TVA Green Power Switch

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TVAGreen Power Switch

• Southern Bio-Products Conference
• March 5, 2004

Gary Harris, Senior Manager Marketing
Initiatives Tennessee Valley Authority
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TVA

• 29,500 MW
• 11 Fossil Plants
• 29 Hydroelectric Plants
• 3 Nuclear Plants
• 4 Combustion Turbine Plants
• 17 Green Power Switch Sites
• 1 Pump Storage Facility
• 17 Thousand Miles of Transmission Lines
• 158 Power Distributors, 170 Counties
• 80,000 Square Mile Service Area, 7 States
• 8.3 Million Residential Customers
• 13,000 Employees

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National Overview

• 350 utilities in 33 states have green pricing
  programs
• Block and percent-of-use products offered
• Premiums range from 0.7 kWh to 17.6 kWh
• Median price of 2.5 kWh
• Average residential penetration rate is 1
• Approximately 400,000 residential and CI
  customers
• Wind, solar and landfill gas generation most
  commonly used
• for utility programs

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Green Pricing Challenges

• Barriers to expansion, market access, product
  appeal and consumer awareness
• High prices charged for green power products
• Low consumer awareness
• Future growth of green pricing programs will
  depend on state laws requiring utilities offer
  green power to their customers

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What is Green Power Switch?

Green Power Switch
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National Performer

• Federal Energy and Water Management Award Winner
• Center for Resources Solutions 2003 Leadership
  Award Winner
• Ranked 7th in the nation for energy sales in 2002
  (NREL)
• Ranked 10th in the nation for customer
  participation in 2002 (NREL)
• Largest Green Power Program in southeastern U.S.
• State of Tennessee is 1st to sign up in the
  southeast
• Wind energy supplied from largest wind generating
  plant in the southeastern U.S.
• Lowes is largest purchaser of green power in
  southeastern U.S.

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Green Power Switch Resources

• Green Energy Resources
• - Fifteen solar sites (330 kW)
• - One wind site with three turbines (2 MW)
• (27 MW of new wind generation planned)
• - One methane gas sites (4 MW)
• - Six megawatts of generation

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Solar Power

• Photovoltaic (PV) cells convert sunlight into DC
  electric power
• PV systems range for 4 to 50 kilowatts
• Produce power from 8 a.m. to 6 p.m. depending on
  season
• Produce power on cloudy days
• Durable construction

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Dollywood Tram C Pigeon Forge, TN 10 kW dc
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U.S. Congressman Attends Solar Site Dedication
From left to right Oxford Mayor Richard Howorth,
University of Mississippi Chancellor Robert
Khayat, TVA Chairman Glenn McCullough, Jr., North
East Mississippi Electric Power Association
General Manager Robert Collier and U.S.
Congressman Roger Wicker.
University of Mississippi Intramural Sports
Fields 30 kW dc
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Mississippi State University Landscape
Architecture Building 15 kW dc
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Generation Partners
Qualified generation source creates electrical
energy
Home consumes most of the energy generated, but
during low demand may pass energy through to
power distributors grid
A
B
Whole-house meter measures net exchange of energy
with power distributor
Electrical meter measures total output as Green
Power Switch resource
Monthly Energy Charge (A B) Distributor
Retail Rate Monthly Generation Credit B
X/kWh Monthly Bill Energy Charge Customer
Charge Generation Credit
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Generation Partners Zero Energy Home
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Wind Power

• Site on Buffalo Mountain in
• Anderson County, Tennessee
• Reclaimed Strip Mine
• Operational November 13, 2000
• First in southeastern U.S.

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Wind Power

• Each turbine produces 660 kilowatts
• Requires a least 10 mph of wind to generate
  electricity
• Together, three turbines provides enough energy
  to serve 400 valley households
• No significant hazards to birds
• Will not interfere with radio or TV

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Tennessee Wind Map
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Mississippi Wind Map
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Idaho Wind Map
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Methane Gas

• City of Memphis Waste Water Treatment Facility
• Co-fired at TVAs Allen Fossil Plant
• Direct positive environmental benefits
• Middle Point Landfill

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Methane Gas

• Mainly consists of methane and carbon dioxide
• Must be depleted to reduce risk of explosion
• Combined sites will produce enough electricity to
  supply 934 valley homes for one year
• Long term production from waste water treatment
  plant

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Residential Green Power Cost
Cost 4/Block 1 Block 150 kWhs
150 kWhs 12 average monthly residential
energy use
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Non-Residential Green Power Cost
Cost 4/Block 1 Block 150 kWhs

• GSA1(Under 50 kW) 5 Blocks
• GSA2(51kW to1000kW) 25 Blocks or 5 of Load
• GSA3(1001 to 5000kW) 250 Blocks
• GSB, GSC, GSD, Direct Served
• (Over 5000kW) 375 Blocks

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Green Power Switch Customers

• Residential
• 6,981 sign-ups
• 12,190 blocks
• Non-Residential
• 352 sign-ups
• 10,314 blocks
• Total Blocks
• 22,504

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School Curriculum

• Distribute an education curriculum for grades 3
  to 12
• Materials will be available on CD and internet
  free of charge
• The curriculum includes
• - Solar Energy
• - Wind Energy
• - Landfill Gas Energy

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Environmental Benefits
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Environmental Benefits
Green Power Switch Purchases Environmental
Benefits
Number Of Blocks GPS kWh/Month Cost/Month Pounds of Aluminum Recycled Pounds of Newspapers Recycled
1 150 4 240 883
2 300 8 480 1,766
5 750 20 1,200 4,415
10 1,500 40 2,400 8,830
25 3,750 100 6,000 22,075
50 7,500 200 12,000 44,150
100 15,000 400 24,000 88,300
150 22,500 600 36,000 132,450
250 37,500 1,000 60,000 220,750
375 56,250 1,500 90,000 331,125
500 75,000 2,000 120,000 441,500
Source Knoxville Utilities Board
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Biopower
Photo Credit NREL
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Biopower
Biopower the use of biomass feedstock to
produce electric power, through direct combustion
of the feedstock, through gasification and then
combustion of the resultant gas, or through other
thermal conversion processes. Power is generated
with engines, turbines, fuel cells, or other
equipment.
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Biopower
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United States Biopower

• The U.S. is the largest biopower generators, with
  over half of the worlds installed capacity
• 7,800 MW of biomass capacity installed represents
  1 of U.S. total electricity generation
• Primarily located in Northeast, Southeast and
  West Coast regions
• Co-firing is favorable for southeast because of
  the large number of coal-fired power plants

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Biopower Challenges

• Confusing and complex
• Combustion and air emissions
• Utility support
• Not cost competitive
• Risky financial investment
• Not as clean as solar and wind
• Lacks strong environmental community support
• Low awareness, visibility and marketing
• Integrated efforts

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Make a difference.Make the Green Power Switch!
For more information, visit www.greenpowerswitch.
com
Green Power Switch