Taking%20Charge%20of%20Our%20Energy%20Future

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Taking Charge of Our Energy Future

• Choosing the Better Pie
• James M. Fenton, Ph.D.Director

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Current Projection
New Generation for 2014
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Why Not?
New Generation for 2014
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Economic Context

• The economic implications of fuel purchases in
  Florida are large
• At 2.50/gal 23 billion/year for automotive
  fuel. Plus another 17 billion/year for
  electricity yields a total of 40 billion/year
• At least half (20 billion per year) leaves
  Floridas economy as fuel payments to other
  states and nations.
• Keeping this money in Florida would result in 40
  to 60 billion/year (2-3 times the 20 billion
  exported) in real economic activity and job
  creation.
• Florida ranks 5th nationally in the amount of
  energy consumed per capita and 3rd in total
  energy consumption. (This statistic does not
  account for tourists.)

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Growth Opportunities

• Florida has one of the nations fastest growing
  populations (1,000 new residents per day),
  promoting rapid expansion of an energy industry
  that imports its fuel supplies.
• 160,000 new homes per year in Florida
• The tourist industry brings upwards of 80 million
  visitors a year to Florida, adding to the
  burgeoning demand.

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Florida Solar Energy Center

• Created in 1975 by the Florida Legislature
• The energy research institute of the state of
  Florida
• Mission is research, testing and education
• More than 9 - 12 million annually in external
  contracts and grants
• The experience, staff (gt140) and capabilities to
  help solve our energy problems and help meet our
  energy needs
• Began as a solar energy center, but grew into
  many new research and development areas
• Housed in one of the worlds most
  energy-efficient buildings.

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Florida Solar Energy Center
Creating Energy Independence Since 1975
A Research Institute of the University of Central
Florida
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FSEC Program Areas

• High-Performance Buildings (energy efficiency)
• Solar Thermal Systems (todays cost-effective
  solution)
• Photovoltaics (solar electricity)
• Testing Certification (protecting Floridas
  citizens)
• Hydrogen and Fuel Cells (the futures fuels and
  engines)
• Education and Training (Floridas workforce for
  today and the future)
• Alternative Fuels Transportation (an
  agricultural opportunity for Florida)

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Some FSEC Highlights

• Our buildings research has helped save state
  residents more than 2.2 billion in energy costs.
• Our solar research has led to more than 250,000
  solar water heating systems installed in the
  state saving homeowners 30 million annually.
• We have trained more than 15,000 industry
  professionals, government officials and others.
• Our PV research has helped accelerate a market
  now growing 30 percent annually.

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The Art of the Possible
The Lakeland House Project
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Efficiency First
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Electric PowerBusiness-as-usual?
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Residential Dominates
2004 Actual Energy Use by Sector (233 TWh)
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Governor Bush on Energy
the cheapest, easiest and fastest kilowatt we
can generate is the one we save through
efficiencies. There is a consensus on
conservation and efficiency, so let us start
there.
Jeb Bush, 2000
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Pay Me Now Or . . .
Pay me more later!
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1 Recommendation

• Create or designate an entity to oversee state
  energy policy. Give it the authority,
  responsibility and appropriations it needs and
  hold it accountable for accomplishing its
  mission.

Source Floridas Energy Future Opportunities
for Our Economy, Environment and
Security. Report to Florida DEP, January
2004. (available online at
www.fsec.ucf.edu)
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New OpportunitiesFederal Tax Credits!
Residential Buildings

• 2,000 to builders of highly efficient new
  residences
• 30 of expenditures, up to 2,000, to purchasers
  of residential solar hot water systems
• 30 of expenditures, up to 2,000, to purchasers
  of residential PV systems.
• Up to 500 for energy-efficiency improvements to
  existing homes.

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Sweetening the Pot

• There are many additional federal income tax
  incentive opportunities in commercial buildings,
  transportation, etc.
• But, . . . If Florida wants to maximize the
  availability of federal income tax incentives and
  transform its marketplace for high-efficiency
  buildings, then Florida will need to step up to
  the plate and provide additional incentives.

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Example Incentives

• Add the following performance-based Florida
  consumer rebates to to the federal income tax
  credits
• Solar hot water systems 0.30 per annual kWh
  equivalent saved
• Home efficiency 0.30 per annual kWh equivalent
  saved
• Photovoltaic systems 2.50 per peak watt
  installed (minimum installation 2 kW-peak)

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Payoff to Florida
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The 25 TWh Example

• 160,000 new Florida homes per year
• 24,000 tax credit homes per year
• 24,000 solar water heaters per year
• 6.2 million existing Florida homes
• 62,000 home improvements (15) per year
• 62,000 solar water heaters per year
• Photovoltaic Systems
• 9,000 PV systems per year (2 kW peak)

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Off-the-Shelf Technology
40 annual energy savings (630)
2.06 kW
2000 sq.ft., 3 BR, single story, concrete block
home
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Florida Benefits
Cumulative Ten Year Totals
Total energy savings 24.7 TWh
Total consumer cost savings 2.47 billion
Total fuel not purchased 1.24 billion
Avoided capacity 1,669 MW
Avoided generation costs 1.67 billion
New jobs 126,000
Tradable renewable energy credits (TRECs) 420 million
CO2 savings 26.4 million tons
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Costs Benefits
Cost (mil) Benefit (GWh)
Example Florida Home Improvement program 374 4,497
2004 Florida DSM program 240 239
50 of Florida Home Improvement costs
covered by federal tax credits actual cost
to Florida is only 187 million per year.
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The Homes Benefit
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A Very Different Result
Old Pie
New Pie