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9.23.2010

A National Renewable Energy Standard Bill Surfaces in D.C.

A National Renewable Energy Standard Bill Surfaces in D.C.

By Jason A. Johns

Portland, Oregon

Sens. Jeff Bingaman (D-NM) and Sam Brownback (R-KS), with Sens. Byron Dorgan (D-ND), Susan Collins (R-ME), Tom Udall (D-NM), Mark Udall (D-CO) and others joining, announced today that they will introduce a stand-alone Renewable Electricity Standard (RES) bill.

The bill will require sellers of electricity to obtain the following milestones in adding renewable energy resources or energy efficiency:

2012-2013 - 3%

2014-2015 - 6%

2017-2018 - 9%

2019-2020 - 12%

2021 - 2039 -15%

Renewable resources that can be used toward compliance will include wind, solar, ocean, geothermal, biomass, landfill gas, incremental hydropower, hydrokinetic, new hydropower at existing dams, and waste-to-energy.  For utilities that are unable to meet their RES targets, the bill proposes to charge a compliance payment at a rate of 2.1 centers per kilowatt hour, with such amounts then being used for renewable energy development or to offset consumers' bills.

A first step, yes.  But a small one.

Follow the link to learn more:  

energy.senate.gov/public/index.cfm



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Scott's Contracting
scottscontracting@gmail.com
http://www.stlouisrenewableenergy.blogspot.com
http://www.stlouisrenewableenergy.com
scotty@stlouisrenewableenergy.com

Wind Turbine Testing Towers

Second Wind's new 60-meter met tower offers customizable instrument configurations at affordable prices

ProMast 60 is all-in-one package with flexibility to meet individual customer needs
Oklahoma City, OK

Second Wind, a leader in wind measurement systems, announced today at the annual AWEA Wind Resource & Project Energy Assessment Workshop that is has added a new 60-meter meteorological mast and customizable 60-meter met tower packages to its range of wind measurement solutions. The ProMast™ 60 combines competitive pricing and top performance for developers prospecting new wind farm sites.

Second Wind's new tower packages include the ProMast 60 tubular tower, mounting options and a wide array of instruments including anemometers, wind vanes, and a Second Wind Nomad 2 Wind Data Logger. Nomad data loggers are deployed in 50 countries and on seven continents, from the Arctic to Antarctica, with each unit compiling data from as many as 20 weather sensors.

For customers who need something other than the standard configuration, Second Wind will customize an instrument suite and offer a package discount. Second Wind will also offer competitive discounts on bulk purchases of the ProMast 60. Combined with Second Wind's Triton wind profiling system, Second Wind now offers wind farm developers a full complement of tower-mounted and remote sensing options.

"Sensor equipment requirements vary widely from one company to the next, and we wanted to offer our customers the flexibility they are used to in working with Second Wind, as well as the other benefits the Nomad data logger provides, on a cost-effective tower platform," said Matt McLoughlin, director of Nomad sales at Second Wind. "The ProMast 60 is a versatile, field-proven tower. Combine that with the competitive price and the ability to custom-configure sensor packages, and we're confident the ProMast 60 will meet any customer's needs."

The ProMast 60 is made from hot-dipped galvanized steel to resist corrosion. The tower diameter – ranging from 6.5 to 8.5 inches – allows the installation of very stable booms in compliance with IEC specifications. The tower components are packaged to minimize waste. The compact packaging also enables users to install the ProMast 60 on rugged sites without having to use large vehicles for transport.

 Pricing and Availability

The ProMast 60 tower package is available immediately from Second Wind and costs $14,900 for a complete tower package. Packages can be custom-configured to include a variety of sensors – including Class 1 anemometers such as Vector, Thies, and WindSensor (Risø). Volume discounts are available. For more information please visit: www.secondwind.com/promast.

About Second Wind

Second Wind develops wind measurement systems that make wind power pay off for consumers, investors and the environment. The company's technology provides wind farm developers with the bankable wind data they need to plan, finance and operate highly efficient wind generation facilities. Second Wind's systems are making wind farm development profitable in 50 countries on seven continents. Second Wind's systems include the wind industry's leading remote sensing system, wind data logger and web-based data service. For more information about Boston-based Second Wind, please visit www.secondwind.com

For Further Information



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Scott's Contracting
scottscontracting@gmail.com
http://www.stlouisrenewableenergy.blogspot.com
http://www.stlouisrenewableenergy.com
scotty@stlouisrenewableenergy.com

Net-zero Energy Low-income Housing Development Raises Important Questions

Net-zero Energy Low-income Housing Development Raises Important Questions

I have written before about my interest in green building, which of course includes energy efficiency and renewable energy.  That's why when news about new sustainable communities being built in the U.S. floats across my desk I always check it out. 

A new green community, where? What green attributes will it have?  How efficient will it be?

So while I was happy to read the announcement about the new 100 percent green community being constructed in Jerseyville, Illinois, I was confused by the choice of a few of the renewable energy technologies that are going into the project.  

The developer, Capstone Development Group of St Louis, MO aims to build 32 3-bedroom, 2-bath single-family homes that require virtually no fossil fuels for electricity or heat.  The homes will have 7.35-kW SolarWorld solar systems on their back roofs (see image) and Urban Green Energy 1-kW vertical axis wind turbines will be installed on the roofs of their attached garages.   Small wind turbines will also dot the streets of the neighborhood, which is being constructed on an old cornfield. The homes are expected to receive a LEED platinum rating.  Homes will be connected to the grid and the developer states in a press release that residents may end up with virtually no utility bills due to the renewable energy that will be in use on the homes.

That press release says there will also be "a separate building for a clubhouse/resource center, community room with kitchenette and bathroom, conference room, computer lab, property manager's office and storage room. The site will be landscaped with native plants to reduce water usage and will include a state-of-the art playground."

The streetlights will be powered by solar and wind.  

"They [Residents] won't have a heating bill, and when they get their electric bill it is more likely to be credit instead of a cost. Green technology will truly make a more affordable and more sustainable life for everyone in the community," Capstone president Bill Luchini said.

The homes are aimed at families that earn less than $41,000 per year.  Families who qualify will rent them for $590 per month and can work toward buying them outright. 

Home prices like that counteract the claims of skeptics who repeat that renewable energy is not affordable nor will it ever be.  And while installing solar energy is expensive, costs are dropping rapidly.  Even though these systems are being made possible through layer upon layer of local, state, and federal financing, the fact is that this affordable housing development will be equipped with renewable energy systems. That means that dozens of families for whom renewable energy was previously out of the question will now be able to use it in their everyday lives.  The neighborhood could serve as a model for future development.

Brian Zises, spokesperson for the project, explained that what is unique about this project is that Capstone accessed much of the project funding through federal and state low-income housing tax credits, private equity and state trust funds all set up for low-income families.  "The developer actually leveraged 6-8 different layers of funding to make the project work," Zises said.  And while of course renewable energy tax credits factored in there, the lion's share of dollars really came from the low-income side of the equation.

Shouldn't Public Funds Be Used Wisely?

Electric heat powered by PV?  Rooftop vertical axis wind turbines? Those technologies didn't seem sustainable to me.  I asked Brian Zises why the developer didn't consider solar hot water and he told me that the numbers didn't pencil out.  He said that using PV for electric heat and hot water was the most cost effective use of technology in this case.  

I also spoke with Jason LeFleur who is a project manager with the Alliance for Environmental Sustainability.  The alliance will be doing third-party validation of the homes to make sure they meet the criteria for LEED certification. LeFleur was familiar with the project and explained to me that the homes will also be using energy recovery ventilators (ERVs), which may help to offset the heating load.

LeFleur said that the ERVs work like heat exchangers, bringing in fresh air from the outside to keep the air inside the home healthy but also preheating it -- in the colder months -- through the warmer air that is exiting the building.  ERVs can also capture the humidity from, say, the steam from the shower in a bathroom, and in turn insert the humidity into the building in the winter when the air is dry or eject it into the outside air in the summer to lower the humidity of the air inside the building.  Summers in Illinois are pretty humid, he explained. Because the building envelope will be so tight and with the use of the ERVs, LeFleur believes that the PV system will not be overtaxed for heating and cooling. 

Of course the proof is in the pudding and LeFleur indicated that he looks forward to testing the project once it is complete to see if it all works as expected.  Since the first building is expected to be ready in the winter, during heating season, LeFleur said his organization would be able to see right away how things are working.

In terms of the vertical axis wind turbines, which have been widely criticized by readers of RenewableEnergyWorld.com in the past a well as experts in the wind industry, LeFleur echoed my skepticism.  He said that he looks forward to evaluating their performance once the houses are built.

Which is fine, but still.  Why the developer is choosing to spend public dollars on rooftop vertical axis wind turbines instead of solar hot water systems for each and every home is not something I understand.  Solar thermal systems, some argue, are more cost effective than even solar PV.  (See a great discussion of this topic here.) And if you are going for net-zero energy building and using public money, shouldn't you use the cheapest, most effective technology available?  Brian Zises maintains that Capstone is developing the project in the most cost-effective way possible.

I also pointed out that in the rendering, the PV panels appear to be facing in two different directions. Zises told me that 2 of the homes will have panels that face south and the rest, 30 more, will have panels that face either east or west but will have additional panels to make up for any losses in electrical output.   Again, I wonder if that is the most efficient use of public dollars.

Now look, I've been around long enough to know that everything that the developer is stating now might not play out as planned.  I've seen big claims before about affordable renewable energy projects that end up costing a lot more in the end than the developer had projected. 

Case in point, there is a beautiful LEED-certified neighborhood near me that the developers really wanted to keep affordable but just couldn't do it after the final bills were tallied.  Building costs were too high when it was constructed, as were the costs associated with the biomass central boiler and district heating system that it uses. Then again, that development didn't use public money.

But building costs have fallen in the past year and renewable energy costs have dropped since that neighborhood was completed.  And so maybe, just maybe, this net-zero energy building project will work as planned and 32 lucky families will get to live in a state-of-the-art neighborhood powered entirely by wind and solar.  The developer expects the first housing unit to be completed before the end of 2010. 

There is no question in my mind that net-zero energy building will soon become commonplace in the U.S.  My concern is that if we are looking to validate renewable energy, we need to make sure that the claims we make about the technology ring true in the end. Will this really be constructed affordably?  Will residents really have no utility bills?  Will the PV and small wind systems be able to heat, cool, and otherwise power the entire home?  

We'll see.



--
Scott's Contracting
scottscontracting@gmail.com
http://www.stlouisrenewableenergy.blogspot.com
http://www.stlouisrenewableenergy.com
scotty@stlouisrenewableenergy.com

Transmission Lines and the Energy Policy

When Are We Going to Get This Transmission Thing Right?

According to information on the American Wind Energy Association website installations of wind turbines in the second quarter of 2010 are down by nearly 70% and projected to be 25% to 45% less at year's end.  One would think with the impending sunset of the section 1203 treasury grants at the end of this year there would be significant efforts to get projects in the ground. So what gives? 

While there are a number of reasons fro this downturn including reduced power demand and expiration of short term incentives, two issues — money and transmission siting authority — are central to the long term prospects for renewable energy. 

At Windpower in Dallas this year one couldn't turn around without bumping into representatives of various investors seeking good projects in which to invest equity.  The problem is that most of that equity money chasing projects is looking for mature projects which are close to actual construction.  Obtaining early stage investment dollars for renewable projects in today's market conditions is difficult at best.   Also, given the current economic crisis, until the credit markets loosen up, the debt side of the equation will be difficult to come by.  Money, however, is not the entire story.  Indeed in the long term the biggest impediment to meeting the nation's goal to increase our reliance on renewable energy is transmission.

Everyone seems to understand that the country's transmission system is overtaxed.  The system was never intended to transport large amounts of bulk power around the country.  Rather, it was built to ensure reliability by interconnecting various parts of the system so that if one line serving an area went down there was a redundant feed to keep the lights on.  The over taxation of the transmission system is only going to get worse.  DOE's Energy Information Administration projects electricity demand is going to increase by 30% by 2030.

Meantime at least 29 states have passed some type of renewable portfolio standard and there is a strong possibility over the next few years that a federal RPS will be implemented.  Renewable sources of energy tend to be in abundance in areas without substantial infrastructure well distanced from the load centers that need the energy.  The Energy Policy Act of 2005 ("EPACT") required DOE to conduct a national study on electric transmission congestion and constraints every three years.  Subsequently in the American Reinvestment and Recovery Act of 2009 DOE was required to study significant potential sources of renewable energy that are constrained by a lack of adequate transmission capacity. 

The following map from the 2009 DOE congestion study shows that almost the entire western half of the United States is constrained from a renewable energy perspective: 


Remarkably, despite the massive area of constraint identified in this map DOE still concluded this area does not "justify formal identification as a congestion area."

There is clearly a business opportunity here.  In its December 2008 order approving the Tallgrass and Prairie Wind transmission projects in Oklahoma and Kansas FERC, relying on authority in EPACT, authorized numerous incentives to the developers of those projects including a 200 basis point incentive adder on the return on equity.  Although FERC's reasoning involved numerous considerations the decision clearly signaled the Commission's intent to support large transmission projects designed to transmit significant amounts of renewable energy. 

Arguably, if FERC is willing to authorize ROEs in the 12 to 14% range for transmission developers with secure revenues due to the low risk customers (utilities) using the lines, money should be flowing in to do these projects.  Regrettably that is not happening.  If we as a country want to see the Midwest's wind energy and the West's solar and geothermal energy delivered to load centers much more transmission is needed.  Despite significant financial reasons to invest in private transmission lines little investment activity is occurring.  A significant reason is regulatory risk.

The nation's current system leaves to the states the construction and siting authority for transmission projects.  While that may make sense for generation projects, the transmission system is national and crosses state borders in numerous places.  State commissions are expected to look out for the utility customers in their respective states.  Naturally the Minnesota Commission should question whether a transmission line emanating from North Dakota and being built to serve Chicago is in the best interests of Minnesota consumers.  The Wisconsin Commission would likely wonder the same.  What to do? 

This is not rocket science.  The model for planning and building national infrastructure already exists.  The state by state balkanized planning and construction authority needs to be abolished in favor of a federal system.  Would the interstate highway system have ever been built if it were left to the states?  Probably not.  The FERC has planned and sited certain types of infrastructure for decades—principally hydroelectric plants and pipelines. 

Since 1920 the FERC has overseen the development of 1600 hydro projects capable of producing over 54 gigawatts of renewable energy.  For over six decades they have overseen an extensive pipeline grid of approximately 215,000 miles capable of transporting 95 billion cubic feet of natural gas per day.  This system would likely never have been built if left to state level approvals.

Congress came close to fixing this problem in EPACT but fell short when it only authorized backstop authority for FERC to site and approve construction of transmission projects.  That minimal authority has been further eroded in the federal courts. 

It is time to fix this most obvious of problems.  FERC needs to be given direct authority to plan for and approve high voltage transmission projects.  If Congress does this we as a country have a good chance of meeting our goals to increase reliance on renewable energy.  If they do not we will not be able to build the interstate transmission system necessary to deliver the renewable energy to our load centers.  Further, once Congress fixes this issue, and assuming FERC continues its policy to incent transmission projects designed to  transmit renewable energy, the money and capital will flow that is ultimately necessary to get the system built. 

The elections are upon us please vote accordingly.



--
Scott's Contracting
scottscontracting@gmail.com
http://www.stlouisrenewableenergy.blogspot.com
http://www.stlouisrenewableenergy.com
scotty@stlouisrenewableenergy.com

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