Rural Energy Affordability and Economic Development

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1 Rural Energy Affordability and Economic Development Nebraska Rural Energy Needs & Opportunities David Bracht February 8, 2017

2 Population 1.9 mil (state rank 37) Omaha metro 915,000 (59 th in US) Lincoln metro 327,000 Only 10 Cities over 20,000 Nebraska Facts Area 77 million sq. miles (16 th ) Agriculture 45 million acres (91% of state) State GDP - $115 billion (36 th ) Ag production - $23 billion (6% of US) Top Industries Agriculture (1 in 4 jobs) Manufacturing & Agriculture Processing Finance & Insurance Health Care & Social Services Transportation (Trucking & Rail)

3 Rural Energy in Nebraska TOPICS What makes Nebraska different Renewable Energy Development 3

4 Nebraska State & Rural Energy Drivers 7 th highest per capita energy use Nebraska leads US In Irrigation and increasing electric load Energy Intensive agriculture & industrial sector Irrigated acres (1 st ) Cattle feeding (1 st ) Meat processing (1 st ) Ethanol production (2 nd ) Corn for grain (3 rd )

5 Nebraska Public Power Districts Nebraska Public Power Nebraska only state with 100% consumer owned electric power State statutes passed in 1933 for public acquisition of then-existing investor owned utilities Power Review Board Service Territories 167 public power districts, rural electric cooperatives, municipal power companies with Publicly elected or appointed boards 8 th lowest rates in

6 Nebraska Power Generating Fleet

7 Energy Nebraska Style

8 Nebraska Ethanol Plants 25 ethanol plants Including largest ethanol facility in United States 2.2 million gallons/year 2nd highest of all states Employment 1,300 direct 4,000 indirect Key part of Nebraska s golden triangle of corn, cattle and ethanol

9 Nebraska Wind Nebraska part of windiest part of US Fourth highest wind potential of all states Average capacity factor in 2016 over 45% Highest in US One of only five states above 40% capacity factor 6312b592

10 Nebraska Wind Projects 1,320 MW 737 turbines Wind energy was over 10.1% of electric energy used in Nebraska in b592

11 Nebraska Solar Energy Growing interest in solar energy statewide In Nebraska solar projects expanded from just over 1.0 megawatt to nearly 25 megawatts Rooftop/small commercial under 25 kw to small community solar projects 100 kw to 5 megawatts 6312b592

12 Fremont Nebraska Generation Units Baseload Power Plants Lon D Wright coal-fired generating station Unit # MW Unit #7 21 MW Unit # MW Derril G Marshall Generating Station gas-fired 41.6 MW of peaking power Grid Power Southwest Power Pool (SPP) Market-based rates 60MW limit Renewable Cottonwood Wind Farm 40 MW (November 2017) Community Solar 1.55 MW

13 Solar Program Parameters Eligibility: Available to all customers of Fremont, subject to a signed agreement (2 pages) Participation: Two options: Purchase panel(s) - $180 ea. 1 panel yields 43 kwh/month Purchase Solar Energy Shares - $.06/kWh 1 share equals 150 kwh/month Minimum: 1 panel/solar energy share Maximum: 50-80% of annual kwh consumption Residential 80%/Commercial 50% Program Length: 1-month residential 1-year commercial Enrollment Fee: $30 refundable (applied to bill) after 1-year Portability: Participation is transferrable

14 Sold out 1.0 MW in 5 weeks Sold out 1.55 MW in 7 weeks 180 Residential customers 50% purchased solar panels 50% subscribed to solar shares 20 Commercial customers Commercial operation in early names on waiting list for Solar Farm 2 Project Results

15 Certified US Government Contractor for Biomass Electric Power Generation EPA Partnership for Combined Heat and Power (pending) Public-Private Partnership with the City of South Sioux City, Nebraska Public-Private Partnership with the Nebraska Forest Service Nebraska Statewide Wood Energy Team 15

16 Gasification Definition Gasification is a process that converts organic or fossil fuel based carbonaceous materials into carbon monoxide, hydrogen and carbon dioxide. This is achieved by reacting the material at high temperatures, without combustion, with a controlled amount of oxygen and/or steam. 16

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18 N E B R A S K A E N E R G Y O F F I C E David Bracht Director David.bracht@nebraska.gov (402)

19 Current Biomass Power Plant Project Highlights in South Sioux City, Nebraska: 8MW biomass baseload power generation; modular system for future expansion 100,000 tons/year of torrefied wood pellet production Drop-in replacement fuel for coal-fired power plants Multiple sources of feedstock adaptability (wood waste, MSW, C&D, Ag residuals) 343,000 tons/year of wood 45% moisture content as feedstock Technologies used: Gasification, Torrefaction, Waste-Heat Recycling Total project cost $53 million Direct jobs/careers (29) and indirect jobs (350) Workforce housing and workforce development core business model 19