Title: Renewable Energy Project Economics, Policy and Incentives
1Renewable Energy Project Economics, Policy and
Incentives
- NARUC Staff Subcommittee on
- Accounting and Finance
- October 8, 2007
Dr. Lola Infante Manager, Generation Fuels and M
arket Analysis
2Renewable energy Economics, barriers and
incentives
- Market penetration
- Renewables share in power generation remains
modest
- Growth driven by wind
- Drivers
- Renewable energy standards
- Financial incentives
- Cost remains a main barrier for renewable
deployment
- Capital cost
- Transmission and integration
- Intermittency requires additional reserves
- Growth will depend on policy and technology
developments
3Energy Sources and Uses
Sources U.S. Department of Energy, Energy
Information Administration, 2004 data.
4Renewable Energy Net Generation - 2006
Includes wind, solar, biomass and other
non-hydropower renewable energy sources.
Includes generation by batteries, chemicals,
pitch, and purchased steam. Source U.S. Depart
ment of Energy, Energy Information
Administration, 2006 data
5Growth of renewables
Source U.S. Department of Energy, Energy
Information Administration, 2006 data
6Growth of Wind
million MWh
Sources EIA Electric Power Monthly and EIA
Electric Power Annual.
7Renewable generation in the states generation mix
Data U.S. Department of Energy, Energy
Information Administration, 2006 data
Only shown the states with total renewable
generation 1
8Where renewable generation is
Wind
Data U.S. Department of Energy, Energy
Information Administration, 2006 data
Only shown the states with total renewable
generation 1 of US total
9Drivers
- Renewable Energy Standards in the states (26
DC) create a regulatory demand for renewables
- The PTC and other financial incentives
facilitate the financing of new capacity and
lower its cost
1026 States The District of Columbia Have
Renewable Energy Standards
11Resources Wind Power
Source NREL, Wind Energy Resource Atlas of the
United States
12Resources Solar Radiation Tracking Concentrator
Source NREL
13Resources Biomass
Source NREL
14Resources Geothermal
Source NREL, Geothermal Resources Estimates for
the US, Technical Report, NREL/TP-840-40665, Nov.
2006
15Costs are increasing Wind Power Prices
16Costs are increasing Project costs increases are
a function of turbine prices
17Transmission Access for Renewable Energy
Source Global Energy Decisions, Inc., The
Velocity Suite
18Future Contribution of Renewables to the National
Fuel Mix
BAU - generation
2030
2006
Source U.S. Department of Energy, Energy
Information Administration, Annual Energy Outlook
2007 Early Release
Source U.S. Department of Energy, Energy
Information
Administration, 2006 data
19Future Contribution of Renewables to the National
Fuel Mix
20- Thank you!
- Contact information
- Lola Infante
- linfante_at_eei.org
- (202)508-5133