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ACORE-Eckhart-Renewables-Fed and State Govt takes lead


									          RENEWABLE ENERGY:
Making Billion Dollar Advanced Generation
Investments in an Emission-Limited World
                         Presented to:
             Electric Power Research Institute
Advisory Board and Board of Directors 2005 Summer Seminar
      Marriott Coronado, San Diego - August 8-9, 2005

                  Michael Eckhart, President
        American Council On Renewable Energy (ACORE)
    ACORE’s Mission and Scope
Mission: As a 501(c)(3) nonprofit organization, to bring renewable
   energy into the mainstream of America’s economy and lifestyle.

ACORE encompasses all renewable energy options:
   – Solar energy           - Biomass energy
   – Wind power             - Biofuels
   – Hydro & Ocean power    - Waste fuels
   – Geothermal energy

In all forms:
    – Electricity                  - End use energy
    – Hydrogen                     - Fuels

Three focal points: Trade, Finance and Policy

Three methods: Convening, Working Groups, and Information

ACORE’s Constituency

                                         Advisory Board
•   Dan Arvizu, Director, National Renewable Energy Laboratory
•   James G.P. Dehlsen, CEO, Clipper Windpower, Inc.
•   Christopher Flavin, President, Worldwatch Institute
•   Nancy Floyd, Managing Director, Nth Power
•   John Geesman, Commissioner, California Energy Commission
•   C. Boyden Gray, Partner, Wilmer, Cutler & Pickering
•   F. Henry (Hank) Habicht, CEO, Global Environment and Technology Foundation and Principal, Capital E
•   Jan Hamrin, President, Center for Resource Solutions
•   Amory Lovins, Chief Executive Officer (Research), Rocky Mountain Institute
•   Robert C. (Bud) McFarlane, Chairman, Energy and Communication Solutions, Inc.
•   Adm. Dennis McGinn (USN, Ret.), Vice President & GM, Energy, Transportation & Environment, Battelle
•   Dan Reicher, Managing Partner, New Energy Capital and former DOE Assistant Secretary for EE/RE
•   Jackson W. Robinson, President, Winslow Management, Inc.
•   Jefferson W. Tester, Meissner Professor of Chemical Engineering, MIT
•   Richard Truly, Director, National Renewable Research Laboratory (NREL)
•   Frank Tugwell, President, Winrock International
•   R. James Woolsey, Vice President, Booz Allen Hamilton Inc., and former Director of Central Intelligence

               Meeting of the Advisory Board with Board of Directors and Steering Committee, July 10, 2002
                     Board of Directors

                         •   BOARD OF DIRECTORS:
                             –   Rob Pratt, Massachusetts RET (Chairman)
                             –   Roger Ballentine, Green Strategies
                             –   Howard Berke, Konarka Technologies
                             –   Linda Church Ciocci, National Hydropower Assoc.
                             –   Michael Eckhart, Solar International
                             –   Roger D. Feldman, Bingham McCutchen
                             –   Lisa Frantzis, Navigant Consulting
Chairman Rob Pratt           –   Bill Holmberg, Biomass Coordinating Council
                             –   Charles Linderman, Edison Electric Institute
                             –   Lew Milford, Clean Energy Group
                             –   Judy Siegel, Energy & Security Group
                             –   Michael Ware, Advance Capital Markets

                         •   LEGAL COUNSEL:
                             –   John E. Mullen, Fredriksen & Byron
                             –   Mark Riedy, Pillsbury Winthrop
                                                    ACORE Membership
A. Page & Associates                    Diversified Risk Insurance Brokers           Market Street Energy Company, LLC           Sacramento Municipal Utility District
Advance Capital Markets                 DTE Energy                                   Marshall Street Management                  Salt River Project
Advanced Alternative Energy Corp        Dunev Capital LLC                            Massachusetts Technology Collaborative      San Diego Regional Energy Office
Advanced Service Corporation            Eastern Research Group                       McKenzie Bay International Ltd.             Sandia National Laboratories
Airtricity                              Edison Electric Institute (EEI)              Mesa Environmental Sciences, Inc            Sea Breeze Power Corp.
Alliance to Save Energy                            UTILITY-RELATED MEMBERS
                                        Emery Energy Company                         Midwest Research Institute                  SmartPower Connecticut
American Bioenergy Association          Energy & Environmental Ventures              Morgan Lewis & Bockins                      Solar Electric Power Association
American Planning Association           Energy and Security Group                    Morgan Lewis & Bockins                      Solar Energy Industries Association
American Public Power Association       Energy Financing, Inc.                       Morse Associates, Inc.                      Solar Energy Research and Education Foundation
American Wind Energy Association
Andrews Kurth LLP
                                        Energy Innovations Inc.
                                        Energy Strategy Associates
                                                                           Utility Organizations:
                                                                                     National Grid USA
                                                                                     National Hydropower Association
                                                                                                                                 Solar Household Energy Inc.
                                                                                                                                 Solar Integrated Technologies
Apollo Alliance
Arare Venture
               . EEI                                                       . Arizona Public Service
                                        Entrepreneurs for Energy Efficiency Energy
                                        Environment 2004
                                                                                     Natus Technologies Corporation
                                                                                     Navigant Consulting, Inc.
                                                                                                                                 Solar International Management, Inc.
                                                                                                                                 Solar Outdoor Lighting Inc. (SOL)

               . NRECA
Arizona Public Service
Atlantic Biomass Conversion Inc.                                           . Austin Energy
                                        Environmental & Energy Study Institute
                                                                                     New Alternatives Fund Inc.
                                                                                     New Jersey Economic Development Authority
                                                                                                                                 Southern California Public Power Authority
                                                                                                                                 Southwest Windpower
Austin Energy
               . APPA
Baker & McKenzie
                                        ERG, LLC
                                        Evergreen Solar, Inc.              . Colorado Springs Utilities
                                                                                     New Uses Council
                                                                                     NMH Executive Search Limited
                                                                                                                                 Spheral Solar Power Inc.
                                                                                                                                 Stoel Rives LLP
Beacon Power Corporation                Ewing Bemiss & Co                            NRECA                                       Sustainable Energy Fund
BGB Holdings                            Firestar Engineering               . DTE Energy
                                                                                     Nth Power                                   Sustainable Profitability Group
Bingham McCutchin LLP                   First Solar, LLC                             Oak Ridge National Laboratory               Taylor Recycling Facility LLC
BP Solar       Research:                Fredrikson & Byron, P.A.           . Hawaiian Electric Company, Inc.
                                                                                     Ocean Renewable Power Company               Technology Transition Corporation
C2HMHill                                GE Wind Energy                               Ottosolar-Afavis                            Tennessee Valley Infrastructure Group (TVIG)
               . EPRI
California Energy Commission
Canadian Assoc for Renewable Energies
                                        Gemstar Group, Inc.
                                        Gemstone Group
                                                                           . Imperial Irrigation District
                                                                                     P/V Enterprises
                                                                                     Pacific Capital Resources, LLC
                                                                                                                                 Texas Renewable Energy Industries Association
                                                                                                                                 Thompson Hine LLP
Capital E
Rutgers Center for Energy Economics &
                                        Global Energy Network Institute
                                        Green Strategies, Inc.
                                                                           . KeySpan Energy
                                                                                     Pazza Verde Ventures
                                                                                     PA Department of Environmental Protection
                                                                                                                                 Tikkun, LLC
                                                                                                                                 U.S. DOE
               Key Suppliers:
              Environmental Policy
Chicago Climate Exchange
                                        Green Trading Inc.
                                        Hawaiian Electric Company, Inc.
                                                                           . National Grid USA
                                                                                     PennWell Communications
                                                                                     Perseus LLC
                                                                                                                                 U.S. EPA
                                                                                                                                 U.S. Renewables Group
Clark Communications LLC
               . Babcock & Wilcox
Clean Edge, Inc.
                                        Homeland Energy Resources Dev
                                        Honolulu Seawater Air Conditioning,
                                                                           . Puerto Rico Electric Power Authority
                                                                                     Philadelphia Gear Company
                                                                                     Pioneer Financial Group
                                                                                                                                 UPC Wind Management, LLC
                                                                                                                                 UPC Wind Partners LLC
Clean Energy Commercialization
               . Black & Veatch
Clean Energy Group
                                        IF, LLC
                                        Imperial Irrigation District       . Sacramento Municipal Utility District
                                                                                     Power Equipment Associates
                                                                                     Power Generating Inc.
                                                                                                                                 Verdant Power
                                                                                                                                 Verde Investment Group LLC
Clean Energy Incubator                  Independent Energy Corporation               Price Companies, The                        Virent Energy Systems, Inc
               . General Electric
Cohen & Company, LLC                                                       . Salt River Project
                                        Innovest Strategic Value Advisors, Inc.      Princeton Energy Resources International    Water Smart Environmental, Inc
Colorado Springs Utilities              Integrated Waste Services Associates         Prometheus Institute for Sustainable Dev    We Energies
               . Siemens
Common Wealth Green Energy
Ct Clean Energy Fund
                                                                           . So. California Public Power Authority
                                        International Center for Sustainable Dev     Puerto Rico Electric Power Authority        Weinberg Associates
                                        Interstate Renewable Energy Council          R.W. Beck                                   Western Area Power Administration
CSG Services, Inc
Davenport Finance Company
                                        Jasper Energy LLC
                                        Konarka Technologies, Inc.
                                                                           . We Energies
                                                                                     Renewable Energy Development Institute
                                                                                     Renewable Power Fund
                                                                                                                                 Western GeoPower Corp
                                                                                                                                 Yellowstone Capital, Inc.
Davis, Joseph & Negley
Day, Berry & Howard, LLP
                                        Liberty Energy
                                        Mainstay Energy
                                                                           . Western Area Power Administration
                                                                                     Rockefeller Brothers Fund
                                                                                                                                 3 Tier Environmental Forecast Group Inc.

Del Mar Network Group                   Marathon Capital                             RWE Schott Solar
Distributed Energy Financial Group
                      Trade Show
“Power-Gen Renewable Energy”
                  Las Vegas
              March 22-27, 2005

    Opening Session                Dan Reicher

     Exhibit Hall                                7
                          Finance Conference
   “Renewable Energy Finance Forum – Wall Street”
                  Waldorf-Astoria Hotel in New York City
                            June 23-24, 2005

Main Conference                                   Steve Westly, California Controller

Wall Street is Beginning to Make Significant Commitments to Renewables

                                                                      Policy Conference
“Renewable Energy in America – the Call for Phase II”
                       Cannon Caucus Room & Capitol Hill Club, Washington, DC
                                       December 6-7, 2004

                                                                       ACORE Chairman Rob Pratt
  Steve Zwolinski,
  GE Wind Energy

                     Senator Wayne
                     Allard (R-CO)                                                                National Security Panel Bill Holmberg, Adm. Dennis McGinn USN (Ret.),
                                                                                                  Jim Woolsey, Bud McFarlane, and Frank Gaffney
                      Adm. Richard Truly receiving ACORE Leadership                                                                                             9
                      Award from Rep. Mark Udall (D-CO)
            End of an Era
       Beginning of a New Era


       A Question of National Security
In all scenarios under current policy, the oil import problem gets worse

          Petroleum supply, consumption, and imports, 1970-2025
                         (million barrels per day)
                  Source: DOE/EIA-0383(2003) Annual Energy Outlook   11
          A Question of National Responsibility
                      Changes in Atmospheric Concentrations
                           - A Thousand Year History -

                                                                      Atmospheric concentration CO2 (ppm)






   1000     1200      1400      1600      1800   2000 1000                                                  1200   1400   1600   1800   2000

                                                   310    Atmospheric concentration N2O (pbb)
                                                            Kyoto Protocol went into
                                                   290      Effect in 2005.


                                                          Source: NREL
                                                    250                                                                                 12
Source: IPCC Third Assessment Report (2001)
  1000     1200       1400     1600      1800    2000
Renewable Energy Targets and Forecasts
                      % of Total Energy
            CLIMATE CHANGE
   2000   2010            2020      2030          2040        2050       2060
          Global Perspectives A3          Germany
          Today (Global)                  IEA World Energy Outlook Ref
          Shell Dynamics (Global)         European Union
          Navigant (Global)               Today (US)
          Pew Tech Triumphs Policy (US)   Aitkin (US)
          GHG (Hoffert)                   GPRA05 EERE (US)
          EIA Reference (US)                                                       13
               US Federal Policy
               Energy Policy Act of 2005

Conventional Energy             Renewable Energy

•   Repeal PUHCA                •   Hydro licensing
•   $2 B Utility benefits       •   $2.7 B Wind PTC, 2 yrs
•   $3-10 B Nuclear incl. PTC   •   Geothermal siting, PTC
•   $2 B Natural gas            •   Solar 30% tax credit
•   $2 B Oil, refining          •   Biofuels tax credits
•   $2 B Clean Coal             •   Hybrid and FC vehicles
•   Others                      •   Others

    The Energy Bill Encourages Production, But Not Change
                Setting a New Vision
    ACORE’s Call for “Phase II”
• 1973-2002                  • 2003-2033
• Phase I: “Development”     • Phase II: “Utilization”
   – Focus on RD&D              – Focus on National Needs
   – Develop Technologies:      – Implement Solutions:
      • Wind                       • National energy supply
      • Solar                      • National security
      • Hydro                      • Environment & Health
      • Geothermal                 • Climate change
      • Ocean                      • Economic growth
      • Biomass                    • Investment
      • Biofuels                   • Job creation
   – Lead: Federal              – Lead: State / Federal

Recognize the Diversity of Renewables
   Regional Resources, Economics, and Politics

    SOLAR ENERGY                   WIND POWER

    GEOTHERMAL                        BIOMASS

           Resource Potential
                              Wholesale Power Generation

                  US Wind Power Market
        US Wind Power Installations


           2,500 MW/year in 2005




                                               7,000 MW Installed Base in US
          1990         1995     2000   2005E   48,000 MW Installed Base Worldwide
       Sources: AWEA                           Plus Hydro, Geo, CSP and Biomass
                                    Distributed Generation

                   Global Solar PV Market
             Solar PV Installations
1200                 Off-Grid
                                                     Germany:      300-400 MW/Yr
                                                     Japan:        250-300 MW/Yr
                                                     California: 100-150 MW/Yr
                                                    4,000 MW Installed Base Worldwide
   0                                                Plus EE and Solar Water Heating
           1990        1995         2000   2005 E
       Sources: PV News and ACORE
                  The New Economics
Renewable Energy Certificates
                     “Green Tags”
    Renewable               Electricity
      Power                                 Green Power
    Generation           Environmental         Renewable
                           And other           Energy
                           Attributes          Certificate

•   19 States with RPS – TX, CA and MA most active in RECs
•   350+ utilities with green pricing programs
•   20 companies marketing Green Tags
•   State & Local Government purchasing mandates for green power
•   ACORE – ABA – EMA joint committee for National REC Trading
    Utility Strategies in Renewable Energy
    Three Ways to Serve Ratepayers and Meet Goals for Shareholders

Wholesale Power
                                                           . Solar PV
. Wind
                                                           . Solar Heating
. Solar
                                                           . Energy Efficiency
. Hydro
. Geothermal
. Biomass / waste
. Ocean                                  Green Power
                         UTILITY                                CUSTOMERS
. Other                                     Sales
.   Cost Effectiveness                  . Customer response
.   Reliability                         . Profit
.   Rate Base vs. Purchase         Opinion: Utilities need to switch from
.   Fit in Your Portfolio          Defense to Offense in Renewables         20
Renewable Energy Technology Issues
               The R&D Agenda

• Wholesale Power Generation:
  – Regionalization of system optimization
  – Command & Control
• Distributed Generation:
  – Applications engineering
  – Massive deployment controls
  – Intelligent grid technologies

Closing Thought…
   The Reliability of Renewable Energy

1.   US needs renewable energy
2.   Diverse resource - many local situations
3.   New economics – green tags, carbon credits
4.   US at a turning point – shift to Phase II policy
5.   Utilities have three areas of interest
6.   RD&D focus on regional system optimization
7.   Outlook on RE is positive

           Opportunities for the Insightful Players

            Thank You
American Council On Renewable Energy

         Michael Eckhart, President


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