DOCSLIB.ORG

Incentivizing Ocean Energy – July 2011

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Incentivizing Ocean Energy – July 2011 Incentivizing Ocean Energy Prepared by Robert K. Harmon On behalf of Oregon Wave Energy Trust July 2011 This work was funded by the Oregon Wave Energy Trust (OWET). OWET was funded in part with Oregon State Lottery Funds administered by the Oregon Business Development Department. It is one of six Oregon Innovation Council initiatives supporting job creation and long-term economic growth. Oregon Wave Energy Trust (OWET) is a nonprofit public-private partnership funded by the Oregon Innovation Council. Its mission is to support the responsible development of wave energy in Oregon. OWET emphasizes an inclusive, collaborative model to ensure that Oregon maintains its competitive advantage and maximizes the economic development and environmental potential of this emerging industry. Our work includes stakeholder outreach and education, policy development, environmental assessment, applied research and market development. Fall 08 ii | Page Abstract The goal of the Incentivizing Ocean Energy project was to study methods of bridging the gap between the cost of ocean energy and the price it can command in the marketplace, especially for early-stage technologies. Robert K. Harmon details strategies to reduce the cost of ocean energy, gain political support, advocate for favorable treatment in regulatory markets and make the best use of voluntary markets. Methods include building alliances, focusing on grants, how to benefit from tax incentives, preferential siting, working collaboratively with other sectors and more. This report is a go-to guide on how early-to-mid stage businesses will best profit from ocean energy devices in both the short and long term. iii | Page Table of Contents Introduction ..................................................................................................... 2 Section 1: Reducing the Costs of Ocean Energy .................................................... 3 Section 1A: Revenue-Targeted Financial Incentives ..................................................................... 3 Grants ..................................................................................................................................... 3 Tax Incentives ......................................................................................................................... 8 Section 1B: Financing-Targeted Incentives ................................................................................ 13 Loans and Loan Guarantees ................................................................................................... 14 Renewable Energy Bond Incentives ......................................................................................... 16 Section 1C: Funding Mechanisms for Financial Incentives .......................................................... 19 Public Benefits Funds and Public Purpose Charges ................................................................. 19 Section 1D: Addressing Deployment Barriers and Non-Technology Costs .................................. 22 Permitting Processes ............................................................................................................. 23 Preferential and Integrated Siting Considerations ................................................................... 26 Interconnection and Operations ............................................................................................. 29 Section 1E: Analysis of Pros and Cons ....................................................................................... 31 Section 1F: Recommendations for Reducing the Costs of Ocean Energy ..................................... 34 Section 2: Regulatory Markets for Ocean Energy ................................................. 35 Section 2A: Regulatory Policy to Stimulate Ocean Energy Demand ............................................. 35 Renewable Portfolio Standards ............................................................................................... 35 Feed-In Tariffs ....................................................................................................................... 41 Section 2B: Contracting Mechanisms to Stimulate Ocean Energy Demand .................................. 45 Power Purchase Agreements .................................................................................................. 45 Section 2C: Analysis of Pros and Cons ....................................................................................... 47 Section 2D: Recommendations For the Regulatory Markets for Ocean Energy ............................ 48 Power Purchase Agreements .................................................................................................. 48 REC Ownership ...................................................................................................................... 49 Tracking Systems .................................................................................................................. 49 Renewable Portfolio Standards and Feed-In Tariffs ................................................................ 49 Build Relationships with Utilities ............................................................................................ 49 iv | Page Section 3: Voluntary Markets for Ocean Energy ................................................... 50 Section 3A: Overview of Voluntary Markets ................................................................................ 50 Section 3B: Product Types in the Voluntary Markets .................................................................. 50 Renewable Energy Certificates ............................................................................................... 50 Renewable Energy Certificate Tracking Systems ..................................................................... 51 Bundled Sales ........................................................................................................................ 52 Unbundled Sales .................................................................................................................... 52 Blended Products ................................................................................................................... 52 Stand-Alone Products ............................................................................................................ 53 Long-Term vs. Short-Term Sales ........................................................................................... 54 Co-Lateral Ecosystem Services and Benefits ........................................................................... 54 Voluntary Non-REC-Based Donation Programs ...................................................................... 55 Section 3C: Sales Channels to Voluntary Markets ....................................................................... 56 Regulated Utility Green Pricing Programs ............................................................................... 56 Northwest Utility Green Pricing Programs ............................................................................... 57 Competitive Green Power Markets ......................................................................................... 58 State Mandated Green Power Programs .................................................................................. 59 Government Power Marketers ................................................................................................ 59 Retail REC Sellers ................................................................................................................... 60 REC Brokers ........................................................................................................................... 60 Direct Sales to Industry Partners ............................................................................................ 61 Direct Sales to Government Partners ...................................................................................... 61 Section 3D: Green Power Certification Organizations ................................................................. 62 Section 3E: Consumer Labeling Issues ....................................................................................... 62 Section 3F: Recommendations for the Voluntary Market for Ocean Energy ................................. 63 Voluntary vs. Mandatory Markets ........................................................................................... 63 REC Ownership ...................................................................................................................... 64 Tracking Systems .................................................................................................................. 64 Certification ........................................................................................................................... 64 Non-Grid-Tied Systems ......................................................................................................... 64 Monetizing Ecosystem Benefits .............................................................................................. 64 Bundled Sales vs. REC Sales ................................................................................................... 64 Sales Term and Delivery Flexibility ......................................................................................... 65 Direct Sales to Industry Partners ............................................................................................ 65 v
Load more

Recommended publications
  • Is Vestas Encouraging Responsible Consumption Or Merely Greenwashing for Its Own Gain?
    Copyright 2011. No quotation or citation without attribution. This paper was prepared for the course Corporate Social Responsibility taught by Professor Peter Gourevitch in the winter quarter 2011 at the School of International Relations and Pacific Studies of the University of California San Diego (UCSD). The papers have not been edited after having been submitted to the course. They are posted here to provided others with information and ideas about CSR, NGO's and the private sector. The papers are COPYWRITE protected. No quotation or citation without attribution. 1 Copyright 2011. No quotation or citation without attribution. Is Vestas Encouraging Responsible Consumption or Merely Greenwashing for its Own Gain? Jarrod Russell March 14, 2011 CSR: Final Paper 2 Copyright 2011. No quotation or citation without attribution. We need a revolution. The days of consumption without thought are over. Climate change is rendering the old model obsolete. – UN Secretary General Ban Ki-moon1 IntroDuction Vestas, the global leader in the manufacture of wind turbines, is leading the charge to launch a new trustmark – WindMade – and wants the commitment of thousands of companies and millions of consumers. The idea is relatively straightforward: if a product or service has a WindMade trustmark, then it has met WindMade.org standards, meaning it was produced with wind energy and, therefore, is less harmful to the environment than non-renewable energy sources.2 Vestas already has some noteworthy partners, namely the World Wildlife Fund (WWF), Price Waterhouse Coopers (PwC), the United Nations Global Compact (UNGC), Bloomberg New Energy Finance (Bloomberg), The LEGO Group, and the Global Wind Energy Council (GWEC).3 This paper will explore Vesta’s underlying business strategy, paying close attention to its economic incentives, environmental norms, and value-added partnerships as it builds a new environmental label.
    [Show full text]
  • Re Mist Descends
    RENEWABLE POWER IN THE US, CANADA Energy re AND BEYOND Seamless rolled ring supplier for is here the wind industry www.frisa.com www.juwi.com RENEWABLE ENERGY NEWS • LATIN AMERICA FOCUS 2012 Price of success rises in Brazil Chinese connection: the first Record 2012 tally still well behind target and Goldwind turbines in South industry must overcome expanding list of hurdles. America are going up at • Coming Brazilian wind pipeline Enersur’s 16.5MW Villonaco • Local conent help on offer wind farm in Ecuador • Transmission snafu strands 620MW Photo courtesy of Facebook: 3 FotoStock Loja Argentina finance tough sell State-dominated power sector makes wind a risky proposition, slowing 754MW of Genren portfolio. • Credit turbulence knocks Genren 2 auction off stride • Argentina wind project upside 8 Panama backing local hero Auction winner UEP brings leap in scale to Central American wind development. • Central America project surge • Capacity jump on cards for 2013 10 Mexico search for easier life Rowdy neighbors in Tehuantepec persuade wind developers to look further afield for new sites. • 5GW bid rush in second open season • Mexico on the move — projects rundown Mist • Developer leads pack of municipalities to the power deal table • Caribbean takes step up in class 11 Muddy permit waters in Peru descends Contrasting fortunes for developers looking Latin American wind farm construction set to scale heights in northeastern Andes region. new records this year and total capacity could • Andes growth struggle • Mystery gremlins at PDVSA project be within touching distance of 5GW inside • High ridges beckon in Ecuador the next five months, writes Sebastian • Chile decks stacked against green power 14 Kennedy.
    [Show full text]
  • Windmade: One Year On
    RADAR WindMade: one year on In the early part of 2011, we wrote about a new global branding initiative for the industry that was set to “change how the world consumes energy, one product at a time.” It was a lofty claim, for sure, but has WindMade begun to deliver on its ambition? Or even started to make a difference? PES investigates. You’ll have perhaps seen the branding at Group Senior Vice President of honour of being the first ever event to have various events in the past year, and maybe Communications and Marketing in Vestas, the WindMade label. read about the initiative in the press, but the Morten Albaek is recognised in the book for “EWEA is proud to be the organiser of the non-profit-making consortium’s worthy his efforts alongside other global leaders world’s first WindMade event – run 100 per mission is to encourage global corporations within sustainability such as Ban Ki Moon, cent on wind power,” said EWEA CEO to make their products using eco-friendly Al Gore, Bill Gates and Mohammad Yunus. Christian Kjaer back in April. “EWEA strives renewable wind energy. The new eco-label In the book John Elkington, one of the to make its events sustainable, and to will identify wind-produced products and world’s leading experts within promote wind energy not only through bring the actions of socially-responsible sustainability, writes about the initiatives political lobbying but also by making direct corporations to motivated consumers, he believes will have the greatest impact in use of wind power.
    [Show full text]
  • Renewables 2012 GLOBAL STATUS REPORT
    RENEWABLES 2012 GLOBAL STATUS REPORT 2012 STEERING REN21 COMMITTEE Sultan Ahmed Al Jaber Tetsunari Iida Pradeep Monga Athena Ronquillo Ministry of Foreign Affairs Institute for Sustainable Energy and Climate Change Ballesteros United Arab Emirates Energy Policies (ISEP) Branch World Resources Institute Japan United Nations Industrial (WRI)/ Green Independent Adnan Z. Amin Development Organisation Power Producers Network International Renewable Øivind Johansen (UNIDO) Energy Agency (IRENA) Ministry of Petroleum Karsten Sach and Energy Paul Mubiru Federal Ministry for the Corrado Clini Norway Ministry of Energy and Environment, Nature Ministry for the Mineral Development Conservation and Nuclear Safety Environment and Territory Mahama Kappiah Uganda Germany Italy ECOWAS Regional Centre for Renewable Energy Nebojsa Nakicenovic Steve Sawyer Robert Dixon International Institute for Global Wind Energy Climate and Chemicals (ECREEE) Applied Systems Analysis and Energy Efficiency Council (GWEC) Team Cape Verde (IIASA) Global Environment Austria Rafael Senga Facility (GEF) Hans-Jorgen Koch Danish Energy Agency World Wildlife Fund (WWF) Kevin Nassiep Ministry of Climate and Michael Eckhart South African National Energy Citigroup, Inc. Energy Development MariaAsia-Pacific Sicilia Salvadores Denmark United States of America Institute (SANEDI) Ministry of Industry, South Africa Energy and Tourism Emani Kumar Mohamed El-Ashry Spain ICLEI – Local Governments United Nations Foundation Zitouni Ould-Dada for Sustainability Department of Energy & Griffin
    [Show full text]
  • Sustainability
    Vestas |Sustainability Making wind work Together we power the future For more than 30 years our efforts have been devoted to raising the profile of wind as a mainstream energy source. View Vestas' track record Our commitment to sustainability PROFILE DISCOVER WIND PARTNERING SUSTAINABILITY FIND VESTAS TRACK RECORD POWERING SUSTAINABILITY COMMITMENTS SUSTAINABLE PRODUCTS MANAGING SUSTAINABILITY REPORTING http://www.vestas.com/en/about/sustainability[11-02-2015 12:21:52] Vestas |Sustainability Powering sustainability The use of energy is growing rapidly and the resources of our planet are already under great pressure. We need to change the way we produce our energy. We need to produce more renewable energy, and the most promising source of energy is the power of wind. At Vestas, we believe energy to be an important catalyst for founding a better quality of life. A stable energy supply is an essential part of the infrastructure for a developed society. Energy is central to nearly every major challenge and opportunity the world faces today. Be it jobs, security, climate change or food production - access to sustainable energy is essential for strengthening economies, protecting ecosystems, reducing poverty and achieving equity. Read a statement from our President and CEO. http://www.vestas.com/en/about/sustainability[11-02-2015 12:22:12] Vestas |Sustainability Safety Vestas’ goal is zero injuries. We are of the belief that all injuries can be prevented if every hazard is managed and if the right behaviour is in place. We work closely together with customers to fulfil the demand for the highest level of safety in our operations as this adds certainty for their business case.
    [Show full text]
  • The Next Generation Offshore Uk the Missing Link Simulation Virtual Experience Certification Managing Risks CERTIFICATION of OFFSHORE WIND TURBINES
    ISSUE 01 • 2013 DNV GL www.gl-group.com ee nergy.nerg e fficiency. e ngineering. ırenewablesze The Next Generation offshore uk The Missing Link simulation Virtual Experience certification Managing Risks CERTIFICATION OF OFFSHORE WIND TURBINES NEW GUIDELINE | EDITION 2012 The updated guideline follows the main developments in the offshore wind industry. It contains latest testing conditions, safety systems and quality requirements. Order your copy now at www.gl-group.com/glrenewables Photo: Halberg | Dreamstime.com www.gl-group.com/glrenewables editorial To Our Readers Our young, dynamic industry is looking ahead to a bright future – provided that we succeed in maintaining public and government support. To do so we must make wind power more af- fordable. In this issue of energize renewables you will find a number of suggestions that could cut the cost of wind energy significantly. For example, DNV GL engineers can design and tune algorithms for the onboard control- lers of offshore wind turbines to optimise energy capture while minimising loading and fa- tigue. This will save plenty of money (page 30). Advanced computer-based modelling using FEA simulation cuts costs by supporting equipment design, installation, availability and compliance. There is no better way to navigate the intricacies of offshore structural engineering (page 16). But the industry must also learn to cooperate and share know-how to bring down the costs of building wind farms (page 12). RV Ahilan These and many other promising new technologies and perspectives are what renewable energy experts discussed at the EWEA Offshore conference in Frankfurt, Germany. In particular, innova- tive, diversified financing concepts for offshore wind projects are opening new doors.
    [Show full text]
  • Sustainability Report 2010 Vestas Sustainability Report 2010
    Sustainability Report 2010 Vestas Sustainability Report 2010 003 Sustainability is good for business, too 004 Global challenges and opportunities 006 Wind. It means the world to us 007 Vestas at a glance 010 Cost of Energy 020 Safety and Citizenship 028 Partnership 036 Business Case Certainty 042 Our approach to sustainability 044 GRI and Global Compact 046 Memberships and recognitions 047 Accounting policies 049 Independent auditor’s statement Sustainability is good for business, too Welcome to Vestas’ first sustainability report. We have The interest it has already received suggests that WindMade™ expanded our previous sustainability reporting in the annual not only has the potential to increase corporate investments in report to reflect our commitment to the sustainability agenda wind power, but also the strength to create greater worldwide and to invite stakeholders to take a closer look at our business. transparency and awareness of energy. With Vestas’ commit- ment to WindMade™, we are expanding our stakeholder engage- Being a major player in the wind industry, many people tend to ment to reach out to consumers, while continuing to engage think of Vestas as a sustainable company almost by definition. politicians. While this is obviously true, we recognise that becoming truly sustainable is a journey. Not only for Vestas, but for everyone Business is certainly gaining momentum again – although we involved, including business partners and society at large. cannot deny that 2010 was a tough year for Vestas. We made some very difficult decisions and had to lay off 2,200, mainly We do our utmost to be sustainable at Vestas, but we are a high Danish, colleagues.
    [Show full text]
  • Made with Renewable Energy: How and Why Companies Are Labeling Consumer Products Deborah Baker Brannan, Jenny Heeter, and Lori Bird
    Made with Renewable Energy: How and Why Companies are Labeling Consumer Products Deborah Baker Brannan, Jenny Heeter, and Lori Bird NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. Technical Report NREL/TP-6A20-53764 March 2012 Contract No. DE-AC36-08GO28308 Made with Renewable Energy: How and Why Companies are Labeling Consumer Products Deborah Baker Brannan, Jenny Heeter, and Lori Bird Prepared under Task No. SAO9.3110 NREL is a national laboratory of the U.S. Department of Energy, Office of Energy Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. National Renewable Energy Laboratory Technical Report 1617 Cole Boulevard NREL/TP-6A20-53764 Golden, Colorado 80401 March 2012 303-275-3000 • www.nrel.gov Contract No. DE-AC36-08GO28308 NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof.
    [Show full text]
  • REN21 Renewables Global Futures Report Is a Sister Publication Looked Very Different Than It Does Today
    RENEWABLES GLOBAL FUTURES REPORT 2013 REN21 – Renewable Energy Policy ISEP – Institute for Sustainable Energy Network for the 21st Century Policies REN21 is a global multi-stakeholder network that connects The Institute for Sustainable Energy Policies (ISEP) is an inde- a wide range of key actors from governments, international pendent, non-profit research organization located in Tokyo, organizations, industry associations, science and academia as Japan. ISEP was founded in 2000, and since then has become well as civil society to facilitate knowledge exchange, policy a strong voice and source of innovative research in Japan and development, and joint action towards a rapid global transition worldwide. At its core, ISEP aims to provide the resources and to renewable energy. REN21 promotes renewable energy to services necessary for policymaking towards a sustainable meet the needs of both industrialized and developing countries energy future. Three focal areas are promotion of renewable that are driven by climate change, energy security, economic energy, improvement of energy efficiency, and restructuring development, and poverty alleviation. energy markets. REN21 is committed to providing policy-relevant information In Japan, ISEP engages in a wide range of programs and activi- and research-based analysis on renewable energy to decision ties, including policy recommendations on renewable energy and makers from both public and private sectors to catalyze policy energy efficiency to the Japanese government, guidance and change. REN21 also provides a platform for interconnection advice to local municipalities, and public events, conferences, between multi-stakeholder actors working in the renewable and symposia. In addition, ISEP facilitates community-level energy field, and works to bridge existing gaps to increase the renewable energy projects through a "Citizens' Fund" and deployment of renewable energy worldwide.
    [Show full text]
  • Annual Review 2006 Annual Review 2006
    Annual Review 2006 Annual Review 2006 BWEA Events 2007 15 March 2007: BWEA Marine 07 BWEA’s 4th Annual Wave and Tidal Energy Conference London, UK 7 June 2007: BWEA Offshore 07 BWEA’s 6th Annual UK Offshore Wind Conference Liverpool, UK 9-11 October 2007: BWEA29 The Industry’s 29th Annual Conference and Exhibition Glasgow, UK For further information on attending, sponsoring or speaking at BWEA events visit www.bwea.com 2 Annual Review 2006 Contents BWEA is the UK’s leading renewable energy Foreword from CEO 4-5 association. Established in 1978, BWEA now has 2006 Planning Review 6-7 Approaching the 2nd gigawatt over 330 companies in membership, active in the UK wind, wave and tidal stream industries. BWEA Record Year of Delivery 8-13 is at the forefront of the development of these Statistical overview of 14-15 wind farms sectors, protecting members’ interests and promoting their industries to Government, Onshore 16-19 business and the media. Wales 20-21 Wind energy has now started a major expansion Small Wind 22-25 in the UK and will be the single greatest Offshore 26-29 contributor to the Government’s 10% 2010 Marine 30-33 renewable energy target and 20% 2020 Grid and Technical 34-37 renewable aspiration. Together, wind, wave Health and Safety 38-40 and tidal power can supply 21% of the country’s projected electricity supplies by 2020, resulting in Communications 42-47 over £16 billion of investment in UK plc. Energy Review 48-50 Publications 51-57 Events 58-61 Finance Review 62-63 Front cover credits BWEA Staff 64 Burton Wold wind farm
    [Show full text]
  • Welcome CREX Launch Event
    Energy Transparency How do consumers perceive the current energy mix? What’s the answer of large corporations? Morten Albaek Chief Marketing Officer Global MarCom & External Relations, Vestas The Burning Platform The world today is confronted by two main trends… Increasing global Energy Demand A mounting Climate Crisis Global electricity demand is expected to Energy related CO2 emissions will increase with 4.5% each year for the next increase 20% by 2035 causing an 10 years. average global temperature in excess of 3.5°C 2 Mankind is born Sensible And will act, react and prioritise sensibly if only presented with insight and Facts As the world leader in Which is why Vestas is the wind industry, we understand our obligation to not only ourselves committed to and our shareholders, but also to the wind industry and the renewable industry Transparency as a whole. We are relentlessly committed to …for consumers coming up with solutions and …for corporations business cases that advance the adoption of wind globally. …for investors …for NGOs …for policy makers …for the planet 3 The Energy Transparency Challenge Are global companies reacting to these big challenges and in line with the consumer demand? Facts about the CREX index The Corporate Renewable Energy Index ranks companies according to their voluntary renewable energy procurement. CREX’s main goal is to clearly identify the level of renewable energy used by corporations around the world and provide much-needed transparency to companies, investors , policy makers, NGOs and last but not least consumers. In 2012, the CREX includes more than 300 companies from 26 countries.
    [Show full text]
  • Makingit Issue9.Pdf 5.14 MB
    1st quarter 2012 n Jeremy Rifkin n Climate change, climate action n WindMade n ‘Homeland security’ MakingIt n Slovenia Industry for Development Our low-carbon future NUMBER 1, DECEMBER 2009 NUMBER 2, APRIL 2010 NUMBER 3, JULY 2010 NUMBER 4, NOVEMBER 2010 lWe must let nature inspire us – lThe International Energy l China’s stunning economic l Strengthening productive Gunter Pauli presents an Agency’s Nobuo Tanaka looks at rise: interview with minister of capacity – Cheick Sidi Diarra alternative business model that is energy transitions for industry commerce, Chen Deming argues that the LDCs should – environmentally friendly and l Energy for all – Kandeh l Towards a more productive and can – produce more, and sustainable lHot Topic: Is it Yumkella and Leena Srivastava debate – Ha-Joon Chang calls for better quality, goods l Patricia possible to have prosperity on what needs to be done to an acceptance that industrial Francis on climate change and without growth? Is ‘green growth’ improve energy access policy can work trade l Hot topic: The relevance really possible? of entrepreneurship NUMBER 5, FEBRUARY 2011 NUMBER 6, APRIL 2011 NUMBER 7, JULY 2011 NUMBER 8, NOVEMBER 2011 lA window of opportunity for l Feeding a crowded world – lThe globalization paradox – l Closing the gender gaps – world trade? – Peter Sutherland IFAD’s Kanayo Nwanze argues Dani Rodrik l Unfair share – Michelle Bachelet on assesses the prospects for the that smallholder farmers must Thomas Pogge on affluent overcoming the barriers that conclusion of a multilateral trade
    [Show full text]