Wisconsin s Electric Cooperatives: Renewable Energy Policies, Programs & Practices. Craig Harmes, Manager, Business Development

Transcription

1 Wisconsin s Electric Cooperatives: Renewable Energy Policies, Programs & Practices Craig Harmes, Manager, Business Development

2 Electric Cooperative Policies, Programs & Practices: 1. Customer Owned Distributed Generation 2. Co-operative Owned Distributed Generation 3. Dairyland Utility-Scale Renewable Portfolio Overview

3 Dairyland Power Cooperative formed in 1941 to provide electricity and therefore, a much greater quality of life to rural residents in the region Genoa #1

4 Dairyland Power Cooperative A generation & transmission (G&T) cooperative 550 employees $1.5 billion in assets Provides wholesale power to 24 member distribution cooperatives and 17 municipal utilities (retail service providers) They provide energy to approximately 600,000 people MN IA WI IL

5 Cooperative Model Cooperatives are owned and controlled by the consumers they serve (our members) Governed by board of directors, elected at member annual meeting One member, one vote, one voice Not for profit Revenues over budget called margins are returned to consumers

6 Your Cooperative s Renewable Energy Policy Balanced power supply reliable, affordable & environmentally responsible Fair & competitive rates w/ costs & benefits distributed equitably among all members Avoid shifting costs

7 Customer Owned Renewable Generation Net Metering Defined: Electric customers may use their own renewable distributed generation (DG) to offset their own energy requirements and sell the excess back to the utility at the average retail rate. Net metering is not an opportunity for anyone to sell power to the utility (i.e. an independent power producer). Wisconsin requires the regulated utility (IOUs and municipals) to participate in net metering for customer-owned renewable generation to 20 kw. Cooperatives are not obligated.

8 Electric Cooperatives Net Metering Dairyland Power has an All Power Requirements contract with its 24 member cooperatives Cooperatives will purchase all of their power requirements from Dairyland Power Dairyland Power provides an exception for net metering Cooperative has power purchase agreement with the DG owner Cooperatives voluntarily match or exceed WI 20 kw mandate Co-ops follow WIDRC Interconnection Guidelines Cooperatives serve areas that are mostly rural. Most DG is interconnected in rural areas.

9 Electric Cooperatives Net Metering Policy Policies and rates vary by cooperative determined by the local co-op board of directors Excess energy purchased monthly at retail rate Excess energy purchased monthly at avoided cost Roll forward excess energy monthly with purchase at avoided cost at yearend Purchase of excess energy at avoided cost encourages member sizing DG to their load Avoided cost = market pricing (MISO hourly day ahead locational marginal price for energy) Policy Issue How can the co-op fairly allocate cost and avoid cost shifting?

10 Customer Owned DG (net metering) DPC System Total Installations Wind Solar 1,065 total DG 34% PV increase *2016 total DG includes 2 mini-hydro & 1 biogas

11 Energy Efficiency Incentives Energy efficiency first Focus on Energy programs Many co-ops are participating utilities Dairyland Power EE rebates Some offer only Dairyland Power rebate programs More tailored to residential because that reflects our customer base

12 Dairyland Power Policy Customer Owned DG Larger than Net Metering Scale Dairyland Power has power purchase agreement with DG owner Interconnection provider = Distribution Cooperative Local co-op interconnection policies apply Excess/Net energy purchased monthly at Dairyland s avoided cost In accordance with the Public Utilities Regulatory Policies Act (PURPA) Local utility must purchase power from Qualifying Facilities to 20 MW

13 Cooperative Owned Distributed Generation Dairyland All Power Requirements contract exception There is benefit for the member cooperative to own or purchase a portion of their own local renewable energy generation Output of member co-op s generation used to directly serve member co-op s load Example is community solar garden

14 What is Community Solar? A local, centrally-sited solar power installation that provides members the opportunity to purchase solar panels/output. The panels produce power that is fed into the grid. Participants receive a monthly credit on their electric bills produced from their panels. Any co-op member can participate. Vernon Electric Cooperative Community Solar

15 Cooperative Community Solar Co-op kw AC (NREL) 1. Vernon St. Croix MiEnergy (Tri-County) 57 Bayfield Electric Cooperative Solar Garden 4. MiEnergy (Hawkeye) Barron Heartland Jo-Carroll Clark Taylor Eau Claire Bayfield People s Allamakee Richland Dunn Oakdale 200 3,039 kw

16 Cooperative Purchased Solar Co-op (DPC/SoCore Site) 17. Riverland (Arcadia) 18. Scenic Rivers (Mt. Hope) 19. Vernon #2 (Liberty Pole) 20. St. Croix #2 (Warren) 21. Polk-Burnett (Sand Lake) 22. Chippewa (New Auburn) kw AC (NREL) 144 online 244 online 232 online 144 online 235 pending 250 pending 1,249 kw St. Croix Electric Co-op

17 Dairyland Diversification Plan: load growth, natural gas & renewables Other Renewables 5% Municipals 13% Wind 5% Natural Gas 7% 2016 Other Renewables 4% Coal 70% Municipals 7% Wind 17% Natural Gas 22% 2026 Coal 50%

18 Dairyland Power Diverse Renewable Generation Resources Wind Solar Solar = 22 MW 21 MW, 2017 Biogas = 13 MW Biogas Wind = 132 MW 80 MW (Barton Wind) February MW (Quilt Block) end of 2017 Hydro = 28 MW

19 Largest Solar Roll-out in Wisconsin to date 19 MW (14 projects) 2.5 MW, Flambeau Solar, Medford, WI Largest in Wisconsin Today!

20 Dairyland Power Cooperative Solar Facilities MN Project Sites: Distributed projects located in Dairyland s service territory. WI Owners/Developers: SoCore Energy CMS Energy/groSolar Clean Energy Collective MN-3/Dragonfly Solar IA IL 20

21 Why Utility-Scale Solar? Cost of the technology has fallen dramatically Fits with Dairyland strategic objective to diversify our power generation portfolio Members are very interested in locally produced renewable energy

22 Nemadji Trail Energy Center (NTEC) Smart, measured, prudent diversification that enables renewables and ensures reliability, sustainability and affordability. 550 MW Combined Cycle Natural Gas Plant, Superior, WI projected 2024 COD

23 Key Take-Aways Craig Harmes Dairyland Power Cooperative Dairyland is a cooperative and our primary mission is to meet our members needs Co-op members rely on their cooperative to help them make wise energy choices Co-op members are interested in renewables and local co-ops want to meet members interests

24 Comments and Questions Craig Harmes Manager, Business Development Craig Harmes Manager, Business Development Dairyland Power Cooperative (608)