Sathrum

Sustainable Energy Strategies : 

Sustainable Energy Strategies Chuck Sathrum State Energy Office September 28, 2007

State Energy Office: 

State Energy Office Advancing energy efficiency in industrial, utility, transportation, government, and residential sectors. Developing the state’s abundant renewable energy resources. Accelerating use of alternative fuels and vehicles. Responding to energy emergencies.

America is the World’s Largest Energy Consumer: 

America is the World’s Largest Energy Consumer

Slide9: 

NC Energy Use: RISING! North Carolina Energy Outlook, 2003

Slide10: 

Up to 55% more energy needed by 2030

World Oil – In Perspective: 

World Oil – In Perspective

The World According to ‘Peak Oil’: 

The World According to ‘Peak Oil’ 2050 1930 2010 1970

Slide13: 

U.S. Petroleum Production, Consumption, and Net Imports, 1970-2025 (million barrels per day) 56% Net Imports Consumption Production 68% Annual Energy Outlook 2005 History Projections

Where the Oil is: 

Where the Oil is Canada United States Mexico Colombia Venezuela Brazil Equador 10,000+ And How Much They Consume (thousands of barrels per day) 5,000 - 9,999 2,000 - 4,999 1,000 - 1,999 0 - 999 Algeria Egypt Sudan Nigeria Libya Saudi Arabia Iraq Kuwait Iran UAE Norway Qatar Kazakhstan Azerbaijan Russia China India Vietnam Malaysia

Where the Gas is: 

Where the Gas is Russia, Iran and Qatar have over 50% of proven global gas reserves Russia 26% Iran 15% Qatar 14% USA 3% UK 0.3%

Katrina and Rita: 

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

Slide18: 

SO2 47 ktons SO2 636 ktons CO2 69 million tons CO2 57 million tons NOx 312 ktons NOx 319 ktons Electrical Losses 734 TBtu Electricity 409 TBtu Wood, Waste, Biomass 96 TBtu Solar Thermal 1 TBtu Hydro 33 TBtu 10 TBtu 23 TBtu Energy Flows In North Carolina

Slide19: 

Ozone Nonattainment Areas

Acid Rain DevastationGrandfather Mountain, NC: 

Acid Rain Devastation Grandfather Mountain, NC

Air Pollution’s Impact on HealthFocus: North Carolina: 

Air Pollution’s Impact on Health Focus: 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)

Sea Level Rise: Climate Change: 

Sea Level Rise: Climate Change

Global Warming: 

Global Warming USEPA, USDOE

State Energy Plan: 

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

Energy Efficiency’s Contribution to our Energy Supply: 

Energy Efficiency’s Contribution to our Energy Supply National Energy Supply (TBtus)

State Action Can Make a Difference!: 

State Action Can Make a Difference!

The Last Frontier: Employing EE in the Southeast: : 

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

Utility Savings Initiative (USI): 

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 State’s Energy and Water Bill: $334 M in 2006-07 (Office of State Controller)

Avoided Costs Reported thru 2005-06: 

Avoided Costs Reported thru 2005-06

Senate Bill 668 – Sustainable Energy Efficient Buildings Program: 

Senate Bill 668 – Sustainable Energy Efficient Buildings Program

Energy Management Program Results 1988 to 2005: 

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

Upgrade and Save: 

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

Renewable Energy: 

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

Slide34: 

Renewable Energy Cost Trends Levelized cost of energy in constant 2005$1 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

Renewable Portfolio Standard (RPS): 

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”

Slide36: 

Renewables Portfolio Standards State Goal PA: 18%¹ by 2020 NJ: 22.5% by 2021 CT: 23% by 2020 MA: 4% by 2009 + 1% annual increase WI: requirement varies by utility; 10% by 2015 goal IA: 105 MW MN: 25% by 2025 (Xcel: 30% by 2020) TX: 5,880 MW by 2015 AZ: 15% by 2025 CA: 20% by 2010 *NV: 20% by 2015 ME: 30% by 2000 10% by 2017 - new RE State RPS 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) HI: 20% by 2020 RI: 16% by 2020 CO: 20% by 2020 (IOUs) *10% by 2020 (co-ops & large munis) DC: 11% by 2022 DSIRE: www.dsireusa.org September 2007 NY: 24% by 2013 MT: 15% by 2015 IL: 25% by 2025 VT: RE meets load growth by 2012 Solar water heating eligible *WA: 15% by 2020 MD: 9.5% in 2022 NH: 23.8% in 2025 OR: 25% by 2025 (large utilities) 5% - 10% by 2025 (smaller utilities) *VA: 12% by 2022 MO: 11% by 2020 *DE: 20% by 2019 NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) ND: 10% by 2015

NC’s REPS Mandate: 

NC’s REPS Mandate Applies to IOUs, rural coops & munis 3% in 2012, 6% by 2015, 10% by 2018 IOU’s: up to 2.5% met through EE savings No limit on EE contribution for others For IOU’s, mandate increases to 12.5% by 2021, with up to 5% met through Energy Efficiency

North Carolina Solar Center : 

North Carolina Solar Center Demonstration, Training & Technical Assistance NCSU Solar House: passive solar, solar water heating, PV, geothermal heat pump $70 Winter/heating

NC GreenPower : 

NC GreenPower Pays a premium above avoided cost for green power Residential rates $4 per 100 kWh Corporate rates $2.50 per 100 kWh NC - generated Supplementing electric generation with green energy: solar, wind, biomass, and hydro

Selling PV Energy to NC GreenPower: 

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

Slide41: 

Buildings, greenhouses, glassblowing and ceramics kiln heated by landfill methane gas. Regional Conservation District, Cultural Resources, EPA, USDA, Foundations, Community College

Wind Power at 50 meters: 

Wind Power at 50 meters

Wind Power Benefits: 

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

Cost of Wind Energy Trend: 

Cost of Wind Energy Trend 1979: 40 cents/kWh Increased Turbine Size R&D Advances Manufacturing Improvements Lake Benton, Minnesota wind farm 4 cents/kWh 2004: 3 – 4.5 cents/kWh 2000: 4 - 6 cents/kWh Slide courtesy of NREL

Biomass Resources/Uses: 

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

Bioenergy in North Carolina: 

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

Where is NC’s Biomass?: 

Where is NC’s Biomass?

Alternative Fuels: 

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

Building to High Performance and Sustainability Principles:: 

Building to High Performance and Sustainability Principles: Energy Efficiency Renewable Energy Water Conservation Recycled Materials Waste Minimization Indoor Air Quality

NC Arboretum : 1st State High Performance Building: 

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

Building Materials?: 

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!

NC Tax Credits: 

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

Steps to a Sustainable Energy Future : 

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

And… : 

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

Contact Information: 

Contact Information State Energy Office N.C. Department of Administration 1830 A Tillery Place Raleigh, NC 27604-1376 Mailing Address: 1340 Mail Service Center Raleigh, NC 27699-1340 919-733-2230-telephone 1-800-662-7131 (NC only) 919-733-2953-fax www.energync.net