# Presentation: 125092

## Renewable Energy in the Northwest~ A Utility Perspective

- Thomas MacLean, Manager
- Customer Renewable Energy Programs

- August 27,  2008

## Renewable Energy in the Northwest

- Opportunities by Size
- Utility Scale
- Distributed Commercial
- Distributed Residential
- Opportunities by Technology

## Utility Scale Renewable Resources

## PSE Wind Projects

## Wild Horse Solar Demonstration Project

**Located at Wild Horse Wind Farm near Ellensburg, WA**
**First utility-scale wind-solar facility in nation**
**Excellent sun - same solar resource as Houston**
**Already disturbed land**
**Existing transmission and operational synergies**
**Added tax benefits from co-location**

**500 kW Project – 300 homes at peak**
**Largest in the Pacific Northwest by a factor of three**
**~5 Acre footprint**
**$4-5 million in capital costs**
**90% of facility now operational;**
**	****final completion spring 2008**

- Primary Solar Site – Former quarry, too high for wind turbines (FAA airspace concerns)

- Wind Farm Layout – 127 Turbines

## Renewable Energy in the Northwest

- Looking Forward

## PSE Renewable Acquisition Strategy

## Pacific NW Renewable Projects

- Renewable Northwest Project

## Renewable Energy in the Northwest

- Caveats

## BPA Transmission Constraints

## Levelized Resource Cost Comparison

**Wind**

**Natural Gas**

**Hydro**

**System PPAs**

- 2008

- 2006

- 2004

- 2008

- 2006

- 2004

- 2008

- 2006

- 2004

- 2008

- 2006

- 2004

**$44-62**

**$76-106**

**$104-155**

**$60-85**

**$70-129**

**$102-174**

**$64-67**

**$58-100**

**$79-164**

**$42-74**

**$61-101**

**$74-118**

**20-year Levelized Cost $/MWh**

- _Notes:_
- 2004 prices represent Mid-C delivery.
- 2006 and 2008 prices represent deliveries to PSE’s system
- System PPAs are offers that are shorter term in nature and not tied to a specific resource.

## Rising Wind Turbine Costs

- Source: Berkeley Lab database.Thorndike Landing analysis.

- Wind turbines comprise 60% of total project costs.

## Distributed Commercial

- Renewable Energy in the Northwest

## Biomass -- Active Opportunities

- Dairy Digesters
- Wood Waste
- Waste Water Treatment Plants
- Landfill

##  Distributed Commercial Renewables

- Green Power Program
- Support for new, regional, small renewables
- REC-based program
- Primary supplier is Bonneville Environmental Foundation
- Provides customer choice

## Green Power – Sales Growth

## Dairy Digester ProjectLynden, Washington

- Single Farm- Anaerobic Digester
- First in Washington State
- Number of units -1 Reciprocating engine
- Nominal output 300 kW (potential to 450 kW)
- Project output ~2,000 MWh
- Project costs ~$1M  ($4,000/kW)
- 1,500 Cows
- PSE Involvement
- Power Purchase
- RECs
- Interconnection
- Construction completed fall 2004

## Distributed Residential

- Renewable Energy in the Northwest

## Customer Owned Generation

## Growth in Customer Renewables

## PSE Net Meter Customers

## PSE Solar Demonstration Projects

- Schools
- Environmental Centers
- Other Buildings

## PSE “Green” Tariffs

- Net Metering Services for Customer-Generator Systems (Schedule 150)
- Net metering up to 100 KW
- Surplus energy credited to customer bill
- Eligible resources:  wind, solar, anaerobic digester, hydro
- Renewable Energy Production Incentive Payment Program (Schedule 151 works with either Schedule 150 or Schedule 91)
- Production payments, meters AC energy before load
- Eligible resources:  wind, solar, anaerobic digester
- Cogeneration and Small Power Production (Schedule 91)
- Renewable production up to 2 MW
- Current payment ~ $.077/kWh

## Renewable Energy in the Northwest

- Emerging Technologies

## Concentrating Solar Power

## Proposed NW Geothermal

**China Cap**

_**Raft River**_

**Willow Springs**

**Neal Hot Springs**

**Newberry Crater**

**Crump Geyser**

**Baker**

_**Currently Operating:**_ ~14 MW (Raft River)
_**In Development:**_ ~ 150 MW
_**In Consideration: **_~ 250 MW

**Notes:**
Site	Location	Developer	Status				

Washington							
Baker		Vulcan Power Inc.	Filed for Exploration Permits				

Oregon							
Neal Hot Springs	Central East Oregon	U.S. Geothermal	In negotiations with Idaho Power for PPA (as of May 2007)	120 MW			
Klamath County		Raser Technologies		25-30 MW			
Newberry Crater	25 mi. S of Bend, OR	Davenport Power	20 year PPA with PG&E signed July 2006	Expected online in late 2009			
Crump Geyser	Adel, Oregon	Nevada Geothermal		40-60 MW			

Idaho							
China Cap	Caribou County, ID	Idatherm		100 MW	Confidential buyer		
Raft River	Cassia County, ID	US Geothermal		30 MW	Idaho Power		
Willow Springs	Willow Springs, ID	Idatherm		100 MW	Confidential buyer		

## Wave & Tidal Power in the Northwest

_**Wave Projects**_
- Makah Bay
-     (Finavera)
- OPT Reedsport
-     (Ocean Power Tech.)
- Douglas County
-     (Wavegen)
- OPT Coos County
-     (Ocean Power Tech.)
- Humboldt County
-     (Finavera)

_**Tidal Projects**_
- Race Rocks
-     (Pilot)
- Snohomish PUD
-     (Planning)
- Tacoma Power
-     (Halted)
- Willapa Bay
-     (Planning)

## Puget Sound Algae – Blue Marble

## Technology Development

- Concept

- Pilot

- Early Commercial

- Favorable High Market Economics

- Favorable Mass Market Economics

- Solar PV
- Dairy Digester
- Fuel Cells

- Wind
- Traditional Biomass
- Geothermal

- Wave
- Tidal
- Algae
- CPV

- CSP Solar Thermal Electric
- PHEV
- Biomass Gasification
- Batteries

## Technology Development and Financial Support

- Concept

- Pilot

- Early Commercial

- Favorable High Market Economics

- Favorable Mass Market Economics

- State
- &
- Federal

-  Basic research: UW/WSU
-  Identify Washington advantages.
-  Grants & partnerships with
-    private entities.
- Establish legal frameworks

-  Government as Customer
- Tax Credits for Investment (ITC)
-  Tax Credits for Production (PTC)
-  Tax Credits for Manufacturing RE (OR)
-  Promote export market
-  Reduce regulatory barriers.

- Private

- Founder Financing

- Venture Capital

- Commercial Financing

## Basic Research Funding

- Source:  Gallagher, K.S., "DOE Budget Authority for Energy Research, Development, and Demonstration Database," Energy Technology Innovation Policy, John F. Kennedy School of Government, Harvard University, February 2008.

## Partnership Model for Early Commercial

## Renewable Technology Outlook in the Northwest

|  | Commercially available, depending on economics |
| --- | --- |
|  | Tested and shows good potential |
|  | Early testing with theoretical potential |
| X | Target Market |

| Technology | Utility Scale | Distributed Commercial | Distributed Residential |
| --- | --- | --- | --- |
| Wind | X |  | X |
| Solar | X | X | X |
| Geothermal | X |  | EES |
| Tidal | X |  |  |
| Wave | X |  |  |
| Biomass Combustion | X | X |  |
| Biomass AD | X | X |  |
| Biomass Gasification |  | X |  |
| Algae | X | X |  |
| Fuel Cells |  | X |  |

## Renewable Energy in the Northwest

- Discussion

## Resources Vary by Region