What's Solar Power Worth?

WHAT’S SOLAR WORTH?Bringing Minnesota’s value(s) to solar

Presentation to Minnesota Value of Solar Stakeholder Workshop - Oct. 1, 2013

John Farrell, Director of Democratic Energy

• 2007 Next Generation Energy Act: goal of reducing greenhouse gas emissions by 80% by 2050 and that state should pursue “the development and use of renewable energy resources wherever possible.”

BACKGROUND

• 2013 Energy Omnibus law includes “a Minnesota energy future study on how Minnesota can achieve a sustainable energy system that does not rely on the burning of fossil fuels.”

BACKGROUND

GOOD VALUE?

How is the Department’s proposed methodology?

ENERGY

It’s real in Ohio and Germany

LOSSES

• But, high load means higher losses. Can we account for that?

ECONOMIC DEVELOPMENT?

•No coal

•No uranium

•No gas

ECONOMIC DEVELOPMENT!

Worth ratepayer investment

ECONOMIC DEVELOPMENT

ENVIRONMENTAL

Source: EDFSolar solves fossil fuel cross subsidies!

ENVIRONMENTAL

• Cross-State Air Pollution Rule (CSAPR)

• Carbon Pollution Standards for the Power Sector

Solar solves fossil fuel cross subsidies!

ENVIRONMENTAL

Social Cost of Carbon

$0

$30

$60

$90

$120

$150

Solar solves fossil fuel cross subsidies!

RELIABILITY / RESILIENCE

Solar can save money

RELIABILITY / RESILIENCE

Solar can save money (for utility, too)

TIMEFRAME

The warranty lasts this long, value is even longer

DISCOUNT RATE

A good proxy for the value of social benefits over time

HEDGING

What is certainty worth?

TRANSPARENCY

• Utility inputs, too!

Transparency solves a national debate

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