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H O W C O M M U N I T I E S U S E C L E A N
E N E R G Y T O B U I L D L O C A L P O W E R
A D VA N C I N G E N E R G Y D E M O C R A C Y
John Farrell
Director of Energy DemocracyOctober 20, 2017
Presentation to the AERO Annual Meeting
L E T ’ S WA R M U P
W I N D P O W E R P O T E N T I A L ?
Percentage of state electricity sales
A. 25%
B. 75%
C. 154%
D. 12,000%
E. 27,000%
W I N D P O W E R P O T E N T I A L ?
Percentage of state electricity sales
E. 27,000%
W I N D P O W E R P O T E N T I A L
Percentage of state electricity sales
W I N D P O W E R P O T E N T I A L
30% c.f. or better
2 0 1 0 N R E L D ATA
100m
Potential Percent of
Electricity from
Onshore Wind Power
0 to 10%
10 to 25%
25 to 50%
50 to 100%
100% or moreSource: http://1.usa.gov/1LBmAIV
“You have a unique
opportunity to buy wind that
is cheaper than fossil fuel”
—Xcel CEO Ben Fowke
L E T ’ S WA R M U P ( # 2 )
R O O F T O P S O L A R P O T E N T I A L ?
A. 2%
B. 8%
C. 28%
D. 59%
E.112%
Percentage of state electricity sales
R O O F T O P S O L A R P O T E N T I A L
A. 2%
B. 8%
C. 28%
D. 59%
E. 112%
Percentage of state electricity sales
23%
49%
All buildings
Source: http://www.nrel.gov/docs/fy16osti/65298.pdf
R O O F T O P S O L A R P O T E N T I A L 2 0 1 6
POTENTIAL PERCENT OF
POWER FROM LOCAL
ROOFTOP SOLAR
Over 50%
40 to 50%
25 to 40%
11 to 25%
2008 data
40-50%
25-40%
Over
50%
Over
50%
25-40%
Costofelectricity
0.0¢
2.0¢
4.0¢
6.0¢
8.0¢
10.0¢
12.0¢
14.0¢
Residential ≤10 10-20 20-50 50-100 100-250 250-500 500-1000 5-10 MW 10 to
20 MW
20 to
100 MW
100 to
1,000 MW
S O L A R C O M P E T E S AT M O S T S I Z E S
kilowatts megawatts
Sources: Tracking the Sun IX and Utility-Scale Solar 2015
(SunShot, Berkeley Labs); EIA (2014 data); CPUC (2011); NYMEX (2016); ILSR
DOES NOT INCLUDE COST OF DELIVERY
Residential
retail price
Commercial
retail price
Industrial
retail price Calif. Market Price Referent
Price of competition
Price advantage
Estimated levelized cost of electricity based on reported 2015 costs*
F R O M E N E R G Y M O N O P O LY
T O E N E R G Y D E M O C R A C Y
Before
After
S T O RY: C O M M U N I T Y
S O L A R I N K E E N E , N H
0¢
5¢
10¢
15¢
20¢
Lease A Lease B PPA*
0¢
5¢
10¢
15¢
20¢
SOLAR COSTS MORE FOR NON-TAXABLE
ORGANIZATIONS
Incentives
do not apply
to tax-
exempt
entities
Depreciation
only
Tax credit only
Tax credit
and
depreciation
Transaction
costs
Tax credit
and
depreciation
Transaction
costs
Transaction
costs
15.5¢
14.1¢ 13.7¢
12.3¢
11.2¢
Federal tax credit = 30% off
Depreciation = ~24% off
*PPA not legal in 25 states
Solar cost per kilowatt-hour
Purchase via third partyNon-profit
For-profit or
individual
H I G H F E D E R A L C O M P L I A N C E C O S T S
59%
Annual compliance
costs as a percent of
project upfront cost,
25 kW solar project
L I M I T S T O S H A R I N G
Prohibited in 34 states
C O M M U N I T Y R E N E WA B L E
E N E R G Y P R O J E C T S L A W
W E N E E D T O G E T
R E A D Y
S O L A R G R O W T H D E S T R O Y S F O R E C A S T S
Source: https://twitter.com/
aukehoekstra/status/
866313289306963969
1 I N S TA L L
E V E RY 6 0
S E C O N D S
Solar PV could provide fully half of
global electricity by 2050
Source: http://bit.ly/2f6Anfk
S O L A R G R O W T H D E S T R O Y S F O R E C A S T S
Source: http://bit.ly/2gKCKVc
W I N D P R I C E C O U L D FA L L B Y H A L F
Gas, fuel only
Source: http://bit.ly/2f6Anfk
B AT T E R I E S A R E G E T T I N G C H E A P
B AT T E R I E S A R E G E T T I N G C H E A P
Actual
C H A N G E J U M P S
B O U N D A R I E S
D O U B L E T H E R A N G E , S A M E P R I C E
E L E C T R I C V E H I C L E O W N E R S H I P
1 0 - Y E A R S AV I N G S
$0
$3,000
$6,000
$9,000
$12,000
$15,000
2017 Nissan Leaf v. Nissan Versa
10-year sched. maintenance savings
10-year fuel cost savings (est.)
Battery replacement cost (est.)
Does not include typical repairs
unique to gasoline cars, including
timing belts, water pumps, etc.
I T ’ S C O M I N G F O R Y O U R F U R N A C E …
AERO Presentation: How Communities Use Clean Energy to Build Local Power
53% used on-site
S T O RY: H A WA I I
S O L A R A L O N E
S O L A R + E V + B AT T E RY
+ S M A RT C O N T R O L S
89% used on-site
B AT T E R I E S G I V E E L E C T R I C
C U S T O M E R S C H O I C E
Number of commercial electricity customers who can subscriber to tariffs with demand charges in excess of $15/kW
Source: http://bit.ly/2gK7fdO
W H O W I L L L E A D ?
“We come to work each day to
do what we did the day before”
D I S R U P T I O N
Photo credits:
Donnie Ray Jones and Billy Brown via Flickr
S M A RT P H O N E I M A G E
Raise your hand if
your smartphone
was manufactured
by…
…your landline
phone company?
“Monopolies
don’t
innovate”
AERO Presentation: How Communities Use Clean Energy to Build Local Power
O V E R - R U L I N G R E G U L AT O R S
C U T T I N G C O M P E T I T I O N
P O L I T I C A L J I U - J I T S U
S T O RY: K I T C A R S O N
E L E C T R I C C O O P E R AT I V E
U T I L I T Y S H A R E
Municipal (Troy)
1%
Cooperative
30%
Investor-owned
69%
E X P E R I M E N T I N G W I T H
C O M M U N I T Y S O L A R
E X P E R I M E N T I N G W I T H
C O M M U N I T Y S O L A R
Source: ILSR’s Community Power Map
S T U C K I N L O N G C O N T R A C T S
Great River Energy
Tri-State
Seminole Electric
Basin Electric
0 17 34 51 6820502032 2084
Typical power contract expiration date for members co-ops of…
2066
2045
2050
2055
2070
INCREASING TRANSPARENCY
Source: Northern Plains Resource Council
3 WAY S Y O U C A N L E A D
AERO Presentation: How Communities Use Clean Energy to Build Local Power
1
3 0 H O U S E H O L D S
2 1 0 K I L O WAT T S
6 J O B S
$ 1 M I L L I O N
2
Commission-approved tariffs
Existing programs
Midwest Energy
NH Elec. Co-op
Roanoke Elec. Co-op
How$mart KY
Several co-ops offer inclusive
energy financing
Central Elec. Power
Ouachita Electric
Clean Energy Works Portland
3
AERO Presentation: How Communities Use Clean Energy to Build Local Power
S T O RY: M I N N E A P O L I S
W R A P U P ! N E T
M E T E R I N G S T O RY
1 9 7 9
S U R P R I S E !
www.ilsr.org
C H A N G I N G
T H E R U L E S
P R O V I D I N G
T O O L S
1 0 0 % R E N E WA B L E
L O C A L E C O N O M Y
H U M A N
S C A L E
L O C A L
O W N E R S H I P
D E M O C R AT I C
A U T H O R I T Y
I L L U S T R AT I N G
T H E V I S I O N
Beyond	Sharing:	How	Communities	
Can	Take	Ownership	of	Renewable	
Power	
The electric utility monopoly is breaking up, but will new companies
make renewable energy become another form of wealth extraction or
can community renewable energy enable communities to capture their
renewable power?
John Farrell
April 2016
www.ilsr.org
R E A D O U R
R E P O R T S
R E A D M O R E
@johnffarrell
F O L L O W

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AERO Presentation: How Communities Use Clean Energy to Build Local Power

  • 1. H O W C O M M U N I T I E S U S E C L E A N E N E R G Y T O B U I L D L O C A L P O W E R A D VA N C I N G E N E R G Y D E M O C R A C Y John Farrell Director of Energy DemocracyOctober 20, 2017 Presentation to the AERO Annual Meeting
  • 2. L E T ’ S WA R M U P
  • 3. W I N D P O W E R P O T E N T I A L ? Percentage of state electricity sales
  • 4. A. 25% B. 75% C. 154% D. 12,000% E. 27,000% W I N D P O W E R P O T E N T I A L ? Percentage of state electricity sales
  • 5. E. 27,000% W I N D P O W E R P O T E N T I A L Percentage of state electricity sales
  • 6. W I N D P O W E R P O T E N T I A L 30% c.f. or better 2 0 1 0 N R E L D ATA 100m Potential Percent of Electricity from Onshore Wind Power 0 to 10% 10 to 25% 25 to 50% 50 to 100% 100% or moreSource: http://1.usa.gov/1LBmAIV “You have a unique opportunity to buy wind that is cheaper than fossil fuel” —Xcel CEO Ben Fowke
  • 7. L E T ’ S WA R M U P ( # 2 )
  • 8. R O O F T O P S O L A R P O T E N T I A L ? A. 2% B. 8% C. 28% D. 59% E.112% Percentage of state electricity sales
  • 9. R O O F T O P S O L A R P O T E N T I A L A. 2% B. 8% C. 28% D. 59% E. 112% Percentage of state electricity sales
  • 10. 23% 49% All buildings Source: http://www.nrel.gov/docs/fy16osti/65298.pdf R O O F T O P S O L A R P O T E N T I A L 2 0 1 6 POTENTIAL PERCENT OF POWER FROM LOCAL ROOFTOP SOLAR Over 50% 40 to 50% 25 to 40% 11 to 25% 2008 data 40-50% 25-40% Over 50% Over 50% 25-40%
  • 11. Costofelectricity 0.0¢ 2.0¢ 4.0¢ 6.0¢ 8.0¢ 10.0¢ 12.0¢ 14.0¢ Residential ≤10 10-20 20-50 50-100 100-250 250-500 500-1000 5-10 MW 10 to 20 MW 20 to 100 MW 100 to 1,000 MW S O L A R C O M P E T E S AT M O S T S I Z E S kilowatts megawatts Sources: Tracking the Sun IX and Utility-Scale Solar 2015 (SunShot, Berkeley Labs); EIA (2014 data); CPUC (2011); NYMEX (2016); ILSR DOES NOT INCLUDE COST OF DELIVERY Residential retail price Commercial retail price Industrial retail price Calif. Market Price Referent Price of competition Price advantage Estimated levelized cost of electricity based on reported 2015 costs*
  • 12. F R O M E N E R G Y M O N O P O LY T O E N E R G Y D E M O C R A C Y Before After
  • 13. S T O RY: C O M M U N I T Y S O L A R I N K E E N E , N H
  • 14. 0¢ 5¢ 10¢ 15¢ 20¢ Lease A Lease B PPA* 0¢ 5¢ 10¢ 15¢ 20¢ SOLAR COSTS MORE FOR NON-TAXABLE ORGANIZATIONS Incentives do not apply to tax- exempt entities Depreciation only Tax credit only Tax credit and depreciation Transaction costs Tax credit and depreciation Transaction costs Transaction costs 15.5¢ 14.1¢ 13.7¢ 12.3¢ 11.2¢ Federal tax credit = 30% off Depreciation = ~24% off *PPA not legal in 25 states Solar cost per kilowatt-hour Purchase via third partyNon-profit For-profit or individual
  • 15. H I G H F E D E R A L C O M P L I A N C E C O S T S 59% Annual compliance costs as a percent of project upfront cost, 25 kW solar project
  • 16. L I M I T S T O S H A R I N G Prohibited in 34 states
  • 17. C O M M U N I T Y R E N E WA B L E E N E R G Y P R O J E C T S L A W
  • 18. W E N E E D T O G E T R E A D Y
  • 19. S O L A R G R O W T H D E S T R O Y S F O R E C A S T S Source: https://twitter.com/ aukehoekstra/status/ 866313289306963969
  • 20. 1 I N S TA L L E V E RY 6 0 S E C O N D S
  • 21. Solar PV could provide fully half of global electricity by 2050 Source: http://bit.ly/2f6Anfk S O L A R G R O W T H D E S T R O Y S F O R E C A S T S
  • 23. W I N D P R I C E C O U L D FA L L B Y H A L F Gas, fuel only Source: http://bit.ly/2f6Anfk
  • 24. B AT T E R I E S A R E G E T T I N G C H E A P
  • 25. B AT T E R I E S A R E G E T T I N G C H E A P Actual
  • 26. C H A N G E J U M P S B O U N D A R I E S
  • 27. D O U B L E T H E R A N G E , S A M E P R I C E
  • 28. E L E C T R I C V E H I C L E O W N E R S H I P 1 0 - Y E A R S AV I N G S $0 $3,000 $6,000 $9,000 $12,000 $15,000 2017 Nissan Leaf v. Nissan Versa 10-year sched. maintenance savings 10-year fuel cost savings (est.) Battery replacement cost (est.) Does not include typical repairs unique to gasoline cars, including timing belts, water pumps, etc.
  • 29. I T ’ S C O M I N G F O R Y O U R F U R N A C E …
  • 31. 53% used on-site S T O RY: H A WA I I S O L A R A L O N E S O L A R + E V + B AT T E RY + S M A RT C O N T R O L S 89% used on-site
  • 32. B AT T E R I E S G I V E E L E C T R I C C U S T O M E R S C H O I C E Number of commercial electricity customers who can subscriber to tariffs with demand charges in excess of $15/kW Source: http://bit.ly/2gK7fdO
  • 33. W H O W I L L L E A D ?
  • 34. “We come to work each day to do what we did the day before”
  • 35. D I S R U P T I O N Photo credits: Donnie Ray Jones and Billy Brown via Flickr
  • 36. S M A RT P H O N E I M A G E Raise your hand if your smartphone was manufactured by…
  • 40. O V E R - R U L I N G R E G U L AT O R S
  • 41. C U T T I N G C O M P E T I T I O N
  • 42. P O L I T I C A L J I U - J I T S U
  • 43. S T O RY: K I T C A R S O N E L E C T R I C C O O P E R AT I V E
  • 44. U T I L I T Y S H A R E Municipal (Troy) 1% Cooperative 30% Investor-owned 69%
  • 45. E X P E R I M E N T I N G W I T H C O M M U N I T Y S O L A R
  • 46. E X P E R I M E N T I N G W I T H C O M M U N I T Y S O L A R Source: ILSR’s Community Power Map
  • 47. S T U C K I N L O N G C O N T R A C T S Great River Energy Tri-State Seminole Electric Basin Electric 0 17 34 51 6820502032 2084 Typical power contract expiration date for members co-ops of… 2066 2045 2050 2055 2070
  • 48. INCREASING TRANSPARENCY Source: Northern Plains Resource Council
  • 49. 3 WAY S Y O U C A N L E A D
  • 51. 1
  • 52. 3 0 H O U S E H O L D S 2 1 0 K I L O WAT T S 6 J O B S $ 1 M I L L I O N
  • 53. 2
  • 54. Commission-approved tariffs Existing programs Midwest Energy NH Elec. Co-op Roanoke Elec. Co-op How$mart KY Several co-ops offer inclusive energy financing Central Elec. Power Ouachita Electric Clean Energy Works Portland
  • 55. 3
  • 57. S T O RY: M I N N E A P O L I S
  • 58. W R A P U P ! N E T M E T E R I N G S T O RY
  • 59. 1 9 7 9
  • 60. S U R P R I S E !
  • 61. www.ilsr.org C H A N G I N G T H E R U L E S P R O V I D I N G T O O L S 1 0 0 % R E N E WA B L E L O C A L E C O N O M Y H U M A N S C A L E L O C A L O W N E R S H I P D E M O C R AT I C A U T H O R I T Y I L L U S T R AT I N G T H E V I S I O N
  • 62. Beyond Sharing: How Communities Can Take Ownership of Renewable Power The electric utility monopoly is breaking up, but will new companies make renewable energy become another form of wealth extraction or can community renewable energy enable communities to capture their renewable power? John Farrell April 2016 www.ilsr.org R E A D O U R R E P O R T S R E A D M O R E @johnffarrell F O L L O W