# Presentation: 109808

## Competitive Acquisition of Renewable Energy & Renewable Energy Certificates 

- Andrea L. Kincaid, Contracting Officer
- Electricity & Renewables
- Defense Energy Support Center

- Unclassified

## EPAct 05 Requirements

- Section 203. Federal Purchase Requirements
- Renewable Energy Goals
- Not less than 3% FY07-FY09
- Not less than 5% FY10-FY12
- Not less than 7.5% FY13-
- Acceptable Resources
- Solar, Wind, Biomass, Landfill Gas, geothermal, municipal solid waste, new hydroelectric generation

- Unclassified

## EPAct 05

- Ability to double count RECs associated with-
- Generation on Federal Installations
- On Indian Lands
- On other Federal Land
- However – must be generated _and used _
- Policy/Guidelines still being developed

- Unclassified

## Electricity Restructuring Status

**Electricity Restructuring Status**

**Open to competition, competitive contracts awarded**

**Open for competition, no competitive awards**

**Competitive contracts no allowed**

- Unclassified

## Renewable Power 

- Policy originally provided in Executive Order 13423 and EPAct 05
-  Solar
-  Wind
- Geothermal
- Biomass
- Tidal, thermal, landfill gas, waste-to-energy, others
- Additional Input
- National Energy Policy
- Agency Policy

- Unclassified

## What are the Goals?

- EO 13423 dated Jan 24, 2007 – 50% of purchased renewables from resources operational after Jan 1, 1999
- EPAct05
- Not less than 3% FY07-FY09
- Not less than 5% FY10-FY12
- Not less than 7.5% FY13-?
- To the extent economically feasible and technically practicable

- Unclassified

## Facilitated Projects

- We see as the wave of the future
- Build the most feasible projects on-site
- Energy security
- The real green power (not a REC, not rebundled)
- Significant up front costs
- RECs count twice

- Unclassified

## Utility Green Power Options

- Do they exist?  Yes but...
- Not well publicized
- Cost has been a factor
- Always a premium ($)
- Not much room to negotiate price
- Must take or leave what is offered
- Fewer source options

- Unclassified

- Unclassified

## Competitive Green Power Purchases

- Only in deregulated states
- Request for Proposal (RFP) for electrons including a % green
- More costly than electrons + RECs
- Usually different suppliers
- Often reduces the number of offerors
- Easier for many customers to justify
- Potential for long term contracts
- Price justification can be an issue

- Unclassified

## REC Diagram

- RECs/Green Tags:

- Renewable Energy
- Generation

- Electricity

- Environmental
- Attributes

- Renewable Power

- REC

- Unclassified

## REC Diagram

- Conventional
- Power

- Green
- Power

- Power Grid

- Electricity
- Supplier

- REC
- Supplier

- Electricity
- Consumer

- Power

- Power

- REC

- $

- Power

- Power

- REC

- $

- $

- Unclassified

## Renewable Energy Procurement Approaches

- Renewable Energy Certificates
- Pros
- RECs currently the least costly alternative
- Ability to purchase nationwide
- Cons
- Not viewed as a long term solution
- Not without issues
- Not everyone agrees with purchasing
- Green Power Partnership conflicts
- RPS driving price up, availability decreasing
- Never mentioned in EPAct05

- Unclassified

## Renewables Portfolio Standards

**State Goal**

** ****PA: 18%****1**** by 2020**

** ****NJ: 22.5% by 2021**

**CT: 10% by 2010**

**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**

***NM: 20% by 2020 ****(IOUs)**
**10% by 2020 ****(co-ops)**

** ****AZ: 15% by 2025                           **

**CA: 20% by 2010**

** ****NV: 20% by 2015**

**ME: 30% by 2000;**
**10% by 2017 goal - new RE**

**State RPS**

** *****MD: 7.5% by 2019**

** ****Minimum solar or customer-sited requirement**
*** Increased credit for solar or customer-sited**
**1****PA: 8% Tier I / 10% Tier II (includes non-renewables); SWH is a Tier II resource**

**HI: 20% by 2020**

**RI: 15% by 2020**

** ****CO: 20% by 2020 ****(IOUs)**
***10% by 2020 (co-ops & large munis****)**

** ****DC: 11% by 2022**

**	****	**

** ****NY: 24% by 2013**

**MT: 15% by 2015**

***DE: 10% by 2019**

- IL: 8% by 2013

- VT: RE meets load growth by 2012

**Solar water heating (SWH) eligible**

***WA: 15% by 2020**

**DSIRE: www.dsireusa.org**

**March 2007**

- Unclassified

## Recent REC Purchases

- DoE Paducah Lab – awarded Sep 06 – GPP requested – 72,000 MWh – 2 year – awarded $1.29/MWh –wind/biomass/geothermal blend
- NASA (KSC)/IHS – awarded Apr 07 – GPP requested – one time delivery NLT 1 May 07  – 8,953 MWh awarded at $2.30/MWh – Biomass (LFG)

- Unclassified

## Recent REC Purchases

- BOPD – awarded Aug 06 – GPP requested – 12,000 MWh – 4 year – awarded $1.73/MWh – biomass
- Commerce – Awarded 12 Sep 06 – no special requirements – one time delivery NLT 30 Sep 06 Municipal Solid Waste – 100,000 MWh awarded at $0.30/MWh

- Unclassified

## Recent REC Purchases

- EPA various – to finish off 100% renewable for EPA Labs – “NEW” March 1, 2006 – delivery Sep 06 – Sep 07 – 110,000 MWh – Wind $1.50/MWh
- Interior/Agri./DHS – Renewable resource commenced operation after January 1, 1991 – Delivery date(s)
- 	Agri.- 30 Sep 06, 01 Dec 06, 31 Jul 07
- 	Interior/DHS – NLT 30 Sep 06
- 	200,900 MWh – Wind and Biomass $0.32/MWh

- Unclassified

## Points of Contact

- John Nelson
- Division Chief, Electricity & Coal
- PH: (703) 767-8523
- Email: John.Nelson@dla.mil

- Leslie Simpson
- Contract Specialist
- Electricity and Renewables
- PH: (703) 767-8536
- Email: Leslie.Simpson@dla.mil

- Andrea Kincaid
- Contracting Officer
- Electricity and Renewables
- PH: (703) 767-8669
- Email:  Andrea.Kincaid@dla.mil

- Unclassified