Oregon Renewable Energy Action Plan April 2005

with Geothermal Energy highlightsby

Carel DeWinkelSenior Policy Analyst

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Oregon Renewable Energy Action Plan

– Set long and short term goals for the state

– Propose Legislative Initiatives

– Coordinate activities between state agencies and other

stakeholders

– Coordinate with West Coast Governors’ Global

Warming Initiative and Oregon Governor’s Global

Warming efforts

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Oregon Renewable Energy Action Plan: Why now?

– Governor’s leadership

– Availability of cost competitive technology

– Risks in availability and price of fossil fuels

– Economic Development and Jobs

– Environmental Considerations

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Oregon Renewable Energy Action Plan: highlights

– Goal: 10% of electric sales by new renewable capacity by 2015, increasing to 25% by 2025

– state government purchases of renewables

– study of RPS versus production based incentives

– reduce unnecessary barriers for renewables (PURPA, C&RD, interconnection issues, etc.)

– specific actions on wind, geothermal, solar, small hydro, biomass, biogas, wave energy

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(aMW) (MWh)End of 2004 sales, assuming 1% growth since end 2003 * 5200 45,552,000 End of 2004 sales, IOUs only (71.4% of total) * 3713 32,524,128 End of 2004 sales, COUs only (28.6% of total) * 1487 13,027,872 Annual growth rate after conservation (%) 1

End of (aMW) (MWh) (aMW) (MWh)

Sales (aMW) 5801 50,820,925 6408 56,137,918 Sales growth since end of 2004 (aMW) 601 5,268,925 1208 10,585,918

Goal: 10 percent renewables by 2015 (aMW) 580 5,082,092

IOUs 414 3,628,614

COUs 166 1,453,478 Goal: 25 percent renewables by 2025 (aMW) 1602 14,034,479

IOUs 1144 10,020,618 COUs 458 4,013,861

* note that all these numbers are sales, which equals generation minus losses

Renewable Energy Action Plan's goals For Investor owned and Consumer owned utilities (IOUs and COUs)

year 2015 year 2025

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Oregon Renewable Energy Action Plan electricity related highlights:

– Assess the feasibility and effectiveness of production-

based incentives

– Assess the feasibility of a state Renewable Portfolio

Standard and compare it with production-based incentives

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– Standards to streamline the interconnection of “small” generators.

– PURPA: Increasing the size for standard purchase rates, extended

contract length, and a standard method for determining avoided costs.

– How distributed renewable and combined heat and power resources can

help meet energy, capacity, distribution and transmission system needs at

the lowest cost.

The Oregon Public Utility Commission has investigations underway or may examine for the investor-owned utilities the following:

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– Backup service for renewable resources and other distributed

generators to ensure that costs and benefits are properly reflected

in rates and terms.

– Ways to remove utilities’ disincentives for accommodating

independently owned renewable resources and combined heat and

power resources.

– Standard rates and terms for retail customers to use the distribution

system to sell power to other customers and marketers.

The Oregon Public Utility Commission has investigations underway or may examine for the investor-owned utilities the following (continued):

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•The Oregon Department of Energy will:

• Work with the GeoHeat Center in Klamath Falls and others to help HVAC contractors on the benefits of earth-coupled heat pumps and help develop a statewide promotion strategy.

• Work with the GeoHeat Center and others to highlight demonstrations of homes, businesses and public buildings such as schools and correctional facilities using direct geothermal energy in the community.

Actions to promote direct use of geothermal energy:

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The Oregon Department of Geology and Mineral Industries, in cooperation with the Departments of Energy, Forestry, and State Lands, will:

– Work with the GeoHeat Center and others to provide copies of existing maps detailing the geothermal resource potential of Oregon and incorporate additional information into the data base as new information becomes available.

– Periodically publish updated geothermal resource maps of Oregon as additional data availability and demand require.

Actions to promote direct use of geothermal energy (continued):

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The Oregon Department of Agriculture will:

– Collaborate with ODOE and agricultural producers in identifying new and expanded uses for geothermal application in agricultural operations, and expand implementation through education, pilot projects, and existing incentive programs.

Actions to promote direct use of geothermal energy (continued):

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The Renewable Energy Working Group will consider to:

– Work with the federal government and others to provide a forgivable loan or grant program for drilling exploratory holes.

– Work with the Energy Trust, the utilities, BPA and others to expedite a Power Purchase Agreement with added incentives based on above-market costs for a 20 MW or larger demonstration project.

– Review the royalty and tax implications of geothermal production facilities and explore funding means to help promote geothermal development.

– Help develop a partnership plan between state and federal agencies for

further development of projects on federal land or involving federal leases.

Actions to promote geothermal electricity generation:

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The Oregon Department of Geology and Mineral Industries will:

– Sample and analyze waters from wells and springs throughout the state to develop a statewide data base useful to the geothermal industry, to state and federal agencies and research institutions as a valuable component in geothermal resource target evaluation in Oregon, provided funding can be obtained.

Actions to promote geothermal electricity generation (continued):

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The Oregon Department of Energy will:

– Continue the collaboration with the Pacific Northwest Section of the Geothermal Resources Council regarding geothermal resources within Oregon.

– Coordinate the Oregon Geothermal Working Group, which is part of USDOE’s “Geo-Powering the West” program.

Actions to promote geothermal electricity generation (continued):

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The Oregon Department of State Lands will:

– Review and, if necessary, revise its administrative rules governing the exploration for and leasing of geothermal resources to ensure that they are easily understood and usable by persons wanting to conduct these activities on lands administered by the agency.

Actions to promote geothermal electricity generation (continued):

How to Reach Us:

Carel C. DeWinkel, Senior Policy AnalystConservation Division, RenewablesPhone: (503) 378-6099Fax: (503) 373-7806E-mail: carel.dewinkel@state.or.usWeb site: http://egov.oregon.gov/ENERGY/