Meeting Renewable Energy Portfolio Standards Dwayne Breger Massachusetts DOER

Transcription

1 Meeting Renewable Energy Portfolio Standards Dwayne Breger Massachusetts DOER

2 EBC Biomass Conference Westborough, MA May 5, 2009 State Biomass Programs and Activities Dwayne Breger Division Director, Renewable Energy

3 Outline State Energy Goals Renewable Energy Portfolio Standard Green Communities Act Biomass Implications Alternative Energy Portfolio Standard (CHP) MA Renewable Energy Trust (Biomass Thermal) Sustainable Forest Bioenergy Initiative Renewable/Biomass Heating

4 Renewable Energy Goals Achieve 15% of electrical energy through new renewable sources by 2020 RPS Minimum Standard increases 1%/year from 2010 to 2020, to reach 15%. Achieve 20% of electrical energy through renewable and alternative energy by 2020 Alternative Energy Portfolio Standard (APS) Minimum Standard adds an additional 5% clean energy to the RPS Global Warming Solutions Act 2008 requires carbon emission reduction of 80% by 2050

5 Renewable Energy Portfolio Standard (RPS) New England Demand Projections Requires small but increasing portion of all electricity to come from new renewable energy. 4% in 2009 for MA, increasing 1% per year. GWh 14,000 12,000 10,000 8,000 6,000 4,000 2,000 NH ME RI CT MA

6 RPS Compliance Historical Trend Creating A Greener Energy Future For the Commonwealth Supply has caught up to demand RPS Compliance, GWh Surplus Banked for Future Compliance Compliance from Banked Surplus Banked ACP Compliance Compliance from Banked Compliance Year Generation ACP Compliance Year Generation

7 2007 RPS Compliance By Technology Creating A Greener Energy Future For the Commonwealth G W h 1,800 1,600 1,400 1,200 1, Wind Solar Landfill Gas Biomass Anaerobic Digester Biomass represents greatest supply to meet RPS in Wind energy is anticipated to grow most substantially Compliance Year

8 Eligible Biomass Fuels MA RPS Biomass Eligibility Wood chips & clean forestry waste, not mixed with other unsorted solid wastes Crops and by-products/waste from agriculture, food processing, and food service Algae Organic refuse-derived fuel (not defined) Anaerobic digester gas & other biogases from the above resources Neat Eligible Liquid Biofuel (defined term) derived from the above resources Construction and Demolition (C&D) eligibility will be determined by Commission Low Emissions Standards developed in collaboration with MassDEP Guidelines list NOx and PM limits only for solid-fueled steam boilers Emissions for other types of facilities to be developed as needed Advanced Biomass Power Conversion Technologies Individual project evaluation and precedent No technology categorically excluded Generally: current technologies, high efficiency, clean So far: fluidized beds, close-coupled gasifiers, anaerobic digesters, advanced stokers, and two small CHP units

9 2008 Green Communities Act New RE/Biomass Policies Alternative Energy Portfolio Standard Establishes RPS-type program for alternative (non-renewable) technologies. Key technology of interest is CHP. Provides credit for electric generation and useful thermal load. DOER regulations allow qualified biomass CHP to reap benefits of RPS and APS credits. Enables MA Renewable Energy Trust to expend funds on Renewable Thermal (solar, biomass, geothermal) 9

10 E elec / eff elec E therm / eff therm E CHP_in Alternative Energy Portfolio Standard CHP Formulation CHP Grid Boiler E elec E therm E elec E therm Load Load Without CHP With CHP Alternative Energy Credits (AECs) calculated as energy savings of CHP compared with grid power and separate thermal unit, to meet the same load. AECs = E elec / E therm / E CHP_in 10 all energy expressed in MWh

11 Funding MA Sustainable Forest Bioenergy Initiative (SFBI) U.S. Department of Energy MA Renewable Energy Trust Summary The MA Sustainable Forest Bioenergy Initiative has been the organizing force for the planning and strategic development of biomass energy in the Commonwealth. The Initiative has established essential technical information upon which to form the basis of sound biomass policy and market development. Key challenges remain to address public concerns regarding forest impacts, carbon balance, and sustainable management; and to design a coherent policy and funding program to stimulate investment in biomass supply infrastructure and project development. 11

12 12 SFBI Resource Assessment Annual Forest Growth & Harvest Levels Forest Harvest Residues Sawmill Residues Secondary Forest Product Residues Urban Wood Residues Land clearing Tree Services Pallets & Other Clean Shipping Wood Processed Construction & Demolition Debris Other Agricultural Residues Paper Cubes 1.7 Million green tons of sustainable biomass potentially available in MA annually 10 Million green tons in the larger region

13 SFBI Economic Impact An IMPLAN model was used to analyze the economic impact in MA of biomass development. Looked at build out of 165 MW of electric power stations, and a host of smaller thermal units. This build-out is roughly the magnitude that that can be supported by the 1.7 million green tons/year available within western MA borders. Initial plant construction would create a total of $642 million new output and about 2000 jobs for 5 years. On-going increase in regional economic output of $79 million/year and about 600 new jobs. Most of this economic growth would be in western Massachusetts. 13

14 Biomass Thermal Public Support Forestry and Biomass Energy have been subject of substantial public scrutiny over past year Public and environmental organizations are critical of large central biomass power plants Low efficiency and limited direct benefits to community Large fuel demand is viewed as stress on forest resource Support for Community Scale Biomass Heating and CHP is strong 14

15 15 Installed Projects Biomass Thermal Project Development Mount Wachusett Community College DCR Quabbin HQ/Visitors Center Leading-by-Example State Facilities Biomass Thermal/CHP Feasibility/Development Projects Springfield Tech Community College UMass Dartmouth and UMass Amherst MA State Police Academy DCR Visitor Centers Green Communities Program Energy Audit Program Town/Municipal Facilities (schools, town halls, etc.) Wood Pellet and Chip projects are under study and have gained significant interest in oil-heated facilities

16 Biomass Thermal Market Development Wood Pellets 2-3 companies seeking production in MA Biomass Boiler Study Safety and Emissions Standards Contracted with CONEG (subcontracts with Rick Handley Associates and NESCAUM) Review of Northeast states regulations on boiler standards Comparison with European standards Recommendations to improve market conditions for import and domestic boilers to enter regional market MA Renewable Energy Trust MRET has re-organized its support into technology specific programs Commonwealth Solar, Commonwealth Wind, Hydro Biomass Program is currently under development 16

17 Local Example Mount Wachusett Community College, Gardner, MA 8 MMBTU heating unit Estimated annual cost savings of $300,000 from previous electric heat. A small demonstration combined heat and power gasification system.

18 Wood Pellets Creating A Greener Energy Future For the Commonwealth

19 Questions / Comments?? Contact Info Dwayne Breger Division Director, Renewable Energy Development dwayne.breger@state.ma.us (617)