international energy policy trends
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International Energy Policy Trends. Dennis Scanlin Appalachian State University March 2011. Energy Policy Trends. Renewable energy policy is the principal driver of the growth in renewable energy use. Regulatory Policies Incentive Policies Disincentive Policies - PowerPoint PPT PresentationTRANSCRIPT
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International Energy Policy Trends
Dennis ScanlinAppalachian State University
March 2011
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Energy Policy Trends• Renewable energy policy is the
principal driver of the growth in renewable energy use.• Regulatory Policies• Incentive Policies• Disincentive Policies• Feebates (combined fee & rebate
program)• DSIRE data base good source for
information about US policies
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Public Policies and Renewable Energy Technology
Program Best Solar Thermal Sales in 2002 TVA StatesCT NV CA AZ FL OR TN GA NC KY VA AL MS
Net Metering Rules
Rebate Programs
Contractor Liscensing Requirements
Generation Disclosure Rules
Renewable Portfolio Standards
Public Benefits Funds
Sales Tax Exemptions
Property Tax Exemptions
Income Tax Incentives
Grant Programs
Equipment Certification Requirements
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Regulatory Policies• Renewable
Portfolio Standards
• Permitting Policies
• Zoning Ordinances
• Building Codes & Sustainable Building Requirements
• Equipment & Installer Certification programs
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Renewable Portfolio Standards (RPS)
• Mandated requirement that electric utilities source a portion of their electricity supplies from renewable energy sources• Australia,
Japan, Korea, Sweden, & US
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RPS Policies
Renewable portfolio standardRenewable portfolio goal
www.dsireusa.org / March 2011
Solar water heating eligible *† Extra credit for solar or customer-sited renewablesIncludes non-renewable alternative resources
WA: 15% x 2020*
CA: 33% x 2020
NV: 25% x 2025*
AZ: 15% x 2025
NM: 20% x 2020 (IOUs) 10% x 2020 (co-ops)
HI: 40% x 2030
Minimum solar or customer-sited requirement
TX: 5,880 MW x 2015
UT: 20% by 2025*
CO: 30% by 2020 (IOUs)10% by 2020 (co-ops & large
munis)*
MT: 15% x 2015 ND: 10% x
2015
SD: 10% x 2015
IA: 105 MW
MN: 25% x 2025
(Xcel: 30% x 2020)
MO: 15% x 2021
WI: Varies by utility;
10% x 2015 statewide
MI: 10% + 1,100 MW x 2015*
OH: 25% x 2025†
ME: 30% x 2000New RE: 10% x 2017
NH: 23.8% x 2025MA: 22.1% x 2020 New RE: 15% x 2020
(+1% annually thereafter)
RI: 16% x 2020CT: 23% x 2020
NY: 29% x 2015
NJ: 22.5% x 2021
PA: ~18% x 2021†
MD: 20% x 2022DE: 25% x 2026*DC: 20% x 2020NC: 12.5% x 2021 (IOUs)
10% x 2018 (co-ops & munis)
VT: (1) RE meets any increase in retail sales x
2012; (2) 20% RE & CHP x 2017
KS: 20% x 2020
OR: 25% x 2025 (large utilities)*
5% - 10% x 2025 (smaller utilities)
IL: 25% x 2025
29 states + DC and PR have an RPS(7 states have
goals)
OK: 15% x 2015
PR: 20% x 2035
WV: 25% x 2025*†VA: 15% x 2025*
DC
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North Carolina Renewable Energy and Energy Efficiency Portfolio Standard (REPS)
• August 2007• First state in the
Southeast • 12.5%by 2021 from
renewable energy resources or energy efficiency measures.
• Rural electric cooperatives and municipal electric suppliers are subject to a 10% REPS requirement
• Approx 20,000 Million KWH/year
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REPS Requirements for IOUs
Acceptable methods of attaining goals
•Generate at new RE facility•Use a RE resource to generate electric power•Reduce consumption (up to 25% up to 2021 & 40% after)•Purchase power from new RE facility (outside state)•Purchase RE certificates (up to 25%)•Requirements for solar & biomass
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NC REPS• 140 applications received
by PUC since October, 2008
• 107 facilities registered• 2 KW to 300,000 KW
• 39 hydro projects• 27 PV projects• 17 wind projects• 7 solar thermal• 6 landfill gas• 8 biomass• 2 swine & poultry waste
• 2,980,327 KW registered with NC Utilities Commission
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Permitting of Wind Energy FacilitiesHouse Bill 809; Senate Bill 1068
• > 2 MW• Permitting
requirements defined• $2,000 application fee• Impact assessment
work required• Public hearing(s)
required• Defines who gets to
evaluates permit application and decide whether a permit is issued or not.
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Model County Ordinance for NC
• 3 size classifications• Under 20 kW• 20 kW to 100 kW• Over 100 kW
• Setbacks from 1.1 to 2.5 times height of turbine• Includes standard definitions, permit application
recommendations, noise & shadow flicker maximums & decommissioning
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Codes & Sustainable Building Requirements
• Requirements for new buildings• Australia,
Canada, Switzerland, Denmark, Germany, Spain, Korea, Portugal, Turkey, & US
• New public buildings in Korea must spend 5% of budget installing RE
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Installer Certification Programs
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Equipment Certification
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Incentives• Feed-In Tariffs
(FIT)• Rebates• Tax Credits• Net Metering• Low Interest
Loans• Grants• Accelerated
Depreciation
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Feed-In Tariffs (FIT)• Government guarantees a high
price for green energy with a long term contract
• Most common incentive program• Australia, Austria, Canada,
Switzerland, Germany, Spain, France, Israel, Italy, Japan, Korea, Portugal, Netherlands, Sweden, US
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Example FITs• Canada’s 2009 program provides
20 year contracts for up to $.80/kWh. (price varies by energy source)
• Italy’s 2007 program pays up to $.52 - $.67/kWh with a long term contract and quota
• Israel’s 2009 program pays $.55/kWh with quota
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Rebates• Provides cash back after the
completion of project (50% of installed cost common)• California- $2.50/watt for PV &
Solar thermal• New York - $1.75/watt for PV with
maximums; $3.50 per kWh for expected annual wind energy production up to 10,000 kWh and less after that
• Australia provides a 50% rebate
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Rebate Programs for Renewableswww.dsireusa.org / March 2011
Utility, local and/or non-profit program(s) onlyState program(s) + utility, local and/or non-profit program(s)
Notes: This map does not include rebates for geothermal heat pumps or other energy efficiency technologies. The Virgin Islands also offers rebates for certain renewable energy technologies.
State program(s) onlyPuerto Rico
DC
23 states +
DC & PRoffer
rebates for renewables
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Tax Credits• Reduces tax liability based on a
percentage of installed cost of renewable energy system• Canada, Switzerland, France,
Japan, Malaysia, Portugal, & US• North Carolina offers a 35% state
tax credit up to $10,500 for residential renewable energy systems
• US government offers a 30% tax credit for solar thermal, wind & geothermal heat pumps
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System Costs & Incentives for 3 Panel Solar Water Heating System
• Installed costs can range from $90 to $120 per square foot
• Incentives available• 35% NC State Tax Credit
• Federal tax is paid on state tax credit• 30% Federal Tax Credit• Accelerated depreciation of renewable energy system
3 - 4x10 with 120 gallon tankSystem Costs $10,99935% State Tax Credit $3,849.6530% Federal Tax Credit $3,299.7Federal Tax on State Credit (34%) $1,308.88MACRS Present Worth (8%/yr) $3,034.08
Final Costs $2,124.45
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Tax Credits for Renewableswww.dsireusa.org / March 2011
Corporate tax credit(s) onlyPersonal + corporate tax credit(s)
Notes: This map does not include corporate or personal tax deductions or exemptions; or tax incentives for geothermal heat pumps.
Personal tax credit(s) onlyPuerto Rico
DC
23 states offer tax credits for renewables
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Netmetering• Provides the retail rate for
electricity by either allowing the electric meter to turn backwards or providing a credit for renewable energy produced• Demark, Australia, Austria,
Canada, Italy, Mexico & US have programs
• NC program• Residential and commercial up to 1 MW• Excess generation is carried forward
until summer billing season at then surrendered. No cash payments
• Only investor owned utilities have to make net metering available
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Net Metering
State policyVoluntary utility program(s) only
www.dsireusa.org / February 2011
*State policy applies to certain utility types only (e.g., investor-owned utilities)
WA: 100
OR: 25/2,000*
CA: 1,000*
MT: 50*
NV: 1,000*UT: 25/2,000*
AZ: no limit*
ND: 100*
NM: 80,000*
WY: 25*
HI: 100KIUC: 50
CO: no limitco-ops & munis:
10/25OK: 100*
MN: 40
LA: 25/300
AR: 25/300
MI: 150*WI: 20*
MO: 100
IA: 500*
IN: 10*IL: 40*
FL: 2,000*
KY: 30*
OH: no limit*
GA: 10/100
WV: 25/50/500/2,000
NC: 1,000*
VT: 20/250/2,200
VA: 20/500*
NH: 100MA:
60/1,000/2,000/10,000*RI: 1,650/2,250/3,500*CT: 2,000*NY: 10/25/500/2,000*PA: 50/3,000/5,000*NJ: no limit*DE: 25/100/2,000
co-ops & munis: 25/100/500 MD: 2,000
DC: 1,000
Note: Numbers indicate individual system capacity limit in kW. Some limits vary by customer type, technology and/or application. Other limits might also apply. This map generally does not address statutory changes until administrative rules have been adopted to implement such changes.
NE: 25
KS: 25/200*
ME: 660co-ops & munis:
100
PR: 25/1,000
AK: 25*
43 states + DC & PR have adopted a net
metering policy
DC
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Green Power Schemes• Allows customers to purchase
green electricity from renewable energy usually at a premium price• Australia, Austria, Canada,
Switzerland, Germany, Spain, Italy, Japan, & US
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NC GreenPowerNC GreenPower (NCGP) is a statewide
program designed to improve the quality of the environment by encouraging the development of renewable energy resources and the mitigation of greenhouse gas emissions through consumers’ voluntary funding.
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NC GreenPower Program
• Started in 2003• Voluntary program• Advanced Energy
administers program• First Statewide green
power program in US• Involves IOUs, electric
cooperatives and municipalities
• 1,000 KW in 2010• $.15/KWH for PV < 10 KW• $.09/KWH for Wind < 10
KW
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Sources of NC GreenPower
Raleigh
Asheville Nags Head
Haw River
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Disincentives• Carbon Tax – an environmental tax on
the carbon content of fuels• South Africa, India, South Korea,
Denmark, Finland, Germany, Italy, Netherlands, Norway, Slovenia, Sweden, Switzerland, UK, some US states
• Many countries considering the carbon tax concept
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Feebates• Self financing (revenue neutral)
system of fees and rebates that are used to shift the cost of externalities onto the responsible companies or individuals
• Used to shift buying habits• California “Clean Car Discount”
program taxes the purchase of high emission vehicles and using the fees to rebate the buyers of low emission vehicles