Transcript Riverfront Redevelopment: What do municipalities want?

Increasing the Role of
Renewable Energy Sources
Bill Abolt
Chicago District Manager
Shaw Environmental & Infrastructure, Inc.
May 10, 2007
Regulatory Climate and Renewable
Energy
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Renewable Energy Portfolio Standards (RPS)
require that a specified amount of energy come
from renewable sources
These portfolio requirements are often adopted
by states and applied as mandates to electricity
providers
Portfolio standards can also be adopted on a
voluntary basis as purchasing preferences
Regulatory Climate and Renewable
Energy
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Renewable Energy Portfolio mandates and
preferences are being adopted in increasing
numbers
These programs often seek to achieve multiple
objectives often associated with both improved
energy performance and sustainability goals
Economic Development
 Environmental Improvement
 Energy Independence, Reliability and Cost Control
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Regulatory Climate and Renewable
Energy
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Mandatory and voluntary portfolio programs
promote the use of renewable energy and
energy-efficient practices
Common Opportunities:
These standards create new sources of revenue for
clean energy investments
 Tax credits and emissions credits can also support
clean energy investments
 Clean energy investments can reduce both capital
and operating costs
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Regulatory Climate for Renewable
Energy
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22 states and the District of Columbia have
implemented Renewable Portfolio Standards
Regulatory Climate for Renewable
Energy
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State Programs often vary in policy objectives and
regulatory design
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Mix of Renewable Energy Resources
Inclusion of Energy Efficiency
Preferences for in-state or specific types of renewables
Increasingly, States are considering Renewable
Energy Policies in their environmental compliance
strategies
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State Air Quality Plans
Climate Change Strategies
Regulatory Climate for Renewable
Energy
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Tax expenditures and other government
assistance also support the trend towards
increased development of renewable energy
Voluntary Renewable Energy purchasing
programs complement mandatory programs and
aid market and political acceptance
Corporate and Government purchasing initiatives
 Voluntary Utility Programs
 Retail programs
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Regulatory Climate for Renewable
Energy
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Existing regulatory schemes may not be
sufficient to address the increased reliance on
renewables to meet energy and environmental
objectives
Measurement and verification of performance
 Integration of energy performance and
environmental objectives
 Proliferation of programs that splinter incentives
and increase transaction costs and complexity
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Illinois and Renewable Energy
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State of Illinois is working to expand renewable
energy sources and account for the full range of
environmental benefits associated with those
sources
State energy and environmental officials are
working closely with US Department of Energy
and National Renewable Energy Lab (NREL) to
evaluate the environmental impacts of RPS
policies in a national pilot project
Illinois Pilot—Purpose
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Determine the extent to which the Illinois
Sustainable Energy Plan - which includes a
Renewable Portfolio Standard and an Energy
Efficiency Portfolio Standard (EPS) - will result
in emissions reductions that are quantifiable,
replicable and scaleable, and that can be
incorporated into the State Air Quality Plans.
Illinois Sustainable Energy Plan:
RPS
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Percent of electricity sold to customers from
renewable sources:
2% by 2007
3% by 2008
4% by 2009
5% by 2010
6% by 2011
7% by 2012
8% by 2013
Illinois Sustainable Energy Plan:
EEPS
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Procure energy efficiency and demand reduction
to reduce projected annual load growth by:
10% in 2007 - 2008
15% in 2009 – 2011
20% in 2012 – 2014
25% in 2015 - 2017
Illinois Pilot—Participants
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State
IL Dept. of Commerce & Econ. Opportunity
IL Environmental Protection Agency
Illinois Commerce Commission
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Federal
U.S. Department of Energy
U.S. Environmental Protection Agency
NREL
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Research Shaw Environmental, Inc.
UIC Energy Resources Center
PowerWorld Corporation
Western Illinois University
Illinois Pilot—Process
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Determine the amount, type and location of
electric generation that will be displaced by
RPS/EEPS measures stipulated in the
Sustainable Energy Plan (SEP)
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Determine the impact of SEP measures on air
emissions for:
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Sulfur dioxide (SO2)
Nitrogen oxides (NOx)
Mercury (Hg)
Carbon dioxide (CO2)
Modeling the Impact of RPS
Measures on Electric Generation
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Illinois is a significant exporter of power
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Where air quality benefits specifically from
renewables will accrue is unknown; increased use
of renewables may result in emission reductions
outside the non-attainment areas
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Regional model of economic dispatch of
generation needed because power flows across
state lines according to economics and the
physical constraints of the system
Illinois Pilot
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Coal is the primary fuel that will be displaced by
the Illinois RPS/EPS
The RPS/EPS will result in pollution reductions
for all pollutants in a multi-state area
The RPS/EPS displaces fossil fuel generation in
multiple states
The RPS/EPS produces emission reductions
that may not be adequately captured under
current air quality regulatory schemes
Illinois Pilot
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Portfolio mandates can impact the order in which
power is dispatched
The mix of renewable resources that are deployed
to the grid impact both the extent and the timing
of emission reductions
A state’s RPS program can be structured to
address specific air quality objectives
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Improved modeling
Increased collaboration between state energy and
environmental officials
Metropolitan Mayors Caucus
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Initiated a pilot project to promote the
expansion of renewable energy and energy
efficiency in municipal projects
Seek to capture the energy and environmental
attributes of municipal clean energy investments
Created Clean Tags for inclusion in both
Climate Change and Portfolio Programs
Caucus will serve as aggregator of Clean Tags
Questions?
Shaw E & I – Chicago
Bill Abolt
Phone: (312) 499-3525
E-mail: [email protected]