Energy Solutions Road Map: How to?

1. “How to” Goal: Plan together through a full stakeholder process

2. Leverage our synergies to empower consumers

3. Build an environment favorable to new policies

1. “How to” Goal: Plan together

• involve .gov, .org, .com, & .edu stakeholders for:– Constructive engagement to critically examine

ideas;– Agreement on actions, responsible parties, and

expected outcomes, on a time-line; and– Follow-up and assessment/amendment

procedures.

2. “How to”: Leverage our synergies

• Empower consumers, save money, and finance upgrades:• Build support to ensure that energy efficient buildings are the norm;• Support upgrade with loan loss reserves, loan subsidies, property-backed loans that are

not dependent on income, and pools of capital for financing that ensure access to low-cost financing for all who want it;

• Collectively purchase energy and form credit unions to create credit standing, recourse opportunities for financiers, and individual savings;

• Create procurement contracts and capital securitization pools for energy efficiency and renewable generation;

• Use electricity market cash flows to build local earnings, a smart grid manufacturing and service industrial base, and a sophisticated metering and control infrastructure;

• Share processes and train volunteer and professional resources to conduct greenhouse gas inventories, then create climate action plans for all communities and for all sectors within the community; and

• Expand the network of and information about, critical data (e.g. consumption, generation mix and spending) mass transportation and local events, to engage our communities and to reduce emissions from fossil fuels.

3. “How to”: Build more favorable policies

• With .gov, .org, .com, & .edu stakeholders:• Develop codes, standards, and best practice tool-kits, which will include sample

laws, organizing processes, frequently asked questions, and sample resolutions.• Share best practices from within New York, and experiences of barriers to

achieve intelligent rules, pilots, contractual structures, and procurement processes in public and public/private state-wide institutions such as NYISO, NYSPSC, NYSERDA, NYPA, NYSDEC, NY-BEST, NYSSGC, NYSTAR, and utilities.

• Share best legislative practices from outside New to include cost-benefit analyses of procedures, such as the following:– Create “compliance buyers” of renewable certificates, efficiency certificates, and peak demand

reduction certificates;– Fund feed-in tariffs for renewable generation and for energy efficiency;– Ensure data access to aggregate consumption information, for all consumers, from all utilities;

and to– Allow municipalities to create “opt-out” energy purchase contracts for all consumers of

electricity, as is the case in Community Choice Aggregation states.

Energy generation trends in NYS today

Fuel by type of New York State’s electricity generation capacity

Fossil fuels (48% of total generation capacity)

Coal: Declining (45% lower now than in 2005)

Oil: Flat to declining

Natural Gas: Increasing (to offset coal)

Non-fossil, non-renewable fuel (30%)

Nuclear: Flat

Renewable fuels (22%) Hydro: Increasing modestly

Wind: Increasing rapidly (600% increase from 2006 to 2011)

Photovoltaics: Increasing rapidly (especially downstate)

(source: NYISO 2011 Gold Book www.nyiso.com)

5 Energy solutions: demand & supply side

3 demand side solutions: Benefit:

Energy Efficiency (EE) Energy Efficiency is single most effective driver for economic development: (1) efficiency measures often pay for themselves while reducing future operating costs, and (2) efficiency implementation is a proven jobs-creator with immediate results.

Demand Response (DR) Demand Response is an electricity program that pays customers to temporarily reduce electric consumption in response to supply conditions.

Microgrid (MG) Microgrid enables local business districts to collaborate in curbing electricity costs and capturing value from the electricity markets that are inaccessible to most smaller customers without shared microgrid.

5 Energy solutions: demand & supply side

2 supply side solutions: Benefit:

Distributed Generation (DG)

Distributed generation reduces the amount of energy lost in transmitting electricity or heat, because the electricity or heat is generated very near where it is used.DG includes a diverse clean energy technologies from combined heat and power to renewables.

Energy Storage (ES) Energy storage amplifies the value of both traditional generation and newer, distributed, renewal generation, with enhancing grid reliability as well.