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Rural Energy Affordability and Economic Development Nebraska Rural Energy Needs & Opportunities David Bracht February 8, 2017

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Page 1: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Rural Energy Affordability and Economic Development

Nebraska Rural Energy Needs & Opportunities

David BrachtFebruary 8, 2017

Page 2: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Nebraska Facts• Population – 1.9 mil (state rank – 37)

• Omaha metro – 915,000 (59th in US)

• Lincoln metro – 327,000

• Only 10 Cities over 20,000

• Area – 77 million sq. miles (16th)

• Agriculture – 45 million acres (91% of state)

• State GDP - $115 billion (36th)• Ag production - $23 billion (6% of US)

• Top Industries• Agriculture (1 in 4 jobs)

• Manufacturing & Agriculture Processing

• Finance & Insurance

• Health Care & Social Services

• Transportation (Trucking & Rail)

Page 3: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Rural Energy in Nebraska

TOPICS

• What makes Nebraska different

• Renewable Energy Development

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Page 4: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Nebraska State & Rural Energy Drivers

7th highest per capita energy use

• Energy Intensive agriculture & industrial sector• Irrigated acres (1st)

• Cattle feeding (1st)

• Meat processing (1st)

• Ethanol production (2nd)

• Corn for grain (3rd)

Nebraska leads US In Irrigation

and increasing electric load

Page 5: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Nebraska Public Power

• Nebraska only state with 100% consumer owned electric power• State statutes passed in 1933 for public

acquisition of then-existing investor owned utilities

• 167 public power districts, rural electric cooperatives, municipal power companies with • Publicly elected or appointed boards

• 8th lowest rates in

Nebraska Public Power Districts

Power Review Board Service Territories

Page 6: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Nebraska Power Generating Fleet

Page 7: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Energy Nebraska Style

Page 8: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Nebraska Ethanol Plants

• 25 ethanol plants• Including largest ethanol

facility in United States

• 2.2 million gallons/year• 2nd highest of all states

• Employment• 1,300 direct

• 4,000 indirect

Key part of Nebraska’s “golden triangle” of corn, cattle and

ethanol

Page 9: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

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Nebraska Wind

• Nebraska part of windiest part of US

• Fourth highest wind potential of all states

• Average capacity factor in 2016 over 45%• Highest in US

• One of only five states above 40% capacity factor

Page 10: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

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Nebraska Wind Projects

• 1,320 MW

• 737 turbines

• Wind energy was over 10.1% of electric energy used in Nebraska in 2016

Page 11: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

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Nebraska Solar Energy

• Growing interest in solar energy statewide

• In 2016 – 2017 Nebraska solar projects expanded from just over 1.0 megawatt to nearly 25 megawatts

• Rooftop/small commercial under 25 kw to small community solar projects 100 kw to 5 megawatts

Page 12: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Fremont Nebraska Generation Units

Baseload Power Plants

• Lon D Wright –coal-fired generating station

• Unit #6 –16.5 MW

• Unit #7 –21 MW

• Unit #8 –91.5 MW

• Derril G Marshall Generating Station –gas-fired

• 41.6 MW of peaking power

Grid Power

• Southwest Power Pool (SPP)

• Market-based rates

• 60MW limit

Renewable

• Cottonwood Wind Farm –40 MW (November 2017)

• Community Solar –1.55 MW

Page 13: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Solar Program Parameters• Eligibility: Available to all customers of Fremont, subject

to a signed agreement (2 pages)

• Participation: Two options:

• Purchase panel(s) - $180 ea.

• 1 panel yields 43 kWh/month

• Purchase Solar Energy Shares - $.06/kWh

• 1 share equals 150 kWh/month

Minimum: 1 panel/solar energy share

Maximum: 50-80% of annual kWh consumption

• Residential 80%/Commercial 50%

• Program Length:

• 1-month residential

• 1-year commercial

• Enrollment Fee: $30 refundable (applied to bill) after 1-year

• Portability: Participation is transferrable

Page 14: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Project Results• Sold out 1.0 MW in 5 weeks

• Sold out 1.55 MW in 7 weeks

• 180 Residential customers • 50% purchased solar panels

• 50% subscribed to solar shares

• 20 Commercial customers

• Commercial operation in early 2018

• 70+ names on waiting list for Solar Farm 2

Page 15: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

▪ Certified US Government Contractor for Biomass Electric Power Generation

▪ EPA Partnership for Combined Heat and Power (pending)

▪ Public-Private Partnership with the City of South Sioux City, Nebraska

▪ Public-Private Partnership with the Nebraska Forest Service

▪ Nebraska Statewide Wood Energy Team

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Page 16: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Gasification Definition

Gasification is a process that converts organic or

fossil fuel based carbonaceous materials into carbon monoxide,

hydrogen and carbon dioxide. This is achieved by reacting

the material at high temperatures, without combustion,

with a controlled amount of oxygen and/or steam.

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Page 17: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

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Page 18: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

N E B R A S K A

E N E R G Y O F F I C E

David [email protected](402) 471-2867

Page 19: Rural Energy Affordability and Economic Developmentenergyoutlook.naseo.org/...Nebraska-Rural-Energy.pdf · Rural Energy Affordability and Economic Development Nebraska Rural Energy

Current Biomass Power Plant Project Highlights in South Sioux City, Nebraska:

• 8MW biomass baseload power generation; modular system for future expansion

• 100,000 tons/year of torrefied wood pellet production • Drop-in replacement fuel for coal-fired power plants

• Multiple sources of feedstock adaptability (wood waste, MSW, C&D, Ag residuals)

• 343,000 tons/year of wood waste @ 45% moisture content as feedstock

• Technologies used: Gasification, Torrefaction, Waste-Heat Recycling

• Total project cost $53 million

• Direct jobs/careers (29) and indirect jobs (350)

• Workforce housing and workforce development core business model19