Renewable Energy in New Mexico

Transcription

1 The Creation of a New Mexico Renewable Energy Transmission Authority Renewable Energy in New Mexico Fernando Martinez, Director Energy, Conservation and Management Division New Mexico Energy, Minerals, & Natural Resources Department 2006 Electric and Gas User Group Albuquerque, New Mexico October 9, 2006

2 Overview of the Presentation Governor Richardson s Leadership in Energy Clean Energy Development Council EMNRD s Renewable Energy Program Areas Selling Renewable Energy in New Mexico Positioning New Mexico to be a Leader in the New Energy Economy Policies, Programs and Incentives 2007 Legislative Initiatives Creation of a New Mexico Renewable Energy Transmission Authority 2

3 Governor Richardson s Experience, Commitment, and Leadership has Moved New Mexico forward in Energy Established numerous policies, programs, and incentives on renewable energy for NM. Issued Executive Orders on Renewable Energy including the Chicago Climate Exchange and Clean Energy Development Council International experience has attracted renewable energy companies (e.g. Sharp) Richardson with Governor Schwarzenegger spearheaded Western Governor s Association Renewable Energy Initiative 3

4 Clean Energy Development Council Established by Exec Order Critical for state agencies, via CEDC oversight and recommendations, to lead by example in energy efficiency, renewable energy and fuels Ensure state government consistency with Governor s Clean Energy Initiatives 4

5 Clean Energy Development Council Appoint and monitor Task Forces and working Groups to develop policy recommendations, oversee implementation. Report annually to the Governor on activities, recommendations, and progress Meet at least quarterly thereafter to monitor progress. 5

6 EMNRD Renewable Energy Program Areas Renewable Fuels Ethanol, biodiesel, compressed natural gas, propane, hydrogen Renewable Energy Solar, wind, biomass, geothermal 6

7 Hydrogen in New Mexico o EMNRD has dedicated $100,000 from State funding sources to support infrastructure development for a hydrogen project in Albuquerque. EMNRD is coordinating this effort with the City of Albuquerque. o EMNRD has awarded $1,000,000 from State funding sources to the New Mexico Technology Research Collaborative (New Mexico Tech is the fiscal agent) to support educational programs and hydrogen fuel projects. 7

8 Hydrogen Projects In Other States Solar-powered Electrolyzer and H2 Fuel Cell Bus at Sunline Transit t, Thousand Palms, California 8

9 Hydrogen Projects In Other States Hydrogen Fuel Station Chicago Transit Authority 9

10 Solar Energy Resource: New Mexico 2 nd in the United States Distributed Solar Photovoltaic (electric) Applications Residential Commercial Institutional/Government Schools with Solar Agricultural/Ranching Tracking 700-Watt PV system, Schools with Sol site. Santa Fe, New Mexico 10

11 Solar Thermal Water and space heating, solar adsorption cooling Cost-effective alternative now! Reduce impacts of high natural gas prices Solar thermal should be seriously considered for all new buildings Solar Hot Water System, Grady Elementary, NM 11

12 New Mexico s Keen Interest in: Concentrating Solar Power Large-scale, central station solar electric power 350 MW Parabolic Trough plants: operating in CA for over 15 years Cost projections: 15 /kwh to 4-6 /kwh competitive with new fossil-fuel plants Nevada: 64 MW trough plant under construction NM Solar Resource Map 12

13 New Mexico s World Class Solar Energy Resource and Concentrating Solar Power Sites 13

14 New Mexico A Participating Member of SolarPACES 5000 MW CSP Global Market Initiative 14

15 New Mexico is Very Interested in Mini Solar Thermal Power Plant (MSTPP) Technologies Huge future load growth: shift from evaporative cooling to energy intensive refrigerated air conditioning (A/C) * MSTPP viewed as a viable alternative to A/C 15

16 HelioDynamics, a UK company, is pursuing deployment of their MSTPP technology in NM 32 kw system in Tampa, Florida 16

17 U.S. Wind Resource Map 17

18 Large-Scale Wind Power Price: dropped from over 20 /kwh to < 5 /kwh over last 2 decades Competitive with new fossilfuel plants 400+ MW - 6 th in nation in generation Best Wind Eastern Plains Farming and Ranching economy stressed by drought Intermittent resource can t make the wind blow No water consumption New Mexico Wind Resource Map 18

19 New Mexico s Tax Incentives have Attracted Wind Developers Existing Wind Ranches 204 MW NM Wind Energy Center, FPL/PNM, House, NM (operating) 80 MW, Caprock, Xcel/SPS, San Jon, NM (operating) 120 MW, San Juan Mesa, Xcel/SPS, Elida, NM (operating) 90 MW, Argon Mesa, AZ Public Svc., Santa Rosa, NM (under construction) 1 st project designed to export NM s renewable energy to out-ofstate markets RE Transmission Authority needed to pursue export on a large (1000s of MWs) scale. Above projects represent over $500 million in investment More projects, of various scales, being pursued 19

20 Biomass Forest thinnings Watershed management Reduce danger of fireprone forests Dairy and feedlot waste Improve groundwater quality Applications: electricity, heat, liquid fuels, oils, chemicals 20

21 Electricity from Biomass $74 million, 35 MW plant, Estancia PNM to purchase power under RPS requirement Operational in construction jobs, 20 permanent jobs at plant, jobs involved with harvesting forest material 21

22 Dairy and Feedlot Waste Can Become ReMOOable Energy! 22

23 Biofuels Production Abengoa Ethanol Plant, Portales, recently increased from 15 to 30 million gal./yr in operating prod. capacity ConAgra Ethanol Plant, Clovis plans for a 100 MG/yr ethanol plant, operational in 2008 Other projects on drawing board: More grain-based ethanol Bio-diesel Cellulosic ethanol 23

24 Abengoa s Recently Expanded 30 Million Gallon/Year Ethanol Plant Portales, New Mexico 24

25 Selling Renewable Energy in New Mexico Primary Benefits: Positioning New Mexico to be a Leader in the New Energy Economy Reducing consumers energy bills in the face of high fuel costs (natural gas and gasoline) Additional Benefits: Reducing state and local government operating costs lower utility bills Businesses and industry more cost-competitive Protecting New Mexico s natural areas Decreasing consumptive water use fossil fueled electricity consumes > 50 KAF/yr! NM s contribution toward national energy security Protecting public health reducing air pollution and greenhouse gas emissions 25

26 Competing for the 21 st Century Energy Economy- The Message that Resonates New Mexico is competing with other countries and states (CA,TX, NJ, AZ) for this emerging economic pie Renewable energy projects and related manufacturing offer significant economic stimulus and job creation Year 2100: the nation s energy-based economy won t look much like today s energy economy Renewables, state-of-the-art efficiency, fuel cells, nanotechnology, etc. 20 th Century: New Mexico was a national leader in energy development. What s next? New Mexico State Legislature recognizes the critical role renewable energy is playing in diversifying the state s economy. 26

27 Policies, Programs & Incentives Renewable Portfolio Standard 10% by 2011, large utilities only Solar counts 3:1, Biomass 2:1 2% rate cap 15 cents/kwh PV cap, 10 cents/kwh CSP and Biomass cap 400+ MW of wind installed in response RE Production Tax Credit 1 cent/kwh up to max. of $4 million/yr/facility for 10 years (one of only two states with RE PTC) 27

28 Policies, Programs & Incentives continued Hybrid Vehicles Sales Tax Exemption: Saves $ on purchase Complements new federal income tax credit Efficient Use of Energy Act Requires utilities to have EE programs - $20 million+/year in expenditures Initiates Integrated Resource Planning (IRP) process Renewable Energy Revenue Bonds Act First in Nation Innovative Funding Approach - $20 million bond issue paid for out of energy utility bill savings 28

29 Policies, Programs & Incentives continued Clean Energy Grants Program Grants to schools, local governments, tribes Solar Market Development Income Tax Credit PV and Solar Thermal 30%, capped at $ year sunset Complements federal tax credits Complements New Mexico s largest utility s 13 cent/kwh Renewable Energy Credit buy-back from PV selfgenerators New Mexico Public Regulation Utility Commission -10 kw Net Metering Rule Rule-making underway to increase to 100 kw+ Governor Richardson supports going to 1 MW 29

30 Governor Richardson s Renewable Energy Executive Orders Declaring New Mexico the Clean Energy State 6 policy Task Forces led to legislation Establishing Climate Change Greenhouse Gas Reduction Targets 2000 CO 2 Emissions by % below 2000 by % below 2000 by st state in Nation to join Chicago Climate Exchange Requiring the use of Renewable Fuels in New Mexico State Government 30

31 2007 Legislative Initiatives Renewable Energy Transmission Authority Act Amendments to Renewable Energy Production Tax Credit Increase to 2 cents/kwh for solar Decrease minimum production capacity requirement to 1 MW Exempt Concentrating Solar Power Projects from sales (GRT) tax Recurring revenue source for CE Grants Program 31

32 #1 Priority Creation of a New Mexico Renewable Energy Transmission Authority 32

33 Renewable Energy Transmission Authority Act Provides for planning, construction, financing, and operation of transmission infrastructure Authorizes revenue bonds for Electricity Transmission Projects Requires minimum of 30% renewable energy Designed to meet NM renewable energy needs and export renewables to out-of-state markets 33

34 Board Qualifications Member appointed by governor financial expert involving financing of major electrical transmission Other four members: special knowledge of public utility industry No member shall own or operate a facility Secretary of Energy, Minerals, and Natural Resources shall serve as ex-officio nonvoting members of the authority Governor to appoint chair 34

35 Renewable Energy Transmission 35

36 Three Key Points to leave You With: New Mexico has a comprehensive set of renewable energy incentives to attract new projects and developers New Mexico has world class wind and solar energy resources New Mexico s Governor and its State Legislature are committed to promoting renewable energy development in the State 36

37 Thank you 37