Resources for Action Rob Pratt Director, Massachusetts Renewable Energy Trust

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Resources for Action Rob PrattDirector,
MassachusettsRenewable Energy Trust

• Presented to
• Berkshire Renewable Energy Leadership SummitJune
  7, 2005 Lenox, Massachusetts

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Renewable Energy Trust

• Funded by a system benefits charge as part of
  1998 electricity restructuring (25 million/year)
• Mission
• Increase the supply of and demand for clean
  energy
• Promote the development of a vibrant
  Massachusetts renewable energy industry
• Maximize benefit to Massachusetts ratepayers
• Managed by the Massachusetts Technology
  Collaborative, the states development agency for
  renewable energy and the innovation economy.

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Renewable Sources

• Wind
• Biomass
• Solar
• Hydroelectric
• Fuel cells
• Ocean Wave/Tidal

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Renewable Energy Cost Trends
100 80 60 40 20 0
4030 20 10 0
Wind
PV
COE cents/kWh
1980 1990 2000 2010 2020
1980 1990 2000 2010 2020
10 8 6 4 20
1512 9 6 30
Biomass
Geothermal
COE cents/kWh
1980 1990 2000 2010 2020
1980 1990 2000 2010 2020
Source U.S. National Renewable Energy
Laboratories
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Renewable Energy Capacity Trends
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Fossil Fuel PricesCrude Oil
Oil prices 57/barrel and heading up?
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Fossil Fuel PricesNatural Gas
12-mo. NG prices Over 7.7/MMBtu
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Reasons for Optimism

• Cost of renewable technology continues to
  decrease while fossil fuel prices increase
• Renewables demand continues to increase
• 19 states have RPS requirements
• 15 states have funds dedicated to renewables
• Voluntary markets are starting to form
  (particularly for CI customers)
• Utilities, oil companies and major energy
  companies are becoming major players in renewable
  energy market

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Renewable Energy Trust Programs

• Clean Energy
• Supporting large-scale clean energy development
  in the state
• Educating Massachusetts citizens, teachers, and
  students about the benefits of clean energy
• Green Buildings and Infrastructure
• Developing green building projects powered by
  clean energy
• Industry Support
• Accelerating job growth, economic development,
  and technological innovation in the state
• Policy Unit
• Collaborating with interested stakeholders to
  address market and regulatory barriers to new
  clean energy development

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Massachusetts Renewable Portfolio Standard (RPS)

• Facility Eligibility
• Wind, solar PV, landfill gas, biomass, ocean
• Applies to utilities and competitive suppliers
• Ways to Comply
• Renewable Energy Certificates (RECs)
• Alternative Compliance Payment (50/MWh)

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New England Renewable Energy Certificates

• New England Generation Information System
  (NE-GIS)
• System to track attributes of power generated in
  New England
• Goal separate attributes from energy
• Encourage flexible trading across region
• RECs are from eligible renewables in any NE state
• Six month shift between production and REC
  creation

Energy (MWh) Generated in Q1
Q1 2005 RECs created/traded in Q3
Time shift to REC creation
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Large-Scale Renewable Energy Support

• Massachusetts Green Power Partnership (MGPP)
• Goal Provide REC revenue certainty to developers
  through long-term contracts (up to 10 years).
• Trust manages market risks regarding future REC
  value and demand
• Predevelopment Financing
• Goal Provide early-stage support for large
  renewable energy projects serving Massachusetts
• Grants available to public entities
• Financing available to all eligible applicants

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Community Wind Initiative

• Goal Help MA cities and towns tap into the power
  of the wind to
• meet local electricity needs and
• be a potential source of revenue.
• Communities can participate by
• Developing and hosting local, community-scale
  wind turbines. Trust assistance includes
• wind monitoring equipment and data analysis,
• technical assistance, and
• access to competitively secured resources (e.g.
  wind turbines)
• 2. Communities that do not have adequate wind
  can
• participate as part of a regional development or
• by purchasing clean electricity from a nearby
  wind turbine

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Large Renewables Initiative formerly known as
Commercial, Industrial Institutional

• 8.9 million budgeted over 5 years
• Over 10 kW projects no upper size limit
• Up to 650,000 per project available
• All renewable technologies can apply
• Next round applications due in September
• Investor owned electric utility areas only
• Extra for public buildings, economic target
  areas, low income housing, etc.
• Must participate in efficiency programs

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Small Renewables Initiative

• 5 million available over 3 5 years
• 10 kW or smaller projects are eligible
• Rebates for PV, wind, or micro-hydro
• Open or rolling application process
• Apply anytime applications processed monthly
• Applications available on MTC website
• Applications must be pre-approved!

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Massachusetts Clean Energy Choice

• Ratepayers can choose to pay a premium on their
  monthly electric bill to support renewables.
• MTC matches each dollar of household or small
  business support with
• Up to 1 to the consumer's community for
  renewable energy educational materials or
  projects.
• NOTE These funds may be combined with the Small
  Renewables Initiative rebates to cover up to 100
  of project costs on a municipally-owned facility!
  
• Up to 1 additional to low-income energy
  projects
• 2.5 million in matching funding available
  annually
• To learn more visit www.cleanenergychoice.org

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Hedge Program

• Supports pursuit of long-term, price certain
  power for Massachusetts end-users
• Long-term contracts with renewable energy
  generators provide a hedge against fossil fuel
  price volatility
• Supports financing of renewable generation
  facilities

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Green Buildings

• 1/3 of U.S. energy consumption is used for
  heating, cooling, lighting and appliances in
  buildings.
• Green Buildings
• Encourage the combination of high-performance
  design, energy efficiency and renewable energy
• Reduce the energy consumption of this sector
• Enhance the sustainability of the built
  environment
• Trust commitment to Green Buildings
• Financial and technical support to include
  renewable energy technologies in Green Buildings
• Encouraging designs and solutions that are
  replicable
• Documenting and disseminating lessons learned

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Green Schools Initiative

• Partnership between MTC and MA Dept. of Education
• Promotes high performance green design in new
  schools and major renovations
• Goal is a new set of standards for school
  construction in MA

Schematic new Dedham Middle School Drawing by
Dore and Whittier, Inc.

• MTC provided funding for
• 16 pilot schools (each received up to 130k for
  design and up to 500k for construction)
• 38 schools received feasibility study grants _at_
  20k each
• Dept. of Ed. adds 2 to total state construction
  grant for eligible projects

Skylight - Capuano School in Somerville. Photo
by HMFH Architects, Inc.
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Affordable Green Housing Initiative

• 10.6 million budgeted over 5 years
• Partnerships w/ MassHousing and others
• Coordinate with Energy Star Homes
• All renewable technologies can apply
• Investor owned electric utility areas only
• Must participate in efficiency programs
• Leveraging other funds for green elements of
  the projects

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Industry Support Program

• Goal accelerate job growth and economic
  development in the MA Renewable Energy industry
  cluster
• Massachusetts Green Energy Fund (MGEF)
• a privately managed venture capital fund
• Sustainable Energy Economic Development (SEED)
  Initiative
• Invest with companies that have yet to
  demonstrate commercial viability of their tech.
• Emerging Technology Solicitation
• Grants to demonstrate emerging renewable energy
  technologies at the commercial scale

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Investing in Massachusetts Clean Energy Economy

• Win-win
• Leverage MA strengths technology, offshore
  resources, human capital
• Massachusetts Clean Energy Cluster
• Approx. 10,000 jobs today
• One of top states in U.S. on per capita basis
• Experienced double digit growth last year
• Accelerates technology innovation and adaptation
• MRET can be a lead and patient investor where
  technology-intensive product development bears
  high costs
• . . . And beyond Massachusetts
• A geographic focus can nevertheless have a global
  perspective (e.g., PV Export, MGEF)
• Funding many technologies will prove more robust
  than a single bet

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. . . and investors are interested
Compiled by UMass EBTC 2004
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Trust Accomplishments

• As of December 2004
• More than 119 million invested in more than 350
  projects serving Massachusetts
• Supporting approximately 226.52 MW of new
  renewables
• Planning and siting support for 7 projects
  expected to result in additional 630 MW
• 47 green buildings funded
• 93 green building feasibility studies funded

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For more informationwww.masstech.org