Sustainable Energy Strategies

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Sustainable Energy Strategies

• Chuck Sathrum
• State Energy Office
• September 28, 2007

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State Energy Office

• Advancing energy efficiency in industrial,
  utility, transportation, government, and
  residential sectors.
• Developing the states abundant renewable energy
  resources.
• Accelerating use of alternative fuels and
  vehicles.
• Responding to energy emergencies.

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America is the Worlds Largest Energy Consumer
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NC Energy Use RISING!
North Carolina Energy Outlook, 2003
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Up to 55 more energy needed by 2030
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World Oil In Perspective
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The World According to Peak Oil
2050
1930
2010
1970
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U.S. Petroleum Production, Consumption, and Net
Imports, 1970-2025 (million barrels per day)
History
Projections
Consumption
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Net Imports
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Production
Annual Energy Outlook 2005
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Where the Oil is
Russia
Norway
Azerbaijan
Canada
Kazakhstan
China
India
United States
Iraq
Vietnam
Iran
Malaysia
Mexico
Colombia
Egypt
Kuwait
Algeria
Libya
Sudan
Venezuela
Nigeria
Qatar
Saudi Arabia
Equador
UAE
Brazil
And How Much They Consume (thousands of barrels
per day)
10,000
5,000 - 9,999
2,000 - 4,999
1,000 - 1,999
0 - 999
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Where the Gas is
Russia, Iran and Qatar have over 50 of proven
global gas reserves
Russia 26
UK 0.3
Iran 15
USA 3
Qatar 14

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Katrina and Rita

• 29 of Refinery Capacity Brought Down
• 66 of Gulf oil production shut-in
• 54 of Gulf natural gas production out
• 16 Natural Gas processing plants down
• Impacts spilled over to economy
• NC vulnerable reliant on two pipelines with
  little storage

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Energy Flows In North Carolina
Electricity 409 TBtu
10TBtu
23 TBtu
SolarThermal1 TBtu
Hydro33 TBtu
Wood, Waste, Biomass 96 TBtu
Electrical Losses 734 TBtu
SO2 47 ktons
NOx 312 ktons
CO2 57 million tons
CO2 69 million tons
NOx 319 ktons
SO2 636 ktons
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Ozone Nonattainment Areas
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Acid Rain DevastationGrandfather Mountain, NC
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Air Pollutions Impact on HealthFocus North
Carolina

• EPA studies
• 1/3 to 1/2 asthma in NC due to air pollution
• Every summer in NC, air pollution causes an extra
  240,000 asthma attacks, 6,300 emergency room
  visits, and 1,900 hospital admissions

• (Source Clay Ballentine, M.D., Asheville, NC)

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Sea Level Rise Climate Change
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Global Warming
USEPA, USDOE
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State Energy Plan

• NC Energy Policy Council
• Establishes a Comprehensive Energy Policy for NC
• 92 Recommendations with 20 Top Priorities
• Revised Every Three Years In Process Now
• available at www.EnergyNC.net

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Energy Efficiencys Contribution to our Energy
Supply
National Energy Supply (TBtus)
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State Action Can Make a Difference!
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The Last Frontier Employing EE in the
Southeast

• Fastest growing region in the U.S. in terms of
  population growth housing starts
• Electricity demand projected to grow almost 50
  within the next decade
• Currently spends only one-fifth the national
  average, per capita, on energy efficiency programs

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Utility Savings Initiative (USI)

• Comprehensive energy management program for all
  state facilities.
• Goal is to reduce energy consumption by 20 by
  2010, 30 by 2015
• 100 million square feet state-owned property
• States Energy and Water Bill 334 M in 2006-07
  (Office of State Controller)

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Avoided Costs Reported thru 2005-06

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Senate Bill 668 Sustainable Energy Efficient
Buildings Program

• Ratified August 2007
• New buildings
• 30 better than ASHRAE 90.1 2004 edition
• Major renovations 20 better
• Commissioning required
• Life cycle cost analysis required beyond first
  costs
• Existing buildings (152,912 Btu/gsf/yr)
• 20 reduction by 2010 (122,330 Btu/gsf/yr)
• 30 reduction by 2015 (107,038 Btu/gsf/yr)

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Energy Management Program Results 1988 to 2005

• 800 surveys completed
• 75.9 MW saved
• 40.4 million annual cost savings
• 38.7 million initial investment
• 11,466 Workshop Attendees in 511 Workshops
• 355 million Total Economic Benefit
  recommended/170 million implemented

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Upgrade and Save

• Program for Manufactured Housing
• Upgrade from electric furnace to high efficiency
  heat pump
• Energy Costs can be 400/month in the winter
• Cost of 500/home
• Savings of 350-700/winter
• Payback is 1-2 years

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Renewable Energy

• Electricity generated from renewable resources
  sun, wind, biomass, geothermal, water
• High Technology Growth Industries
• Annual Growth, 2005 2014, projected at 23
  annually
• Market is doubling every 3 years, projected at
  167 billion in 2015
• Demand Routinely Outstrips Supply
• SOLD OUT - American Wind and Solar manufacturers
  sold-out in 2005-06

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Renewable Energy Cost Trends
Levelized cost of energy in constant 20051
Source NREL Energy Analysis Office
(www.nrel.gov/analysis/docs/cost_curves_2005.ppt)
1These graphs are reflections of historical cost
trends NOT precise annual historical data. DRAFT
November 2005
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Renewable Portfolio Standard (RPS)

• Policy tool that sets requirement for retail
  sellers of electricity to provide a minimum
  portion of their electricity portfolio from
  renewable resources
• Renewable Energy Certificate (REC) tradable
  instrument equal to one unit of energy derived
  from a renewable energy resource
• May include energy savings from Energy Efficiency
• Green tags or white tags

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DSIRE www.dsireusa.org


September 2007
Renewables Portfolio Standards
MN 25 by 2025 (Xcel 30 by 2020)
ME 30 by 2000 10 by 2017 - new RE
VT RE meets load growth by 2012
WA 15 by 2020

• NH 23.8 in 2025

ND 10 by 2015
WI requirement varies by utility 10 by 2015
goal
MA 4 by 2009 1 annual increase
MT 15 by 2015
OR 25 by 2025 (large utilities) 5 - 10 by
2025 (smaller utilities)
RI 16 by 2020
CT 23 by 2020
IA 105 MW

• NV 20 by 2015

• NY 24 by 2013

• NJ 22.5 by 2021

• CO 20 by 2020 (IOUs)
• 10 by 2020 (co-ops large munis)

IL 25 by 2025

• PA 18¹ by 2020

CA 20 by 2010
MO 11 by 2020

• MD 9.5 in 2022

• NC 12.5 by 2021 (IOUs)
• 10 by 2018 (co-ops munis)

• AZ 15 by 2025

• DE 20 by 2019

• DC 11 by 2022

• NM 20 by 2020 (IOUs)
• 10 by 2020 (co-ops)

VA 12 by 2022
TX 5,880 MW by 2015
State RPS
HI 20 by 2020
State Goal

• Minimum solar or customer-sited RE requirement
• Increased credit for solar or customer-sited RE
• ¹PA 8 Tier I / 10 Tier II (includes
  non-renewables)

Solar water heating eligible
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NCs REPS Mandate

• Applies to IOUs, rural coops munis
• 3 in 2012, 6 by 2015, 10 by 2018
• IOUs up to 2.5 met through EE savings
• No limit on EE contribution for others
• For IOUs, mandate increases to 12.5 by 2021,
  with up to 5 met through Energy Efficiency

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North Carolina Solar Center

• Demonstration, Training Technical Assistance
• NCSU Solar House
• passive solar, solar water heating, PV,
  geothermal heat pump
• 70 Winter/heating

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NC GreenPower
Supplementing electric generation with green
energy solar, wind, biomass, and hydro

• Pays a premium above avoided cost for green
  power
• Residential rates
• 4 per 100 kWh
• Corporate rates 2.50 per 100 kWh
• NC - generated

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Selling PV Energy to NC GreenPower

• 2 kW PV Array
• Grid Interconnected
• NC-focused
• Selling Energy to NC GreenPower for 18 per kWh
• Solar DHW
• Apex, NC

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Buildings, greenhouses, glassblowing and ceramics
kiln heated by landfill methane gas.
Regional Conservation District, Cultural
Resources, EPA, USDA, Foundations, Community
College
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Wind Power at 50 meters
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Wind Power Benefits

• 5 million kWh/yr
• 500 homes
• 500,000/yr green power, keeps in NC
• Saves 7.5 million lbs CO2
• 2nd crop for farmers
• Quiet, no water use, small footprint, no
  emissions
• 2,450 MW Potential in NC

1.5 mW turbine
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Cost of Wind Energy Trend
1979 40 cents/kWh
2000 4 - 6 cents/kWh

• Increased Turbine Size
• RD Advances
• Manufacturing Improvements

Lake Benton, Minnesota wind farm 4 cents/kWh
2004 3 4.5 cents/kWh
Slide courtesy of NREL
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Biomass Resources/Uses

• Bioethanol (corn)
• Biodiesel (soy)
• Methane (Animal Waste to biogas)
• Co-firing and Boiler Fuel
• Electricity Production
• On-Farm opportunities (wind)

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Bioenergy in North Carolina

• New income and employment source for rural NC
• Economic growth and multiplier effect for entire
  state as Bioenergy replaces purchases of fossil
  fuels from outside of NC
• Reduces greenhouse gas emissions

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Where is NCs Biomass?
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Alternative Fuels

• Ethanol 6,000 state vehicles/E-85
• E-10 useable by anyone/MTBE Ban
• Biodiesel Soybean/Canola/Waste Oil
• 20 blend can be used by everyone
• State and UNC must cut petroleum use by 20 by
  end of 2009
• Triangle Clean Cities Program
• Hybrids/CNG/Propane

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Building to High Performance and Sustainability
Principles

• Energy Efficiency
• Renewable Energy
• Water Conservation
• Recycled Materials
• Waste Minimization
• Indoor Air Quality

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NC Arboretum 1st State High Performance Building

• Daylighting, green roof, solar hot water,
  rainwater catchment, geothermal heat pump, and
  natural ventilation
• HPB Guidelines based on LEEDS rating system
• 10,400 sf building interior space

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Building Materials?

• Recycled Renewable Materials

Bamboo and Cork Flooring From renewable hardwoods
Flooring from Recycled Rubber Tires
Siding, nails and rockwool insulation from
Recycled Steel products
Beams and finish trim from Reclaimed Timber
Even recycled bricks!
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NC Tax Credits

• 35 for Renewable Energy Applications
• Up to 2.5 million/application for industrial and
  commercial
• Up to 10,500 for consumers
• 25 credit for alternative fuel plants
• 25 credit for alt. fuels infrastructure
• Can be stacked on federal credits
• www.dsireusa.org
• www.eere.energy.gov/afdc

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Steps to a Sustainable Energy Future

• State Local Government Lead by Example in
  Buildings, Fleets Practices
• Buy-in at the Top
• Community Strategic Energy Plan
• Energy Efficiency avoid 20 of energy costs
• Renewable Energy 10 in 10 Years
• Engage Industry Green to Gold
• Build to High Performance Standards
• Weatherize Nonprofit Agencies Schools
• Alternative Fuels for Fleets, Buy Hybrid/Flex
  Fuel Vehicles

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And

• Recycle, Repurpose, Cradle to Cradle Buying
• Use Creative Financing Strategies
• Curricula for K-12s and Community Colleges
• Utilize Daylighting in Facilities
• Tap Landfill Gas
• Passive Solar for Residential
• Solar Water Heating/Electricity
• Call your State Energy Office!

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Contact Information

• State Energy OfficeN.C. Department of
  Administration1830 A Tillery PlaceRaleigh, NC
  27604-1376
• Mailing Address
• 1340 Mail Service CenterRaleigh, NC 27699-1340
• 919-733-2230-telephone[phone] (NC
  only)919-733-2953-fax
• www.energync.net