Invested Energy Efficiency - Residential Energy Efficiency - Small Business Geothermal Installation Energy Efficiency - C&I Solar Thermal Installation Fuel Cell Installation Solar PV Installation - Residential Solar PV Installation - Non-Residential Source: Navigant Consulting 2009 CT Renewable Energy/Energy Efficiency Economy Baseline Study. 8

9 Financial Innovation Connecticut Solar Lease 800 Homes $55 MM in Capital Equity $17,634,000 EquityCo, LLC (100% Equity) ITC $15,693,679 AdminCo,LLC (Program Admin) Sells Note DeveloperCo, LLC (Developer) Management Fee Services CT Solar Lease, LLC Rebate/Incentive $23,400,000 CCEF (Debt and Incentive) Energy Efficiency Finance Deferred Development Note $4,700,000 Lease Payment Debt Service $15,200,000 Approved Installers Green Loan Guaranty Fund Home Owner Solar PV System Installer (Approved by CCEF) NOTES Design 5.5% interest rate (4% to AFC First Financial for sourcing and servicing, 0.5% CT Solar Lease, and 1.0% to CCEF), secured, 200% of median income Consumer Credit Guidelines 640 if salaried, 680 if self-employed for at least 2 years, 720 if self-employed less than 2 years, no bankruptcy in last 7 years, debt to income or monthly obligations to monthly income 50% for all credit scores Performance 800 loans, 6.0 kw AC average system size, from $5,320/kW rebate in 2009 to $2,731/kW rebate in 2012, and 2 defaults. 9

10 Governance Economic Development and Finance Name Organization Appointer Catherine Smith (or designee) DECD Statute (PA 11-80) Dan Esty (or designee) DEEP Statute (PA 11-80) Denise Nappier (or designee) State Treasurer Statute (PA 11-80) Patricia Wrice Operation Fuel Speaker of the House Norma Glover NJG Associates Minority Leader of the House Matt Ranelli Shipman & Goodwin President Pro Temp Senate TBD TBD Minority Leader of the Senate Reed Hundt Coalition for Green Capital Governor Mark Cirilli Mission Point Capital Governor John Olsen AFL-CIO Governor Mun Choi University of Connecticut Governor 10

11 Visit us online at Bryan Garcia President 865 Brook Street Rocky Hill, CT (860)

12 Organizational Structure After September 29, 2011 Technology Innovation Deployment Early R&D/ proof of concept Demo & scale-up Commercial roll-out Diffusion & maturity From Idea to Commercial Viability Reducing Energy Demand and Increasing Renewable Energy Supply Law & Policy Finance & Investments Marketing & Outreach Evaluation, Measurement and Verification 12