How clean, local energy can help Minnesota achieve electricity self-reliance and maximize the state's economic benefits.
A presentation by John Farrell, director of the Energy Self-Reliant States and Communities program at the Institute for Local Self-Reliance to a forum hosted by Think Again MN on 9/27/11.
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The Value and Power of Distributed Energy in Minnesota
1. Clean, Local Energy
The Value and Power of Distributed Energy in Minnesota
John Farrell, Director
Energy Self-Reliant States and Communities program
jfarrell@ilsr.org
612.276.3456 x210
Presentation on Sept. 23, 2011
2. ILSR’s Unique Perspective
Yesterday Tomorrow
Centralized Power Clean, local power
Solar PV
power plant
Storage Storage
Transmission network
Storage
Storage
House
Local CHP plant
Distribution network House with
domestic CHP
Wind
power
Factory Commercial plant
building
3. Why Clean, Local Energy?
Enormous Potential
31 states could be electricity self-reliant
5. Why Clean, Local Energy?
MN Renewable Potential
CHP
4%
Hydro Rooftop Solar
1% 24%
71%
6. Why Clean, Local Energy?
MN Renewable Potential
CHP
4%
Hydro Rooftop Solar
1% 24%
Wind
71%
7. Why Clean, Local Energy?
MN Renewable Potential
CHP
4%
Hydro Rooftop Solar
1%
Wind: 2400% of state electricity use
24%
Wind
71%
8. Value of Clean, Local Energy
• Cost for power
• Value of energy
• Value of jobs and economic
development
• Value of local ownership
9. Value of Clean, Local Energy
Price per kWh
CHP
4%
Hydro
Average Cost, 2011
Rooftop Solar
1% 24%
Wind 11 cents
Solar 23 cents
Wind
71%
10. Value of Clean, Local Energy
Price per kWh
Including federal tax credit
and depreciation
Average Price:
Minnesota, 2011 Average Cost, 2011
Residential 11 cents
Commercial 8 cents Wind 7 cents
Industrial 6 cents
Solar 14 cents
11. Value of Clean, Local Energy
Jobs
Putting Renewables to Work: How Many Jobs Can the Clean Energy Industry Create? (UC Berkeley)
12. Value of Clean, Local Energy
Economic Engine
Rooftop Solar
10%
$22 billion
50,000 jobs
Wind
90%
Total GDP: $258 billion
13. Value of Clean, Local Energy
Absentee Ownership = 2 nd
gear
Lost $22 billion
$33 billion 50,000 jobs
50,000 jobs
Total GDP: $258 billion
14. Value of Clean, Local Energy
Local Benefits
Local Ownership Boosts Impact of Renewables
Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation (NREL)
15. Value of Clean, Local Energy
Local Ownership = high gear
Returned $56 billion
$33 billion 100,000 jobs
50,000 jobs
Total GDP: $258 billion
17. Value of Clean, Local Energy
Public Support
No local ownership 16% positive
Local ownership 45% positive
0 25 50 75 100
very negative negative neutral positive very positive
Attitude towards increased use of local wind energy
18. Barriers to Clean, Local Energy
• Tax incentives
• Utility “grid lock”
• Project financing
19. Barriers to Clean, Local Energy
Tax Incentives
I want you
if you have taxable income
City
Nonprofit
Cooperative