FLORIDA RENEWABLE PORTFOLIO STANDARDS: IMPACTS AND OPPORTUNITIES

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FLORIDA RENEWABLE PORTFOLIO STANDARDS IMPACTS
AND OPPORTUNITIES Florida Renewable Energy
Producers Association Presented by Michael
Dobson
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ABOUT FREPA
The Florida Renewable Energy Producers
Association represents renewable energy producers
interested in project development in Florida.
FREPAs main goal is to advocate for policy and
fiscal incentives, a favorable regulatory
environment, and programs that promote research
and spur growth in the use of renewable energy
sources in the Sunshine State.
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RPS ECONOMIC GROWTH CLEANER ENVIRONMENT
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RPS A renewable electricity standardalso known
as a renewable portfolio standard or RPSis a
cost-effective, market-based policy that requires
electric utilities to gradually increase
their use of renewable energy resources such
as wind, solar, and bioenergy. Currently, 23
states and the District of Columbia have enacted
renewable energy standards - and evidence shows
those states are meeting the standards, realizing
positive environmental impacts and generating
economic growth. Florida is positioned to be
THE leader in the Southeast.
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Renewable Portfolio Standards
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CONCERNS ABOUT RPS

• Rate payers may see an increase in their monthly
  bills.
• The standards will be impossible to reach because
  there are not enough resources in the state or
  there is not enough renewable energy activity.
• Its a mandate and no one likes mandates.

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A QUESTION OF RESOURCES AND DEVELOPMENT
The Governors executive order proposes a RPS
standard of 20 by 2020---- can Florida meet such
a goal? Does Florida have available homegrown
resources that are plentiful enough to reach the
Governors goal? What are Floridas renewable
resources? What is Floridas track record in
renewable energy projects? What has contributed
to Floridas track record with regard to
renewable energy projects being realized? What
will need to change in the regulatory environment
and business attitudes that will make Florida an
attractive place for renewable energy
development?
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THE FUTURE IS NOW

• Nature offers a variety of freely available
  options for producing energy. It is mainly a
  question of how to convert sunlight, wind,
  biomass or water into electricity, heat or power
  as efficiently, sustainably and cost-effectively
  as possible.
• Decades of technological progress have seen
  renewable energy technologies such as wind
  turbines, solar photovoltaic panels, biomass
  power plants and solar thermal collections move
  steadily into the mainstream.
• The global market for renewable energy is growing
  dramatically in 2006 its turnover was US 38
  billion, 36 more than in the previous year .

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BEST KEPT SECRET RENEWABLE SOURCE THE SUN
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FLORIDA NATURAL RESOURCES TO ENERGY USING PROVEN
TECHNOLOGY
Agricultural Community Develop an agricultural
resource map that provides expected available
resources for biomass electric generation. Provide
incentives that will encourage investors and
developers to pursue and develop projects in the
state of Florida. The Sunshine State Create
incentives for large scale solar projects so that
the economics have a better chance at working.
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KEY ELEMENTS OF A SUCCESSFUL RPS PROGRAM IN
FLORIDA

• Identify feedstocks and resources that can
  generate power today.
• Obtain an up- to- date and usable catalog of
  available feedstock and resources
• Develop incentives geared toward helping
  developers with the economics of a renewable
  energy project.
• Make sure that incentives are long-term and
  consistent from year to year to secure investor
  interest into the state.
• Put more focus and investment into proven
  technologies.
• Promote flexibility from utilities on price
  (i.e., utilities must work with renewable
  producers to make projects work),
• Encourage utilities to factor in the lifespan of
  a project in cost considerations.

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COST OF DOING BUSINESS AS USUAL/ECONOMIC IMPACT

• Cost and accessibility of renewable energy must
  be tempered by the fact that
• Costs for providing electricity in Florida based
  on natural gas, coal or fossil fuels will
  continue to increase due to our growing economy
  and population.
• The increased demand for power, fossil fuel
  prices and the abundance of our natural resources
  requires us to diversify Floridas energy
  portfolio.

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WHEN UTILITIES TAKE THE LEAD
JEA - Clean Power Program Last DSIRE Review
01/23/2007    In November 1999, JEA signed a
Memorandum of Understanding with the Sierra Club
and the American Lung Association of Florida that
details the municipal utility's commitment to
generate at least 7.5 of its electric capacity
from "clean and green energy sources" by 2015.
Eligible renewable-energy resources include
solar, biomass, biogas (methane from landfills
and sewage treatment plants), and wind.   In
addition, under the Solar Incentive Program, JEA
assumes part of the cost of residential and
commercial solar water heaters and photovoltaic
(PV) systems. JEA has noted that it is the
largest producer of solar power in Florida and
the only utility in the United States to install
solar systems in every high school in its service
territory. In addition, JEA provides training and
curricula to high school teachers to educate
students about solar energy.
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WHAT DOES RPS COST UTILITIES?
FACT IS The cost of renewable is not easily
quantified because each renewable energy
technology is different, with a different set of
economic variables. WHAT WE KNOW IS The cost
to build a new renewable facility plant has
significant cost , however, the life cycle and
the cost of natural resources for fuel more than
makes up for it (i.e., solar panels last up to 40
years and sun is free) ALSO CONSIDER During the
life cycle of a renewable project operation, the
cost of fossil fuel and natural gas will continue
to rise and so will the population of Florida and
demand for energy.
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RPS-WHATS IN IT FOR FLORIDA?

• We become good stewards of our planet by reducing
  emissions.
• We create a new industry in Florida.
• We generate an alternative to conventional energy
  sources.
• We contribute to national and economic security.

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RPS ECONOMIC IMPACT IN THE STATE FLORIDA
Job Creation 3,500 new jobs in
Florida. Economic Development 1.2 billion in
new capital investment 1.4 billion in income to
farmers and rural landowners, 10 million in
new local tax revenue Consumer Savings 110
million in lower electricity and natural gas
bills by 2020 820 million by 2030 SOURCE
Union of Concerned Scientists
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WHO IS KEY TO MAKING RPS WORK IN FLORIDA?

• PUBLIC SECTOR
• Governor
• Florida Legislature
• Florida Public Service Commission
• Florida Energy Commission
• PRIVATE SECTOR
• Investment community
• Renewable energy developers
• Utilities
• Florida businesses
• CONSUMERS
• You and me

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ENVIRONMENTAL IMPACT OF RPS

• HUGE!!!
• It will allow nature to provide our energy as it
  should be naturally,
• Our children will have cleaner air and ultimately
  cleaner water,
• Fewer pollutants are released into the ozone
  layer, therefore reducing green house gas
  emissions

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MORE RENEWABLE ENERGYRPS
More renewable energy will become a reality in
our state when we create the right business and
political climate to make renewable energy
development a part of the Florida economy.
Renewable energy investors and developers need
to know that we are a friendly state to do
business in. An RPS will change our image,
regardless of the percentage. LETS MAKE IT
WORK!