The Pennsylvania Alternative Energy Development Story

Transcription

1 The Pennsylvania Alternative Energy Development Story Jeanne J. Dworetzky Executive Director, Pennsylvania Energy Development Authority National Governors Association Energy Forum December 12, 2006

2 Energy Situation in Pennsylvania Electricity Reliant on Coal and Nuclear for 90% of Capacity* Natural Gas Price Setter on High Demand Days Delivery Constraints and Limited New Capacity Planned Rising Fossil Fuel Prices Economics Exporting $30 Billion Annually to Purchase Energy End of Rate Caps in 2010 New Environmental Rules *Source: Energy Information Administration, May 2006

3 Prospects Business as Usual Increased Reliance on Foreign Energy Price Increases and Volatility Groups Most Impacted Traditional manufacturing Chemicals manufacturing Agriculture Low-income residential

4 Pennsylvania s Energy Assets Coal: 300 Year Supply* Cheap waste coal CMM/CBM/LFG Biomass** Near term Over 1,000 MW co-firing Long term Over 4,000 MW co-firing; over 1000 MW direct use Wind: Over 5,000 MW of Potential*** Significant Opportunities for Incremental Hydro, Combined Heat and Power and Energy Efficiency * Source: U.S. DOE ** Source: Black & Veatch, 2004, "Economic Impact of Renewable Energy in Pennsylvania *** Source: American Wind Energy Association,

5 Assets Human Capital Top Research Institutions Business Leaders: Air Products, Solar Power Industries, GE, Siemens-Westinghouse, Johnson-Matthey, Consol, Community Energy and Others Support from the Governor and Both Parties in the Legislature for Clean Energy Alternatives

6 The Clean Energy Market Reliable Energy at Reasonable Prices Create Jobs and Encourage Investment in the Clean Energy Sector Maximize Use of Indigenous Resources Encourage Energy Diversity and Security Protect and Improve the Environment

7 Creating the Value Proposition Policy Environment Alternative Energy Portfolio Standard Statewide Net-Metering and Interconnection Standards Proposed Clean Fuels Standard Financing Grants, Low-Interest Debt, Loan Guarantees Access to Capital Markets Almost $1 Billion in Bonding Authority State Electric Energy Purchase Now 20% Off-take contracts Technology

8 Alternative Energy Portfolio Standard Alternative Energy Portfolio Standard, Act 213 of 2004 Requires 18% in 15 Years Tier 1 8% (renewables, fuel cells & coal mine methane), including a.5% solar share Tier 2 10% (waste coal, IGCC, distributed generation, waste to energy, large scale hydro, biomass from the wood and pulping processes, demand management)

9 Projected Economic Benefits of AEPS Wind Development: 3,000 4,000 MW Solar PV: 700 MW 3,500 Added Jobs Over 20 Years $9.0 Billion More in GSP Over 20 Years Every 1% Reduction in NG Demand Saves Consumers $140 Million Annually Source: PA Energy Office Estimates

10 Projected Environmental Benefits of AEPS Annual Avoidance After 15 Years:* 7.5 million tons of CO2 58,000 tons of SO2 17,000 tons of NOx 629 lbs of Mercury 6% reduction from Levels in 2000 Opportunities for Watershed Restoration and Methane Capture * PA Energy Office Estimates

11 Financing Department of Environmental Protection Pennsylvania Energy Development Authority Energy Harvest Alternative Fuels Incentive Grant Small Business Programs Community and Economic Development First Industries MELF PEDFA

12 Highlights Actively Recruited Strong Companies in the Sector, Including Gamesa, Iberdrola and Conergy Strengthened Existing PA Companies, Including Solar Power Industries, Plextronics and Franklin Fuel Cells Buyers Consortium for Coal Liquefaction Products, Including the Commonwealth

13 Lessons Learned Work with Fossil Interests to Promote Cleaner Fossil Use in Concert with Renewables Tie Renewable Promotion into Broader Economic Development and Energy Security Context Focus on Integrating Policy, Financing, and Technology to Build a Sustainable Market for Alternative Energy

14 Questions and Comments Jeanne J. Dworetzky Executive Director Pennsylvania Energy Development Authority Department of Environmental Protection (717)