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Clean, Local Energy The Value and Power of Distributed Energy in Minnesota John Farrell, Director Energy Self-Reliant States and Communities program [email protected] 612.276.3456 x210 Presentation on Sept. 23, 2011

The Value and Power of Distributed Energy in Minnesota

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Clean, Local EnergyThe Value and Power of Distributed Energy in Minnesota

John Farrell, DirectorEnergy Self-Reliant States and Communities program

[email protected] x210

Presentation on Sept. 23, 2011

ILSR’s Unique Perspective

Centralized PowerYesterday Tomorrow

Transmission network

Distribution network

House

Storage

Local CHP plant

Commercialbuilding

Factory

Storage

Storage

Storage

Solar PV power plant

Windpowerplant

House with domestic CHP

Clean, local power

Enormous Potential

31 states could be electricity self-reliant

Why Clean, Local Energy?

Enormous Potential?Why Clean, Local Energy?

2,500%

MN Renewable Potential

71%

Rooftop Solar24%

CHP4%

Hydro1%

Why Clean, Local Energy?

MN Renewable Potential

Wind71%

Rooftop Solar24%

CHP4%

Hydro1%

Why Clean, Local Energy?

Wind71%

Rooftop Solar24%

CHP4%

Hydro1%

MN Renewable PotentialWhy Clean, Local Energy?

Wind: 2400% of state electricity use

Value of Clean, Local Energy

• Cost for power

• Value of energy

• Value of jobs and economic development

• Value of local ownership

Wind71%

Rooftop Solar24%

CHP4%

Hydro1%

Price per kWhValue of Clean, Local Energy

Average Cost, 2011Average Cost, 2011

Wind 11 cents

Solar 23 cents

Price per kWhIncluding federal tax credit

and depreciation

Value of Clean, Local Energy

Average Price: Minnesota, 2011Average Price:

Minnesota, 2011Residential 11 centsCommercial 8 cents

Industrial 6 cents

Average Cost, 2011Average Cost, 2011

Wind 7 cents

Solar 14 cents

Jobs

Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)

Value of Clean, Local Energy

Economic Engine

Wind90%

Rooftop Solar10%

Value of Clean, Local Energy

Total GDP: $258 billion

$22 billion50,000 jobs

Absentee Ownership = 2nd gearValue of Clean, Local Energy

Lost $33 billion

50,000 jobs

Total GDP: $258 billion

$22 billion50,000 jobs

Local BenefitsLocal Ownership Boosts Impact of Renewables

Value of Clean, Local Energy

Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)

Local Ownership = high gearValue of Clean, Local Energy

Returned $33 billion

50,000 jobs

Total GDP: $258 billion

$56 billion100,000 jobs

Public SupportValue of Clean, Local Energy

Public Support

Attitude towards increased use of local wind energy

Value of Clean, Local Energy

No local ownership

Local ownership

0 25 50 75 100

very negative negative neutral positive very positive

45% positive

16% positive

Barriers to Clean, Local Energy

• Tax incentives

• Utility “grid lock”

• Project financing

Tax IncentivesBarriers to Clean, Local Energy

I want youif you have taxable income

City

Nonprofit

Cooperative

Utility “Grid Lock”Barriers to Clean, Local Energy

FinancingBarriers to Clean, Local Energy

Opportunities for Clean, Local Energy

Open Utility Data

CLEAN Contracts

Cash Incentives

Thank you!

John Farrellenergyselfreliantstates.orgjfarrell@ilsr.orgjohnffarrell612-276-3456 x210