UTILITY-SCALE RENEWABLES: TECHNOLOGY & POLICY

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1 UTILITY-SCALE RENEWABLES: TECHNOLOGY & POLICY Sarah Cottrell Propst Executive Director Interwest Energy Alliance September 25, 2014 Women in Government Advanced Technology & Innovation Summit

2 About Interwest Unlocking the Intermountain West s renewable energy potential Non-profit trade association Intermountain West focus Arizona Colorado Nevada New Mexico Utah Wyoming

3 Examples of Traditional Policies & Venues State renewable portfolio standards (RPS) Federal production tax credit (PTC) Federal investment tax credit (ITC) State tax policy (e.g., tax credits targeting renewable energy production, investment tax credits, advanced technology, economic development) Regulatory Proceedings Utility integrated resource planning (IRP) Renewable procurement dockets Rate cases Transmission planning

4 Emerging Policies & Opportunities Competitive, low prices + hedge value of renewables Lowest-cost resource Hedge against fluctuations in natural gas + fuel prices Regional energy imbalance market (EIM) Coal unit retirements & replacement power Clean Air Act regional haze, climate pollution, etc. State Implementation Plans Nevada SB 123 proactive legislation Colorado Clean Air Clean Jobs Data centers + voluntary purchases

5 U.S. Annual & Cumulative Wind Power Capacity Growth With the installation of 214 MW, the U.S. wind industry now has 61,327 MW of installed capacity Source: AWEA U.S. Wind Industry First Quarter 2014 Market Report

6 Map of Wind Power Capacity Online Source: AWEA U.S. Wind Industry First Quarter 2014 Market Report

7 Source: AWEA U.S. Wind Industry Annual Market Report 2013, Energy Information Administration For more information on wind energy generation, see pp and Wind Share of Electricity Generation, by State A record-breaking 4.1% of U.S. electricity came from wind power during Wind generated more than 25% of the electricity in IA + SD. In total, the generation in nine states was more than 10%

8 Wind Generation Records Set Source: AWEA U.S. Wind Industry Annual Market Report 2013 For more information on generation records, see pp

9 Public Support for Wind is Strong 72% of Americans favor wind power (Navigant) 73% support continuing tax incentives for wind & other renewables (USA Today) 91% of Kansans support using renewable energy (Wind Coalition) Senate Majority Leader Harry Reid has made it a priority to extend the PTC/ITC as part of the EXPIRE Act

10 U.S. Manufacturing Sector Growth 560 wind-related manufacturing facilities across 43 states Annual U.S. production capacity of wind turbine nacelles stands at more than 12 GW The domestic content of wind turbines has grown from less than 25% before 2005 to ~72% at the end of 2012 Source: AWEA U.S. Wind Industry Annual Market Report. See pp and

11 Investment into the U.S. Economy Source: AWEA U.S. Wind Industry Annual Market Report 2013 For more information on wind investments, see pp and 70-71

12 The Impact of the Wind Industry across the Country Over 70% of all Congressional districts have a wind turbine, a windrelated manufacturing facility, or both. 78% of wind capacity is located in districts held by Republicans, and 21% of wind capacity is located in districts held by Democrats. Source: AWEA U.S. Wind Industry Annual Market Report 2013, pp

13 Wind Delivers Environmental Benefits Source: AWEA U.S. Wind Industry Annual Market Report 2013 For more information on wind, water and emissions reductions, see pp

14 Economics of Large Solar Economies of scale reduce equipment procurement, installation & financing costs Tracking technologies that follow the sun as it rises and sets generate 15-20% more output, and better match summer A/C loads

15 Utility-Scale Photovoltaic (PV) Solar Projects coming in under utility avoided costs 80 MW in Palo Alto, CA ($69/MWh for 30-years, signed in May 2013) 170 MW in Colorado (first cost-competitive purchase of PV for Xcel) 100 MW in Minnesota (Solar cheaper than gas, meets peak demand) 90 MW in Georgia (below avoided cost of $90/MWh; no state RPS) 150 MW in Texas (Austin at ~$50/MWh) 500 MW in Idaho (below avoided costs of ~$75/MWh; no state RPS) 320 MW in Utah (below avoided costs; RE goal but no RPS) Beyond Renewable Portfolio Standards Utilities using PV to hedge gas price volatility Source: Jim Baak, Vote Solar Initiative (member of Interwest board)

16 U.S. Solar PV Market Prediction 2016

17 Concentrating Solar Power (CSP) Finally Coming Online Solana (AZ - Oct 13) 280 MW nameplate trough w/ 6-hours of storage; solar field sized for 400 MW Ivanpah (CA Feb 14) 392 MW tower; no storage Genesis (CA Apr 14) 250 MW trough; no storage Crescent Dunes (NV Dec 14) 110 MW w/ 10-hours storage Mojave Solar One (CA Late 14) 250 MW trough; no storage Gemasolar (Spain May 11) ~20 MW w/ 15-hours TES; ran 24/7 for 36 consecutive days in 2013 Source: Jim Baak, Vote Solar Initiative

18 CSP with Thermal Energy Storage (TES) Provides Flexibility NREL Study found TES adds $6.6/MWh - $16.7/MWh to the operational value of CSP, depending on solar penetration and gas price assumptions (for CO/WY w/ $4.1/MMBtu gas) Crescent Dunes will operate from noon to midnight, supplying energy during peak demand for Las Vegas Solana was configured to provide both morning (winter) and evening peaks (year-round) and can provide peak power while recharging TES tanks Source: Jim Baak, Vote Solar Initiative

19 Multiple Solutions for Integrating More Renewables into the Grid West-wide Energy Imbalance Market (EIM) Geographic & technological diversity Improved weather, wind and solar forecasting Distributed resources Demand Response Electric Vehicles Energy storage Sub-hourly dispatch/intra-hour scheduling Better reserve management Getting more flexibility from existing/future fleet Dynamic transfers between Balancing Authorities Source: Jim Baak, Vote Solar Initiative

20 I thought of the idea that wind and sun could be major players as hippie-dippy wishful thinking. But I was wrong.

21 Thank You Interwest Energy Alliance Sarah Cottrell Propst