Duke Energy Carolinas IRP’s adds solar but leans on gas

Posted by Laura Arnold  /   September 16, 2018  /   Posted in solar  /   No Comments

Duke Energy

Duke 15-year plans lean heavy on gas to replace coal

Dive Brief:

  • Duke Energy has filed a pair of integrated resource plans (IRP)with North Carolina regulators, sketching a 15-year resource plan that adds significant new solar resources but continues to lean heavily on natural gas-fired generation as the utility shuts down older coal plants.
  • Between Duke Energy Progress and Duke Energy Consumers, the company will add 9,534 MW of gas capacity by 2033, starting next year. Duke will add 3,671 MW of solar capacity across the same timeline.
  • Environmental advocates praised Duke for closing down coal facilities — some ahead of schedule — but Sierra Club said the plan "doesn’t go nearly far enough" to tackle climate change. The group said wind energy and efficiency could have allowed Duke to significantly reduce fuel costs and more quickly phase out older fossil fuel plants.

Dive Insight:

Duke is working to reduce its carbon footprint and says it can have coal phased out by 2050, but green groups argue that's not a particularly rapid schedule, especially when the utility has options.

"While it's good that Duke is starting to realize that investing in clean energy sources makes more sense than burning coal, this plan doesn’t go nearly far enough," Sierra Club campaign representative David Rogers said in a statement.

Rogers accused the utility of "doubling down on fracked gas" and planning to burn coal for another generation, which he said "doesn't do anything to address the climate crisis."

For Duke's part, the utility says it is working quickly to phase out dirtier coal plants, as well as add renewables and energy storage.

Souce: Duke Energy

"As we retire old coal, in most cases we will replace that with natural gas," Duke spokesman Randy Wheeless told Utility Dive in an email. "Going forward, Duke Energy’s new capacity additions will be renewables (solar, battery and pumped storage) and natural gas."

Looking out to 2033, the utility says 66% of new capacity will be gas, with solar, efficiency and demand side management making up 30%, and energy storage contributing 4%.

Duke's IRP objectives include reducing carbon dioxide emissions by at least 40% from 2005 levels by 2030, with approximately 60% of electricity coming from carbon free clean energy sources.

In regulatory testimony, Duke Energy Progress officials said customer growth, plant retirements, contract expirations and additional reserves will mean 6.3 GW of new resources are requited in the next 15 years. Duke Energy Carolinas will need just over 4 GW of new resources.

While Sierra Club indicated it would have liked to see wind energy included in Duke's IRP, the utility has said prices in the Carolinas are not low enough yet. This summer, Duke announced it had abandoned a request for proposals to purchase 500 MW of wind energy for customers in North Carolina after the utility concluded proposals were "not attractive enough."

But the utility is still looking to add more renewables. In July, Duke filed an RFP for 680 MW of large-scale solar and other renewables in North Carolina and South Carolina.

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Indiana 2018 IRP Stakeholder Engagement <Click to learn more about Duke Energy Indiana's Integrated Resource Plan (IRP) activities.

We are currently awaiting for information on Duke Energy Indiana's next IRP Stakeholder meeting. The earliest date for the next IRP meeting is mid-October. Furthermore, Duke will be requesting an extension of the Nov 1, 2018, submission deadline of its report to the Indiana Utility Regulatory Commission (IURC).

 

US Sen. Smith Urges Nation to Follow Minnesota’s Lead on Expanding Use of Clean Energy

Posted by Laura Arnold  /   September 14, 2018  /   Posted in Uncategorized  /   No Comments

Image result for mn us senator tina smith

U.S. Senator Tina Smith (D-Minnesota)

IndianaDG Note: Laura Ann Arnold participated in a Midwest Lobby Day on Capitol Hill with the Solar Energy Industries Association (SEIA) on 9/13/18. We visited with Pete Wyckoff, Energy & Environment Policy Advisor to US Senator Tina Smith of Minnesota who shared the following with us.

For Immediate Release:

September 12, 2018

Contact:

Molly Morrissey

molly@smith.senate.gov

202-224-9857

***VIDEO RELEASE***

 

In Floor Speech on Climate Change, Sen. Smith Urges Nation to Follow Minnesota's Lead on Expanding Use of Clean Energy

 

WASHINGTON, D.C. [09/12/18]—In a speech delivered on the Senate floor, U.S. Senator Tina Smith (D-Minn.) said the push to fight climate change is not only urgent, but presents economic opportunities in Minnesota and across the country. She also criticized several actions taken by the Trump administration, including rolling back the Clean Power Plan and pulling out of the Paris Agreement.

Sen. Smith, a member of the Senate Energy Committee, said Minnesota has already benefited from the expanded production and use of clean energy, which has created jobs and economic development in communities across the state. She urged the rest of the nation to follow Minnesota's lead and take advantage of those same benefits. You can watch Sen. Smith's speech here.

“The old idea that responding to climate change would come at the expense of the American economy is outdated and inaccurate,” said Sen. Smith. “The clean energy economy is the economy of the 21st century. We are seeing that every day in Minnesota, which is a national leader in the clean energy transition.”

Earlier this year, Sen. Smith worked to include provisions in the Senate-passed Farm Bill that expanded investment in renewable energy and rural energy programs. She also recently introduced legislation designed to enhance the nation’s energy storage capabilities.

You can read a copy of Sen. Smith's remarks as prepared for delivery below:

Floor Statement on Climate Change

Senator Tina Smith

(as prepared for delivery)

Mr. President, I rise today to join my colleague Senator Whitehouse as he takes to the Senate Floor to speak on climate change for the 219th time. Senator Whitehouse is the Senate leader on climate change and his foresight, his actions and his determination on this issue are remarkable. I’m proud to join him today.

Climate change is a dire threat to our environment and to our children’s future. And yet, if we rise to the challenge of responding to climate change, it will offer us a major economic opportunity—the clean energy transition is already creating jobs, reducing the costs of generating electricity, clearing the air, and improving our health.

The old idea that responding to climate change would come at the expense of the American economy is outdated and inaccurate. The clean energy economy is the economy of the 21st century. We are seeing that every day in Minnesota, which is a national leader in the clean energy transition.

The climate is rapidly changing. These changes are caused by human activities that release greenhouse gases. I know this because it is what science tells us.

In Minnesota, we take special pride in the severity of our winters. But, Minnesota winter temperatures have increased by 6 degrees since 1970, and much more than our pride is at stake with this change. Agricultural and forest pests that were once held in check by severe winter cold are now thriving. Summer temperatures are on pace to make Minnesota as warm as Kansas by the end of the century. Some models suggest that changing climate and spreading pests could eliminate Minnesota’s iconic evergreen forests by 2100.

Urgent action is needed to limit further climate change. If we don’t reduce greenhouse gas emissions to near zero by 2060, the world will cross a dangerous warming threshold—a threshold the United States and other nations have pledged to avoid.

I am deeply worried about these threats, and so are our children, but I am also hopeful, because I have seen how tapping into our abundant wind and sunshine is building a new energy economy that is clean, green, and full of opportunity.

Here’s an example: shortly after becoming a U.S. Senator, I visited the Vetter family farm near Mankato, MN and saw first-hand how renewable energy can provide new sources of income for farmers. The Vetters raise hogs, but they also farm the sun via a 14-acre Community Solar Garden. The Vetters inspired me to become a champion for the Energy Title in the Farm Bill, which provides federal support for rural renewable energy projects.

Just three years ago, Minnesota wasn’t much of a player in solar energy, despite the fact that Minnesota has nearly the same solar potential as Houston, Texas. However, new state policy has led to strong growth in solar energy development. The state began a Community Solar Garden program in 2013, and Minnesota now has enough solar energy to power nearly 120,000 homes. During the first quarter of 2018, Minnesota was 5th in the nation for new solar installations.

Minnesota is a model, but we can expand solar energy to other parts of the country. The southeastern United States and almost all of the western half of our country have as much or more sunshine than Minnesota and lots of opportunity.

Minnesota is new to solar, but we have long been a national leader in wind energy. Today, nearly 20% of our electricity comes from wind turbines. Like solar, the fuel costs for an installed turbine are zero, and so wind energy is sheltered from the ups and downs of fossil fuel prices. Wind energy is also a rural economic engine. A single industrial-sized turbine can bring a farming family 4000 to 8000 dollars in lease revenue every year.

My state is home to the two largest wind and solar installation companies in the country—Mortenson Energy in the Twin Cities and Blattner Energy in rural Avon. Together they have installed non-emitting renewable energy capacity across the country equivalent to over 100 coal plants.

Clean energy brings good jobs. For example, “wind technician” is one of the fastest growing jobs in the country with an average salary of 54,000 dollars—and it doesn’t require a 4-year college degree.

Jobs in Minnesota’s clean energy sector are growing twice as fast as jobs in other parts of our state’s economy, and employers report that they are having trouble finding the skilled workers they need. To address this problem, I recently introduced legislation to help employers partner with high schools and community colleges so students can gain the skills they need to get these jobs.

Last year, renewable energy contributed 25% of the electricity generated in Minnesota. Nuclear power—which also does not release greenhouse gases--contributed an additional 23%. From a climate change perspective, Minnesota is already half way to becoming a 100% percent clean electricity state.

And we are not slowing down. Xcel, our largest utility, is on track to deliver 60% renewable and 85% clean energy by 2030. Great River Energy, which serves many of our rural electric cooperatives, is committed to 50% renewable by that same date. Why are they doing this?  It is not all about saving the planet. Wind energy has become the cheapest way to add new electricity to the Minnesota electrical grid.

Yes, Minnesota is windy, but so is every state in the middle of the country, and—as Senator Whitehouse described—most coastal states have tremendous wind power potential through offshore wind farms.

This summer, the McKnight Foundation released a groundbreaking analysis of what “decarbonizing” Minnesota’s economy would mean. If Minnesota continues to move away from fossil fuels and towards clean energy, we can achieve a dramatic reduction in greenhouse gas emissions by 2050. That would mean an electric mix that includes at least 91% clean energy. The outcome would be total energy bill savings of 600 to 1200 dollars per Minnesota household each year. It would also mean 20,000 more jobs in our state compared to a “business as usual” scenario with continued reliance on fossil fuels.

Given all of the upsides, it is disheartening that President Trump is clearly doing everything in his power to slow down the clean energy transition. He would rather take us backwards than have America remain a world leader pushing forward.

He is pulling the United States out of the Paris Climate Agreement. He is taking steps to roll-back auto fuel efficiency standards and trampling on the rights of states who want to maintain rigorous targets. He has tried repeatedly to keep uneconomic and polluting coal plants open—a move that, if successful, would cost American taxpayers and electric bill payers billions of dollars per year.

In a recent attack on clean energy, President Trump has proposed replacing the Clean Power Plan with an alternative that will actually increase greenhouse gas emissions and—by the Administration’s own calculation—cause up to 1,400 additional death’s per year due to air pollution. And, just yesterday, the Trump administration proposed weakening rules that limit the release of methane, a potent greenhouse gas.

Instead, the federal government can, and should, partner with states to encourage the spread of clean energy. The federal government should help states lead and not hold them back.

First, we should set national clean energy targets. These should be a floor, not a ceiling, setting states free to innovate and adopt the best way to meet emission reductions given their local resources, local economics, and local sensibilities. Second, the federal targets should be technology neutral. The goal is to reduce greenhouse gas emissions. In one place, that might mean wind power, in another, nuclear power. Some states have great hydropower resources, while others might choose to utilize carbon capture and storage upgrades to existing coal plants.

Third, we should work with states to enhance the interstate transmission system. I have talked a lot about what Minnesota is doing on clean energy, and states like California and Hawaii are certainly also leading the way. With transmission, the Texas grid expansion provides a potential national model. That expansion is helping bring clean electricity from the windy western part of Texas to the large cities in the east.

Fourth, the Federal Energy Regulatory Commission must properly account for greenhouse gas emissions when it approves projects. It also should allow states to value their nuclear plants as zero emission sources. And, as the original fleet of nuclear plants retire, it is imperative that they are replaced by non-emitting power sources.

And last, the federal government should expand support for cutting-edge energy research, at our national labs and at state universities. The federal government must also recognize that discoveries in the lab only help if they are actually deployed. We must help states and utilities take risks on new, potentially game changing technologies. To these ends, I recently introduced legislation to help fund both research and initial deployment of new energy storage technologies.

We have everything to lose if we fail to meet the challenge of climate change. That is unacceptable. We owe our children and the next generation a better alternative.

Thank you again to Senator Whitehouse for your leadership on this issue and thank you for inviting me to join you today.

Mr. President, I yield the floor.

Solar farms still a possibility for Knox County (IN)

Posted by Laura Arnold  /   September 09, 2018  /   Posted in solar, Uncategorized  /   No Comments

9/8/2018 10:26:00 AM

Solar farms still a possibility for Knox County, local EDC president says

Jenny McNeece, Vincennes Sun-Commercial Assistant Editor

Producers of solar energy continue to find Knox County appealing, Kent Utt, president of the Knox County Development Corp., told his board of directors on Friday.

Utt said during the board's regular monthly meeting, held at Vincennes University's Isaac K. Beckes Student Union, that he will host yet another meeting next week — the fifth, to be exact — with officials from Tenaska, a solar energy company based in Nebraska.

Utt has been working with Tenaska over the last several months to help them locate as many as 1,500 contiguous acres to either purchase or lease for the development of a solar farm.

“They've realized they need even more land, so I've gone and met with another farmer that owns ground adjacent to the ground they were already interested in,” Utt said. “We had a good visit, and (Tenaska) will be back in town next week.”

Utt isn't yet sure how it will all play out, but he is hopeful that Knox County may soon be home to its first solar farm.

“It's looking like this could move forward,” he said.

Utt said he also recently met representatives of another solar company, Origis Energy in Miami, Florida, and they, too, have paid a visit to Knox County in search of solar farm-appropriate ground.

“The way they've explained it to me is that our climate here is just right for a solar farm,” Utt said. “The amount of sun we receive in a day, the elevation, or really lack thereof, we just have a lot of that flat, sunny land they need.”

The Indianapolis Airport Authority currently operates one of the largest airport solar panel farms in the country. The farm was completed years ago then nearly doubled in size in 2014 to 76,000 solar panels, generating 31 million kilowatt hours, enough to power 3,200 average U.S. homes, according to a report in the Indianapolis Star.

Vectren Corp. announced early this year that it was developing two solar farms in the Evansville area, according to a report by the Associated Press. One is adjacent to Evansville's Oak Cemetery and another is located near North Junior-Senior High School.

Together they are expected to produce 4 megawatts of electricity, enough to power about 600 homes.

Vectren, too, announced plans in March for a 50-megawatt solar farm to be built in Spencer County.

Situated near Troy, it will consist of about 150,000 solar panels, according to a report in the Evansville Courier & Press.

Solar farms continue to pop up across the Hoosier state, but southwest Indiana isn't home to a lot of alternative energy sources, which makes it appealing to companies searching for a place on the grid, Utt said.

Duke Energy is developing a 17-MW solar plant at the Crane Naval Surface Warfare Center, and UDWI REMC and Daviess-Martin REMC along with Hoosier Energy REC have a 1-MW “solar array” along Intestate 69 sough of Bloomfield.

According to the state, Indiana ranks 23rd among the 50 states in solar power with almost 300 MW of generation. That equals almost $475 million in investment providing almost 2,800 jobs.

Over the next five years, again according to the state, another 525 MW of solar power is expected to be added.

These solar farms would bring a generous, short-term contribution to Knox County in that they would provide a lot of construction jobs up front, Utt stated. When completed, however, solar farms typically only employ 4-5 people full-time.

But they do often represent $150 million in capital investment, which would bolster local property tax revenue as solar farms are taxed at a higher rate than agricultural land, Utt said.

“It would just really help with our overall property tax base,” he said.

Aggregation paves the way for a more diverse corporate renewables market

Posted by Laura Arnold  /   September 08, 2018  /   Posted in solar, Uncategorized, wind  /   No Comments

Editor’s note: This essay was contributed by one of the NGOs that make up the Renewable Energy Buyers Alliance (REBA), a consortium dedicated to growing large buyer demand for renewable power and helping utilities and others meet it. You can find the other articles here. REBA’s next annual summit will be Oct. 14-16 in Oakland, California ahead of VERGE 18.

Akamai, Apple, Etsy and Swiss Re last month announced a renewable energy purchase that the four companies negotiated together, with technical support from their advisor 3Degrees.

This deal will lead to the development over the next two years of 125 megawatts (MW) of wind energy near Chicago by Geronimo Energy, and a 165 MW solar photovoltaic array located in Virginia by sPower. Both projects will be connected to the wholesale electricity market PJM and will produce enough electricity to power 74,000 homes.

The collaboration among the four buyers may be the first successful all-corporate execution of "aggregation" — a process whereby two or more buyers leverage their collective purchasing power and enhance their chances of success — in renewable virtual power purchase agreements (VPPAs) in the United States.

Each buyer has a separate contract with the project developers and a different share of the overall 125 MW and 165 MW. Apple is the largest buyer, purchasing 111 MW on the Illinois project and 134 MW on the Virginia project. Akamai signed 9 MW in Illinois and 27 MW in Virginia. Apple, Akamai and Swiss Re shared the wind project, and Etsy joined Apple and Akamai on the solar deal.

By aggregating demand with Apple and Akamai, Etsy was able to sign a 4.5 MW contract, currently the smallest corporate VPPA on record in the United States. If replicated, this procurement model could offer large-scale renewable project access to corporate buyers well beyond the Fortune 500.

Renewable VPPAs: high-impact but challenging for small buyers

The four companies join over 30 other U.S. corporate buyers executing VPPAs with off-site renewable energy projects, which have become the prevalent structure for corporate renewables procurement in the United States.

A VPPA is "virtual" because it does not involve ownership or transfer of electrons. It is a financial transaction wherein a buyer pays a fixed price for electricity in exchange for variable wholesale market prices. This structure offers buyers access to economies of scale and is widely available across U.S. liberalized electricity markets.

A corporate buyer chooses a VPPA for two main reasons: to hedge against rising electricity costs and to make a large-scale renewable energy impact. As more companies set ambitious renewables goals, many aspire to the VPPA model. But it entails a complex deal process and exposes the buyer to financial risk and high transaction costs. These barriers usually prevent smaller and less experienced buyers from participating in this market.

How aggregation helps smaller VPPA buyers

These four deal partners have demonstrated that aggregation greatly can reduce transaction costs, risk and complexity, and that they enable smaller buyers to succeed in VPPAs. The Business Renewables Center (BRC) spoke to Chelsea Mozen, Etsy’s sustainability lead, and Nicola Peill-Moelter, senior director of environmental sustainability at Akamai, to gain insight into their groundbreaking partnership.

The partnership’s aggregation model has three main pillars: alignment and trust among the buyers; a lead buyer signing the largest contracts; and ongoing coordination efforts.

1. Alignment and trust among the buyers

The four companies have a strong commitment to renewable energy. Apple, Etsy and Swiss Re have all pledged to use 100 percent renewable electricity and are members of the RE100 campaign. Akamai has set a goal to use 50 percent renewable energy. What ultimately kept the four buyers together, however, is the trust they gained in one another.

The Akamai–Etsy connection was made at one of BRC’s workshops. Mozen recalls that Etsy was "exploring projects on our own in PJM and was not finding anything that worked for us at the small size we needed. We connected [with Akamai] at the BRC boot camp and the trust and the relationship that we developed there led to our collaboration on this project. [Peill-Moelter] of Akamai directed me to 3Degrees." Swiss Re came in through 3Degrees as well.

Akamai is a supplier of cloud computing services to Apple. Through Apple’s Supplier Clean Energy Program launched in October 2015, their supply chain participants are encouraged to use clean energy.

2. A lead buyer signing the largest contracts

Thanks to Apple being willing to sign the largest contracts with both renewable energy projects, Akamai, Etsy and Swiss Re were able to negotiate favorable contractual terms, including a better VPPA price.

Etsy, a first-time buyer, was able to leverage Apple’s influence on the project developers to finally close a deal. Additionally, being able to work in partnership with an experienced buyer such as Apple was helpful in Etsy’s securing internal approvals for the deal.

Peill-Moelter, a more experienced buyer who already successfully had led Akamai’s first VPPA, 7 MW in the Electric Reliability Council of Texas (ERCOT) market in 2017, also found an advantage in working with a larger lead buyer: "Thanks to Apple being on our side of the negotiation table, we were able to secure … by far a better deal than with Akamai’s earlier project in Texas."

3. Ongoing coordination efforts

The biggest challenge presented by the aggregation model is keeping multiple buyers moving along in the deal process. Each needs to execute on plans and secure internal approvals promptly, to avoid holding up the entire group.

The successful coordination of the aggregation process requires a leader — a buyer or adviser. In the Dutch Wind Consortium (PDF) transactions, AkzoNobel, one of the four buyers, was the initiator and de facto leader of that aggregation initiative. Akamai, Apple, Etsy and Swiss Re delegated this important role to 3Degrees.

"Ensuring the participants had similar objectives and were able to move internal decision making forward on a common timeline, was important…. 3Degrees facilitated these conversations and helped each company reach the point where they could proceed with confidence," said Erin Craig, vice president, energy and climate practice, at 3Degrees.

Replicating the aggregation model

The aggregation model is a powerful proof of concept that collaboration among buyers can help break through some of the market barriers that hold back smaller buyers in large-scale renewables procurement. With care given to three elements, the model can be replicated by other groups of buyers in the United States.

First, developing alignment and trust among the buyers is key.

Second, this aggregation was powerful in giving Akamai, Etsy and Swiss Re access to favorable contract terms. Others looking to replicate their success will require a major buyer partner playing Apple’s role in negotiations with developers.

Third, the concerted action of two or more buyers in aggregation requires advance planning and ongoing coordination. In this example, advisor 3Degrees played that important role.

Learn more about corporate renewable energy procurement at VERGE 18 in October in Oakland, California.

We anticipate the aggregation model will become a familiar contracting method with standardized contracts that buyers, developers and financiers are all comfortable with. Buyers not previously engaged in renewables will gain confidence in knowing that other companies have used this method.

Clearly, there is a good amount of work yet to do for corporate buyers that are not only intent on sourcing renewable energy for themselves, but also passionate about shaping the market for collective benefit. The upcoming REBA Summit at VERGE 18 in October will unite, educate and provide opportunity for over 500 market participants to consider whether renewable energy aggregation is a viable option for reaching their sustainability goals.

Ameren Missouri approved for first pilot subscriber solar program

Posted by Laura Arnold  /   September 06, 2018  /   Posted in Uncategorized  /   No Comments

Ameren Missouri approved for first pilot subscriber solar program

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