Renewable Energy Law News - Week of April 16

Photo via FlickrVermont is Helping to Lead the Nation in Transforming Our Energy SystemWe come from Vermont. We know our small state cannot reverse global warming on our own, but we can provide a model for America which helps lead our nation and the world to a more sustainable and secure energy future. We see three major imperatives. First, we must act to reverse global warming. The scientific consensus is clear that global warming is real, that it is caused by human activities and that it will only get worse if we do not take bold efforts now. At a time when many members of Congress do not even acknowledge that global warming is happening, in Vermont we are taking action. Vermont has more than 100 grassroots citizen-led town energy committees that are working with state agencies to transform our energy system away from fossil fuels and into energy efficiency and such clean sources of sustainable energy as solar, geothermal, biomass and wind.   Refundable Federal Tax Credit Could Remove Barrier to Community Wind Since it will take a battle to extend federal tax credits for wind power anyway, why not make community wind development easier at the same time? Last month, President Obama’s Treasury Department released proposed reforms to a number of business taxes including the federal Production Tax Credit (PTC) for wind power projects. The reform proposal would make the tax credit permanent, but more importantly, it would make it refundable. A regular tax credit reduces the amount of taxes a business or person pays dollar for dollar, down to zero. In the case of the PTC, it provides 2.2 cents for every kilowatt-hour produced by the wind power project, over 10 years. But for the many individuals and businesses that don’t owe a lot of taxes, they have limited use. That’s why there’s an entire “tax equity industry” made up of large banks and Wall Street firms that partner with wind and solar developers to reduce their tax bills. The drawback of these partnerships is that as much as half of the tax credit’s value is consumed by the Wall Street firms and not the renewable energy project.Virginia governor to add signature to energy bills RICHMOND, Va. - Gov. Bob McDonnell is promoting legislation that he says will help Virginia become the "energy capital of the East Coast." McDonnell added his signature Tuesday to 13 pieces of energy-related legislation. The legislation promotes development of the state's energy resources and supports alternative and renewable energy strategies, according to the governor's office. McDonnell has promoted an "all-of-the-above" approach to energy development. That includes fossil fuel development such as coal and renewable sources of energy such as wind and solar power. In a news release following the signing, McDonnell said that the state must work with must work with industry and stakeholder groups to continue to aggressively work to harness the resources to provide affordable and reliable energy for homes and businesses.Florida energy bill that affects south Lee Algenol's expansion becomes law TALLAHASSEE - In a political squeeze because of a bill that includes tax breaks for renewable-energy production, Gov. Rick Scott late Friday allowed the controversial measure to become law without his signature. Scott's decision could anger tea party members and some conservative groups that placed heavy pressure on him to veto the bill (HB 7117). But it effectively gives a victory to Agriculture Commissioner Adam Putnam and lawmakers who say the state needs to take steps toward developing renewable fuels. It could also prevent a Southwest Florida company from expanding. Algenol Biofuels Inc. wants to make ethanol from algae at its commercial farm in south Lee County, the first such enterprise in Florida. But at the state level, the concern is that the algae, if it escapes during a storm, for example, could pose an environmental threat.
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Renewable Energy Law News - Week of July 16

Photo via Flickr Bill would allow utilities into energy efficiencyElectric utilities in Delaware would be able to count energy efficiency toward their state renewable energy purchase requirements, under a bill under consideration in the General Assembly.The bill would also allow Delmarva Power to offer energy efficiency programs to residents and businesses. It is largely restricted from doing so under current law, which assigns the Sustainable Energy Utility that responsibility.Delmarva Power has long supported energy efficiency programs for its customers, said Matt Likovich, spokesman for the utility. Delmarva has programs such as offering money for trading in old appliances in Maryland, but in Delaware, its only efficiency programs are those directly tied to the use of its “smart meters.”The SEU, a not-for-profit, state-created energy efficiency organization, has mostly focused on large state and university buildings since overspending its residential and small business efficiency budget late last summer.If the bill is signed into law, the utilities, along with the SEU, will become responsible for carrying out energy efficiency programs in Delaware, Likovich said. If that happens, “Delmarva Power looks forward to cooperating with the SEU and the State Energy Office to offer energy efficiency programs to our Delaware customers.”Japan: Japan Launches The Feed-In Tariff System For Renewable Energy Effective July 1, 2012, Japan implemented a new feed-in tariff ("FIT") system under the Act on Special Measures Concerning the Procurement of Renewable Energy by Operators of Electric Utilities (the "Act"). Under the terms of the FIT system, power utilities must purchase electricity from applicable renewable energy sources, including solar, wind, hydro, geothermal, biomass, and others, generated by certified power generating facilities (the "Certified Facilities") at a fixed price (the "Purchase Price") for a given period (the "Purchase Period"). This Commentary provides an overview of the FIT system with specific focus on key items stipulated in the newly promulgated ordinance for the Act (the "Ordinance"). Purchase Price and Purchase Period The Ministry of Economy, Trade and Industry ("METI") has set the Purchase Price and the Purchase Period for the mandatory purchase of power generated by renewable energy sources under the FIT system for fiscal year 2012. The initial Purchase Price and the Purchase Period apply to a renewable energy project if (1) a power utility receives a written request from the generator for connection of a Certified Facility to the power utility's transmission facility and a power generating facility is certified as a Certified Facility and (2) the date of such request or certification (whichever is later) falls between July 1, 2012 and March 31, 2013. The Purchase Period starts from the date renewable energy supply commences to the power utility. The following chart sets forth the initial Purchase Price and Purchase Period for each type of renewable energy subject to the FIT system: METI designed the Purchase Price and the Purchase Period for each type of renewable energy with the goal of providing sufficient incentives for new investments in renewable energy projects. Although METI fixed the Purchase Price for the applicable Purchase Period, it retains authority to revise the Purchase Price during that period if required by a significant change in prices and other economic factors, in accordance with the opinion of a third-party committee of experts and subject to reporting the basis of the calculation of the revised prices to the Diet.  United Kingdom - DECC delays announcement on renewable subsidiesMinisters had been expected to reveal new support levels for projects from April next year. But the Department of Energy and Climate Change (DECC) said it was still "discussing and finalising" details. Labour's shadow energy minister, Tom Greatrex, claimed investment in clean energy would grind to a halt unless ministers "end the dithering". Scottish Power also expressed concern, arguing that sticking to the timetable was key to investor confidence. The DECC was due to announce the outcome of a review into renewable obligation certificate (ROC) banding, a system which obliges electricity companies to buy a certain amount of their electricity from renewable sources.
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Brief Analysis of Climate Change Report



Here’s my brief analysis of and comments on the recent IPCC working group report on Mitigation of Climate Change released from Bangkok, Thailand as it relates to alternative energy.

Energy Efficient & Net Zero Energy Buildings

Energy efficiency and renewable energy are rightly held to be a key ways to reduce carbon emissions. Buildings, both residential and commercial, are a significant emitter of greenhouse gasses.

Solar hot water heating can be used to provide up to 70% of annual hot water needs for homes, it can also be used in commercial buildings that require significant hot water such as gyms and nursing homes.

Geothermal (ground source heat pumps) is a lesser known source of alternative energy which can be used to both heat and cool buildings in a highly efficient way and is suited both to residential and commercial buildings. It can also be used to provide hot water. As bore holes and/or trenches need to be dug for geothermal to be installed, it is particularly suited to new builds.

Electricity can be provided from renewable sources via the grid (e.g. wind power) or off-grid it can be generated using for example solar photovoltaic panels (PV).

The use of insulation, natural light & shade, low energy lighting, motion detection lighting etc. can further reduce energy usage.

As noted in the report appropriate building codes can minimise carbon emissions from buildings.

Alternative Energy = Energy Security

The report notes that nations seeking energy security (security of supply) can help achieve it using alternative energy. Nations lacking their own fossil fuels resources should be concerned with the negative impact reliance on fossil fuels can have on their economies. By increasing utilisation of alternative energy resources, nations can increase their energy security.

Transport Policy & Fossil Fuels Subsidies

I was disappointed by the report’s lack of vision on transport. It correctly notes that past increases in efficiency in internal combustion engine (ICE) design have been used to increase power rather than fuel efficiency meaning vehicle carbon emissions have continued to climb. This trend has even continued into hybrid vehicles with performance being favoured over fuel economy (e.g. Lexus hybrid cars). Mention was made of making increased use of biofuels, which can actually significantly increase carbon emissions (see this post on Palm Oil Biodiesel). The glaring emission, is the need for a fundamental shift from the internal combustion engine to electric vehicles. I got the impression the report in trying to build consensus was avoiding treading on any toes. Perhaps that’s why it recommended only reducing rather than eliminating the subsidisation of fossil fuels.

Research and Development + Technology Transfer

India and China will soon be at the top of the list of carbon emitting nations. The report wrongly suggests that because many new power stations are being built in developing nations, they will be using new energy efficient designs and technologies. While new power stations may be more efficient than those built decades ago, for cost reasons less efficient technology is usually used (for more details see this post on Clean Coal). The report notes there have been low levels of investment in research and development. Investment is needed now and much more should be done to aid the transfer of the most energy efficient technologies between nations.

IPCC working group report on Mitigation of Climate Change (pdf link)
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Renewable Energy Law News - Week of July 23

Photo sourceChristie signs bill to boost solar New Jersey Gov. Christie and the state's environmental groups have landed on common ground _ a highly unusual occurrence. That's because [on Monday] Christie signed a bill that would encourage the growth of the solar industry in the state. New Jersey already is a leader. It is second in the nation in solar installations. So far, more than 775 megawatts of solar has been installed in the state, enough to power about 130,000 homes. (Or, as the environmental groups note, more than the amount of energy produced by Oyster Creek Nuclear Plant, which they have pushed to have shuttered.) But solar advocates, such as Rhone Resch, president and CEO of the Solar Energy Industries Association, have contended that the growth of the solar industry was threatened because of uncertainty in the Solar Renewal Energy Credits market. The cost of most project factors in the value of these credits, which are sold as electricity is generated, as part of the pay-off of the system. Like many states, New Jersey has a Renewable Energy Portfolio Standard, which requires that utilities either produce a certain amount of power from solar or that they buy it through the SRECs. Even a homeowner with a small system could get SRECs and sell them to help pay off the system. In the early days of SRECs, the value was high. But now it has dropped. System owners aren't the only ones suffering. Those who are contemplating installing solar don't have the financial incentive they might need. The Christie administration worked with the SEIA to come up with the new law, which accellerates the state's Renewable Energy Portfolio Standard, leading to more demand for SRECS.Renewable energy: U.K. Onshore wind subsidy to be cut by 10%The United Kingdom - The subsidy for onshore wind energy generation is to be cut by 10%, the government has announced. The Treasury is thought to have favoured a larger cut of up to 25%. It is one of a number of cuts which the Department for Energy and Climate Change said should encourage up to £25bn in new investment in energy generation between 2013 and 2017. The measures should also reduce the impact on household energy bills, it said, saving £5-£6 a year on average. Under the current arrangements £44 of the average household bill would go towards renewables in 2013-14, rising to £50 in 2016-17. Under the new subsidy levels, that will be £6 less in 2013-4, £5 less in 2014-5, but will be £1 higher in 2015-6 and £3 higher in 2016-7. Energy firms pass on the cost of investing in new cleaner generation to consumers, and MPs on the Commons Energy and Climate Change Committee warned earlier this month that cutting subsidies too fast could increase bills. Moving Solar Beyond 1603 â€" There Are Alternatives The 1603 Federal Grant Program is dead. Fine, so let's all move on because PV solar is here to stay and will be a critical component of our economic growth and environmental health. The 1603 Grant allowed for the monetization of the 30% ITC (investment tax credit), encouraging relatively simple and efficient third party finance models. The models allowed for the transfer of the up-front capital costs to an entity with greater access to capital, a lower cost of capital, or greater ability to utilize tax specific incentives and has been critical to commercial and industrial (C&I) customers adopting solar technology. The expiration of 1603 Grant at the end of 2011 has left these customers with little to no way to monetize the ITC, all but bringing this segment of the market to a standstill as developers and customers search for alternative financing structures that must now include a more complex tax equity component. Without a new approach the C&I market will be left to self-funding. This will make solar available to the few profitable and brave companies or institutions (those able to monetize the tax benefits) that are willing to take on the challenge of financing, managing and maintaining their own systems over 20 plus years. As history has shown there are relatively few willing participants in this market structure and the sales cycle is long and uncertain.
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Final Feed-In-Tariff (FIT) Rules Out


The final FIT Program Rules, Contract and other program documents have now been posted on the FIT Program website.  
The application window for small FIT projects is anticipated to open on October 1, 2012, and remain open until November 30, 2012. If your FIT project is a small FIT project (typically 500 kW or smaller), then you must submit your electronic application form during the application window to be considered under the FIT 2.0 Program. The OPA anticipates awarding 200 MW of small FIT contracts.
The OPA recommends that you review the final versions of the program documents carefully to ensure you understand how the FIT Program has changed. In addition, there have been several revisions made to the draft version of the Rules as a result of feedback received. 
In order to retain their original time stamp, those who had previously submitted a small FIT project application must submit a revised electronic application form during the small FIT application window, followed by a hard copy submission within five business days. 

New small FIT project applications will also be accepted during this same window. All applications received during the window will be reviewed according to the new FIT Program Rules for compliance and for the prioritization of applications. Where projects have the same number of priority points, the time stamp will be used to determine the order in which projects will be tested for available transmission and distribution capacity. As indicated above, the OPA expects to award 200 MW of small FIT contracts under the first application window for small FIT projects.
Once FIT contracts have been offered to successful applicants, any FIT applications that do not receive contracts will be terminated and their time stamp will be lost. Application Security will be returned.
Pre-existing small FIT applications that are not resubmitted during the first application window for small FIT projects will also be terminated. In this case, the time stamp will be lost and the Application Fee will be returned. These projects can reapply with a new application within the next small FIT application window.
The timing for the large FIT project application window will be communicated once details are finalized.
The OPA has posted a list of questions and answers about the revised program, which can be found here.
If you still have questions about this process after reading the OPA’s website, please contact the OPA’s customer service centre at 1-888-387-3403 or email FIT@powerauthority.on.ca.
    
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Renewable Energy Law News - Week of January 30, 2012

Photo via FlickrAWEA Pushes For Production Tax Credit's Near-Term Extension Anticipating a tough fight to get legislation passed during an election year, the American Wind Energy Association (AWEA) is seeking near-term legislative action as a means to extend the production tax credit (PTC), which, for wind power, expires at the end of the year."We're putting everything we've got into getting legislation to move in the next five weeks," Rob Gramlich, AWEA's senior vice president of public policy, tells NAW."We've made extending the wind PTC our top focus this year,” he says. “We're working with a broad coalition to encourage the leadership of both parties to include the PTC in the payroll tax cut extension when it comes up next month."Gramlich reasons that, when Congress meets in February about extending the payroll tax cuts, the discussions could include broader tax reform, such as those important to renewable energy. AWEA’s position is that an omnibus tax package provides the best vehicle for attaching a rider, such as a PTC extension.  Vermont Legislature considers banning hydrofracking MONTPELIER -- Nobody has applied to Vermont for permission to drill for oil or gas using hydraulic fracturing.No one is sure it would even be worthwhile to do so.Still, the Legislature and Gov. Peter Shumlin are considering banning the practice, commonly called hydrofracking. Vermont would become the first state to do so."This is kind of saying, 'Don't bother. Close the door on the issue,'" said Rep. Tony Klein, D-East Montpelier, sponsor of a bill the House Fish & Wildlife Committee is preparing to vote on this week. "It's about protecting our most precious resource -- our groundwater."A look at what's going on in neighboring New York state, across the border in Quebec, in Pennsylvania and elsewhere is all that some lawmakers and state officials needed to conclude they want no part of the procedure. Stories abound of possible links between drilling and contamination of well water, earthquakes and more. Group seeking more renewable energy in Maine misses 2012 deadlineAUGUSTA, Maine â€" Supporters of a citizens’ initiative that would require utilities to produce more clean and renewable energy failed to gather enough signatures to put a question on the November ballot. Maine Citizens for Clean Energy was scheduled to meet at the State House on Monday afternoon, presumably to announce that it had gathered more than the 57,000 signatures needed for a citizens’ initiative. Instead, the group canceled its event early Monday and announced later in the day that it will continue to gather signatures with the intent of bringing the issue back in 2013. “Going for the 2012 ballot was always a race against the clock. Despite the incredible enthusiasm from the public and from hundreds of campaign volunteers, the clock was just a little too fast for us to hit the deadline for the 2012 ballot,” said David Farmer, spokesman for Maine Citizens for Clean Energy. Just two weeks ago, as the initiative faced increasing opposition led by Gov. Paul LePage, supporters said they were confident that they would meet Monday’s deadline for signatures. The initiative sought to increase the amount of Maine’s electricity that comes from new, renewable energy sources â€" such as wind and solar â€" and also would require utilities to invest in energy efficiency whenever it would reduce energy costs for ratepayers. Wis. regulators defend renewable energy suspensionMADISON, Wis.â€" Wisconsin regulators defended a decision Wednesday to suspend renewable energy funding from a popular utilities program, despite criticism from businesses that it damages the state's renewable energy marketplace. Public Service Commission spokeswoman Kristin Ruesch said a Focus on Energy program geared toward renewable energy was over budget and not cost effective. But she said they're still analyzing how it may be restored later this year. The suspended program, introduced in 2002, offers monetary incentives to businesses and residents to install renewable energy systems. In recent years, between 8 to 10 percent of the Focus program's recent $85-$90 million budget was set aside for it. But Ruesch said the Focus program has a smaller budget now. The state budget signed by Gov. Scott Walker placed a 1.2 percent cap on how much residents can be charged through utility bills to pay for the Focus program.
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Renewable Energy Law News - Week of January 16, 2012

Photo via Flickr Vermont Statehouse 2012: A legislative preview On Tuesday, 180 lawmakers will converge on the Statehouse after a seven month hiatus for Round 2 of the 2011-2012 biennium. Judging from interviews with committee chairs, the upcoming session will be fast and furious. Lawmakers have an impressive array of complicated issues to address in four short months, and there is little expectation that the session will drag past the first week in May (this is an election year after all). Long-term recovery plans post-Irene will figure prominently on the docket. Expect to see lively debate on proposals for the new state psychiatric hospital, the state office complex, a reordering of transportation priorities, and legislation to address property losses, flood insurance issues, municipal borrowing and tax abatements. (The latter is already in motion; lawmakers are expected to forgive about $2 million to $4 million in property taxes to the state Education Fund in the first few weeks of the session.) There are a number of old business items that must pass through the belly of the snake no matter what. The biggie here is the budget (the 2013 gap between revenues and expenditures is $75 million, plus $25 million worth of budget adjustments for fiscal year 2012); closely followed by the miscellaneous tax bill, the fee bill and the capital bill. The latter will earmark how much money the state will borrow to pay for new state offices and the replacement for the Vermont State Hospital.Gabrielle Stebbins: "Renewable Energy Vermont will push for a tax on the dry-cask storage of nuclear waste to keep the Clean Energy Development Fund going."Free Press: Gov. Peter Shumlin and the Legislature have put renewable energy very, very high on their agendas. How is Vermont doing at encouraging and implementing renewable electrical energy sources? Stebbins: Vermont is one of the national leaders in transforming how we use energy. Renewable sources already supply 50 percent of our electricity, so we're on a great path, but of course we have much more to do.Free Press: But much of the energy we use isn't electrical energy, it is fuel to heat our homes and power our cars ...Stebbins: Certainly that's true. Electricity is only one-third of our energy demand. The other two-thirds are for heating our buildings and travel purposes. Both of these sectors require multi-steps to address. We need to keep up the great work that our efficiency utilities and weatherization agencies provide, which can save considerably and helps us meet the remaining heating needs with Vermont's wood resources. We are ready to lead in this direction. One study recently estimated that if only one-fifth of Vermont buildings transferred from traditional fuel to biomass fuels used in modern, efficient boilers, it could create about 7,000 stable local energy jobs. Vermont considers renewable energy lawThe Vermont Legislature is considering a proposal to enact a renewable portfolio standard, a law requiring utilities to source a specified percentage of their electricity from eligible renewable resources. If enacted, Bill S-170 (72-page PDF) could change Vermont's energy landscape. Today, Vermont is the only New England state not to have a statutory renewable portfolio standard, or RPS. Instead, Vermont's approach to renewable energy has focused on SPEED, or the Sustainably Priced Energy Enterprise Development Program. SPEED's goal is that by 2012, at least 10% of the state's 2005-era electric load be served by new sources of renewable energy, or 20% of total load by 2017. To further that goal, SPEED created incentives such as a feed-in tariff designed to encourage new renewable development. Unlike true RPS programs in other states, the Vermont program's targets are not strictly binding. Bill S-170 would take Vermont away from the goal-based model and toward a firm renewable energy mandate. The bill would create a two-tiered RPS, with a "tier one" for projects coming into service during 2005-2012 and a "tier two" for projects coming online in 2013 and later. The bill would require utilities to source power from new renewable resources in each of these categories, plus additional power from existing renewable facilities. In 2013, utilities would have to source 40% of their power from existing renewable resources, plus 10% more from "tier one" new resources. Over time, the requirement would grow; by 2025, utilities would have to add in 40% from "tier two" resources, adding up to environmental attributes representing 90% of total annual retail sales.
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Some things you should know

 FIT 2.0 Released with Minister Directive
OSEA is pleased to provide its members with the following:

Top Ten things our members should know about the FIT 2.0 directive

  1. The microFIT rules/contract and application window will be available on the OPAs website this week â€" as early as tomorrow;
  2. The application window for small FIT will open at the same time as the rules/contract are posted. The OPA is committed to completing this task before the end of the month;
  3. Greater clarity provided on the prioritization of contract capacity set-aside for projects with greater than or equal to 50% community or aboriginal equity participation. OPA shall prioritize within any FIT window these projects over any other applications that obtain prioritization points;
  4. Definition of community from April 5th remains unchanged and the focus remains on co-operatives and First Nations;
  5. Further clarity on project readiness as well as points awarded for projects that applied on or before July 4, 2011 or on or after July 5, 2011;
  6. Directive introduces a “cure period” for FIT contracts that default on priority points awarded;
  7. CEPP to allocate $1,000,000 for education and marketing;
  8. Greater flexibility provided for ground-mount PV in protecting agricultural lands.
  9. Working Group to be established for project siting concerns; and
  10. Set-aside established as part of a pilot project for rooftop solar projects on un-constructed buildings.
These are highlights from the directive. OSEA will provide a more detailed overview of the FIT 2.0 when the final rules are released towards the end of July as committed by the Minister.

We will work in your interests to ensure that this commitment is met.

Regards,
the Ontario Sustainable Energy Association

Related Links
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Ethanol Fuel in South Africa


photo (c) 2005 Julia Freeman

Tumi Makgetla reports in South Africa's Mail & Guardian that while an interest in alternative energy and green politics is often seen as the preserve of the chattering classes, working-class people in Johannesburg's inner city are already using renewable energy in their homes.

On a pavement in Joubert Park in Joburg (how Johannesburg is commonly called), shoppers cluster around Tumelo Ramolefi’s stall exclaiming and asking questions about his products. Ramolefi is not selling the usual inner-city hawker stock of facecloths and socks, or "smileys" (boiled sheep heads) and "runaways" (pigs’ trotters). Instead, it is his display of innovative renewable-energy gadgets that attracts the attention of passers-by, and often turns them into converts to the green-energy cause.

His bestselling items are ethanol gel stoves and lamps, which offer a healthier, safer and more efficient fuel alternative to paraffin or coal fires.

Ethanol gel is a renewable form of energy made by mixing ethanol with a thickening agent and water. The ethanol is extracted through the fermentation and distillation of sugars from sources such as molasses, sugar cane and sweet sorghum or starch crops, like cassava or maize.

Ramolefi sells ethanol gel products and appliances for GreenHeat South Africa, which has branches in Durban, Jo’burg and Cape Town. The stoves and ethanol gel -- produced from sugar cane -- are manufactured in Durban. A two-plate stove sells for R160 (approx. $25 USD) and a lamp for R50 (around $8).

"This stove is number one," said Maria Ndlela, who works in a recycling centre in Joubert Park and has owned her stove for two months. She says it is easy to use and, while paraffin is cheaper than the gel, the gel is more cost-efficient in the long run. Five litres of gel costs about $9.70 and paraffin costs approximately $3.55 for the same amount. "Gel lasts. If you don’t use it too much, five litres of gel takes you a month to use, but five litres of paraffin lasts only three days."

Ndlela says an added attraction of ethanol is that the paraffin price fluctuates. “The price of paraffin is going up and down, up and down with the petrol price,” she said, “So now I’m forgetting about paraffin.”

“What I like about the stove is that it will conquer our unreliable electricity,” said Florah Thulare.

Safety is also a big selling point in favour of ethanol products, particularly for those who use coal or paraffin for heat and cooking. Paraffin stoves, which explode or are easily knocked over, cause fires, and poor ventilation can lead to asphyxiation.

"Coal can actually kill you during the night," says Ramolefi. "In this coming month, we know people are going to die, but there’s no campaign."

Gel fuel burns with a carbon-free flame, so it does not cause respiratory problems such as asthma, which can be caused by emissions from paraffin, coal and wood fuel. The gel also does not produce any smoke or smell.

Gel fuel will not ignite if spilt like gas or paraffin. The gel is non-toxic and thus is not poisonous if swallowed by children. The stoves are designed so they will not fall over if bumped and the stove’s legs allow it to slide when pushed instead of toppling over. Even if an ethanol lamp is overturned, the gel will extinguish the wick.

The stoves are designed for cooking, but about half of his customers buy them as heaters, said Ramolefi.

Ramolefi has sold about 70 stoves in the past eight months and hopes the market will grow and prices will consequently drop, making the stoves more affordable for the poor.

My latest post (July 2006) on Ethanol E85 Fuel

Full article on how ethanol gel is replacing paraffin in South Africa
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Federation to Solve Ontario’s Green Energy Struggle


Federation of Community Power Co-operatives (FCPC)  to solve Ontario’s green energy struggle
From the press release
Despite the best intentions, Ontario’s Feed-In tariff (FIT) program has resulted in contentious debates over energy in then province.  Community participation in projects was suggested as a solution but community power proponents have had limited success to date. A new Federation of Community Power Co-operatives intends to change all that under new FIT rules anticipated any day. By unifying the co-op sector under one umbrella and sharing resources, the Federation expects to support at least 100 MW of community-controlled projects by 2015.  

Debates over land-use, energy prices and the impact of renewable energy have been a challenge for Ontario’s Green Energy Act and Feed-in-Tariff program. With these struggles at the forefront of green energy news, an innovation developed by Ontario citizens to engage more communities in renewable energy - the community power co-operative - has been overshadowed despite its increasing popularity.  

“The FIT program has been controversial because people don’t feel they’re taking part in the current energy transition,” says Deb Doncaster, head of the Community Power Fund.  â€œCo-ops are attractive because every community can now have a direct economic stake in local projects, and thus in the program as a whole.” 

Under the new rules of the Feed-in Tariff Program (“FIT 2.0”), community power co-operatives and aboriginal power projects are acknowledged as key to gaining wider support for green energy in Ontario. However, co-operatives have had limited success to date given the intense competition for FIT contracts and grid capacity in the province. 

FIT 2.0 prioritises community projects through a “points” system and “set-aside” of 10% capacity for renewable energy projects that are majority owned by co-ops and aboriginal communities. 

A new umbrella organisation has been formed â€" the Federation of Community Power Co-operatives (FCPC) â€" to facilitate co-op led project development at the highest possible standards by sharing collective experiences, expertise, knowledge and tested development tools and resources. 

By forming a Federation, community power co-ops will have a common voice to negotiate with government and private developers. Co-ops will also work together and share their resources, tools and knowledge to help the sector meet its community power set-aside. 

“In forming the Federation of Community Power Co-operatives, the sector is practicing one of its core principles, co-operation among co-operatives â€" a fitting development in this, the International Year of Co-operatives” says Peter Cameron of the Ontario Co-operative Association. The goal is to work collectively towards maximising the set-aside allocation, creating efficiencies and best practices and in the long run, putting community power on the map in a way we have seen in places like Denmark and Germany where citizens own up to 50% of all renewable energy generation. 

Judith Lipp, Chair of the FCPC, says the Federation is eager to help other co-ops and proponents of renewable power, and encourages them to join the conversation. “Community power has a great future if we work together to make it happen,” she adds. 

Media contacts:

Judith Lipp, Chair of FCPC, jlipp@trec.on.ca / 647 701 6032


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Alternative Energy Argentina: Bringing Wind Power to Remote Areas



Max Seitz reports for the BBC that wind power is the most widespread renewable energy source in Argentina - and Patagonia in particular has extraordinary potential due to its strong and constant winds.

He travelled to southern Chubut province, about 890 miles south of Buenos Aires, where wind power is making life easier for a number of isolated communities

In the midst of a dark wilderness, wind-generated electricity is changing lives in the region, lighting homes and schools in remote areas.

"Patagonia provides ideal conditions, unique almost, for the development of wind power," explained Hector Mattio, Director of the Regional Centre for Wind Power (or Cree in Spanish).

"We get very strong sustained winds of 11 metres per second, while in Europe they usually only reach about nine," Mattio added.

Cree - funded by the Chubut government and located in the provincial capital Rawson, near Trelew - currently has many community projects on the go to install wind generators.

So far, more than 300 isolated rural villages in Chubut have received small wind turbines which provide them with light, communication and power for domestic electric appliances.

A 66-year-old Araucano Indian, Julian Ibanez, welcomed us to his stone-built house.

Julian owns horses and sheep but his prize possession is a three-blade, 12-metre high wind turbine with 600-watt power (the equivalent of 10 light bulbs). Like others in the region, he simply calls it the "windmill".

"They installed the windmill a while ago now and it's changed our lives. We didn't have electricity before, just a kerosene lamp and that was it; now we have light and we can listen to the radio."

Julian led me to a plain bedroom, where he had a fuse box attached to the wall and a 12-volt car battery, and explained how everything worked.

The wind turns the windmill blades and a cable takes the energy produced into the house. The fuse box controls the voltage and battery charge.

Marcos added that the electrical supply is constant - whether it comes directly from the generator or, when there is no wind, from what has been stored by the accumulator.

Some dwellings have installed an inverter, a gadget to transform a 12 volt output into 220 volts - ideal for domestic appliances.

Another inhabitant of the area, 30-year-old Adelino Cual, also an Araucano, had this to say: "We have electricity 24 hours a day, not just the little lamp we had before. We no longer have to buy kerosene or gas-oil. It works out cheaper for us."



The engineers had shown him how to work and maintain the generator and the fuse box: "They taught me, for example, how to change the fuses if they blow; I've changed them several times," he said.

And Marcos added that the idea is for those benefiting from the technology to be self-sufficient.

After visiting the hamlets around about, we made our way to the heart of Chacay Oeste, which comprises a dozen or so houses and a school-shelter which accommodates some 30 pupils from neighbouring settlements.

The school has been provided with six wind turbines, installed by Cree in the highest part of the town.

"They provide energy for our building, for the shelter and also the teachers' houses. During the school holidays, they are used to supply energy to the rest of the village".

Before turbines were installed, Chacay Oeste got its electricity from a petrol generator, the noise of which had become part of the landscape for the locals.

"The windmills have changed things a lot for the youngsters. Now they have access to computers, and teachers can educate them through television programmes."

"Now I feel I communicate more with other people. Not like before - we were a bit unsociable," Julian confessed after telling me that he regularly listens to the radio to find out what is going on, and that he really appreciates the Cree technicians' visits.

And at Cree they confirm that this is indeed what it is all about: The social impact the technology has had on the communities has helped to integrate them more.

Full BBC Article
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Renewable Energy Article in the Spec.com


Laidlaw Memorial United Church, was among the first in Ontario to sell electricity generated by rooftop solar panels
Think of it as a chance to buy shares in the sun.
A Hamilton group is seeking residents interested in joining the city's first renewable energy co-operative.
The goal is to pool enough cash to install a 55-kilowatt solar project â€" enough to power four or five homes â€" on one or more rooftops above the city.
“Lots of people like the idea of solar panels … but not a lot of people can afford to do it on their own,” said Beatrice Ekwa Ekoko, project co-ordinator for the Hamilton Halton Energy Awareness Team. “This is a chance to make green power accessible for the community.”
The upfront cost of the project could range between $275,000 and $300,000, she said. Solar panels vary in size and efficiency, but Ekoko said early research suggests the project might need more than 200 panels, each as tall as a person. Co-op organizers are still calculating the “minimum investment” needed to join the co-op, but Ekoko said a successful effort probably requires 200 members.
So far, the group has around 50 people who have expressed interest in taking part. All co-op members would share in decision-making as well as any profits, Ekoko said.
“We think we can make money from it, but it's primarily attractive for people who want to make a personal investment in a sustainable future,” she said.
Ekoko said organizers estimate they can pay back the capital cost over eight years â€" provided the province keeps paying top dollar for electricity from small green projects through the Feed-in Tariff (FIT) program.
A revamped FIT program, which provides cash incentives for renewable energy projects such as solar, wind and hydro power, is scheduled to be launched by the Ontario Power Authority later this year with extra priority placed on community projects, said spokesperson Tim Butters. Under draft rates published online by the OPA, rooftop projects like Hamilton's would earn nearly 55 cents per kilowatt-hour by feeding the provincial power grid.
“We do really depend on the FIT program to make a venture like this possible,” said Ekoko, who estimates the project could produce $34,000 worth of power every year.
Organizers hope to nail down a large, structurally sound south-facing host rooftop in time to apply for an anticipated round of new FIT contracts.
The local group grew out of a partnership between Environment Hamilton and the Halton Environmental Network.
A similar effort dubbed Bright Sky Power is also heating up in Burlington, while several Hamilton-area churches are already reaping the benefits of a sunnier outlook on life, including projects at Laidlaw United, Central Presbyterian and Melrose United.
905-526-3241 | @Mattatthespec
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Comments on PSB Staff Proposal for New Vermont Renewable Energy Portfolio Standard Due Sept 14, 2011

The Vermont Public Service Board (PSB) is in the process of preparing a report concerning the development of a renewable portfolio standard (RPS) in Vermont to revise or replace the current RPS and Sustainably Priced Energy Enterprise Development (SPEED) program passed by the Legislature in 2005.Board staff have prepared recommendations for a potential new RPS program, which will be presented to the PSB later this month. Comments on staff recommendations are due September 14, 2011. The Board is then required to prepare and deliver its final report to the legislature no later than October 1, 2011.Unlike other New England states, Vermont has not yet implemented a mandatory RPS program. The current SPEED program was passed in 2005 and is designed to encourage the development of renewable energy. It provides an incentive for the state’s retail electric utility providers to enter into long-term contracts with in-state renewable energy generators but does not set mandatory purchasing requirements for utilities. Instead, the program, as amended in 2008, sets a statewide goal that 20% of the state’s retail electric sales come from new in-state renewable energy facilities (often referred to as SPEED projects) by 2017. The legislation also included the general design for a potential mandatory RPS program (codified at 30 V.S.A 8004) and included a trigger requiring implementation of the mandatory RPS program if the PSB determines that the SPEED program has not been successful. The RPS requirement is triggered unless Vermont utilities, collectively, meet at least 5% of 2005 load, and incremental load growth from January 1, 2005, to December 31, 2012, up to ten percent of 2005 load, through contracts with renewable resources that come on-line after January 1, 2005.In 2010, the Vermont Legislature passed Act 159, directing the PSB to evaluate and provide recommendations on potential revisions to the SPEED program (including potentially replacing the program with a more traditional RPS mechanism). The report is required to include, among other things:An evaluation of whether or not Vermont should adopt an RPS to amend or replace the RPS adopted in 2005 or, in lieu of adopting such an RPS, should adopt revised goals and requirements for the SPEED program.An evaluation of whether the voluntary goals and aspects of the SPEED program should be made mandatory.An evaluation of the economic and environmental benefits and costs of adopting an RPS at each of the following percentages of Vermont’s electricity supply portfolio: 25, 50, 75, and 100 percent. The board shall also perform the same evaluation with respect to the imposition of mandatory SPEED goals at the same portfolio percentages.An evaluation of the effect on the development of in-state renewable energy resources that may occur if an RPS is adopted and, under such an RPS, out-of-state resources with capacities in excess of 200 MW are considered renewable. The board shall also perform the same evaluation with respect to the imposition of mandatory SPEED goals. Such evaluations shall take into account each of the percentages discussed under subdivision (2)(C) of this subsection.Analysis of RPS statutes and rules that have been adopted in other jurisdictions and their strengths and weaknesses and a discussion of how a Vermont RPS and, in lieu of an RPS, revised SPEED goals and requirements might integrate with such statutes and rules.Consideration of whether or not Vermont should adopt a definition of renewable resources that includes tiers or classes and a recommended proposal for such a definition.Consideration of the manner in which Vermont would require third party certification that an energy resource is renewable.Consideration of the manner in which Vermont would require third party certification that a renewable resource has low environmental impact.Consideration of the extent to which a Vermont RPS and, in lieu of such an RPS, revised SPEED goals and requirements would include the purchase of electric energy efficiency resources and the appropriate means of verification that the associated energy savings are achieved.PSB staff have held several public meetings over the past year to meet the October 1, 2011 deadline for the report. Prior meetings have included discussions on the effectiveness of the SPEED program, performance RPS programs in other states, and potential designs for a new RPS program in Vermont. The Board has also retained the Clean Energy States Alliance and Sustainable Energy Advantage (CESA/SEA) as consultants to analyze different potential policy mechanisms.A draft of the CESA/SEA report â€" entitled An Analysis of Renewable Energy Policy Options in Vermont â€" was recently released and is available on the Board’s RPS Study website. The report sets forth various renewable policy design options and evaluates the advantages and disadvantages of each different design option; it also includes economic modeling of various policy scenarios. The CESA/SEA report, and the Board Staff’s recommendations for a potential RPS program were presented during a public meeting at the state house on September 1, 2011.Based on the analysis and economic modeling contained in the CESA/SEA report, the Board Staff is currently recommending that Vermont adopt an RPS which would require Vermont utilities to obtain 75% of their retail electric power from renewable sources by 2032, with 40% of this requirement derived from maintenance of the state’s existing percentage of renewable resources, 30% of the requirement derived from new renewable resources constructed after 2005, and 5% of the requirement derived from in-state renewable distributed generation. Details on the RPS proposal are included in the staff report.Comments on the Board Staff proposal are due this week, on Wednesday September 14, 2011 and may be submitted directly via e-mail to Ed McNamara
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“Beginning Construction” Requirements for Section 1603 Cash Grants for Renewable Energy Projects

The federal Section 1603 Treasury Grant Program has provided a major incentive for the development of renewable energy projects in recent years by allowing owners of such projects to receive a cash grant in lieu of federal tax credits for specified energy property. The U.S. Department of the Treasury reports that it has paid out $8.5 billion to approximately 18,000 Section 1603 grant applicants to date.The program was originally set to expire last year, but it was extended so that projects that will be placed in service by the end of 2011 are eligible for the grant. Additionally, projects that have begun construction by the end of 2011 and will be placed in service by 2012 (wind), 2013 (most other renewables), or 2016 (solar), can take advantage of the program. With the “begin construction” date fast approaching, it is important for renewable energy developers to understand how to ensure that they will be eligible for Section 1603 grants. Some of the important factors needed to meet the Treasury Department’s requirements for beginning construction are summarized here.There are two separate and independent ways that an applicant for a Section 1603 grant can establish the beginning of construction:Physical work of a significant nature, or5% “safe harbor” of costs paid or incurredThe physical work of a significant nature method of establishing that construction has begun has the following constraints/limitations: The physical work must take place on “energy property”â€"this means the property that is integral to the production of energy.Transmission equipment does NOT count as energy property.Generally, the Treasury Department will include all interconnection equipment, including the step-up transformer, as energy propertyEverything on the transmission side of the step-up transformer will be considered transmission equipment, not specified energy property.Most road building will not count as “energy property,” but each project is scrutinized on an individual basis and some roads could qualify as energy property. The physical work must be part of a “continuous program of construction” and Treasury puts particular emphasis on continuity.Unplanned work stoppage that is out of the control of the owner/contractor is acceptable.The Treasury Department’s examination will be on what kind of work continuity is expected for a project of its type, in the location where the project is being builtâ€"winter or other weather-related work stoppages can be acceptable. The work includes work done by a contractor, as long as it is done pursuant to a binding written contract, legally enforceable under state law, with damages not less than 5% of the total contract.It is important that the contract is in place before work is commenced.The physical work of a significant nature method also has the following flexibility: There is no minimum amount of work that must be complete by the end of 2012; the work can be very minimal because the emphasis is on the continuity of the work.The work need not take place at the project site; indeed, no site need even be identified for the project under this approach. The 5% Safe Harbor method of establishing the beginning of construction focuses on the actual expenditures made by the applicant, and it requires that the applicant: has paid or incurred 5% of the total actual costs of specified energy property.meets the “economic performance rule” from Section 461(h) of the tax code â€" this means that the applicant has to actually make the payment and reasonably expect to receive the property within 3½ months. “Receiving” or being “provided” the property can mean delivery, acceptance, or the passage of title of the property, but the applicant must use the same method throughout the term. Making a deposit on the property is NOT sufficient to count toward the 5% safe harbor.incurs any contract-based costs pursuant to a binding written contract, legally enforceable, with damages not less than 5% of the total contract.possibly needs to have a project site identified (this issue is not entirely clear under current U.S. Treasury guidance).The 5% safe harbor method also has the following flexibility:  Costs/contracts may be for services, not just goods.There is no need to build/construct anything.There is no continuity requirement.“Off-the-shelf” items qualify towards the 5% of costs (but note that purchases of extended warranties do NOT count toward the 5%).There is a special “look through” rule that can be used to meet the economic performance rule for the applicant:if the applicant’s supplier meets the economic performance rule, then this can be attributed to the applicant. Potential Section 1603 applicants should also be aware that the date for beginning construction is December 31, 2011, and applications for projects that will begin construction but will NOT be placed in service by the end of 2011 must be submitted by September 30, 2012. Developers should also keep in mind that Section 1603 grants are available for expansion of existing projects, as long as there is additional capacity being provided at the facility. Even if a Section 1603 grant was used for the original facility, the developer can still be eligible for an additional grant if additional capacity is being created. The Treasury Department emphasizes that the completeness of an application by the final date is of paramount importance, and applicants should make use of the Section 1603 website and associated checklists and other guidance to ensure that they understand all application requirements. Disclaimer: As with all of our blog posts, this is not legal advice. Every situation regarding Section 1603 eligibility is fact-specific and would need to be treated on a case-by-case basis. No decisions should be made based on the information contained in this blog post alone. Readers are encouraged to make sure they have gathered all relevant information and to contact an attorney to discuss their specific situations.
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Deadline to Submit your feedback to the OPA on the draft FIT 2.0


April 27th is the deadline to submit your feedback to the Ontario Power Authority on the draft FIT 2.0 rules, contract and definitions. 
Do you want to help improve the program? Then get your input in to the Ontario Power Authority to ensure that they have your great ideas on how to improve the program.
Haven't had time to go through everything yet? OSEA has pulled together helpful documents that can assist you based that include the following:
  1. Priority recommendations
  2. Secondary recommendations
  3. Black lined edits in support of the priority recommendations (already inserted into the OPA reporting form for easy copy and pasting).
You can download the full document here:
DownloadOSEA Submission on the Draft FIT 2.0 Rules (PDF)
Here is their summary slide deck of the Priority recommendations which can be downloaded here:
7 things to make FIT 2.0 a success - Minister of Energy and OPA briefing notes(PDF)

They have also left the Appendix containing the black lined recommendations in word format using the OPA's form for easier editing here:
DownloadDownload the Priority recommendations (Word doc)
The Appendix provides the black lined specific edits to the rules that OSEA is recommending in support of the Primary Recommendations. You will need to cut and paste the comments into your own form which is available athttp://fit.powerauthority.on.ca/comments-welcome-draft-fit-program-rules-and-contract for the FIT and http://microfit.powerauthority.on.ca/results-microfit-program-review-now-available for the MicroFIT programs respectively.  

Email your submission to to the Ontario Power Authority at FITsubmissions@powerauthority.on.ca and CC Minister Chris Bentley at christopher.bentley@ontario.ca

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Seeing Red: Palm Oil Biodiesel



In the enthusiasm for renewable energy and taking care of our environment, it is easy to assume that making fuel from plants (biofuel) must be by definition "green" and renewable. However when it comes to energy issues, easy assumptions can be dangerous assumptions. In previous years some politicians and advocates in Europe have made these assumptions without sufficient thought and research and secured government subsidies for companies importing palm oil from South East Asia to make biodiesel for transport and for use in electricity generation.

The demand for palm oil in Europe has soared in the last two decades, first for use in food and cosmetics, and more recently for fuel. This cheap oil can be used for a variety of purposes, including as an ingredient about 10 percent of supermarket products, from chocolate to toothpaste.

Promoted by hundreds of millions of dollars in national subsidies, the Netherlands quickly became the leading importer of palm oil in Europe, taking in 1.7 million tons in 2006, nearly double the previous year.



Now it is increasingly difficult to ignore the mounting body of scientific evidence that palm oil plantations in Indonesia and Malaysia, rather than preserving the environment are in fact actively destroying it. By subsidising biofuels, European governments have artificially raised demand for palm oil in Europe, and accelerated the destruction of huge areas of rainforest in South East Asia. Palm oil plantations are often expanded by draining and burning peatland, releasing enormous amounts of carbon dioxide into the atmosphere. As a result Indonesia has become the world's third largest emitter of carbon dioxide, ranked after the United States and China, according to a study released in December by researchers from Wetlands International and Delft Hydraulics, both based in the Netherlands.

The 2003 European Union Biofuels Directive, which required all member states aim to have 5.75 percent of transportation run on biofuel in 2010, is now under review. In the Netherlands, the data from Indonesia has prompted the government to suspend palm oil subsidies.

In Europe a small amount of rapeseed and sunflower oil is used to make diesel fuel, however increasingly plant oils are being imported from the tropics, since there is simply not enough plant matter or land for biofuel production at home. So while the billions of dollars in European subsidies appear to have reduced carbon emissions in European countries by importing biofuels, this has been achieved by exporting them and increasing their impact many times by the permanent destruction of rainforest and peatland in South East Asia.

For anyone familiar with how the ethanol industry works in the United States, they will be unsurprised to learn that the palm oil industry was promoted long before there was adequate research. Biofuel Watch, an environment group in Britain, now says that "biofuels should not automatically be classed as renewable energy." It supports a stop on subsidies until more research can determine if various biofuels in different regions are produced in a nonpolluting manner. The group also suggests that all emissions arising from the production of a biofuel be counted as emissions in the country where the fuel is actually used, providing a clearer accounting of environmental costs.


BEFORE: rainforest on the Indonesian part of the island of Borneo

Friends of the Earth estimates that 87 percent of the deforestation in Malaysia from 1985 to 2000 was caused by new palm oil plantations. In Indonesia, the amount of land devoted to palm oil has increased 118 percent in the last eight years.


AFTER: a palm oil plantation

Peat is an organic sponge composed of 90 percent water that stores huge amounts of carbon, which when it is drained emits huges amounts of carbon into the atmosphere.

Even worse peatland is often burned to clear ground for plantations. The Dutch study estimated that the draining of peatland in Indonesia releases 660 million tons of carbon a year into the atmosphere and that fires contributed 1.5 billion tons annually.


Kuala Lumpur, Malaysia
the haze has covered much of SE Asia for extended periods of time since 1997

The total is equivalent to 8 percent of all global emissions caused annually by burning fossil fuels, the researchers said. "These emissions generated by peat drainage in Indonesia were not counted before," according to a Wetlands spokesperson. "It was a totally ignored problem."

While for the moment the widescale destruction of rainforests in South East Asia continues, hopefully the palm oil story will serve as a cautionary tale which will lead to much better informed policymaking and behaviour. Politicians must resist the urge to rush to legislate and subsidise in order to bask in the glow of being seen to be "doing something" while a number of so-called green companies profit from taxpayer subsidised destruction. Energy policy must make sense from a scientific (i.e. it should be energy positive), economic and environmental viewpoint. However the continued promotion of ethanol and coal-to-liquids calls for continued skepticism.
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Renewable Energy Co-Operatives - Open for Business?






On July 11th, 2012 the Minister of Energy directed the Ontario Power Authority to continue with and to make modifications to the Feed-in-Tariff ("FIT") Program.

Why is this directive so important for Renewable Energy Co-Operatives ("RE Co-Ops")?

RE Co-Ops are one of the primary beneficiaries of the directive.  The Minister directed that renewable energy projects that have a fifty percent (50%) ownership interest by a RE Co-Op where 50 or more members of the RE Co-Op are local property owners are first in line (with aboriginal groups) when allocating grid capacity.  With respect to remaining projects, a renewable energy project where fifteen (15) to fifty percent (50%) of the project is owned by a RE Co-Op and where 50 or more members of the RE Co-Op live in the municipality where the project is located get 3 priority points for grid access.  This is the most priority points for any category.  Amended FIT Rules incorporating the foregoing are expected to be issued any day. The 50 members referred to above becomes 35 for a Small FIT Project.

Why is Priority for Access to the Grid so important? 

Because it appears there is not enough capacity on the grid to connect all projects seeking connections.
What will be the result of this development?
It can be expected that many other project developers who are not RE Co-Ops will be seeking to join forces with RE Co-Ops to secure grid access. 

How will these developers be "joining forces" with RE Co-Ops?
They won't be forming a new corporation.  The RE Co-Op has to have a direct ownership interest in the project with the developer.  It can be expected that the RE Co-Op and developer will be entering into an agreement regarding how they will own and operate the project together.

Sounds great! Are there any issues?
There are several uncertainties that will have to be addressed, including: any issues arising out of the final FIT Rules and completing the projects within the time prescribed to validate FIT contracts

What's this about timing?
The FIT Rules provide that project proponents have a certain amount of time to build their projects to validate their contracts.  There are also key milestones that must be met at various points during project development.  In order for the project to proceed, the parties will have to:
enter into an agreement governing the terms and conditions of their relationship,
have the required equity and financing in place, and
have the prescribed 50 land owners from the local municipality as members of the RE Co-Op
This will take time.  The Financial Services Commission of Ontario ("FSCO") governs co-operatives.  These new FIT Rules will be new to FSCO as well.  It can be expected there will be a learning curve for them.

Where do we go from here?

Hopefully the new FIT Rules will provide further guidance.  The next several months will be both challenging and promising for the renewable energy sector.  Stay tuned for further developments.


Mr. Shewan is a partner with the law firm of Lerners LLP and the Practice Group Leader of their Business Law Group.  He may be reached at ishewan@lerners.ca or 519.640.6334.

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Austin Energy Excels as #1 Green Energy Electricity Utility in America



UPDATE: This is a list of the top ten green energy programs in the United States with the latest December 2005 figures and links to these electric utilities. One of the biggest differences we can make is to switch to "green energy" - energy generated from 100% renewable sources. Florida Power & Light is a new entry into the top ten at number four. The company recently announced the construction of the largest solar array in Florida on the site of a closed landfill in Sarasota. The 1,200 photovoltaic solar panels are each about 31 inches wide and 63 inches long. The facility is to be more than 28,000 square feet, or about half the size of a football field. "We sought a location that had a ground site large enough for 250 kilowatts of photovoltaic panels," said Jeff Bartel, FP&L VP of external affairs.

If you live in a part of the United States that is not served by an electric utility on this list please see this List of Green Energy Providers by State.

As our energy challenges are global I appreciate every assistance in compiling a similar list of renewable energy providers in other countries. Feel free to email or leave a comment.

Returning to the United States, Austin Energy has shown its commitment to renewable energy by topping the list. The U.S. Department of Energy said Austin Energy's Green Choice program sold more than 334 million hours of renewable energy last year.

More than 350 businesses in Austin get their power from renewable sources as an alternative to fossil fuels.

Austin Energy uses electricity from 61 West Texas wind turbines.

Here's the top ten green energy programs in the United States (as of December 2005).

1. Austin Energy -
areas served include Austin, Texas
green energy from Wind Power, Land Fill Gas, Small Hydro -
435 MWh/year

2. Portland General Electric (PGE) -
areas served include Portland, Oregon
green power from existing Geothermal, Wind Power, Small Hydro - 340 MWh/year

3. PacifiCorp - includes Pacific Power and Utah Power
areas served include:
Oregon, Washington, Wyoming, California, Utah, Idaho
green energy from Wind Power, Biomass, Solar Energy -
234 MWh/year

4. Florida Power & Light - green power from Biomass, Wind Power, Solar Energy - 225 MWh/year

5. Sacramento Municipal Utility District (SMUD) -
green power from Landfill Gas, Wind Power, Small Hydro, Solar Energy - 195 MWh/year

6. Xcel Energy -
areas served include: Denver,Colorado; Elkhart, Kansas; Wakefield, Michigan; Saint Paul, Minnesota; Roswell, New Mexico; Fargo, North Dakota; Boise City, Idaho; Sioux Falls, South Dakota; Amarillo, Texas; Eau Claire, Wisconsin
green electricity from Wind Power - 148 MWh/year

7. National Grid -
areas served include:
New York, Massachusetts, Rhode Island, Nantucket
green power from Biomass, Wind Power, Small Hydro, Solar Energy - 128 MWh/year

8. Basin Electric Power Cooperative (SMUD) -
green power from Wind Power - 114 MWh/year

9. Puget Sound Energy (PSE)-
area served Washington state
green energy from Wind Power, Solar Energy, Biogas -
71 MWh/year

10. OG&E Electric Services -
area served Oklahoma
green electricity from Wind Power - 64 MWh/year

(source: NREL)

MWh/year = million kWh/year rounded down

List of Green Energy Providers by State

One of the single biggest ways we as individuals can encourage the use of alternative energy and help aid the transition to a post fossil fuel age is to buy electricity partly, or preferably completely, generated using alternative energy.

Switching your electricity utility provider may be as simple as requesting a form or filling one in online. That's exactly how I switched to 100% renewable energy (generated mainly from wind power with some solar power and small scale hydro thrown into the mix). Renewable energy options are available throughout the U.K. and in many other countries.

To find out if you can switch to renewable energy in your area look on your search engine of choice for "green energy", "green power" or "green electricity". You may also need to add your location to the search. If your local utility doesn't provide a renewable energy option yet, email or call them and ask why.

Original News 8 Austin Article

Green-e Certified Electricity Products
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Australia: Alternative Energy Grants


Geothermal Plant

From geothermal power to better batteries, millions have been spent on alternative energy research grants in Australia, according to Rod Myer writing for The Age of Australia.

The AUD $23 million (approximately $17 million) spent by the Australian Federal Government under the first tranche of its $100 million (US $73m) pledge to aid the alternative energy sector has highlighted innovations by local companies to cure Australia's fossil fuel addiction.

Two companies awarded grants under the Renewable Energy Development Initiative (REDI) have developed a no-emissions alternative for base-load generation. Geodynamics received $5 million grant to help develop its geothermal electricity plant near Innamincka in the north of South Australia. Scope Energy, another betting its future on geothermal energy, received $3.9 million grant to aid development. Its principal, Roger Massey-Greene, says the grant will help finance a drilling program of 500-metre deep holes to prove up its resource. Scope plans to open a 50-megawatt plant, but Mr Massey-Greene says he hopes to see this expand to 1000 MW in the longer term.

Scope has a geographic advantage, he believes. Its site is near Millicent, in the south-east of South Australia, meaning it is close to transmission lines and the population centres of Melbourne and Adelaide. "We expect the cost to be very competitive with combined-cycle gas power plants," Mr Massey-Greene said.

Scope's geothermal technology will tap hot water heated deep in the earth and run it through a heat exchanger to generate electricity. Mr Massey-Greene likens this process to a "fridge operating in reverse".

Geodynamics' system will pump water through hot rocks and use the resulting steam to generate power. Scope's wells will be as deep as 4.5 kilometres. The technology that Scope is planning has been in use at a plant in Italy that has operated for 101 years, Mr Massey-Greene said.

Stage one of the plant is expected to cost $4 million per megawatt to construct, compared with about $750,000 for a combined-cycle gas plant. "But we have no fuel costs," Mr Massey-Greene said. Geothermal plants run at an output of about 98 per cent of rated capacity. Mr Massey-Green believes geothermal power has a great future. In New Zealand it provides 7 per cent of power needs and this could rise to as much as 15 per cent. Some in the market believe that Scope will float in the first half of 2006.

Melbourne-based Katrix will use its $811,000 Renewable Energy Development Initiative grant to further develop its new fluid expander that may enable solar energy to be harnessed for electricity. Founder Attilio Demichelli says the expander, which does the job of a turbine, will allow solar thermal energy to be adapted for small-scale use far more cheaply than photovoltaic systems.

Katrix is developing units in which solar energy will heat refrigeration fluid that will run through an expander linked to a generator to produce power. The expander is cheaper than a miniature turbine to build and has a number of advantages, including its ability to take gas or steam at 22 atmospheres (twenty two times atmospheric pressure) back to one atmosphere in one step.

Katrix projects that in the Californian market â€" once government solar energy grants are factored in â€" its system will return its cost to consumers in two to three years, compared with 15 years for photovoltaic systems. Mr Demichelli, a private investor, and inventor Yannis Tropalis have invested over $3 million in the technology in three years.

Another REDI grant, of $290,000, has gone to V-Fuel, which is developing a vanadium bromide redox battery. The funding will help develop a prototype of a battery that its promoters hope will be efficient enough to use to store power from renewable energy plants. Efficient storage would enable technologies such as wind power and solar energy to get over a bugbear â€" unpredictability, because no one knows when the sun will shine or the wind will blow.

V-Fuel principal Michael Kazacos says the grant is crucial to the company, which has raised only $400,000 up to now. V-Fuel has developed a five-kilowatt battery but is aiming to produce a 50-kilowatt prototype. That, he says, will cost $1 million, and further funding is being sought from another federal grant scheme.

"There is a lot of interest in Europe," Mr Kazacos said. "We have had offers of collaboration from there." The battery was 85 per cent efficient, he said, and "we are aiming at having a $200-per-kilowatt production cost". The vanadium bromide process was developed at the University of NSW by Professor Maria Skyllas-Kazacos, who is a principal of V-Fuel.


according to Origin - Sliver Cells are "long, ultra thin, quite flexible & perfectly bifacial"

Origin Energy received a $5 million grant to aid development of its facilities for manufacturing solar energy cells using photovoltaic sliver technology. The technology aims to cut the cost of solar energy cells by reducing silicon usage by up to 90 per cent. Sliver cells are micromachined to less than 70 microns thick with solar cell efficiency running at over 19%. Silicon is the most expensive part of a solar energy cell. Origin Energy says it costs $11,000 to fit a house with a one-kilowatt unit. This would take 20 years or more to pay itself off. However, as energy prices rise and production costs fall, this payback time will be cut. Origin Energy also owns a 19% stake in Geodynamics and offers Green Earth electricity from 100% renewable sources to Australian electricity consumers. For more green energy in Australia see the government Green Power website.

Geothermal Energy: Hot Dry Rock


Article in The Age on Australian Alternative Energy Grants
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