Author Archives Laura Arnold

AEP to Buy Power From Ohio Solar Plant Owned by Agile at Former Coal Mine

Posted by Laura Arnold  /   November 04, 2010  /   Posted in Uncategorized  /   No Comments
By Ehren Goossens - Oct 5, 2010

AEP Ohio, a unit of American Electric Power Co., agreed to buy power from a 49.9-megawatt solar project being developed by Agile Energy Inc. and New Harvest Ventures at a former coal mine southeast Ohio.

San Bruno, California-based renewable energy developer Agile and local developer New Harvest signed a 20-year contract for the Turning Point project, AEP said today in a statement.

The project’s first 20 megawatts will come online in late 2012 followed by 15 megawatts added by the end of 2013 and 14.9 megawatts coming online by the end of 2014, the developers said.

Columbus, Ohio-based AEP will build the project on 500 acres of strip-mined land that it reclaimed in Morrow and Noble counties, Terri Flora, a spokeswoman for AEP Ohio, said in an interview. Ohio requires utilities meet 0.5 percent of their power from solar power by 2024. AEP estimates the plant will enable it to meet this requirement “through 2019,” Flora said.

Last week, Ohio Governor Ted Strickland signed an executive order eliminating Ohio’s tangible personal property tax and real property tax for “renewable and advanced” energy project properties, intended to spur increased development.

The order makes effective Senate Bill 232, which Strickland signed into law on June 17, in an effort to implement the rules immediately while the normal rule-making process continues, Mark Shanahan, the governor’s energy adviser, said in an interview.

The tax holiday will affect projects that start construction before 2012, produce energy by 2013 (or 2017 for nuclear, clean coal and cogeneration projects) “and create Ohio jobs,” according to a statement from the governor’s office.

Renewable Requirement

Ohio requires that utilities derive 25 percent of their power from renewable, advanced nuclear or clean-coal energy sources by 2025 under the state’s alternative energy resource standard.

Michael G. Morris, AEP’s chief executive officer, agreed to invest at least $20 million in the project in a press conference held with Strickland and representatives of the companies involved.

Isofoton SA, a Madrid-based solar-panel maker, will manufacture 239,400 panels for the project at a new facility that will be located in Ohio. The companies will spend $3 million on the first phase of the plant, Isofoton’s José Carlos Sánchez-Muliterno said in the press conference.

Albacete, Spain-based Prius Energy S.L. will also manufacture its solar tracking systems, which rotate solar panels to face the sun, at a new plant in Ohio.

In June, South Korea-based Toptec Co. Ltd. and Spanish solar company Affirma acquired Isofoton.

To contact the reporter on this story: Ehren Goossens in New York at egoossens1@bloomberg.net.

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.

The California Solar Paradox: Why Does DRA Overlook the Cost Control Feature of Feed-in Tariffs?

Posted by Laura Arnold  /   November 04, 2010  /   Posted in Uncategorized  /   No Comments

November 3, 2010

Opinion by Paul Gipe

The Division of Ratepayer Advocates (DRA)'s recent report "California's Solar PV Paradox" attempts to explain why the price for utility-managed solar photovoltaic (PV) systems in California was increasing despite the dramatic drop in solar PV prices worldwide. The report then goes on to suggest various remedies so California consumers don't overpay for solar PV.

Unfortunately, the DRA never provides any substantive evidence that utility project prices are increasing.

Worse, the proposed solutions for reining in utility costs of solar PV ignore the world's most successful policy for developing massive amounts of renewable energy while strictly controlling costs: Feed-in Tariffs.

Repeated US-Centric Bias
The report also fails to take a global look at best policy practices, recommending instead that its findings be compared to other US states.

As pointed out by industry analyst Craig Morris, the DRA, in calling for more research on the problem of overpaying for solar in California suggests comparing the state's procurement policies to those in New Jersey--not any country in Europe, not even in Vermont or Ontario.

The trade is abuzz with talk of the out-of-control overpayment for solar PV under New Jersey's REC (Renewable Energy Certificate) market. Certainly comparing California to New Jersey will make California look good. Some industry participants suggest the New Jersey market will collapse shortly as volume approaches the RPS targets and REC prices are expected to fall precipitously.

What would the finding be if we compared California's procurement of solar PV to programs in Ontario, Vermont, Germany, Italy, even in France?

Selling to the Grid?
DRA does suggest exploring feed-in tariffs-in the absolute last sentence of the report. The statement appears almost as an afterthought or a throwaway line: "debate about whether to allow for CSI system 'oversizing' and expanded feed?in tariff provisions to allow for excess solar energy to be sold back to the grid."

The explanation illustrates a fundamental misunderstanding of what feed-in tariffs are and how they work. Successful feed-in tariff policies pay for the "sale of electricity (typically all the electricity generated) to the grid" not "back to" the grid as in net-metering. This is not simply semantics, because it reflects an inherent bias toward "net-metering" which allows delivery of "excess electricity . . . back to the grid".

Subsidies
Systematic bias is most obvious with the use of the politically-charged word "subsidy". The word only appears in connection with China, Spain, and Germany, never with California's RPS program or the CSI program. For example, "Feed?in Tariff programs offered in both nations [Spain and Germany] helped to bolster the market for expensive solar panels by providing subsidies to program participants."

This suggests that there are cash grants from the public till for solar PV in Spain and Germany. While the term subsidy may be applicable with China's support during the period studied, it is clearly not the case with Germany and Spain. Germany and Spain use a policy framework that grants interconnection and pays for the cost of generation. That is, each generator is assured it can connect to the grid and that it will be paid for their generation based on a calculation of what a generic system of that type, size, and application would require for profitable operation. It is neither a subsidy nor an incentive. It is simply payment for what it costs. The amount of this payment or tariff is determined in a transparent public process just as the payment to a regulated utility for generation from a conventional power plant is determined in the US.

There are no taxpayer-funded cash grants for solar PV or wind in Germany and haven't been since 2000.

The more benign but still inaccurate term "incentive" is applied again to China, Spain, and Germany. However, incentive can only be accurately applied to the CSI program to describe the up-front subsidies or in American parlance, "buy-down" or "cash grants".

Again, feed-in tariffs are not "incentives". Feed-in tariff programs pay a fair price for generation. Some programs do offer "incentives" for specific policy objectives. In Ontario, the program pays a "bonus" for projects developed by farmers, community groups and Aboriginal groups.

 Why Did System Costs Drop Only 20%?
The overriding theme of the DRA report is that CSI system costs have dropped 20% and that for utility projects it has not. DRA missed an event bigger finding: Why did CSI costs only drop 20%?

The trade press has been awash in reports that system costs have dropped 40% since the Spanish market collapse. During the period DRA studied, Germany's feed-in tariffs for solar PV-and only for solar PV-have dropped 36%. Could it be that feed-in tariff markets are more competitive than the California solar markets? Could it be that the federal ITC pushes system costs up by an amount almost equal to the federal subsidy? These are questions that are only not answered, they are not even raised.

 The Growing US Market?
Then, on page 6, the authors chime in on another claim that Americans have been making since 2009: "Analysts anticipate that the consumer market for solar PV will continue to shift away from Europe due to waning government support for renewable energy development there and increasing support in countries such as China, India, and the United States."

Unfortunately, there's no footnote for the mysterious "analysts" that made such an outlandish statement.

Let's examine "waning government support". France may install as much solar PV this year as the US did last year. Remember, this is France, a country not known as a hotbed of renewable energy development. Italy will likely install as much solar PV this year as the US has installed in the past 30 years. In June, Germany installed as much solar PV as the US has installed in the past 30 years. In July, Germany installed as much solar PV as the entire US in 2009. Waning support indeed.

 Declining PV Demand
To add insult to injury, there's this on page 7: "Global news sources reported that from 2008 to 2009 the demand for solar PV decreased by 50% and many solar companies, both foreign and US-based, reported quarter-losses and overall drops in revenue in 2009. . . These and other developments have left many solar PV manufacturers and companies watching the market demand for their products diminish virtually overnight." My records indicate that during this period demand increased-not decreased-by 25% and this year demand is up another 40% over 2009.

Where are Utility Solar PV Bid Prices?
DRA's report hinges on its observation that unlike the CSI, whose prices have dropped 20%, bid prices for utility-scale solar PV during the same period have increased. But DRA doesn't provide any data to support its contention. There's a complete absence of transparency in this statement and, hence, in the entire report. Is this because California's RPS program and its bidding mechanism are non-transparent? If that is the case, then not only is the report flawed, but the entire edifice that California uses to develop solar energy is fundamentally flawed.

A public agency, paid for with ratepayer funds, should provide a full and complete accounting of the costs in the utility program that it is criticizing.

Californians would be better served if DRA took a global look at policies and revealed the costs of the utility program. Only then can Californians make an informed choice about how to restore the state's renewable energy leadership it lost more than two decades ago.

Renewables International: Utility-scale Solar PV Prices Increasing in California by Craig Morris

California's Solar PV Paradox: Declining California Solar Initiative Prices and Rising Investor Owned Utility Bid Prices

IURC Issues Latest Draft of Proposed Amendments to Net Metering Rule; Requests Fiscal Impact

Posted by Laura Arnold  /   October 28, 2010  /   Posted in Uncategorized  /   No Comments

Dear IDEA Blog Readers:

I received this on October 26, 2010 via email. My quick review indicates positive changes made to the draft Proposed Rule circulated by the Indiana Utility Regulatory Commission (IURC) on September 1, 2010. IDEA plans to coordinate responses to the fiscal impact questions listed below.

Please contact me if you are interested in joining IDEA's Net Metering Task Force. Laura.Arnold@indianaDG.org or call (317) 635-1701.

Laura Ann Arnold

--------------------------------------------------------------------------------------------

Dear Stakeholder,
 
Attached please find the latest draft of the proposed amendments to the net metering rule.  This encompasses changes made as a result of the recent technical conference.  As you may know, part of administrative rulemaking involves drafting a fiscal impact statement.  That is where the Commission needs your help.  As experts in your field, we need to know how you believe the changes to this rule (from the original rule) will affect customers, utilities, businesses, government, and small businesses (> or = 50% of working days, ≤ 150 employees, the majority working in Indiana).  When providing your comments, please denote if comments are specifically related to small businesses or government. 
 
If you could answer the eight questions below by no later than close of business on Tuesday, November 16, 2010, I would really appreciate it.  When providing any statistics, please cite to the study/expert used to derive those numbers. 
 
Your fiscal impact should be regarding ONLY the impact from the changes to the rule (i.e. not the fiscal impact of requiring a minimum of 1 MW, but the impact of now requiring 1 MW instead of 10 kW).  Please let me know if you have any questions.  I do not need a formal document; it is sufficient to reply to this email with your answers typed below.
 
1.      Generally, what additional costs or savings will you experience as a result of the changes to this rule? 
2.      Estimated number of your customers and your business type (i.e. utility, solar installer, etc.)? 
3.      Compliance costs to comply with the rule?
4.      Administrative costs to comply with the rule?
5.      Reduction of costs to comply with the rule?
6.      Types of costs and benefits (money or non-money) from complying with the rule (especially cost/benefit to state and local government and small businesses)?
7.      Secondary or indirect benefits from complying with the rule?
8.      (required if providing fiscal impact) Sources used to determine the amounts above, such as studies, insurance quotes, etc.
 
Please note, if we do not receive your response by close of business on November 16th, we will assume you see no fiscal impact from this rule.  Thanks in advance for your assistance!
 
DeAnna L. Poon
Administrative Law Judge
Indiana Utility Regulatory Commission
dpoon@urc.in.gov
(317) 232-6735

----------------------------------------------------

LSA No. 10-662 Proposed Rule[1]_filed_22Oct2010

NYT: Climate Change Doubt Is Tea Party Article of Faith; Baron Hill v. Todd Young

Posted by Laura Arnold  /   October 21, 2010  /   Posted in Emissions Trading/Cap and Trade, Federal energy legislation  /   No Comments
October 20, 2010
By JOHN M. BRODER

JASPER, Ind. — At a candidate forum here last week, Representative Baron P. Hill, a threatened Democratic incumbent in a largely conservative southern Indiana district, was endeavoring to explain his unpopular vote for the House cap-and-trade energy bill.

It will create jobs in Indiana, reduce foreign oil imports and address global warming, Mr. Hill said at a debate with Todd Young, a novice Republican candidate who is supported by an array of Indiana Tea Party groups and is a climate change skeptic.

“Climate change is real, and man is causing it,” Mr. Hill said, echoing most climate scientists. “That is indisputable. And we have to do something about it.”

A rain of boos showered Mr. Hill, including a hearty growl from Norman Dennison, a 50-year-old electrician and founder of the Corydon Tea Party.

“It’s a flat-out lie,” Mr. Dennison said in an interview after the debate, adding that he had based his view on the preaching of Rush Limbaugh and the teaching of Scripture. “I read my Bible,” Mr. Dennison said. “He made this earth for us to utilize.”

Skepticism and outright denial of global warming are among the articles of faith of the Tea Party movement, here in Indiana and across the country. For some, it is a matter of religious conviction; for others, it is driven by distrust of those they call the elites. And for others still, efforts to address climate change are seen as a conspiracy to impose world government and a sweeping redistribution of wealth. But all are wary of the Obama administration’s plans to regulate carbon dioxide, a ubiquitous gas, which will require the expansion of government authority into nearly every corner of the economy.

“This so-called climate science is just ridiculous,” said Kelly Khuri, founder of the Clark County Tea Party Patriots. “I think it’s all cyclical.”

“Carbon regulation, cap and trade, it’s all just a money-control avenue,” Ms. Khuri added. “Some people say I’m extreme, but they said the John Birch Society was extreme, too.”

Whatever the party composition of the next Congress, cap and trade is likely dead for the foreseeable future. If dozens of new Republican climate skeptics are swept into Congress, the prospects for assertive federal action to control global warming gases, including regulation by the Environmental Protection Agency, will grow dimmer than they already are.

Those who support the Tea Party movement are considerably more dubious about the existence and effects of global warming than the American public at large, according to a New York Times/CBS News Poll conducted this month. The survey found that only 14 percent of Tea Party supporters said that global warming is an environmental problem that is having an effect now, while 49 percent of the rest of the public believes that it is. More than half of Tea Party supporters said that global warming would have no serious effect at any time in the future, while only 15 percent of other Americans share that view, the poll found.

And 8 percent of Tea Party adherents volunteered that they did not believe global warming exists at all, while only 1 percent of other respondents agreed.

Those views in general align with those of the fossil fuel industries, which have for decades waged a concerted campaign to raise doubts about the science of global warming and to undermine policies devised to address it.

They have created and lavishly financed institutes to produce anti-global-warming studies, paid for rallies and Web sites to question the science, and generated scores of economic analyses that purport to show that policies to reduce emissions of climate-altering gases will have a devastating effect on jobs and the overall economy.

Their views are spread by a number of widely followed conservative opinion leaders, including Mr. Limbaugh, Glenn Beck, Sean Hannity, George Will and Sarah Palin, who oppose government programs to address climate change and who question the credibility and motives of the scientists who have raised alarms about it.

Groups that help support Tea Party candidates include climate change skepticism in their core message. Americans for Prosperity, a group founded and largely financed by oil industry interests, has sponsored what it calls a Regulation Reality Tour to stir up opposition to climate change legislation and federal regulation of carbon emissions. Its Tea Party talking points describe a cap-and-trade system to reduce carbon emissions as “the largest excise tax in history.”

FreedomWorks, another group supported by the oil industry, helps organize Tea Party rallies and distributes fliers urging opposition to federal climate policy, which it calls a “power grab.”

“Any effort to make electricity and fuel more expensive or to cap or regulate CO2 will only exacerbate an already critical situation and cause tremendous economic damage,” FreedomWorks says on its Web site.

The oil, coal and utility industries have collectively spent $500 million just since the beginning of 2009 to lobby against legislation to address climate change and to defeat candidates, like Mr. Hill, who support it, according to a new analysis from the Center for American Progress Action Fund, a left-leaning advocacy group in Washington.

Their message appears to have fallen on receptive ears. Of the 20 Republican Senate candidates in contested races, 19 question the science of global warming and oppose any comprehensive legislation to deal with it, according to a National Journal survey.

The only exception is Mark Steven Kirk, the Republican Senate nominee in Illinois, who was one of only eight Republicans to vote for the House cap-and-trade bill sponsored by Representatives Henry A. Waxman of California and Edward J. Markey of Massachusetts, both Democrats. (One of the other Republican “yes” votes was cast by Representative Michael N. Castle of Delaware, who blames that vote in part for his primary election defeat by Christine O’Donnell, the Tea Party candidate and a global warming skeptic.)

A large majority of Tea Party-supported House candidates also doubt global warming science and oppose energy legislation designed to address it.

Mr. Young, the Indiana Republican nominee trying to unseat Mr. Hill for the Ninth Congressional District seat, strongly opposes cap and trade and other unilateral measures to combat global warming. He says he is uncertain what is causing the observed heating of the planet, adding that it could be caused by sunspots or the normal cycles of nature.

“The science is not settled,” he said in an interview in his headquarters in Bloomington, Ind. And he said that given the scientific uncertainty, it was not wise to make major changes in the nation’s energy economy to reduce carbon emissions.

A third candidate in the Indiana Congressional race, Greg Knott, a libertarian, said he accepted the scientific consensus on climate change but opposed a nationwide cap-and-trade system as the answer.

Lisa Deaton, a small-business owner in Columbus, Ind., who started We the People Indiana, a Tea Party affiliate, is supporting Mr. Young in part because of his stand against climate change legislation.

“They’re trying to use global warming against the people,” Ms. Deaton said. “It takes way our liberty.”

“Being a strong Christian,” she added, “I cannot help but believe the Lord placed a lot of minerals in our country and it’s not there to destroy us.”

NIPSCO Net Metering and Feed-in Tariff (FIT) Case Schedule Revised; NIPSCO Spreadsheet Analysis for FIT Rates Revealed

Posted by Laura Arnold  /   October 06, 2010  /   Posted in Feed-in Tariffs (FiT), Uncategorized  /   No Comments

The second Technical Conference  in the NIPSCO net metering and feed-in tariff case in Cause No. 43922 was conducted Monday afternoon October 4th. 

Most of the Technical Conference was devoted to a spreadsheet analysis presented by NIPSCO supporting its proposed feed-in tariff rates.

See NIPSCO Feed-in Model Spreadsheets

For a general overview, please see the PowerPoint NIPSCO presented at the first Technical Conference.

Net Metering and Feed in Tariff Tech FINAL_9.20.10[1]

One change to the procedural schedule for this case was made which affects the intervention of Indiana Distributed Energy Advocates (IDEA) as well as the Public  or the Office of the Utility Consumer Counselor (OUCC) and Intervenors. The date for the Public and Intervenors to pre-file their testimony has been changed from October 15th to November 10th, however, the other filing dates remain the same. 

If a settlement is not reached amongst the parties to the proceeding, Evidentiary Hearings will commence on December 16th beginning at 1:00 pm and continue on December 17th.

The Indiana Utility Regulatory Commission (IURC) also granted a petition to intervene on behalf of Bio Town Ag which is proposing to build a 2.8 MW anaerobic digester in Reynolds, Indiana.  The other intervenors now include the Citizens Action Coalition (CAC) and the Hoosier Chapter of the Sierra Club.

IDEA is still seeking individuals and companies to financially support intervention in this proceeding. For more information or details on how to support this intervention, please contact Laura Arnold at (317) 635-1701 or Laura.Arnold@indianaDG.org.

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