OBG PRESENTS:

Energy In Transition – The Clean Energy Fund 101Neil Webb

AGENDAA Time of Transition

Reforming the Energy Vision

Agents for Change

The Clean Energy Fund (CEF) Four Pillars

NYS Generating Mix

Portfolio Expenditure Breakdown

Key Concepts

Review

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Energy Supply Chain

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Generation Transmission Distribution

Canadian Niagara Power Plant

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http://www.nflibrary.ca/nfplindex/data/2/9/97629-517715

Linemen on first Niagara Falls to Buffalo transmission line

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Photo Courtesy of Niagara Mohawk Power Corp, from Richard Peterson's Photo Collection

New York City 1890

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Delhi, India

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What is Reforming the Energy Vision (REV)?

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REV Goals

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40% Reduction in GHG

50% Generation of electricity from renewables

23% Decrease in energy consumption

REV Goals

• Enhanced customer knowledge and tools that will support effective management of their total energy bill

• Market animation and leverage of ratepayer contributions

• System wide efficiency

• Fuel and resource diversity

• System reliability and resiliency

• Reduction of carbon emission

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REVelent Programs

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Renewable EnergyLarge-Scale Renewables Strategy

NY-SunK-Solar

Renewable Heat NY

Clean Energy FinancingNY Green BankPACE Financing

Energy Infr. ModernizationEnergy Highway

Smart Gen. and TransmissionLow Cost Power for Economic

Development

Building and Energy EfficiencyBuildSmart NY

Energy Efficiency Measures inAffordable Housing

Combined Heat and Power

Sustainable and Resilient Comm.NY Prize Community Microgrids

New York Community PartnershipsREV Campus Challenge

Innovation and R & DREV Business Model

DemonstrationsEnergy Storage R&D and

Commercialization

TransportationCharge NY

Clean Fleets NY and InnovativeOwnership Models

Agents for Change

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AGENCIES

NYSERDA

NYPA

Public Service Commission

NYSDEC

NREL/DOE

UTILITIES

National Grid

NYSEG

RGE

Central Hudson Gas & Electric

Orange & Rockland

ConEd

INITIATIVES & PROGRAMS

Reforming Energy Vision

BuildSmartNY

NYSERDA PON

NY Prize

Industrial Assessment Centers

Clean Energy Fund

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10 Year Program

$5 Billion Fund

50% Renewables by 2030

80% GHG Reduction by 2050

PSC Order Issued January 21, 2016

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Program Highlights – Four Pillars

TARGETS

50% of Electric Consumption Statewide from Renewables

40% Reduction in GHG from 1990 levels

600 trillion Btu increase in statewide efficiency

POLICIES

Revision of policies and practices to be consistent with statewide goals

Includes:• Retail Market Design

• Rates and Prices

• Business Practices

INCENTIVES & SUPPORT

Reconstituting NYSERDA’s mission especially as it pertains to NY Sun programs and New York Green Bank

ACTIONS

The state must lead by example

It is one of the largest energy consumers and suppliers to the marketplace through NYPA and LIPA

New York State Generation Mix

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CEF Portfolio Goals

1 Establish a Funding Level = $5.3 billion

7Structure a “Bill-As-You-Go” approach to NYSERDA receiving reimbursements from ratepayer collections by utilities

2Establish Four Primary Objectives:1) GHG Emission Reductions 3) Increase Efficiency2) Customer Bill Savings 4) Increase Renewable Generation

3 Establish a Ratepayer Collection Cap in 2016 ~ $585 million

4 Reallocate $1.2 billion in uncommitted SBC, EEPS, RPS funds

5 Authorize $150 million for a 2016 Main Tier Solicitation

6 Complete Capitalization of NY Green Bank

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CEF Portfolio Breakdown

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Proposed Expenditure by Categories

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Proposed Expenditure by Categories

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Key Concepts Contained within the CEF

Investment Plans

Both Market Development and Innovation & Research portfolios will have annual investment plans

• Three year rolling budget projections and estimates on benefits• Initiative details and timeline• Performance indicators

Major theme is to embark on a continuous improvement process of Test-Measure-Adjust

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Key Concepts Contained within the CEF

Bill-As-You-Go Approach

On a quarterly basis NYSERDA submits for reimbursement bills accrued for actual program expenditures

NYSERDA initially receives a start up infusion of 25% of the first year’s anticipated budget

WHY? There is a desire to minimize the accumulation of

unexpended balances within a state agency (NYSERDA)

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Key Concepts Contained within the CEF

Fuel Neutrality

Clean energy investments are possible based on overall benefit regardless of specific fuel type

• Truly customer oriented – customer focused initiative• Optimizes GHG emission reductions

Broader system wide benefits• Increased resiliency of fuel availability when interruptions occur• Increasing the diversity of our fuel and energy mix

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Resources

http://www.nyserda.ny.gov/About/Clean-Energy-Fund

OBG | THERE’S A WAY

Neil Webb | https://www.linkedin.com/in/neilbwebb