Clean Energy Communities: How to Make a Municipal Clean Energy Purchase Bob Wall – Director,...

Clean Energy Communities:How to Make a Municipal Clean Energy Purchase

Bob Wall – Director, Energy Market Initiatives, CT Clean Energy Fund

Clean Energy Regional Workshops 2009

CT Clean Energy Communities

Program Steps:

1. Town commits to the 20% by 2010 Campaign and makes a municipal

town purchase (9% in 2009; 13% in 2010)

2. Town commits to EPA Community Energy Challenge

3. Reach point threshold for local signups to CTCleanEnergyOptions

program and clean energy systems

Reward – earn clean energy systems (e.g., solar PV, solar thermal, wind)

Preliminary Steps

Determine annual municipal electricity use:

Period: Calendar Year, Fiscal Year, Any 12-month period

Include: Town buildings, schools, streetlights

Gather monthly electric bills (DPW, Bd of Ed, Finance) or work with utility account rep

Provide total usage in kWh to CCEF – get free cost estimates

Recommend a line-item in municipal budget

Remember that electricity use varies over time – lowering usage also lowers your clean energy target (and

vice versa)

What Counts?

1. Sign up one or more town facilities with

CTCleanEnergyOptions

2. Purchase Green-e certified Renewable Energy

Certificates (RECs)

3. Install a Class I Renewable Energy System

4. Any combination of the above

Cheshire Town Hall

CTCleanEnergyOptions Contact CCEO Suppliers for Presentation

Community Energy – mark.garrett@newwindenergy.com

Sterling Planet –

kwest@sterlingplanet.com

Pros:

Supports state program

Earns rebates for signups

Supports some local renewables

Carbon claim via RGGI set-aside

Cons:

More expensive than RECs

Green-e Certified RECs Check options on EPA Green Power Partnership site

http://www.epa.gov/grnpower/pubs/gplocator.htm

Pros:

Green-e certified products

Choose resource mix and location

Lower first cost

Rebates may be available from Sterling Planet and Community Energy

Cons:

Potentially less environmental value

Lacks connection with CCEO program

Install Clean Energy Systems Check technologies and incentives on CT Clean Energy Fund site

http://www.ctcleanenergy.com/

Pros:

Return on investment

Truly local resources

Supports development of industry

Creates local jobs

Cons:

High initial capital cost

Limited technology options

Potential siting issues

Essex Recycling Center

Strategy #1: Competitive Supplier

Town switches to competitive supplier for generation service

Use savings to finance clean energy purchase

Example:

Town uses 2 million kWh/year

Town switches from CL&P (gen. svc. chg. – 11.9¢/kWh) to Acme Electric (10.4¢/kWh)

Savings = 1.5¢/kWh or $30,000

Use portion of savings to purchase 9% clean energy (180 RECs at $5-$13 = total cost of $900 to $2,340)

Strategy #2: Energy Efficiency

Town joins EPA Community Energy Challenge and pledges to reduce energy use by 10%

Use savings to finance clean energy purchase

Example:

Town uses 2 million kWh/year

Through conservation & efficiency measures, town reduces use to 1.8 million kWh (i.e., 10% less)

At 16¢/kWh, town saves $32,000

Use portion of savings to purchase 9% clean energy (now only 162 RECs at $5-$13 = total cost of $810 to $2,106)

Strategy #3: CCEO Rebates

Town partners with CCEO Suppliers and gets rebates for local customers it helps to enroll

Use rebates to finance clean energy purchase

Example:

Town uses 2 million kWh/year

Town seeks 9% clean energy purchase (180 RECs at $5-$13 = total cost of $900 to $2,340)

Town gets $20-25 rebate per customer enrolled

Every 50 customers yields rebates of $1,000 - $1,250

Strategy #4: Solar PV Savings

Town would qualify as Clean Energy Community but for its failure to make a town purchase

Use savings from solar PV system to help finance clean energy purchase

Example:

Town would earn a 4 kW solar PV system if it made a 9% CE purchase

PV system would generate ~ 4,800 kWh/year

At 16¢/kWh, town would save $768/year – nearly enough to cover the cost of Green-e certified RECs (i.e., $900 @ $5/REC)

Output also counts towards town’s CE target, thus lowering cost

Building a Bigger System 4kW requires 400 points, which are earned by CCEO signups (1 point all signups) or local clean energy installations (3 points) (note – new solar thermal and geothermal

systems will count)

But you can earn bonuses:

Each 5% household participation earns a bonus 1 kW (does not apply to towns with fewer than 1,000 households)

Designation as an EPA Green Power Community earns 1 kW

And you can combine with other grants:

Use town money to purchase extra kW at lower cost (note – CCEF will not allow EECBG contribution because of add’l costs)

CCEF has funding to support purchase extra kW (50% of cost, up to $8,000)

Strategy #5: Climate Change Action Plan

Town pursues comprehensive Greenhouse Gas Emission reduction strategies

Opportunities include:

Increased conservation, efficiency & renewables

Reduced VMTs in town fleet

Reduced water usage

Increased recycling

High performance buildings for new construction/renovations

Use savings from action steps to help finance clean energy purchase

Additional Resources

Resource Page

Community Forums

Program changes

Town commitment

Signups

EPA Challenge

CIGP

Sustainability

Regional Workshop Page

Web Videos (coming soon)

Custom Collateral

ctcleanenergy.com/communities

CCEF Fuel Cell Programs

On-Site Renewable DG Program $14M (all commercial, industrial & institutional – CI&I)

Open only to CL&P and United Illuminating customers

Federal: ARRA State Energy Program (SEP) $8M (all CI&I)

Open to all Connecticut applicants

Program Rules and Incentives same in both cases: Up to $2,500/kW

Capped at $4,000,000

Middletown High School200 kW Fuel Cell

CCEF Solar Thermal Program

16 kwSolar Hot Water Collectors Solar Photovoltaic Panels

Solar Thermal

Use sunlight to heat domestic hot water

Typical System Components: Solar collectors (flat plate or evacuated tube)

Water tank

Rack, plumbing, valves, pumps, etc.

System Considerations: Demand for DHW (showers, cafeteria)

Building usage (daily, seasonal)

Size to meet 50-80% of DHW needs

CCEF Solar Thermal Program

Federal: ARRA State Energy Program (SEP) $4M for commercial or residential projects

Incentives: Not-for-profit and governmental projects -- $900 per MMBtu of predicted

system output for October through March

Maximum incentive awarded per installation - $82,500

Project Eligibility: Open to all Connecticut applicants

Domestic hot water only (no space heating or pools)

Roof must have 15+ years of life left

CCEF Geothermal Program

Federal: ARRA State Energy Program (SEP) $5M for commercial or residential projects

Program pending CCEF Board approval in late 2009

Incentives: CI&I not-for-profit -- $2,000 per ton of air-conditioning capacity

Maximum incentive for CI&I – 100 tons

Project Eligibility: Open to all Connecticut applicants

The Application ProcessSolar Thermal and Geothermal

Non-competitive, first come, first served

Residential – system owner must be the applicant

Commercial – system owner must be the applicant

Installer’s contract with customer must be for full cost

Incentive Payments made to system owner: 100% when installed as proposed, commissioned and inspected

satisfactorily

Installation variances from application will be subject to incentive

adjustment

Circuit Rider - education & outreach on benefits of and

incentives for high performance schools Contact Bill Leahy/ISE at (860) 465-0252 or

leahyw@easternct.edu

Technical Assistance - grants for feasibility studies for

renewable or sustainable features

Solar PV Grants - funding for PV systems (~25-100 kW),

helps earn LEED points for renewable energy and innovation

High Performance Schools Program

Barnard Magnet School – New Haven

Bob.Wall@ctcleanenergy.com860.257.2354

www.ctcleanenergy.com