Renewable Energy in Alaska. Micah Chelimo, Carrie Haisley, & Tanya Komakhuk PADM A628: Spring 2018

Transcription

1 Renewable Energy in Alaska Micah Chelimo, Carrie Haisley, & Tanya Komakhuk PADM A628: Spring

2 Presentation Outline Reasons for Study What is Renewable Energy? The Climate Change Connection Global and National Policies Renewable Energy in Alaska Stats Alaska Policies Analysis Conclusions & Recommendations 2

3 Re- visiting an Earlier Study Davenport & Stevens (2012) Why follow- up with the 2012 class project? Alaska s economy was stronger during the 2012 fiscal analysis by Davenport and Stevens. Applicable laws were passed less than four years before the earlier study. Limited information was available for their analysis. We hypothesized that there was less incentive in 2012 for the state to invest in renewable energy technologies since non- renewables were the primary reason for the Alaska s healthy economy. Goal = Identify if this has changed. 3

4 U.S. Total Energy Consumption Source: U.S. Energy Information Administration (EIA) 4

5 What is Renewable Energy? Renewable energy is energy that is generated from natural processes that are continuously replenished. Alaska can generate renewable energy from multiple sources, including: o Hydropower o Wind o Biomass o Geothermal o Solar o Tides 5

6 Why is Renewable Energy Important? Global acknowledgement of climate change due to fossil fuels. Alaska has significant renewable resources available. High energy costs in Alaska, esp. in rural communities. No statewide power grid. Long- term fiscal stability. 6

7 The Climate Change Connection Climate is the statistics of weather. o Typically refers to statistics over decadal time scales (baselines). o Climate change = Transition to a new base state. What is the Greenhouse Effect? o Warming caused by re- emission of radiation by gases (CO₂, CH₄ and N₂O). Source: NOAA Human activity is enhancing the greenhouse effect by increasing the concentration of gases that stop heat from escaping back into space. 7

8 Global Renewable Energy Policies Paris Climate Agreement European Union Energy Policies National Energy Policies 8

9 U.S. Federal Policy Mechanisms to Encourage Renewable Energy Development Renewable Portfolio Standards Clean Energy Funds Feed- in Tariffs Net Metering The states themselves have taken the lead in developing renewable energy policies in the U.S. Other state/federal grant/loan/ rebate programs 9

10 The State of Energy in Alaska In 2003, the Alaska Energy Policy Task Force found that: The cost of fuels Alaskans rely on (e.g. natural gas and diesel) are steadily rising. Residents in rural Alaska pay more for electricity than those along the road system/rail belt. There is virtually no fuel cost associated with renewable energy. Competitiveness of Alaska s economy requires the state to consider national trends toward renewable energy development. Renewable energy has many environmental and health benefits. Renewable energy has many economic security benefits. 10

11 Energy in Alaska by the Numbers In 2015, Alaska generated only 5% of its total energy consumed through renewable resources. Alaska generated 33% of its total electricity from renewable sources. o Policy- makers set the goal through 2010 legislation to generate 50% of total energy consumed by renewable sources by the year Source: U.S. Energy Information Administration (EIA) 11

12 Alaska s Total Energy Consumption by Source Source: U.S. Energy Information Administration (EIA) 12

13 Alaska Policy Mechanisms to Encourage Renewable Energy Development 2008 House Bill 152: Alaska Renewable Energy Fund 2010 Senate Bill 220: Alaska Sustainability Act House Bill 306: Alaska State Energy Policy 13

14 HB 152: The Alaska Renewable Energy Fund The intent of the state legislature was to appropriate $50 million annually for five years for renewable energy technologies through the grant fund. o Projects to develop both renewable technologies and natural gas qualified for funding from REF. o REF was renewed in 2012 for an additional five years. o REF was not funded in 2016 and 2017 because of Alaska s ongoing revenue shortage. Established the Heating Assistance Program. Established the Alaska Renewable Energy Policy Task Force. o Purpose: Make recommendations to legislators through annual status reports. Because REF is not being funded, the Task Force did not make any recommendations in

15 HB 152: The Alaska Renewable Energy Fund To qualify for funding under REF: o The project must utilize hydropower. o Directly utilize renewable energy sources. o Generates electricity from sources OR natural gas. BUT o Projects that develop natural gas technologies must be for communities of 10,000 or less residents AND the development of renewable technologies must not be economically viable. The Heating Assistance Program (HAP) expanded assistance to those who have an annual income of less than 150 percent of the federal poverty level. 15

16 HB 152: The Alaska Renewable Energy Fund Impacts Source: U.S. Energy Information Administration (EIA) 16

17 SB 220: The Alaska Sustainable Energy Act Established: Energy Efficiency Public Buildings Energy Efficiency Revolving Loan Fund Emerging Energy Technology Fund Expanded: Alaska Heating Assistance Program Southeast Energy Fund Revitalized: Alternative Energy Revolving Loan Fund Nuclear Energy Production and Facilities 17

18 Energy Efficiency Public Buildings Mandates the State retrofit 25% of all public facilities over 10,000sf by , the State achieved energy efficiency in 29% of eligible public facilities. 2016, cumulative energy savings from projects was more than $3.2 million in 69 facilities reflected in table 1 by energy type. Energy Efficient Revolving Loan Fund - $250M fund administered by AHFC to fund these retrofits. 18

19 Emerging Technology Fund Administered by the Alaska Energy Authority Promotes the expansion of energy sources in Alaska. Grants are given to demonstrated projects of technologies that have reasonable expectation of becoming commercially viable within five years. Projects can test: o Emerging energy technologies, methods of conserving energy, improve an existing technology, or deploy an existing technology that has not previously been demonstrated in the state. Currently, 3 Competitive Rounds of Funding. 19

20 HB 306: The Alaska State Energy Policy Adopted April 2010 Purpose: o Develop a statewide energy policy blueprint. Goals: o State to receive 50 % of its electric generation from renewable and alternative energy sources by o State to achieve a 15 % increase in energy efficiency on per capita basis between 2010 and

21 HB 306: The Alaska State Energy Policy Objectives: o Institute a comprehensive and coordinated approach to supporting energy efficiency and conservation. o Encourage economic development in the state. o Support energy research, education, and workforce development. o Coordinate governmental functions. 21

22 Conclusions and Recommendations Positive Impacts of HB 152, SB 202, & HB 306: o Increased energy efficiency usage in public facilities as evidence by the energy efficiency in 29 percent of the states eligible public facilities and cumulative energy savings - Totaling more than $3.2 million in 69 facilities. o o The funding of the $250 million Alaska Energy Efficiency Revolving Loan Programs. The development of 23 emerging technologies projects through the EETF. 22

23 Conclusions and Recommendations Barriers to Developing Renewable Energy Technologies in Alaska: o Challenging state geography, climatic conditions, and infrastructure. o Lack of statewide energy efficiency such as energy audits and fees. o Lack of energy efficiency program knowledge. o Lack of energy sector statewide best practices. o Funding in the current fiscal state. 23

24 Conclusions and Recommendations Recommendations: Continued Renewable Energy Source Generation. Continued efforts in public facilities energy efficiency. Perform Energy Audits. Establish statewide market- based energy efficiency programs & incentives. Join/form collaborative partnership(s). 24

25 Questions? 25