New group promises REAL solutions

Promising real solutions to Florida’s energy quandary, a new group calling itself REAL announced a coalition of environmentalists and businesses that will push for strong renewable requirements in the state.

REAL, which stands for Renewable Energy Alliance, included several environmental groups alongside businesses like Covanta, which converts trash to electricity, Florida Crystals, one of the largest U.S. sugar businesses which has an interest in using crop waste for biofuels and Kyocera Solar, a Japanese solar manufacturer.

The group called on the Florida Public Service Commission, which regulates utilities, to set a renewable energy target of 20 percent of the state’s electricity by 2020, the same goal set out by Gov. Charlie Crist and opposed by many of the state’s utilities. The commission has a hearing next week on the issue.

-Asjylyn Loder, Times staff writer

For the group's press release, read on...

RENEWABLE ENERGY ALLIANCE
"REAL Solutions for Floridaʼs Energy Needs"

NEWS

For Immediate Release                                                       November 25, 2008
                                                               
                                                                   Contact: John Wark (850) 321-6490

BUSINESSES AND CLEAN ENERGY GROUPS PUSH BLUEPRINT FOR RENEWABLE ENERGY IN FLORIDA

Broad alliance unveils guiding principles for PSC to establish a robust renewable energy market in Florida -- dismisses claim that renewable energy is not affordable

TALLAHASSEE, FL -- An array of renewable energy companies and clean energy advocates today announced they are joining forces to push for adoption of strong state energy rules that can immediately establish a fair, innovative and robust renewable energy market in Florida.

The new group, known as the Renewable Energy Alliance, or REAL, issued a list of guiding principles (attached below) it wants incorporated into state renewable energy rules now under development by the Florida Public Service Commission (PSC). The PSC staff is set to hold a public workshop on the proposed Renewable Portfolio Standard on December 3, 2008 in Tallahassee.

The principles adopt Gov. Charlie Crist’s recommendation that Florida generate 20 percent of its energy from renewable sources by 2020. They also set forth conditions for a fair and equal market that can guarantee an even playing field for renewable energy companies to compete with investor-owned electric utilities.

The PSC must deliver a final draft of a proposed rule to the Legislature by February, 2009 noted Stephen Smith, who helped organize REAL and who also serves as executive director of the Southern Alliance for Clean Energy, a nonpartisan group that promotes responsible energy choices that solve global warming problems, ensuring clean, safe, and healthy communities throughout the Southeast.

“This represents a huge, wholesale change in the way the state’s power grid produces, buys and sells electricity and the affect on Floridians will be felt for many years to come,” he said. “That’s why we are issuing these principles today. It’s imperative the PSC proposal encourage and treat fairly all the new players who are so vital to the new market’s success and future innovation.”

The Solar Alliance and FlaSEIA, which together represent several hundred solar companies, are expected to announce their endorsement of the guiding principles today.

Members of REAL offered the following additional comments:

Florida Crystals spokesman Sean Stafford: “Every bioenergy plant in this state will create hundreds, if not thousands of new jobs. Instead of exporting our dollars to purchase fuel from outside Florida, Florida can grow its own energy and begin to stabilize our skyrocketing electric rates. “ [Florida Crystals, a vertically integrated sugar company, operates the nation’s largest biomass energy plant in south Florida.]

Covanta Energy spokesman Joseph Treshler: “Consumers know how important it is for all of us to do everything we can to realize the full potential of all renewable energy sources -- biomass, Energy-from-Waste, solar, wind and hydropower. They rightly expect to see that potential expanding today. And we can do that -- but only with a level playing field and ambitious, achievable goals.” [Covanta Energy operates Energy-from-Waste plants across Florida and the United States, converting municipal sold waste into renewable energy for numerous communities.]

Kyocera Solar, Inc. spokesperson Cecilia Aguillon: “Kyocera endorses REAL’s five principles as the basis for setting up long-term sustainable renewable energy industries and markets in Florida. We are committed to working with the PSC, the state Legislature, and other stakeholders to fashion a Renewable Portfolio Standard that promotes residential, commercial and utility scale renewable technologies. We hope that the RPS will be a vehicle to grow the already established solar industry in the state. [Kyocera is a manufacturer of solar electric equipment serving global markets since 1975].”

The Climate Group’s U.S. Southern Region Director, Susan Glickman: “We wholeheartedly thank Governor Crist and we support his efforts to develop a renewable energy market. Who would have known two years ago, that the economy would be in such shambles, automakers and banks would need bailouts, or so many Floridians would be cast into joblessness? Now, more urgently than ever, we need to seize the opportunity to establish a green economy capable of creating the new jobs Floridians desperately need.” [The Climate Group works at the intersection of Fortune 500 companies and government, working to set the economy on the path to a low-carbon, prosperous future.]

Vote Solar spokesperson Gwen Rose: “With the economic and environmental cost of traditional energy sources continuing to skyrocket, it's becoming increasingly clear that renewable energy investment is smart energy investment. Action taken now will ensure that the Florida's homes, businesses and communities have reliable, predictably priced clean energy for decades to come. We're looking forward to working side by side with state energy regulators and our partners in REAL to help solar energy thrive in Florida.” [Vote Solar is a nationwide initiative working with state governments to build sustainable solar markets, stop global warming and increase energy independence.]

Audubon of Florida spokesman Eric Draper: “There are people out there trying to scare the public into thinking renewable energy is too costly. We hope these nonsensical claims stop.”

The historical trend in the price of fuel has led to ever increasing costs to heat and cool Florida homes and businesses, as utilities have passed along the rising costs of what they pay for fuel to their customers.

“Over the past three years, fossil fuel cost spikes, and advanced cost recovery for new nuclear plants have resulted in massive rate increases for Florida electric customers.  Its time to reduce greenhouse gasses, stabilizes electric rates, diversify our fuel sources, and provide energy security for Floridians,” Draper said.
.
“The Audubon members I talk to, young and old, want to see Florida not only move forward but emerge as a world leader in the development of renewable energy. When that happens the cost of production will come down.”

[Audubon of Florida has been the voice of conservation in Florida for more than 100 years and is also currently active in encouraging the state to adopt California’s clean car standards.]

REAL continues to grow as new members join the effort to secure a vibrant and fair renewable energy market for the state of Florida. Among the members are, Advanced Green Technologies (http://www.agt.com/), Audubon of Florida (http://www.audubonofflorida.org/), Covanta Energy (http://www.covantaholding.com/), Florida Crystals (http://www.floridacrystals.com/), Florida Solar Coalition, Kyocera Solar (http://www.kyocerasolar.com/), Natural Resources Defense Council (http://www.nrdc.org/), Southern Alliance for Clean Energy (http://www.cleanenergy.org/), The Climate Group (http://www.theclimategroup.org/), Vote Solar (http://www.votesolar.org/).

***

Core Principles 
for Establishing a Fair and Robust
Florida Renewable Portfolio Standard 

• Establish the targets set by Governor Crist.

Set meaningful targets and a timeline, mirroring the governor’s proposal of 20 percent by 2020, which will secure technology investments and create jobs through a diverse mix of distributed renewable energy (as defined in Florida statute ( HB 7135) by technology, size and ownership). 

• Recognize that renewable energy  insulates customers from conventional power price spikes.

Promote a cost protection mechanism that encourages rapid development of renewable energy, recognizing  the benefits of renewable energy diversity in insulating ratepayers from the risk of volatile conventional fuel rate increases.

• Level the playing field for non-utility renewable energy providers.

Promote fair competition between utility self-built renewable projects and third-party renewable projects, including but not limited to offering long-term standard contracts for renewable resources. 

• Adopt a meaningful enforcement mechanism.

Promote an enforcement mechanism for compliance that  ensures non-compliance is more expensive than compliance.

Remove interconnection barriers and give renewable energy resources priority to the transmission grid.

Comments

[Tino]

Besides companies that want to receive state funds, are there any businesses in the Renewable Energy Alliance that *consume* electricity that are clamoring for a 20% RPS?

>Audubon of Florida spokesman Eric Draper: “There are people out there trying to scare the public into thinking renewable energy is too costly. We hope these nonsensical claims stop.”

I would love to see Mr. Draper's calculations, but his website does not provide any. I hope that the St Pete Times attempts to locate and publish the evidence, since they are advertising Mr. Draper's claims.

[Melissa M]

The cost of renewable energy is declining while the price of fossil fuels will only go up, especially after we pass state and federal cap & trade legislation.

Those who complain about the price of clean energy should remember that dirty energy is costing us in more than one way. Florida is extremely vulnerable to the impacts of climate change. Our billion dollar coasts deserve protection. Moving into an efficient, low-carbon, clean energy economy is the best way to do this, AND create jobs.

I am a consumer of energy and I support a strong renewable portfolio standard that will drive investments in clean energy technologies.

Fossil fuel is fossil thinking.

[Tino]

Adding penalties to one technology and providing subsidies to another does not change the underlying cost structure.

If you give me stilts and cut off Michael Jordan's feet, I guess I could say I'm taller than him, too.

[George]

It's about time the state started leading the FL economy in a new direction. Construction, tourism are tanking ... why not let the nation /world know that FL is "open for business" for green jobs.

The cost of power from conventional plants has been skyrocketing - 25% next year for Progress Energy w/ FPL and TECO right behind.

Folks like Tino try to scare folks on the cost of renewable energy. The fuel for solar is free and biomass fuel is price stable. Who are they trying to kid?

[Tino]

Again, let's see some numbers. I can build a giant treadmill that runs off of gerbil power. The fuel for that power would be free as well, but I don't see the power companies banging down my door for the fully-loaded cost of output.

Please point me to some financials that back up this claim, and I'll compare them to my spreadsheets. This is not a "scare tactic". You have to provide a full set of facts to have a discussion.

Aububon's Mr. Draper apparently doesn't have enough room on his website to include the evidence behind his bold claims.

[George]

If you want numbers, I'll send you my next electric utility bill that will full of massive price increases for fossil fuel charges and early cost recovery for proposed nuclear plants (I'm paying for that nukes won't come online until 2020 -if at all)...

[Tino]

Great -- and I'll send a flyer from a local solar installation company offering "free, clean" renewable power at $12,000 per kilowatt, installed.

Oh, and that solar panel runs with about a 25% capacity factor.

The nukes that are planned will probably cost in the range of $6,000 per kilowatt, but they will likely run at >90% capacity factors. Sure, the fuel runs about a penny per kWh, so I guess by Mr. Draper's math, it's more expensive.

On a per kWh basis, new nuclear plants are still about 25% the cost of solar. How much do think your bill would be increasing if we added the equivalent amount of solar?

Since you brought up your bill, pull it out and look at the $/kWh portion on your bill (before all of the taxes and fees that will never go away). Yes, it's going to go up. However, the addition of renewables in the Florida market are currently costing about 30-40 cents per kWh (and that is for a utility-sized system).

When the pre-tax, pre-fee part of your bill exceeds these numbers, then it will be a great time to go 100% renewable. Some rate plans in California now exceed this amount, so it is beneficial for them to make the switch. Until then, the numbers for Floridians are not even close.

[paminator]

Tino- It is aggravating that people are promoting *inexpensive* renewables like solar and wind, without a glimmer of financials to back it up. I just read recently that Centrica is going to ask for an additional $6B for its proposed offshore wind farms in GB. The extra cash is due to escalating construction costs. They will eventually have about 1500 MW nameplate capacity installed. Even without the original costs included, that is $4000/kW nameplate, or an astronomical $12,000/kW (delivered) based on an optimistic 33% capacity factor.
And offshore wind is much cheaper than solar PV or solar thermal...

But what about our carbon skidmark?

You need to choose with your heart, not with your brain (overheard at an Obama rally).

:-)

[Frank]

Tino/Paminator are utility shills....everybody from Wall Street to the insurance industry won't touch nuclear with a ten foot pole. What was the capacity factor for the Crystal River nuke when it was shut down for a year and a half? zero! What would the cost of electricity be if the utilities had to account for the true costs of their business practices? What price would you put on an asthma sufferers life that dies from particulate pollution associated with burning coal? What about mercury contamination? How do you put a price on mountaintop removal from coal mining?

[paminator]

Frank- Nuclear plants have recently averaged above 90% capacity factor. The EIA reports an overall lifetime capacity factor of about 80%. This includes shutdown times of a year or more to upgrade equipment and (usually) increases output power by 10% to 20%. Many nuclear plants have had license extensions, allowing them to operate for 60 years or more, and counting. Building a nuclear plant today is an investment in secure energy for the remainder of this century.

Wall Street is happy to invest in companies that build components for nuclear plants. They are happy to buy uranium futures for nuclear fuel. The issue with insurance, as you well know, is due to an overblown public fear or nuclear power created by environmentalists and silly movies. No-one seems to want to talk about the incredible safety record of nuclear plants in the US, France, GB, Canada, etc.

Frank, stop making stupid claims about me. Tino and I are attaching real numbers that are almost always missing (or incorrect when they are reported) from the rhetoric about renewables. The precautionary principle that you love to use is a worthless emotional gesture that disallows its own application. Yellowstone park's history of mis-management is a prime example.

When fossil fuel energy becomes more expensive than renewable energy, then renewables will see widespread deployment. I'll be an eager adopter of renewable generation at my home when this point occurs. We aren't there yet.