florida renewable portfolio standards: impacts and opportunities florida renewable energy producers...

Download FLORIDA RENEWABLE PORTFOLIO STANDARDS: IMPACTS AND OPPORTUNITIES Florida Renewable Energy Producers Association Presented by Michael Dobson

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FLORIDA RENEWABLE PORTFOLIO STANDARDS: IMPACTS AND OPPORTUNITIES Florida Renewable Energy Producers Association Presented by Michael Dobson Slide 2 ABOUT FREPA The Florida Renewable Energy Producers Association represents renewable energy producers interested in project development in Florida. FREPAs main goal is to advocate for policy and fiscal incentives, a favorable regulatory environment, and programs that promote research and spur growth in the use of renewable energy sources in the Sunshine State. Slide 3 Renewable energy generated from the sun or biomass can supply a greater portion of Floridas energy needs while improving our environment, increasing fuel diversity, and spurring economic development. To increase and benefit from the use of renewable energy, many experts concur that renewable electricity standards are an effective tool. RPS = ECONOMIC GROWTH & CLEANER ENVIRONMENT Slide 4 RPS A renewable electricity standardalso known as a renewable portfolio standard or RPSis a cost-effective, market-based policy that requires electric utilities to gradually increase their use of renewable energy resources such as wind, solar, and bioenergy. Currently, 23 states and the District of Columbia have enacted renewable energy standards - and evidence shows those states are meeting the standards, realizing positive environmental impacts and generating economic growth. Florida is positioned to be THE leader in the Southeast. Slide 5 Renewable Portfolio Standards Slide 6 CONCERNS ABOUT RPS Rate payers may see an increase in their monthly bills. The standards will be impossible to reach because there are not enough resources in the state or there is not enough renewable energy activity. Its a mandate and no one likes mandates. Slide 7 A QUESTION OF RESOURCES AND DEVELOPMENT The Governors executive order proposes a RPS standard of 20% by 2020---- can Florida meet such a goal? Does Florida have available homegrown resources that are plentiful enough to reach the Governors goal? What are Floridas renewable resources? What is Floridas track record in renewable energy projects? What has contributed to Floridas track record with regard to renewable energy projects being realized? What will need to change in the regulatory environment and business attitudes that will make Florida an attractive place for renewable energy development? Slide 8 THE FUTURE IS NOW Nature offers a variety of freely available options for producing energy. It is mainly a question of how to convert sunlight, wind, biomass or water into electricity, heat or power as efficiently, sustainably and cost- effectively as possible. Decades of technological progress have seen renewable energy technologies such as wind turbines, solar photovoltaic panels, biomass power plants and solar thermal collections move steadily into the mainstream. The global market for renewable energy is growing dramatically; in 2006 its turnover was US$ 38 billion, 36% more than in the previous year. Slide 9 Slide 10 Slide 11 BEST KEPT SECRET RENEWABLE SOURCE THE SUN Slide 12 FLORIDA NATURAL RESOURCES TO ENERGY USING PROVEN TECHNOLOGY Agricultural Community Develop an agricultural resource map that provides expected available resources for biomass electric generation. Provide incentives that will encourage investors and developers to pursue and develop projects in the state of Florida. The Sunshine State Create incentives for large scale solar projects so that the economics have a better chance at working. Slide 13 KEY ELEMENTS OF A SUCCESSFUL RPS PROGRAM IN FLORIDA Identify feedstocks and resources that can generate power today. Obtain an up- to- date and usable catalog of available feedstock and resources Develop incentives geared toward helping developers with the economics of a renewable energy project. Make sure that incentives are long-term and consistent from year to year to secure investor interest into the state. Put more focus and investment into proven technologies. Promote flexibility from utilities on price (i.e., utilities must work with renewable producers to make projects work), Encourage utilities to factor in the lifespan of a project in cost considerations. Slide 14 Cost and accessibility of renewable energy must be tempered by the fact that: Costs for providing electricity in Florida based on natural gas, coal or fossil fuels will continue to increase due to our growing economy and population. The increased demand for power, fossil fuel prices and the abundance of our natural resources requires us to diversify Floridas energy portfolio. COST OF DOING BUSINESS AS USUAL/ECONOMIC IMPACT Slide 15 JEA - Clean Power Program Last DSIRE Review: 01/23/2007 In November 1999, JEA signed a Memorandum of Understanding with the Sierra Club and the American Lung Association of Florida that details the municipal utility's commitment to generate at least 7.5% of its electric capacity from "clean and green energy sources" by 2015. Eligible renewable-energy resources include solar, biomass, biogas (methane from landfills and sewage treatment plants), and wind. In addition, under the Solar Incentive Program, JEA assumes part of the cost of residential and commercial solar water heaters and photovoltaic (PV) systems. JEA has noted that it is the largest producer of solar power in Florida and the only utility in the United States to install solar systems in every high school in its service territory. In addition, JEA provides training and curricula to high school teachers to educate students about solar energy. WHEN UTILITIES TAKE THE LEAD Slide 16 WHAT DOES RPS COST UTILITIES? FACT IS: The cost of renewable is not easily quantified because each renewable energy technology is different, with a different set of economic variables. WHAT WE KNOW IS: The cost to build a new renewable facility plant has significant cost, however, the life cycle and the cost of natural resources for fuel more than makes up for it (i.e., solar panels last up to 40 years and sun is free) ALSO CONSIDER: During the life cycle of a renewable project operation, the cost of fossil fuel and natural gas will continue to rise and so will the population of Florida and demand for energy. Slide 17 RPS-WHATS IN IT FOR FLORIDA? We become good stewards of our planet by reducing emissions. We create a new industry in Florida. We generate an alternative to conventional energy sources. We contribute to national and economic security. Slide 18 Job Creation 3,500 new jobs in Florida. Economic Development $ 1.2 billion in new capital investment $ 1.4 billion in income to farmers and rural landowners, $ 10 million in new local tax revenue Consumer Savings $ 110 million in lower electricity and natural gas bills by 2020 $ 820 million by 2030 SOURCE: Union of Concerned Scientists RPS ECONOMIC IMPACT IN THE STATE FLORIDA Slide 19 PUBLIC SECTOR Governor Florida Legislature Florida Public Service Commission Florida Energy Commission PRIVATE SECTOR Investment community Renewable energy developers Utilities Florida businesses CONSUMERS You and me WHO IS KEY TO MAKING RPS WORK IN FLORIDA? Slide 20 ENVIRONMENTAL IMPACT OF RPS HUGE!!! It will allow nature to provide our energy as it should be naturally, Our children will have cleaner air and ultimately cleaner water, Fewer pollutants are released into the ozone layer, therefore reducing green house gas emissions Slide 21 MORE RENEWABLE ENERGY=RPS More renewable energy will become a reality in our state when we create the right business and political climate to make renewable energy development a part of the Florida economy. Renewable energy investors and developers need to know that we are a friendly state to do business in. An RPS will change our image, regardless of the percentage. LETS MAKE IT WORK!