Welcome to Today s NACUBO Webcast. Our program will begin shortly with a brief introduction on how to use the desktop interface.

Transcription

1 Welcome to Today s NACUBO Webcast Our program will begin shortly with a brief introduction on how to use the desktop interface.

2 Desktop Interface Media Player Element Display Element Toolbar Quick Question Primary Toolbar

3 CPE Credit You must complete surveys to receive CPE credit Resource Page Click directly in the element area to answer survey questions

4 How to Ask Questions Select Expert from the dropdown menu Type your question Click on Submit The Online Experts InBox button will illuminate when you receive a response. To view the answer to your question, click on this button and then select Answered Questions.

5 Reviewing Elements To review elements, use the Review and Preview buttons in the Element toolbar. Click on the Sync button to rejoin the presenter. NOTE: This button appears unplugged if you are not synchronized with the presenter. Sync Review Preview Enlarge

6 Buffering If you experience sustained periods of buffering, click on the Speed button and select a lower stream rate. Contact the helpdesk at Speed Button

7 Renewable Energy: Saving and Making Money for Your Institution John Cusack Andrea Putman Michael Philips

8 Lead Sponsor: The New Jersey Higher Education Partnership for Sustainability A consortium of over 40 NJ higher education institutions, promoting and practicing the integration of sustainability processes and practices into higher education We sponsor services, workshops, events & conferences to share best practices and promote sustainable operations (including renewable energy), curriculum and communities Instigated the 2001 Greenhouse Gas Reduction Protocol signed by all 56 NJ higher education institution presidents to voluntarily reduce their GHG emissions by 3.5% from 1990 levels by 2005

9 Moderator - John Cusack, Executive Director, NJHEPS 30+ years in the energy, environmental and financial industries, running subsidiaries of multinational firms in Europe and the US MBA from NYU s Stern School, also MCE in Environmental Engineering & Science (Manhattan College) Co-founder & start-up CEO of Innovest, the first environmental performance rating agency to quantify corporate financial and environmental performance for institutional investors Executive with the environmental risk management practice of Marsh, the world s largest risk management and insurance brokerage firm

10 WHY NJHEPS is a Lead Sponsor- We strongly feel that part of the educational process is to show and practice leadership Climate change/global warming is a serious risk that needs to be managed at local, national & global level Renewable energy and energy-efficiency are keys to achieving the GHG emission reductions our college and university presidents committed to in 2001 Renewables makes good business sense in light of rising/volatile energy prices & increasing GHG risks, both reducing operating costs and minimizing risks to our institutions, their communities, and the planet

11 Thanks to the Book s Sponsors NACUBO/SCUP/APPA Lead Sponsor: New Jersey Higher Education Partnership for Sustainability, with NJBPU Co-sponsors: The U.S. Department of Energy, International City/County Management Association Supporting sponsors: Chevron Energy Solutions, National Wildlife Federation, American Council on Renewable Energy

12 Andrea Putman President of Green Innovations, a woman-owned small business that provides communications, marketing, and analysis for energy management and renewable energy initiatives sold wind power for Community Energy and developed a wind power marketing plan for Washington Gas Energy Services Energy Policy Analyst for Aspen Systems Energy Analyst for Pepco Energy Services as a Certified Energy Manager

13 Michael Philips 30 years of experience in energy and environmental policy analysis and program design and has managed an international clean energy consulting practice for 12 years, focusing on project identification and design, financial and economic analysis, and evaluation. Clients include the International Finance Corporation, World Bank, French Ministry of the Environment, Global Environment Facility, European Union, Asian Development Bank, the U.S. EPA Held a White House appointment at the U.S. Department of Energy s Policy Office and was a professional staff member on the Resources Committee of the U.S. House of Representatives, and a senior energy analyst for the City Of Portland Oregon Energy Office

14 Why Colleges Buy Green Power? INTANGIBLE VALUE Leadership/Social responsibility Curriculum and educational value Public relations Support of Campus Climate Challenge Students, faculty, and alumni support Support of regional economy

15 Leadership 100% RENEWABLE ENERGY Colby College College of the Atlantic Concordia University Unity College Western Washington University

16 Why Colleges Buy Green Power? FINANCIAL BENEFITS Hedge against price volatility of conventional fuels Reduce peak demand charge Maintain critical functions during blackout or emergency Income from on-site generation LEED points Corporate/ University Partnerships

17 Policy Drivers Renewable Portfolio Standards Executive Orders Net metering laws Local initiatives Tax incentives

18 National & Regional Initiatives U.S. Mayors Climate Protection Agreement Northeast Governors and Eastern Canadian Premiers Agreement on Climate Change West Coast Governors Global Warming Initiative Western Governors Assoc. Clean & Diversified Energy Initiative Regional Greenhouse Gas Initiative Chicago Climate Exchange

19 Price Premium Range( /kwh) Green Power Electricity Products Renewable Energy Certificates On-Site Generation Varied Sources:

20 Ways to Lower or Cover Costs Energy management savings University Challenge Student fees Increasing % of less expensive sources Fixed price contract Consortium/Aggregation Gifts and endowments for sustainability Utility foundations

21 Energy Management Savings University of Pennsylvania Savings of $300,000/year dedicated to wind University at Buffalo Savings of $9 million/year (through performance contacts)

22 Student Fees Connecticut College Eastern University (matched by admin.) Lewis and Clark College Tufts University University of Denver University of North Carolina, Chapel Hill Western Washington University

23 Fixed Price Contracts Concordia University 2.85 cents per kwh for green power fuel 10 year contract Expected saving of over $50,000/year (estimated based on 2005 usage) Budget predictability

24 Aggregation and Gifts Aggregation University of California and California State Systems Pennsylvania Consortium for Interdisciplinary Environmental Policy Gifts and Endowments College of the Atlantic Ithaca College Arizona State University

25 Funding Sources Grants and rebates: Clean air funds for State Implementation Plan Clean energy funds Homeland security funds Federal tax incentives Energy Policy Act of 2005 EPA Supplemental Environmental Projects

26 California State University, Northridge Solar PV System 225 kw capacity A second system is 462 kw Financed from special energy fund State rebates from first system helped finance second one

27 Carlton College Wind Turbine 1.65 MW wind turbine Financing Endowment Loan State production credit Private equity Power sold to utility for $170,000/yr Covers all project costs including debt service

28 University of Iowa Biomass-Coal Co-firing Oat hulls replace 50% of coal consumption Saves $500,000/yr S02, NOx, CO2 emission reductions

29 Hudson Valley Community College Landfill Methane Cogeneration Piping methane from landfill adjacent to campus Fires a cogen unit 3 other cogen units running on natural gas The 4 units provide 100% of campus electricity needs

30 Central Michigan University Wood Chip Heating Plant Locally procured wood chips replace natural gas Renewable 2-year fixed price chip supply contract Plant provides 60-65% of university s heat Savings of $1 million per year from reduced nat. gas consumption

31 Cost of Renewable Energy per installed KW per kwh generated Wind $1,000 - $1, Biomass $1,300 - $3, Solar PV $5,500 - $6,

32 Financing the On-Campus Renewable Energy Project Debt Loan from Operating fund Component of bond issuance Endowment loan Private Equity Tax and ownership issues Minnesota Flip Model

33 Financing the On-Campus Renewable Energy Project II Cash-Constrained Approaches Lease Performance Contract Third Party Supply Model Private vendor gets tax credits, gov t rebates College pays only for electricity produced Depends on state tax incentives

34 Interconnection With Utility Interconnection Agreement Power Purchase Agreement Standby charges

35 Three Approaches to Utility Interconnection A. On-Site Consumption College consumes all renewable power on campus College pays utility for remaining power at normal retail rate, possibly faces standby charges

36 Three Approaches to Utility B. Wholesale Sale Interconnection College pays utility for power at normal retail rate, faces no standby charges Utility pays college for renewable power at a wholesale rate

37 Three Approaches to Utility Interconnection C. Retail Sale (Net-Metering) College pays utility for power at normal retail rate, faces no standby charges Utility pays college for renewable power at retail rate

38 50 kw Net Metering Rules kw ,000 * 50 * 100 * 25/ * * 2, * * / * * * / * * 10 no limit 15 VT: 15/ /400 kw * * 10/100 varies 10 * 20/100 * * * 100 NH: 25 MA: 60 RI: 25 * CT: 100 NJ: 2,000 DE: 25 MD: 80 VA: 10 /500 DC: #s indicate system size limit (kw); in some cases limits are different for residential and commercial as shown * State-wide net metering for all utility types State-wide net metering for certain utility types (e.g., IOUs only) Net metering offered by one or more individual utilities

39 Post-Construction Revenue Streams Electricity sales (or reduced elec. bills) REC sales Production credit Federal & State, depending on technology Tax credit Federal & State, depending on technology Reduced peak demand charges

40 Summary: Buying RECs vs. On-site Project RECs cheaper, easier, simpler, less risky, and more price predictable On-site Projects provide a financial return, a physical asset, an educational resource, and more control over energy costs.

41 The Business Case for Purchasing Renewable Energy: Guide for Colleges and Universities Andrea Putman Michael Philips

42 Questions?

43 Thank You For Your Participation Please Complete Our Evaluation