upper peninsula alternative energy workshop for planners
TRANSCRIPT
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Upper Peninsula Alternative EnergyAbhilash “Abhi” Kantamneni| Michigan Technological University
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2Source: http://www.michigan.gov/mpsc
4 Investor-Owned Utility Companies
3 Rural Electric Cooperatives
13 Municipal Electric Utilities
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OCREA
UPPCO
WEPCO
DTE ELECTRIC
CONSUMERS
CHERRYLAND
THUMBXCEL
AEP
$0.24
$0.21$0.21
$0.16$0.16
$0.15$0.15$0.15$0.14$0.14$0.14$0.13
$0.11$0.11$0.11$0.10$0.10
MI Average Residential Electric Rates 2013[$/kWh]
MI Average: $0.14/kWhSource: MPSC Utility Company Annual Reports 2013
Residential Electric Rates
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Residential Electric Rate Increases
OCREA
UPPCO
WEPCO
DTE ELECTRIC
CONSUMERS
CHERRYLAND
THUMBXCEL
AEP
116%
94%107%
48%
86%
49%73%72%79%
40%42%
76%
29%39%43%61%73%
MI Average Residential Electric Rate Increase 2001-2013
MI Average: 74%Source: MPSC Utility Rates Summary
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Annual Upper Peninsula Energy Expenditures[$ Millions] UP Total: ~$142 Million
Source: MPSC Utility Company Annual Reports 2013
OREA
Alger D
elta
UPPCO WE
Cloverla
ndExce
lWPSC
$5$10
$55
$27 $3
2
$6 $7
Residential
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OREA
Alger D
elta
UPPCO WE
Cloverla
ndExce
lWPSC
$1 $2
$34
$19
$17
$5 $3
Commercial
Annual Upper Peninsula Energy Expenditures[$ Millions] UP Total: ~$82 Million
Source: MPSC Utility Company Annual Reports 2013
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Annual Upper Peninsula Energy Expenditures[$ Millions] UP Total: ~$157 Million
Source: MPSC Utility Company Annual Reports 2013
OREA
Alger D
elta
UPPCO WE
Cloverla
ndExce
lWPSC
$0 $1
$20
$93
$29
$2$11
Industrial
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Annual Upper Peninsula Energy Expenditures[$ Millions] UP Total: ~$385 Million
Source: MPSC Utility Company Annual Reports 2013
OREA
Alger D
elta
UPPCO WE
Cloverla
ndExce
lWPSC
$6 $13
$110
$141
$80
$14 $2
1
Total
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Problem Statement:Can we help UP commercial and industrial customers save money on energy costs and reinvest in workforce development?
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What is ‘Alternative Energy’?
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Clean?
Green?
Alternative?
No-Carbon?Sustainable?
Environmentally Friendly?
Non-polluting?
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“Energy that comes from resources which are naturally replenished on a human timescale”
Renewable ≠ Alternative !!!!
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Renewable: ‘naturally replenished on a human timescale’
Alternative: ‘not conventional’
Sustainable: ‘ability to endure’
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Midwest Region Fuel Mix (2013)
Non Renewables: 95.11% Renewables: 4.89%
CoalNuclear
GasOil
HydroelectricBiofuelBiomass WindWoodOtherSolar
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KRC+CUPPAD Original Proposal to EDA• Solar• Wind• Geothermal• Energy Efficiency• Natural Gas (CHP)• Biomass• Waste Heat Recapture
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Policy Constraints: MI Public Act 295 (2008)
Renewable Energy Standard
(RES)
10% of all retail electric sales for all
utilities in MI to come from renewable
sources
Energy Optimization Program (EO)
Authorizes EO surcharge on monthly
bills to finance customer Energy
Efficiency upgrades
Net Metering Program
On site renewable electric generation
with credits for monthly excess
generation
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Policy Constraints: MI Public Act 295 (2008)
Renewable Energy Standard
(RES)
10% of all retail electric sales for all
utilities in MI to come from renewable
sources
Energy Optimization Program (EO)
Authorizes EO surcharge on monthly
bills to finance customer Energy
Efficiency upgrades
Net Metering Program
On site renewable electric generation
with credits for monthly excess
generation
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UPPCO FUEL MIX (2013)
Coal
Nuclear
Gas
OilHydroelectric
Biofuel Biomass WindWoodOther
Solar
Non Renewables: 87.59% Renewables: 12.41%
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OCREA FUEL MIX (2013)
Non Renewables: 82.4% Renewables: 7.6%
Coal
Nuclear
Gas Oil Hydroelectric
Biomass WindWood Other
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Renewable Energy Standard
(RES)
All utilities on track to meet 10% RES by
2015
Cost of Generation from renewables
50% the cost of new coal generation
Energy Optimization Program (EO)
All utilities met or exceeded near term
targets
Cost of energy conservation 10%
the cost of new coal generation
Net Metering Program
Total customers self generating increases
from 20 to 1500
Total installed self generation
increases from 300*kW to 13,300kW
MI Public Act 295 (2008) Impact: Positive
* estimated
Source: MPSC Reports
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Houghton Winters
Source: Mining Journal
Source: Mining Gazette
Source: Michigan Tech Alumni
Source: Mining Journal
Source: boniashburn.com
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OCREA
UPPCO
WEPCO
DTE ELECTRIC
CONSUMERS
CHERRYLAND
THUMBXCEL
AEP
$0.24
$0.21$0.21
$0.16$0.16
$0.15$0.15$0.15$0.14$0.14$0.14$0.13
$0.11$0.11$0.11$0.10$0.10
MI Average Residential Electric Rates 2013[$/kWh]
MI Average: $0.14/kWhSource: MPSC Utility Company Annual Reports 2013
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Average Residential Electricity Retail Rates
by State (2013)State Average Price
[$/kWh]Hawaii $0.37
Houghton $0.21-$0.24New York $0.19
Alaska $0.19Connecticut $0.18
Vermont $0.18New Hampshire $0.17
California $0.16New England $0.16
Middle Atlantic $0.16Massachusetts $0.16
New Jersey $0.16Michigan $0.15
Source: www.eia.gov
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Michigan Tech KRC Photovoltaic Research Center
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Location: Tree Cover and Solar Window
Image Source: www.solarfeeds.com
Best Summer Angle: 30*
Best Winter Angle: 60*
Best Average Angle: 47*
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Advantages of High Module Tilt: Albedo
Source: nsidc.org
1 16 31 46 61 76 91 1061211361511661811962112262412562712863013163313463610
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Solar Irradiation and Albedo
S_Horizontal (W/m^2) Albedo (W/m^2)
Day of the Year
W/m
^2
Source: MTU KRC
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Advantages of High Module Tilt: Snow Shedding
4 188 372 556 740 924 11081292147616601844202822122396258027642948313233163500368438680
20
40
60
80
100
120
140
PV System Output Under Snowy Conditions
45* 30* 15*
Hours since 12:00 Am Nov 1 2013
Ener
gy P
rodu
ced
(Wh)
Shedding from 45*
Source: MTU KRC
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29Source: MTU KRC Data
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Houghton Average = 3.8 Peak Sun Hours/Day*Energy = 1kW*3.8h = 3.8kWh
Source: pveducation.org
*Source: MTU KRC Data
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Source: pveducation.org
California Average = 6 Peak Sun Hours/Day*Energy = 1kW*6h = 6kWh
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32Source: MTU KRC Data
Nov-Feb total irradiance = only 8% year total
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33Source: Michigan Public Service Commission
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Excess Generation
Excess Consumption
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Exce
ss
Cons
umpti
on
Exce
ss
Cons
umpti
on
Exce
ss
Gene
ratio
n
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Exce
ss C
onsu
mpti
on
Exce
ss
Cons
umpti
on
Exce
ss
Gene
ratio
n
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Source: www.nrel.gov
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Simple ROI Calculations for Houghton
•6000 [kWh] (source)Annual Consumption :
•6000/365 = ~ 16.4 [kWh]Daily Consumption:
•3.8 [h]Average Daily Sun Hours
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Simple ROI Calculations for Houghton
• Daily Consumption / (Sun Hours * Derate Factor)= 16.4/(3.8*0.8) = 5.4 [kW]System Size
• System Size*Cost Per kW = 5.4*$3,500 =$18,900System Cost
• 30% of system costs = $18,900 – 30%*18,900 = $13,448
Federal Tax Rebate
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Simple ROI Calculations for Houghton
•Energy*Rates = 6000*0.21 = $1,260
Annual Savings
•System Costs / Annual Savings = 11 years
Payback Period
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Large majority of installed net metered customer generation is Solar. Source: MPSC Annual Net Metering Report 2014
Figure: MPSC 2013 Net Metering Program - Installed CapacityFigure: MPSC 2013 Net Metering Program - Installations
Growth of Solar in Michigan
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43Source: National Renewable Energy Labs
*Figure: MIRECS 2009-2013 Credits by Energy Source
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Geothermal• Electricity and/or heat
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Policy Constraints: MI Public Act 295 (2008)
Renewable Energy Standard
(RES)
10% of all retail electric sales for all
utilities in MI to come from renewable
sources
Energy Optimization Program (EO)
Authorizes EO surcharge on monthly
bills to finance customer Energy
Efficiency upgrades
Net Metering Program
On site renewable electric generation
with credits for monthly excess
generation
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KRC+CUPPAD Original Proposal to EDA• Solar• Wind• Geothermal• Energy Efficiency• Natural Gas (CHP)• Biomass• Waste Heat Recapture
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Demand vs Energy Charges
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WPS vs OCREA Time Of Use
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Problem Statement:Can we help UP commercial and industrial customers save money on energy costs and reinvest in workforce development?
Goals: Help businesses understand their energy usageHelp planners, park managers understand energy infrastructureIdentify low-hanging cost saving opportunitiesPolicy agnostic frameworkReplicable and adaptable resource baseSustainable practices for client retention (NOT green/alternative/renewable)
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Contact Information
Abhilash Kantamneni
www.Abhilash.me
@akantamn
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