State to start issuing energy grants, loans

From an article by Rick Barrett in the Milwaukee Journal Sentinel:

Businesses and researchers may soon apply for state grants and loans aimed at developing renewable energy, Gov. Jim Doyle said Tuesday.The state expects to award about $15 million per year for 10 years from the newly created Wisconsin Energy Independence Fund, Doyle said at a news conference at Johnson Controls Inc.The money will be used to support research and development of renewable fuels and encourage businesses to adopt new technologies that save energy and use renewable energy.

Typical grants are expected to range from $100,000 to $500,000. Matching funds of at least 50% of total project costs must come from other sources, according to the state Department of Commerce.

Doyle laid out a long-term strategy that he hopes will make Wisconsin a leader in renewable energy. He repeated his call for the state to generate 25% of its electricity and motor fuels from renewable resources by 2025.

 

Governors urge extension of production tax credit for wind

Governor Doyle joined with other Midwestern governors to urge congressional leaders to approve an extension of the production tax credit for wind energy projects.

In the letter to Sen. Harry Reid, Majority Leader; Rep. Nancy Pelosi; Speaker; Sen. Mitch McConnell; Rep. John Boehner, Minority Leader, the governors said:

As Governors of states where the wind industry has had a tremendous impact on our economies, we know that uncertainty of the future of the wind Production Tax Credit (PTC) must be avoided if this burgeoning industry is to thrive in the years ahead. Accordingly, we respectfully ask that Congress act to extend the PTC prior to its expiration in December of 2008, and that the PTC be extended for up to eight years. A longer extension will bring needed stability to the wind industry and spur more wind development at lower overall costs than would otherwise be possible with repeated short-term extensions.

Energy security, energy independence, dependable energy pricing, and positive climate change impact are all compelling reasons why wind energy deserves to be a national priority and receive national support. Transforming the economies of our states is an even more compelling reason. An April 2007 study, “Projections of Wind Generation in the Upper Midwest” states that 11,829 Mega Watts (MW) of wind energy generation worth $22.5 billion will be built in a 12-state region in the next seven years, 2007 to 2013.

 

Midwest renewable energy tracking system begins operations

A story from Yahoo business:

SANTA CLARA, Calif.–(BUSINESS WIRE)–APX, Inc., the leading infrastructure provider for North American environmental and energy markets, is pleased to announce that the Midwest Renewable Energy Tracking System (M-RETS) commenced operations on July 2, one week after the Western Renewable Energy Generation Information System (WREGIS) commenced operations. Both regional implementations were delivered by APX on time, as promised.

Registration is open now for power generators, utilities, marketers and qualified reporting entities wishing to participate in the M-RETS market, subject to verification and approval of the M-RETS administrator. The geographic scope of the environmental market served by M-RETS includes Wisconsin, Minnesota, Iowa, South Dakota, North Dakota, and the province of Manitoba. Several other states and provinces in the region are also expected to join the program. For more information on the program visit www.mrets.org.

The first Renewable Energy Certificates (RECs) under M-RETS will be issued October 15, 2007. A web-based hosted system, APX technology creates and tracks a unique, traceable digital certificate for every MWh of renewable energy generated by generating units registered with M-RETS or imported into M-RETS. Retail electric suppliers use the system’s certificates to report compliance with regulatory requirements set by the states and provinces, including power purchases to meet Renewable Portfolio Standards (RPS), Renewable Energy Standards, or voluntary renewable energy program requirements. The system also records ownership and facilitates transfers of the certificates to support the effective operation and integrity of renewable energy and environmental markets.

The purpose of M-RETS is to support and stimulate a regional trading market and to help participants meet their renewable energy standards and objectives. M-RETS will ensure that goals are achieved in establishing a more balanced energy portfolio for the region. Like many market-oriented systems, renewable energy credit tracking and trading helps keep costs of developing renewable energy down and encourages renewable energy generation. It will also provide the states an ability to further reduce their reliance on fossil fuels and will help reduce greenhouse gas emissions.

 

U.S. small wind needs tax credits

From a study released by the American Wind Energy Association:

AWEA’s newly released 2007 Small Wind Turbine Global Market Study finds that U.S. manufacturers continue to dominate the world market share of small-turbine sales globally. . . .

Demand for small wind, defined as systems having 100 kW in capacity and less, is being driven by concerns about global warming, volatile and rising costs of fossil fuel energy, energy security, and the desire or need for local and independent power. While demand is high and the industry is growing, the AWEA study indicates that the high purchase price of a small wind system is the single largest market barrier. A residential-scale turbine can cost $10,000 to $55,000 installed, which is simply out of reach for many consumers.

“The industry remains strong, but without a federal investment tax credit to help consumers buy these systems, small wind could be hard pressed to keep up with the solar industry,” said Ron Stimmel, AWEA’s small-wind advocate. “Small wind remains the only renewable energy technology without a federal-level tax credit.”

Go to AWEA’s small wind homepage, and link to 2007 AWEA Global Small Wind Market Study.

 

House Farm Bill Boosts Clean Energy Investments

From a press release issued by the Environmnetal Law and Policy Center:

The House Farm Bill [passed July 27] improves existing energy programs and creates several new programs. Key programs include:

The Rural Energy for America Program (REAP) - expands and improves the Farm Bill’s successful Renewable Energy/Energy Efficiency incentives for locally-owned wind power, energy efficiency, solar energy, and other clean energy projects.

Biorefinery expansion - critical to jumpstart advanced biofuels production.

Biomass Research and Development - new research investments for advanced crop-based fuel and power expansion.

Biomass energy reserve - will catalyze sustainable development of energy crops to help meet our nation’s fuel needs and reduce reliance on imported oil.

However, some key programs remain completely unfunded or underfunded. For example the Section 9005 energy technical assistance program, which could save farmers over a billion dollars in energy costs, is completely unfunded. Other programs, such as REAP, require more funding to realize their potential for the country.

 

Madison home features 8.4 kW solar installation

From a story by Alec Luhn in the Wisconsin State Journal:

When he got to what he calls “the mid-life crisis age,” Madison resident Jim Taylor, 45, said he figured “Well, I’m going to have to either buy a sports car or do something.’”

For Taylor, that something was installing an 8.4-kilowatt solar panel array on his roof in April — the largest solar-energy system on a Madison residence.

Although he originally intended to supply only his family’s energy needs, he has been selling his excess energy to Madison Gas & Electric the last two months and now could increase his earnings under a new buyback rate proposed by the utility.

Under the proposal, Taylor would sell all of his energy to MGE at a rate of 25 cents per kilowatt-hour and buy back the portion he needs from the utility’s overall pool of renewable energy at about 10 cents per kilowatt-hour.

 

Senate Dems improve energy provisions in state budget bill

RENEW supports the senate action, as reported in a story by Tom Content in the Milwaukee Journal Sentinel:

Senate Democrats on Friday announced that they had removed a controversial renewable energy provision from the state budget.

They also restored funding for a renewable energy grant program that’s a key priority of Gov. Jim Doyle.

The moves would result in changes to energy provisions included in the budget by the Legislature’s Joint Finance Committee.

 

Energy bill falls short in Senate vote

From the American Wind Energy Association (AWEA):

In a Senate procedural vote on June 21, a tax package containing a five-year production tax credit (PTC) extension as well as a new small-turbine credit was derailed from becoming part of a broader energy policy bill.

Although there were 57 votes to cut off debate on the tax package, and only 36 opposed, it did not receive the 60 votes necessary to defeat a filibuster. Later that day, the Senate approved a limited energy policy bill that also does not contain Democrats’ call for a national renewables portfolio standard (RPS) aimed at boosting reliance on wind, biomass, and other forms of clean energy (see related story). The tax package rejected by the Senate would have cost about $28 billion over 10 years. Under the Democrats’ “pay-as-you-go” budgeting, the bulk of the funding would have come from cutting existing oil and gas subsidies. The legislation called for the PTC to be extended through 2013.

“Given the opportunity for a straight up-or-down vote in the Senate, we would have prevailed on both a five-year PTC extension and a federal RPS,” said AWEA Executive Director Randall Swisher. “We were not given that opportunity.”

Meanwhile, as the Senate bill moves ahead without tax provisions and minus a renewable portfolio standard, the House of Representatives is moving toward adopting a more modest energy tax package, pegged at about $14 billion. That package, which the House Ways & Means Committee approved on June 22, contains a four-year PTC. The bill, however, includes a new complex financial cap that AWEA opposes because it would create financial uncertainty within the industry and cause far fewer wind projects to get built. In contrast to the current PTC, the proposed House version would penalize projects with the highest capacity factors. The bill’s next step is to go to the floor of the full House.

 

More utilities join Focus on Energy

The following list from Focus on Energy shows the utilities that are participating in Focus on Energy as of July 1, 2007. Customers of those utilities are eligible to apply for grants and incentives from Focus.

The first list consists of electric utilities. The second list consists of natural gas utilities. There are 9 new electric utilities participating in July and 3 new gas utilities. These are highlighted in bold.

ELECTRIC UTILITIES PARTICIPATING IN FOCUS
Alliant Energy
Argyle Electric & Water Utility
Belmont Municipal Light & Water
Benton Electric & Water Utility
Bloomer Electric & Water Utility
Cadott Light & Water Department
Cashton Light & Water
Centuria Municipal Electric Utility
Consolidated Water & Power Company
Cornell Municipal Light Department
Cumberland Municipal Utility
Dahlberg Light & Power Company
Eau Claire Energy Cooperative
Elroy Electric & Water Utility
Gresham Water & Electric Plant
Kiel Utilities
La Farge Municipal Utilities
Madison Gas & Electric
Medford Electric Utility
North Central Power Co. Inc.
Northwestern Wisconsin Electric Company
Pardeeville Public Utilities
Pioneer Power & Light Co.
Price Electric Cooperative
Princeton Light & Water Department
Rice Lake Utilities
Richland Electric Cooperative
Scenic Rivers Energy Cooperative
Shawano Municipal Utilities
Shullsburg Electric Utility
Spooner Municipal Electric Utility
Stratford Water & Electric Department
Superior Water, Light & Power Company
Viola Municipal Electric Utility
We Energies
Westfield Electric Company
Wisconsin Public Service Corp.
Wonewoc Water & Light Department
Xcel Energy

NATURAL GAS UTILITIES PARTICIPATING IN FOCUS
Alliant Energy
City Gas Company
Madison Gas & Electric
Midwest Natural Gas, Inc.
St. Croix Valley Natural Gas
Superior Water, Light & Power
We Energies
Wisconsin Public Service
Xcel Energy

 

What’s the payback?

An Environmental Economics Editorial
by Dennis Briley, President, RENEW Board of Directors

We have been acculturated to react with an expected response, “But, what is the payback?” when presented with an investment opportunity. “What’s the payback?” of course means the simple payback method of judging monetary value of an investment. If investment dollars are involved then it is purely an economics question, isn’t it? Yes and no, particularly when the investment involves energy or other environmental resource values. But, we don’t yet seem to be able to articulate a simple, concise, effective alternative way of discussing what economists call “intangibles.”

When considering a capital investment in energy efficiency or renewable energy, wouldn’t we like the financial question replaced with, how much energy, fossil fuel or greenhouse gases am I saving, and is this the best way to obtain the greatest environmental benefit?

It is my observation that earth care is growing momentum. The public seems to be considering renewable energy with favor. Perhaps the time is here for reframing the renewable energy investment as a gift to the earth.

An investment in renewables is a choice, like giving a gift. And choosing to give a gift is viewed as a good thing. We feel good when we give a gift. With an endowment gift to the planet’s health, we don’t need to consider payback.

Marketing renewable energy as a gift would involve a cultural change — a sensitive one, but one with emerging opportunities. We certainly need to acknowledge and respect the mind set of each customer, but to grow the market we need to coax out the fresh insight that may be hidden in the customer’s ever evolving mind.

I hope that we are practicing and experimenting with this dialogue in renewable energy marketing, learning from the process and educating each other.