Renewable Energy in Alaska Kathleen Davenport & Laurel Stevens - PowerPoint PPT Presentation

Renewable Energy in Alaska Kathleen Davenport & Laurel Stevens University of Alaska – Anchorage PADM628 April 13, 2012

What is Renewable Energy? Energy which comes from natural resources which are naturally replenished Local, clean & inexhaustible Requires little or no fuel costs

Energy Consumption United States Alaska Total Energy Consumption Per Capita, 2009 1000 900 800 Alaska, 907 700 Btu (in millions) 600 500 400 300 United 200 States, 308 100 0

7 Types of Renewable Energy Biomass Hydroelectric Wind River Geothermal Solar Tidal

Renewable Energy Alaska Project (REAP) Established 2004 Goal of promoting the use of renewable energy in Alaska Comprised of >710 members Facilitates Alaska’s Winds for Schools program Assists in drafting energy policy for state legislature Organizes annual forums to discuss renewable energy policy issues

HB 306 State Energy Policy An Act declaring a state energy policy 5 fundamental concepts: Promote energy efficiency & conservation Development of renewable and non-renewable energy resources Long term, cost effective development of resources Support research, education and workforce development Coordinated, streamlined governmental process.

HB 306 State Energy Policy Legislative intent: 15% increase in energy efficiency between 2010 and 2020 50% of electric generation from renewable and alternative energy sources by 2025 Reliable in-state gas supply for residents of the state Power project fund serve as the main source of state assistance for energy projects. Remain a leader in petroleum and natural gas production and become a leader in renewable and alternative energy development.

HB 306 State Energy Policy Declaration of the State Energy Policy: Institute a comprehensive and coordinated approach to supporting energy efficiency and conservation. Encourage economic development using renewable and alternative energy sources Support energy research and development to reduce energy costs. Coordination of governmental functions

SB 220 Alaska Sustainable Energy Act Intent is that Alaska will achieve a 15% increase in energy efficiency per capita by 2020 and meet 50% of its electrical needs through renewables by 2025. Components SB 121, 31, 150, 186, 71, 132 HB 196

SB 220 Alaska Sustainable Energy Act SB 121: Energy Efficient Public Buildings SB 31: Renewable Energy Production Tax Credit SB 150: Emerging Energy Technology Fund SB 186: Renewable Energy Fund HB 196: Alternative Energy Loan Fund SB 71: Alternative for Public Works SB 132: Southeast Energy Fund

House Bill 152 – Renewable Energy Grant Fund Enacted May 2008 Created the Renewable Energy Grant Fund Provide assistance to utilities, independent power producers, local governments, and tribal governments for feasibility studies, reconnaissance studies, energy resource monitoring, and work related to the design and construction of eligible facilities Appropriated $50 Million annually for 5 years Administered by the Alaska Energy Authority

HB 152 – State Budget Impact FISCAL IMPACTS (in Thousands of Dollars) OPERATING EXPENDITURES FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Personal Services 100.00 259.30 259.30 259.30 259.30 259.30 Travel 20.00 5.00 5.00 5.00 5.00 Contractual 335.00 182.00 182.00 182.00 182.00 Supplies 31.00 25.00 25.00 25.00 25.00 Equipment 28.00 Grants & Claims 5,928.00 2,964.00 2,964.00 2,964.00 2,964.00 TOTAL OPERATING 100.00 6,601.30 3,435.30 3,435.30 3,435.30 3,435.30 FUND SOURCE FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Federal Receipts GF 56,501.30 53,335.30 53,335.30 53,335.30 53,335.30 Interagency Receipts 100.00 100.00 100.00 100.00 100.00 100.00 TOTAL 100.00 56,601.30 53,435.30 53,435.30 53,435.30 53,435.30

HB152 – Grant & Funding Summary Grant and Funding Summary as of 11/30/2011 2008 2009 2010 2011 2012 TOTALS Applications Received 112 118 123 108 98 559 Projects Funded 78 30 25 74 tbd 207 Grants in Place 77 29 20 47 0 173 Grants Cancelled 4 1 3 0 0 8 Amount Requested ($M) $453.8 $293.4 $223.5 $123.1 $130.6 $1,224.4 AEA Recommended ($M) $100.0 $36.8 $65.8 $36.6 tbd $239.2 Appropriated ($M) $100.0 $25.0 $25.0 $26.6 tbd $176.6 Cash Disbursed ($M) $52.8 $16.4 $5.9 $0.5 $0.0 $75.6 Available for Reallocation ($M) $0.0 $0.0 $0.2 $0.0 $0.0 $0.2

HB 152 – 5 Year Review Annual net savings per year = $35.3 million Project payback time = less than 10 years Project life span = 20-50 years of useful life In 2011, projects funded by the Renewable Energy Grant Fund displaced 1.46 million gallons of diesel fuel March 20, 2012 – Alaska House of Representatives authorized a five year extension of fund

Incentives for Development of Renewable Energy Resources Federal Renewable Energy Production Tax Credit (PTC) Federal Renewable Energy Investment Tax Credit (ITC) Federal Renewable Energy Investment Grant Net Metering Renewable Portfolio Standards (RPS)

Future of Renewable Energy “We know the country that harnesses the power of clean, renewable energy will lead the 21 st century” – President Barack Obama US uses more energy per capita than any other nation Oil production decline = Declining future state oil revenues Renewable energy guarantees inexpensive, clean energy for future generations