making the shift to a clean energy economy in new york
TRANSCRIPT
Making the Shi, to a Clean Energy Economy in New York
Jen Metzger, Co-‐Director Ci=zens for Local Power
ci$zensforlocalpower.com
• Dedicated to transi$oning to a locally-‐based clean energy economy in the Mid-‐Hudson Region.
• Undertakes research, educa$on, advocacy, and project coordina$on at local to state levels.
• Supports community engagement in energy decision-‐making to strengthen local economies, mi$gate climate change, and increase resilience.
Who we are
New York’s Energy Vision does not include fossil fuel infrastructure
● NY carbon emissions reduc$on targets: 40% by 2030 and 80% by 2050 below 1990 levels.
● Phase out coal power plants by 2020 ● 50% Renewable energy in electricity and 23% reduc$on in energy consump$on in building stock by 2030
NYS climate change commitments
● Electricity is a “premium” fuel, easily converted to
light, heat, and useful work of all kinds via motors & electronics
● No combus$on at point of use (safer & easier:
remember the coal-‐fired, steam-‐powered washing machine?)
● Our current dependence on fossil fuels for
transporta$on and hea$ng will decline as use of electricity-‐dependent technologies spreads.
A growing role for electricity in NY’s clean energy future
Source: Mid-‐Hudson Regional Sustainability Plan
Free Ulster County EV charging sta=ons support EV market & encourage tourism
MH Region Fuel Use (2010)
Tomorrow’s fuel mix will look very different from today
By sector Percent Transporta$on 50%
Residen$al 25%
Commercial 18%
Industrial 7%
By fuel type Percent Petroleum 47%
Natural Gas 30%
Electricity 18%
Other 5%
Coal 1% UC County ExecuEve Mike Hein and
Environmental Coordinator Amanda LaValle
Manda$ng “clean” energy procurement to meet the 50 by 30 goal (addi$onal 33,700 GWh of renewable energy). As proposed, will require u$li$es & ESCOs to procure a defined % of electricity annually from each of 3 “$ers,” beg. in 2017: ● Tier 1: new renewable resources ● Tier 2: exis$ng renewable resources ● Tier 3: nuclear power (keeping Ginna and Fitzpatrick plants
on line)
Coming in June 2016: New Clean Energy Standard
• Centralized – Big (can be up to 4,000 MW) – Remote, requires transmission – wastes energy – High voltage to squeeze big power into ligle wires
• Decentralized or “Distributed Genera=on”
– Smaller (typically under 2 MW; avg. home, 5 kW) – Mul$ple sources located near users – conserves energy – Lower voltage
Genera=on of electric power
Distributed Genera=on -‐ “behind the meter”
● NYS PSC proceeding launched in 2014. ● Seeks to shij NY to a more distributed energy
system relying on renewable energy, energy efficiency, and demand management (“distributed energy resources” or “DER”).
● Goal is to to create a cleaner, more efficient,
more resilient and more affordable energy system.
Reforming the Energy Vision Ini=a=ve (“The REV”)
Shi,ing to a Distributed Energy System
The Future of Energy
Centralized Power Yesterday
Clean, Local Power Tomorrow
• Growing peak demand increases costs and threatens reliability
• An$quated infrastructure requiring approx. $30
billion to upgrade over next 10 yrs. • Skyrocke$ng growth in natural gas dependence.
Old system is unsustainable
1. Customer knowledge & tools to effec$vely manage total energy bill.
2. Expanded market for DER products and services.
3. Systemwide efficiency. 4. Fuel and resource diversity. 5. System reliability and resiliency. 6. Reduc$on of carbon emissions.
6 PSC REV objec=ves
• REV ini$a$ve opens real opportuni$es for communi$es to move toward a cleaner, more locally-‐based energy system.
• Numerous REV-‐related PSC proceedings underway on specific topics.
The opportuni=es
PSC order on community net-‐metering
• In July 2015, PSC enabled community shared renewables in NYS
• Mul$ple customers can net-‐meter from single off-‐site facility.
• Allows access to renewable benefits by renters, low & moderate income customers, and homeowners whose proper$es are poorly sited for renewable energy.
A big step forward for local power
Community Choice Aggrega=on A Path to Local Power
The Vision Photo credit: Ins$tute for Local Self Reliance
The Vision
An equitable, sustainable energy economy that provides green jobs and renewable
ownership opportuni$es to our residents and businesses, and a more resilient energy system with greater democra$c control.
This is a moment of unprecedented opportunity.
THE KEY: Community Choice Aggrega=on (CCA).
CCA in a Nutshell CCA allows municipalities to aggregate the buying power of individual customers: • to secure alternative energy supply contracts; • to develop energy programs tailored to community
needs and goals.
The CCA replaces the utility as the default supplier of electricity. • Customers who previously purchased supply through the
utility can choose to “opt-out” and remain with the utility. • Customers already enrolled with a different energy supplier
can “opt in” to the CCA.
• CCA customers are afforded the same protections as those who “opt-out” of the CCA contract, plus clean supply and enhanced energy services.
CCA in a Nutshell (con=nued) • The CCA recovers administrative costs through the rates,
not through taxes.
1990s: First invented in Massachusetts, the primary objective was to keep rates down through group purchasing.
The Evolu=on of CCA
CCA “1.0”
CCA “2.0”
2010s: Lower and stable rates still important, but primary focus is on community-wide energy planning to build resilience, reduce carbon emissions, & grow local economy.
CCAs currently exist in 1,300 communities across six states, including MA, CA, NJ, OH, IL, and RI.
Now it’s coming to New York.
• CCAs study the energy landscape unique to their region: – Acquire data from the u$lity – Map the distributed resource poten$al – Iden$fy opportuni$es for DER that are most cost-‐effec$ve for customers;
• CCAs develop programs to facilitate investments by residents, businesses, and others.
CCA: A Pathway to a Distributed Energy System
Why CCA?
CCA: Summary of Benefits
Clean Energy & Resiliency
Local Economic Growth & Good Jobs
Long-‐Term Rate Stability & Compe$$ve Costs
Local Control & Accountability
• New York depends on energy imports for 92% of its energy requirements.
• For every $1 million invested, 17 jobs are created due to efficiency, 14 for solar, compared to only 5 for natural gas.
• Facilitate investment by businesses to lower energy costs.
• Lower energy costs frees up income to be spent in the local economy, genera$ng more local wealth.
Economic Development
JOBS
Local Ownership = Greater Economic Impact
Source: US Dept. of Energy
CCA Savings
Fossil Fuel Price Vola=lity
CCA Benefits: Resiliency
Sonoma Clean Power: Case Study
– Provide cost compe==ve electric services
– S=mulate and sustain the local economy
– Reduce GHG emissions – Stabilize rates – Energy reliability
• Goals are developed through a public process.
Sonoma Clean Power: The Ins=tu=on
• A public authority created to administer the CCA. • Can enter into contracts for energy supply & issue revenue bonds to finance customer programs.
• Municipali$es join via local law and resolu$on, and par$cipate in its governance.
• Administered by small staff under a Chief Execu$ve Officer that reports to Governing Board.
• Financed through rates, not taxes.
SCP: Residen=al Rates
• Net Green: Enhanced Net Metering • ProFIT: Feed-‐in-‐Tariff to encourage the construc$on of new clean genera$on (less than 1 MW).
• Virtual Net Green: An apartment building with solar could be shared with all residents, offseqng a por$on of each apartment’s electricity needs.
SCP: Programs
• A PSC-‐approved Westchester CCA pilot has recently secured lower cost energy supply than ConEd for both a “brown” and “green” op$on.
• PSC Order enabling CCA statewide is expected in late spring or early summer.
• Other on-‐going REV proceedings will impact the shij to a locally-‐based clean energy economy.
Status of CCA in NYS
• U$li$es and other powerful economic interests seek to influence REV to their benefit.
• Heavy reliance on market to achieve policy goals.
• Need to ensure more effec$ve par$cipa$on by under-‐represented groups, the public.
The challenges
• A statewide coalition of community-based organizations and grassroots groups, including CLP.
• Mission: To advance a just and
participatory transition to a resilient, localized, and democratically controlled clean energy economy in New York State.
The Energy Democracy Alliance
What you can do to support a local clean energy economy
• Become informed and get involved! Check out resources on the Energy Democracy Alliance and Ci$zens for Local Power websites:
energydemocracyny.org & ci=zensforlocalpower.com • Sign up for CLP’s newslegers and ac$on alerts on the website.
• Agend & comment on the record at the PSC’s upcoming CES hearing.
• Go to dps.ny.gov and submit comments in REV, CES and CCA proceedings.
What you can do to support a local clean energy economy
● Join local community & environmental groups and municipal volunteer commissions.
● Explore opportuni$es for local clean energy planning, community renewable projects and CCA forma$on.
Thank You!
ci=zensforlocalpower.com