Innovative Procurement Models for Renewable Electricity

Transcription

1 University f Massachusetts Amherst SchlarWrks@UMass Amherst NECSC Cnference 2015 Sustainable UMass 2015 Innvative Prcurement Mdels fr Renewable Electricity Anthny Amat Eastern Research Grup Fllw this and additinal wrks at: Part f the Sustainability Cmmns Amat, Anthny, "Innvative Prcurement Mdels fr Renewable Electricity" (2015). NECSC Cnference Retrieved frm This Article is brught t yu fr free and pen access by the Sustainable UMass at SchlarWrks@UMass Amherst. It has been accepted fr inclusin in NECSC Cnference 2015 by an authrized administratr f SchlarWrks@UMass Amherst. Fr mre infrmatin, please cntact schlarwrks@library.umass.edu.

2 Innvative Prcurement Mdels fr Renewable Electricity U.S. EPA s Green Pwer Partnership Friday, April 10, 2015 Campus Sustainability in the Nrtheast Cnference Amherst, Massachusetts

3 Speakers & Agenda Speakers Agenda Anthny Amat, ERG Cntractr t U.S. EPA s Green Pwer Partnership Erin Mre, Sustainability Engagement Manager, Crnell University Basics f Green Pwer Prcurement ptins Pwer Purchase Agreements Status f Green Pwer Use within Higher Educatin EPA s Green Pwer Partnership Crnell University Climate actin plan Renewable electricity case studies Lessns learned 2

4 What is Green Pwer? Bimass Slar Bigas Wind Subset f renewable energy -representative f resurces and technlgies that ffer the highest envirnmental benefit. Electricity generated frm natural resurces that replenish themselves ver shrt perids f time, including the sun, wind, mving water, rganic plant and waste material (bimass), and the Earth s heat (gethermal). Lw-Impact Small Hydr Must be frm new facilities placed int service within last 15 years. Gethermal Must be frm the vluntary market. 3

5 Renewable Energy Certificates (RECs) Making Green Pwer Pssible A REC is the legal instrument that cnveys t its wner the right t claim the assciated envirnmental attributes f a generating resurce In essence RECs represent the renewable-ness f the pwer Analgus t patents, bth cnvey wnership f smething that is intangible and are a market incentive A REC is created fr every Megawatt-hur f renewable electricity generated and delivered t the utility grid A REC includes the fllwing infrmatin: Type f renewable resurce Lcatin f renewable resurce Date stamp r vintage f generatin Emissins prfile f the generating resurce Unique identificatin number Electricity frm a renewable resurce in the absence f wning the assciated RECs is cnsidered null r generic pwer and has the same envirnmental prfile as the residual grid electricity mix RECs make it renewable! 4

6 Green Pwer Prcurement Optins 1. Renewable Energy Certificates (RECs) The envirnmental attributes f electricity generated frm renewable resurces (1 REC = 1 MWh) Attributes are based n the generatin technlgy type and age, gegraphic lcatin, and time f generatin Des nt include the underlying electrns unbundled 2. Utility Supplied Green Pwer Prducts Green pwer ffered by utility suppliers that is generated frm renewable surces Bundled prduct that includes bth the RECs and underlying electrns 3. Self-financed On-site Generatin Install a renewable system n-site (e.g. slar panels, wind turbine) Prduces bth electricity and RECs frm the n-site surce 4. Pwer Purchase Agreement (PPA) fr Renewables Usually a lng-term cntract t prcure RECs and underlying electrns frm a specific prject, can be signed pre- r pst-prject develpment Can be frm nsite r ffsite prject 5

7 Emergence f New Green Pwer Slutins Utility Green Pwer Prgrams (1997) Third- Party Slar Financing (2008) Cmmunity Chice Aggregatin (2013) What s Next? Virtual PPAs? Unbundled RECs (2002) Utility-scale Offsite PPAs (2010) Cmmunity Slar Gardens (2014) 6

8 GPP Summary Statistics 2014: Annual Green Pwer Use by Prduct Type 7

9 Utility-Scale PPAs Ideal Off-taker Characteristics Large electricity user with dense lad center (cllege campus r tech data center) Financial stability/credit-wrthiness Fcus n lnger timeframes Open t thinking utside f the bx Lking t reduce carbn ftprint Benefits Ptential cst savings Lng-term predictable pricing Tangible, clear assciatin with specific renewable energy facility Naming rights/branding pprtunities with renewable energy facility Ptential reductin in carbn ftprint (with REC wnership) Challenges Nt legal in certain states Change in risk prfile Investment grade credit required Lnger timeframe prcurement prcess Cmplexity / Outside f cre cmpetencies Perfrmance risk 8

10 Pwer Purchase Agreements Surce: OwnEnergy 9

11 PPA Price Trends fr Slar and Wind Surce: DOE 2014 Surce: Lazard

12 Value Prpsitin f Renewables fr a Cllege Campus Meet envirnmental bjectives Sustainability gals Carbn ftprint reductin targets American Cllege & University Presidents Climate Cmmitment Manage risk Reduce expsure t fssil-fuel price vlatility Deplys quickly & scales up easily Drive ecnmic develpment Higher ed cmmitments are financeable Dmestic energy supply New U.S. jbs Enhance schl brand Prspective students Hst cmmunities Peer institutins Attract & retain students Sustainability and green pwer is a ht tpic n campus Incrprate green pwer int research initiatives & curricula 11

13 Current Status: Green Pwer in Higher Educatin EPA s Green Pwer Partnership 134 Cllege and University Partners 86 REC cntracts 49 Utility Market cntacts 92 nsite systems 12 ff-site PPAs Green pwer use ttaling nearly 2.6 billin kwh Equates t ~5% f vluntary green pwer market Equivalent t the electricity use f 250,000 average American hmes fr ne year American Cllege & University Presidents Climate Cmmitment 695 Signatries cmmitted t becming climate neutral Purchased electricity currently cnstitutes ~40% f their GHG emissins 244 Schls cmmitted t Tangible Actin #5 Within ne year f signing cmmitment, begin purchasing r prducing at least 15% f institutin's electricity cnsumptin frm renewable surces 12

14 Green Pwer Partnership Overview Summary The U.S. EPA s Green Pwer Partnership is a free, vluntary prgram that encurages rganizatins t use green pwer as a way t reduce the envirnmental impacts assciated with cnventinal electricity use. Objectives Reduce U.S. greenhuse gas emissins Expand the vluntary green pwer market Standardize green pwer prcurement as part f best practice envirnmental management Prvide recgnitin platfrm fr rganizatins using green pwer in the hpe that thers fllw their lead Current Status 1,300 Partners using 28 billin kwh f green pwer annually, equivalent t the annual carbn dixide emissins frm electricity use f mre than three millin average American hmes. 13

15 EPA s 1,300 Green Pwer Partners 14

16 Partnership Requirements EPA supprts Partners prcurement f green pwer by ffering advice, technical supprt, tls and resurces, and recgnitin. Partners agree t prcure green pwer and prvide an annual update. In return, EPA cmmits t: Prvide public recgnitin Prvide prcurement and cmmunicatins assistance, as requested Prvide a brief descriptin f the Partner's green pwer use n EPA s website If yur annual electricity use is: Partnership Benchmark Yu must, at minimum, use this much green pwer: Leadership Benchmark Yu must, at minimum, use this much green pwer: Over 100,000,000 kwh 3% f yur use 30% f yur use 10,000, ,000,000 kwh 5% f yur use 50% f yur use 1,000,001-10,000,000 kwh 10% f yur use 100% f yur use Under 1,000,000 kwh 20% f yur use N/A 15

17 Prgram Resurces fr Prcuring Green Pwer The Partnership Offers: Green Pwer Lcatr Tl Green Pwer Equivalency Calculatr Guide t Purchasing Green Pwer Resurce Library featuring example cntracts and slicitatins Webinars shwcasing best practices Issue whitepapers New Vide! 16

18 EPA s Green Pwer Partnership: Helping Yu Leverage Yur Green Pwer Use Credible Benchmarks & GHG Quantificatin Metrics fr Hw much green pwer is enugh? Definitin f eligible renewables & prducts GHG reductin guidance and calculatins Planning & Implementatin Resurces Green pwer lcatr Purchasing strategy guidance Marketing and cmmunicatins supprt Recgnitin Tp Partner Lists Use f the Partner mark Green Pwer Leadership Awards Prmtinal pprtunities Best Practices & Innvatin Cllabrative slar prcurement New cntract mechanisms 17

19 Want t Knw Mre? Basic Infrmatin An verview f Green Pwer Partnership is available n EPA s Web site T see EPA s Tp 30 Cllege and University Partners, please visit: T see EPA s Cllege & University Green Pwer Challenge, please visit: Mre Questins? Anthny Amat, ERG (cntractr), , anthny.amat@erg.cm 18

20 RECs & Pwer Grid 19

21 Example: Oklahma State s Pwer Purchase Agreement fr Wind 20 year arrangement with OG&E OSU is purchasing 110 millin kwh/year, r 67% f pwer fr Stillwater campus Prjected t save in excess f $10,000,000 ver the life f the 20-year cntract. 20