28 th USAEE/IAEE North American Conference Unveiling the Future of Energy Frontiers Renewable Energy ~ A Utility Perspective Thomas MacLean, Manager Customer Renewable Energy Programs December 5, 2008
Renewable Energy for Utilities - Overview
Introduction to Puget Sound Energy Pacific Northwest Bellevue W. MONTANA WASHINGTON OREGON IDAHO PSE Headquarters Bellevue, Washington Service Area 6,000+ square miles Electric Customers 1.05 million Rate Base $3.1 billion Natural gas Customers 725,000 Rate Base $1.2 billion Seattle Bellevue San Francisco Los Angeles New Orleans New York Washington, DC
PSE-Owned Utility Scale Wind Projects Hopkins Ridge: 150 MW Wild Horse: 229 MW
PSE Renewable Acquisition Strategy 85 amw 240 amw 10% PSE 10% Goal RPS Requirement Future Renewable Acquisitions Under Active Consideration Existing PSE Renewables
Pacific NW Renewable Projects Renewable Northwest Project
BPA Transmission Constraints
Resource Cost Comparison 175 20-year Levelized Cost $/MWh 160 145 130 115 100 85 70 55 $44-62 $76-106 $104-155 $60-85 $70-129 $102-174 $64-67 $58-100 $79-164 $42-74 $61-101 $74-118 40 2004 2006 2008 2004 2006 2008 2004 2006 2008 2004 2006 2008 Wind Natural Gas Notes: 2004 prices represent Mid-C delivery. 2006 and 2008 prices represent deliveries to PSE s system System PPAs are offers that are shorter term in nature and not tied to a specific resource. Hydro System PPAs
Rising wind turbine costs Wind turbines comprise 60% of total project costs. Source: Berkeley Lab database.thorndike Landing analysis.
Biomass - active opportunities Dairy Digesters Wood Waste Waste Water Treatment Plants Landfill Dairy Digesters Wood Waste Landfill Waste Water Treatment Plants
Green Tariff (Schedule 91) PSE s offer to new small renewable resources Market price forecast for 10 years + Adjust upward for new cost of resources Fixed price offer (not flat) for 10 years Published and bankable Separate contract for the RECs
Green Power Program sales growth Annual Green Power Megawatt-hours Sold 300000 270,000 250000 246,406 200000 150000 13 1,74 2 100000 71,341 50000 27,313 4 6,110 8,563 0 2002 2003 2004 2005 2006 2007 2008 Projection
Customer-Owned Generation Photos courtesy of Power Trip Energy
10 Years of Net Metering Net Metering Customers 350 326 300 250 Current: 326 systems; 1,155 KW 211 200 150 113 100 50 0 57 44 24 2 7 12 18 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Net Metering with continued growth to 2015 Net Metering Customers to 2015 14,000 12,000 12,207 10,000 Projection: 12,000 systems; 42,000 kw 8,000 7,295 6,000 4,359 4,000 2,605 2,000-1,557 930 556 2 7 12 18 24 44 57 113 211 326 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PSE Net Meter Customers
PSE Solar Demonstration Projects Schools Environmental Centers Other Buildings
PSE Green Tariffs Net Metering Services for Customer-Generator Systems (Schedule 150) Net metering up to 100 KW Surplus energy credited to customer bill Eligible resources: wind, solar, anaerobic digester, hydro Renewable Energy Production Incentive Payment Program (Schedule 151 works with either Schedule 150 or Schedule 91) Production payments, meters AC energy before load Eligible resources: wind, solar, anaerobic digester Payments range from 12-54 cents per kwh Annual cap of $2,000
Community Solar New model that requires partnership of utility, city and community organization. 501c3 Organization collects donations and builds the system. Net Meter if they have a load (Sch 150), Production payments if no load (Sch 91) Payments to Organization goes back to buying more panels or education.
Retail Rate Solar PV Convergence Cost of Residential Solar Electricity (2008 $) $0.60 $0.50 PSE Customer Costs - Unsubsized PSE Customer Costs - Subsized Levelized Cost (2008 $/kwh) $0.40 $0.30 $0.20 $0.10 $0.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Concentrating solar power
Proposed NW Geothermal Baker Neal Hot Springs Newberry Crater Crump Geyser Willow Springs Raft River China Cap Currently Operating: ~14 MW (Raft River) In Development: ~ 150 MW In Consideration: ~ 250 MW
Wave & tidal power in the Northwest Wave Projects Makah Bay (Finavera) OPT Reedsport (Ocean Power Tech.) Douglas County (Wavegen) OPT Coos County (Ocean Power Tech.) Humboldt County (Finavera) Tidal Projects Race Rocks (Pilot) Snohomish PUD (Planning) Tacoma Power (Halted) Willapa Bay (Planning)
Puget Sound Algae Blue Marble
Technology Development Concept Pilot Early Commercial Favorable High Market Economics Favorable Mass Market Economics Wave Tidal Algae CPV CSP Solar Thermal Electric PHEV Biomass Gasification Solar PV Dairy Digester Fuel Cells Wind Traditional Biomass Geothermal Batteries
Technology development and financial support Concept Pilot Early Commercial Favorable High Market Economics Favorable Mass Market Economics Founder Financing Private Venture Capital Commercial Financing State & Federal Basic research: Universities and National Labs Grants & partnerships with private entities. Establish legal frameworks Government as Customer Tax Credits for Investment (ITC) Tax Credits for Production (PTC) Tax Credits for Manufacturing RE (OR) Promote export market Reduce regulatory barriers.
Basic Research Funding U.S. DOE Energy RD&D Spending FY1978-FY2009 Request million 2000$ 7000.0 6000.0 5000.0 4000.0 3000.0 2000.0 Hydrogen (EERE) Electricty T&D Fossil (including CCT demo) Renewables Efficiency 1000.0 Fusion 0.0 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Fission Source: Gallagher, K.S., "DOE Budget Authority for Energy Research, Development, and Demonstration Database," Energy Technology Innovation Policy, John F. Kennedy School of Government, Harvard University, February 2008.
Partnership model for early commercial Government Funding STEM Personnel Disseminate Findings Private Partner Site and Resource Enthusiasm Production Responsibility Utility Market Access Interconnection Distribution Customer Safety and Reliability
Renewable technology outlook in the Northwest Technology Utility Scale Distributed Commercial Distributed Residential Wind X X Solar X X X Geothermal X EES Tidal X Wave X Biomass Combustion X X Biomass AD X X Biomass Gasification X Algae X X Fuel Cells X X Commercially available, depending on economics Tested and shows good potential Early testing with theoretical potential Target Market
Renewable Energy in the Northwest Discussion thomas.maclean@pse.com