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Renewable Energy Development and the Role of Policy

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Renewable Energy Development and the Role of Policy Technical Report State of the States 2009: NREL/TP-6A2-46667 Renewable Energy Development October 2009 and the Role of Policy Elizabeth Doris, Joyce McLaren, Victoria Healey, and Stephen Hockett Technical Report State of the States 2009: NREL/TP-6A2-46667 Renewable Energy Development October 2009 and the Role of Policy Elizabeth Doris, Joyce McLaren, Victoria Healey, and Stephen Hockett Prepared under Task No. IGST.9000 National Renewable Energy Laboratory 1617 Cole Boulevard, Golden, Colorado 80401-3393 303-275-3000 • www.nrel.gov NREL is a national laboratory of the U.S. Department of Energy Office of Energy Efficiency and Renewable Energy Operated by the Alliance for Sustainable Energy, LLC Contract No. DE-AC36-08-GO28308 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. Available electronically at http://www.osti.gov/bridge Available for a processing fee to U.S. Department of Energy and its contractors, in paper, from: U.S. Department of Energy Office of Scientific and Technical Information P.O. Box 62 Oak Ridge, TN 37831-0062 phone: 865.576.8401 fax: 865.576.5728 email: mailto:[email protected] Available for sale to the public, in paper, from: U.S. Department of Commerce National Technical Information Service 5285 Port Royal Road Springfield, VA 22161 phone: 800.553.6847 fax: 703.605.6900 email: [email protected] online ordering: http://www.ntis.gov/ordering.htm Printed on paper containing at least 50% wastepaper, including 20% postconsumer waste Acknowledgments This report was produced with funding from, and in coordination with, the Department of Energy (DOE) Weatherization and Intergovernmental Program (WIP) in the office of Energy Efficiency and Renewable Energy (EERE). NREL staff would like to acknowledge the significant contributions of Joel Bluestein, Megan Douglas, Anne Hampson, Jessica Rackley, and Rick Tidball of ICF International toward the drafting and editing of the contextual factors chapter of this report. During the review process, the authors benefited from extensive comments from a variety of stakeholders, including: Lynn Billman, National Renewable Energy Laboratory (NREL) Brian Bush, NREL Karlynn Cory, NREL Rusty Haynes, North Carolina State University (NCSU)/Database of State Incentives for Renewables and Efficiency (DSIRE) Davion Hill, DNV Consultants Miles Keogh, National Association of Regulatory Utility Commissioners (NARUC) Carey King, University of Texas Charlie Kubert, Clean Energy States Alliance (CESA) Kevin McCarthy, State of Connecticut Linda Silverman, DOE In addition to these reviewers, we appreciate the assistance of Michelle Kubik in NREL’s Technical Communications Office for her editing support. Of course, any remaining errors are the responsibility of the authors. i Abstract As U.S. states increasingly focus on developing renewable energy resources, there is a need to track the progress of development, as well as the policies and support mechanisms being implemented to encourage this development. Beyond tracking, the evaluation of policy measures is necessary to determine their effectiveness, guide future efforts, and efficiently allocate resources. This report addresses each of these needs. It provides a detailed picture of the status of renewable energy development in each of the U.S. states using a variety of metrics and discusses the policies being used to encourage this development. The report then explores the context in which renewable energy development occurs by discussing the factors that can affect the uptake of power generation technologies. The analysis offers suggestions on how policies can be used to address these variables, which leads to tailored policy support that considers the specific circumstances within each state. The analysis presents results of several quantitative evaluation methods that have been designed to explore the link between policy implementation and actual development. These analyses are an attempt to move beyond designed-based policy evaluation and develop performance-based evaluation methods instead. Finally, the report discusses contextual factors, aside from policy, that affect renewable energy development. Understanding contextual factors, which create the framework for renewable energy markets, is essential for effective policy design and implementation. The report concludes with a summary of the main points from each chapter, discussion of next steps, and a list of resources. ii Table of Contents Acknowledgments............................................................................................................................ i Abstract ........................................................................................................................................... ii Table of Contents ........................................................................................................................... iii List of Figures .............................................................................................................................. viii List of Tables ................................................................................................................................. ix List of Acronyms .......................................................................................................................... xii Executive Summary ..................................................................................................................... xiv Chapter 1. Introduction and Background ........................................................................................ 1 The context of the report within existing literature .................................................................... 1 New Developments in State of the States (SOS) 2009 ............................................................... 2 Chapter 2. Quantitative Trends in Renewable Energy Development ............................................ 4 Introduction ................................................................................................................................. 4 Definitions of Resources for Data Gathering .............................................................................. 4 Biomass ................................................................................................................................... 4 Geothermal .............................................................................................................................. 5 Hydroelectric (conventional) .................................................................................................. 5 Solar (utility scale) .................................................................................................................. 5 Solar (distributed) ................................................................................................................... 5 Wind ........................................................................................................................................ 5 Data Sources ............................................................................................................................... 5 National Renewable Energy Generation Data ............................................................................ 6 National Renewable Energy Growth Data .................................................................................. 7 National Growth Data, 2001 – 2007 ....................................................................................... 8 Total Renewable Electricity Growth (including hydroelectric) .......................................... 8 Total Renewable Electricity Growth (excluding hydroelectric) ......................................... 8 Biomass Growth.................................................................................................................. 9 Geothermal Growth ............................................................................................................ 9 Solar Growth ....................................................................................................................... 9 Wind Growth ...................................................................................................................... 9 Hydroelectric Growth ......................................................................................................... 9 National Growth Data, 2006 -2007 ....................................................................................... 10 Total Renewable Electricity Growth (including hydroelectric) ........................................ 10 Total Renewable Electricity Growth (excluding hydroelectric) ......................................
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