New Jerseys Clean Energy Program

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New Jerseys Clean Energy Program The College of
NJ Wind Symposium July 23rd, 2009
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Presentation Overview
Agenda

• REIP Overview
• Current Installations vs. RPS
• EPBB Overview
• EPBB Calculator
• NIMBY issues

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New Jersey Profile
REIP Overview

• Today
• 90 MW PV solar
• 4000 installs
• 4.2 MW Biomass
• 7.5 MW Wind
• 1.1 MW Fuel Cells
• Tomorrow
• 1,500 MW Solar
• 3,000 MW Offshore Wind
• 200 MW Onshore Wind
• 900 MW Biomass

• Government Activism
• Energy Master Plan
• NJ RPS
• BPU commitment
• Renewable Resources
• Wind
• Shore, highlands
• Sustained winds of 11 mph
• Solar
• Output 1200 kWh AC
• Biomass
• Includes LFG, WWT, wood residue, food waste and
  aggregation of resources

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Energy Master Plan Goals
REIP Overview

• To provide New Jersey with secure, safe and
  reasonably priced energy supplies and services.
• To encourage and maintain economic growth
  prospects for the State.
• To promote the achievement of Federal and State
  environmental requirements and objective in a low
  cost manner. (Environmental protection and
  impact)

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Energy Master Plan Goals
REIP Overview
100,000
Expected Growth, Business as Usual and Existing
Levels of Energy Efficiency
80,000
80,000
62,000
MWHs of Energy Demand
Conventional Generation
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Energy Master Plan Goals
REIP Overview
100,000
Expected Growth, Business as Usual and Existing
Levels of Energy Efficiency
Energy Efficiency
Goal with 20 Efficiency
80,000
80,000
62,000
MWHs of Energy Demand
Conventional Generation
Conventional Generation
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Energy Master Plan Goals
REIP Overview
100,000
Expected Growth, Business as Usual and Existing
Levels of Energy Efficiency
Energy Efficiency
Energy Efficiency
Goal with 20 Efficiency
80,000
80,000
Renewables
Goal with 20 Class I Renewables, 2.5 Class II
Renewables
62,000
MWHs of Energy Demand
Conventional Generation
Conventional Generation
Conventional Generation
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REIP Overview
New Jersey Wind Market

• The required wind resource (gt11mph) is along the
  shore and highlands.
• Best example of installed project is at ACUA,
  similar interest building among at other coastal
  municipalities
• Small wind projects have run into home rule
  issues first model ordinance adopted by Ocean
  Gate.
• 2009 REIP plans dedicate 7.5M to small wind
  projects.
• REIP supports Behind the Meter (BTM) projects
• Rule changes required to support Group Net
  Metering and Community Wind
• Offshore wind evaluation is underway (summary on
  NJCEP and NJDEP websites)

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New Jersey Wind Resources
EPBB Overview

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Output as a Function of Wind Speed
EPBB Overview
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Output as a Function of Tower Height
EPBB Overview
9,338kWh
6,136kWh
2,709kWh
80
100
60
(a) 10kw system source Mick Sagrillo
Incremental Tower Costs vs Incremental Energy
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NJ Class I Renewable Energy
EPBB Overview
Electric energy produced from

• Solar technologies, photovoltaic technologies,
  wind energy, fuel cells powered by renewable
  fuels, geothermal technologies, wave or tidal
  action,
• and/or methane gas from landfills or a biomass
  facility, provided that the biomass is cultivated
  and harvested in a sustainable manner.
• Types of class I renewable energy that qualify
  for use in meeting the requirements of this
  subchapter are set forth at N.J.A.C. 148-2.5.

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Net-Metering and Interconnection Standards
EPBB Overview

• Interconnection
• State regulations that permit small generators (lt
  2MWs) to be installed behind the meter.
• These generators cannot be sized to over produce
  based on current site consumption.
• Mandates that utilities connect them to the grid.
• Net-Metering
• State regulations that allow interconnected
  generators to offset their electric consumption
  with an on-site resource.
• Allows production of electricity beyond site
  consumption to be sold to the grid and be
  compensated at the wholesale price of energy.

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Renewable Energy Value Drivers
EPBB Overview
Other???
Energy Value
Federal Investment Tax Credit
Capital Cost of System
Overhead Maintenance
Accelerated Depreciation Tax Impact
(S)REC Value
REIP Subsidy
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EPBB Overview
Investment Tax Credit

• 30-percent tax credit for both residential and
  commercial renewable energy installations
•  
• Eliminates the prohibition on utilities from
  benefiting from the credit
• Allows Alternative Minimum Tax (AMT) filers to
  take the credit
• Calculated net of state rebate 

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EPBB Calculations
Wind Incentives - EPBB

• EPBB Incentive levels
• This is different than the previous wind
  incentive level which was calculated on the
  capacity of the system.
• Factors included in calculating annual input
• Location specific wind speed
• Hub Height
• Obstructions within 500 feet

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EPBB Calculations
Renewable Energy Incentive Program - EPBB

• Wind Program Incentive is calculated based upon
  Expected Performance Based Buy-down (EPBB).
• Expected performance based on output
• Specific turbine
• Specific site
• How does the EPBB work?
• Performance calculator calculates output for a
  given location
• Input parameters
• Wind speed at 50m
• System hub height
• Turbine power curve
• The EPBB is designed to produce higher rebates
  for project which maximize power production
• More closely calibrates with goals defined in the
  Renewable Portfolio Standard (RPS) and the Energy
  Master Plan (EMP).

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EPBB Calculations
Renewable Energy Incentive Program - EPBB

• Obtaining locals average annual wind speed
• Wind maps for no charge are available at
• http//firstlook.3tiergroup.com/
• http//www.awstruewind.com/maps/united-states.cfm/
  region/46688
• http//eosweb.larc.nasa.gov
• Additionally a wind resource site assessment may
  be performed even though the average wind speed
  can be determined from the wind maps
• Site assessments are performed by
• Certified site assessor evaluates topography and
  site characteristics to give a more accurate
  evaluation
• Engineering firm performs detailed site
  assessments including wind speed analysis based
  on anemometer readings

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EPBB Calculations
Renewable Energy Incentive Program - EPBB

• Wind turbine equipment currently accepted by the
  program
• If a wind turbine is not presently accepted by
  the program the following information must be
  provided
• Power curve based on one year of actual energy
  production data
• Engineering certification form the manufacturer
  based on the power curve from an independent
  third party
• To apply to the program applicant must complete
  a pre-application for guidance purposes

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Turbine Availability vs. Turbine Size
EPBB Calculations
Larger turbines, MW size turbines, have a two
year wait
Availability
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EPBB Calculations
Small Wind Turbine Height Comparison
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EPBB Calculations

• Wind Generating Facility Pre Construction and
  Permitting Process

Building Permit
Zoning
NJDEP Evaluations
Engineering and Pre Construction
Permit
Wind Resource Evaluation

• Determine Wind Resource and direction
• Site specific evaluation (project owner)

• Engineering- design and seals required
• Equipment Selection
• Turbine
• Tower
• Inverter
• Pre-Construction Permit (owner)
• Site Evaluation
• Facility
• Equipment
• Turbines
• Some turbines have up to a two year lead time

• Facility Pre-Construction Permit process (NJDEP
  CAFRA review if applicable)
• NJDEP is working to streamline the permitting
  process

• Engineering drawings
• Site Map
• Ownership
• NJDEP certifications
• Local Land Use Permit
• Seals Stamps
• Restrictions and variances

• Building Permit
• Electrical

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EPBB Calculations

• Small Wind Permitting

• Local
• land-use
• building
• electrical
• State (DEP)
• CAFRA/Waterfront
• Pinelands
• Highlands
• Well Drilling
• Federal
• FAA
• Bird and Wildlife
• DOD

Model Wind Ordinances Adopted by 8 NJ Communities
NJDEP Fast Track Proposal
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EPBB Calculations
Model Ordinance

• The Model ordinance passed by Ocean Gate was
  designed to allow the development of wind
  projects in their community.
• It acknowledges the NJ BPU Renewable Portfolio
  Standard
• Their current zoning regulations to not inhibit
  the installation of wind projects there were
  unintentional barriers to developing wind
  projects
• The Model Ordinance standardizes and streamlines
  the requirements for permitting wind turbine
  projects
• The ordinance is designed to preserve and protect
  public health and safety without significantly
  increasing the cost or decreasing the efficiency
  of a wind project.
• The ordinance addresses the following issues
• Standards
• Setbacks
• Access
• Permit requirements
• Abandonment
• Administration and enforcement

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Small Scale Wind Myth Busters
NIMBY Issues

• Wind turbines kill birds, bats and butterflies
• Wind turbines are noisy
• The towers are prone to falling over
• Turbines interfere with TV and Radio reception
• Wind turbines hurt property values
• Turbines may throw blades or ice from the blades
• Wind power is expensive and inefficient
• Wind turbines only operate a small percentage of
  the time

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If you have any questions about this
presentation or New Jerseys Clean Energy
Programs, please feel free to contact
Mark Loeser at mark.loeser_at_csgrp.com Phone
732-218-4430