FLORIDA RENEWABLE PORTFOLIO STANDARDS:
IMPACTS AND OPPORTUNITIES
Florida Renewable Energy Producers Association
Presented by Michael Dobson
ABOUT FREPA
The Florida Renewable Energy Producers Association represents renewable energy producers interested in project development in Florida. FREPA’s 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.
Renewable energy generated from the sun or biomass can supply a greater portion of Florida’s 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
RPS
A renewable electricity standard—also known as a renewable portfolio standard or RPS—is 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.
Renewable Portfolio Standards
EVERYONE ELSE AND THEN, THERE IS FLORIDA
CONCERNS ABOUT RPSCONCERNS 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.
It’s a mandate and no one likes mandates.
A QUESTION OF RESOURCES AND DEVELOPMENT
The Governor’s 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 Governor’s goal?
What are Florida’s renewable resources?
What is Florida’s track record in renewable energy projects?
What has contributed to Florida’s 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?
THE FUTURE IS NOWTHE 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 .
US Resources
Source: National Renewable Energy Laboratory
IMMEDIATE OPPORTUNITIES IN FLORIDA/THE HERE AND NOW
BEST KEPT SECRET RENEWABLE SOURCE “THE SUN”
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.
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.
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 Florida’s energy portfolio.
COST OF DOING BUSINESS AS USUAL/ECONOMIC IMPACT
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
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.
RPS-WHAT’S IN IT FOR FLORIDA?RPS-WHAT’S 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.
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
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?
ENVIRONMENTAL IMPACT OF RPSENVIRONMENTAL 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
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.
LET’S MAKE IT WORK!
