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As a provision of the American Taxpayer Relief Act of 2012, IRA Charitable Rollover was extended through December 2013. This allows individuals who are 70 ½ and older to make a direct transfer totaling up to $100,000 per year to 501(c)3 organizations, like the TSEA, without having to count the transfers as income for federal income tax purposes. With funding, this organization could reach out to the citizens of Tennessee in promoting clean energy for our lives and the lives of our children and their children. Help us make Tennessee cleaner than ever by supporting the American Solar Energy Society as well as Tennessee Solar Energy Association.
TVA Solar Investment
• TVA must balance the need for incentives to support new sources of clean, renewable
energy and the impact of these subsidies on consumer power bills. TVA’s mission is to keep
electric rates as low as feasible.
• TVA will invest about $25 million to buy solar energy in FY 2013 part of about $398
million TVA will spend on renewable energy and wind contracts this year.
• TVA’s average cost for all energy generation and delivery is 6.5 cents per kilowatt-hour.
Under its current renewable programs terms, TVA pays:
o Green Power Providers – An average contracted price of 17 cents per kWh over 20
years for solar; 14 cents over 10 years for wind, biomass and small-scale hydro.
Renewable Standard Offer – An average market price of 7 cents per kWh for solar;
6 cents per kWh for other renewables over 20 years.
Since the year 2000, the number of solar power installations in the Tennessee Valley has grown from only three to nearly 1,700.
Buoyed by some of the most generous incentives offered by any utility in the South, TVA gets as much power from the sun as it does from either Norris or Chickamauga dams.
But the boom in small-scale solar generation has turned to a bust for many solar installers this summer. TVA capped its 17-cents-per-kilowatt-hour payment for solar generation to only 10 megawatts this year and the limit quickly was reached before many interested homeowners and businesses were able to take advantage of the offer.
Solar power enthusiasts appealed to TVA directors Thursday to buy more solar through its Green Power Providers program. TVA spends about $25 million a year in above-market payments to buy solar generation to help meet its goal of getting more electricity from renewable sources.
As solar panels become more efficient and the industry matures, TVA is looking to cut that subsidy and move toward more market-rate prices for solar generation.
TVA and Pickwick Electric Cooperative are working with Strata Solar to develop two 20-megawatt solar farms near Selmer, Tenn., which will sell power to TVA at market rates. The new solar installations will be the biggest yet in Tennessee and could provide enough electricity for 4,000 Valley homes.
“I actually think we’ve been in a pretty good spot here,” TVA President Bill Johnson said. “As the price comes down, we can afford to do more solar.”
TVA Chairman Bill Sansom said TVA has to balance the costs of subsidizing small solar units, which tend to increase the average price of TVA power, with consumer desires for more solar and assistance to help nurture the new industry.
TVA opened up another 2.5 megawatts in its Green Power Partners program on Aug. 1, but that capacity was sold at auction in only one minute and most applicants didn’t get a piece of the program. TVA has not yet set the price or capacity for its solar programs for 2014, but officials said the utility should soon announce its plans.
“We are looking at the program and we’re looking at the type of adjustments that we can make to help make it a little more friendly for folks,” said Joe Hoagland, TVA’s senior vice president of policy and oversight.
Large-scale solar farms are adding solar generation at less cost for TVA, Hoagland said. TVA still has nearly 75 percent of the capacity available for such large-scale, market-rate solar generation.
“We want to see more of those because they not only give us more renewable energy, they do it without putting any extra burden on our other ratepayers,” Hoagland said.
Future purchase plans and incentives for renewable power will be shaped, in part, by a new Integrated Resource Plan TVA will launch this fall to study future power options for the next two decades. The updated power plan will be finalized by 2015, Hoagland said.
Background: Raccoon Mountain pumped store is one of the largest in the United States holding the equivalent to 12% of the total energy used in Tennessee in one day. Both nuclear and solar PV need energy storage to maximize the return on investment. Pumped storage of water is the most cost effective massive energy storage method known today. Construction at Raccoon Mountain began in 1970 and was completed in 1978. The reservoir constructed at the top of the mountain has 528 acres of water surface. The dam at Raccoon Mountain’s upper reservoir is 230 feet high and 8,500 feet long. It’s the largest rockfill dam ever built by TVA. Raccoon Mountain Pumped-Storage Station is a hydroelectric facility. It has four generating units with a net dependable capacity of 1,652 megawatts. Net dependable capacity is the amount of power a plant can produce on an average day, minus the electricity used by the plant itself. Several units at the 600 MW Raccoon Mountain pump storage facility were taken offline in 2010 due to rotor cracks.
Update on the status of the repair work at that plant by Bill Johnson. In an interview with Power Engineering Mr. Johnson, President of TVA, said that all four of those units were taken out of service after the discovery of cracks in the rotors. “There’s a similar plant in Europe where the cracks were first discovered, and when we inspected here we found the same thing. We are having new rotors manufactured in Europe. I would expect the first unit to be back online around July of this year, and the other three probably in the next ten to twelve months. We’re actively working on that. While the plant was down, we’ve done a lot of other things: replaced transformers, did some other things, but I would hope that we’ll see the first unit coming back in the July timeframe.”
Legislation Expands U.S. Hydropower Production Which Will Benefit Pumped Storage and Solar Dispatchability
Legislation designed to expand hydropower production in the United States by improving and streamlining the licensing process for small hydropower projects is now law. “President Obama’s signature on hydropower legislation is terrific news for expanding renewable energy and creating jobs across the country,” said Voith Hydro President and CEO Kevin Frank.
The Hydropower Regulatory Efficiency Act will require FERC to examine a 2-year licensing process for non-powered dams and closed loop pump storage. TVA should give top priority to increasing their pumped storage using no longer active mine, coal washing stations and converting them to closed pumped storage facilities. First, these are environmentally damaged facilities that need attention. Second, by adding a surface reservoir to receive the water from the elevated tailing ponds, TVA could increase its pumped storage first with closed pumped storage, then modifying existing dams to create a lower pond below the dam receiving stream. According to one source at TVA the issue with increasing pumped storage is the objection on environmental grounds. The answer is to select those sites that would have the lowest environmental impact using groups like the Sierra Club to help with the selection and the environmental impact study.
We need to increase pumped storage for both renewables and for nuclear plants. TVA has 47 dams listed on their website. There is a good chance that some of these dams would lend themselves to pumped storage. That is where TVA should invest.
If anybody doubts that federal energy regulators are aware of the rapidly changing electricity landscape, they should talk to Jon Wellinghoff, chairman of the Federal Energy Regulatory Commission (FERC).
“Solar is growing so fast it is going to overtake everything,” Wellinghoff told GTM last week in a sideline conversation at the National Clean Energy Summit in Las Vegas.
If a single drop of water on the pitcher’s mound at Dodger Stadium is doubled every minute, Wellinghoff said, a person chained to the highest seat would be in danger of drowning in an hour.
“That’s what is happening in solar. It could double every two years,” he said.
Geothermal, wind, and other resources will supplement solar, Wellinghoff said. “But at its present growth rate, solar will overtake wind in about ten years. It is going to be the dominant player. Everybody’s roof is out there.” Advanced storage technologies also promise lower costs, he said. “Once it is more cost-effective to build solar with storage than to build a combustion turbine or wind for power at night, that is ‘game over.’ At that point, it will be all about consumer-driven markets.”
If FERC does not ensure the grid is ready to integrate the growing marketplace demand for distributed solar and other distributed resources, Wellinghoff said, “We are going to have problems with grid reliability and overall grid costs.”
Transmission infrastructure will be able to keep up with solar growth. The big changes will be at the distribution level where FERC has less influence, he explained. But the commission has been examining the costs and benefits of distributed generation (DG) in wholesale markets.
“Rate structures need to be formulated in ways that fully recognize the costs and benefits of distributed resources,” Wellinghoff said. “In many utility retail rates, a disproportionate amount of the fixed costs are recovered through a variable rate. That is problematic when a lot of people go to distributed generation.”
The net metering controversy this has caused at utilities like Xcel and Arizona Public Service, he said, can only be resolved by “the fully allocated, fully analyzed cost and benefit study of distributed resources.”
TVA will install at least 500 kWs of solar PV at TVA facilities, TVA directly served customer locations, or another government-owned facility (including all local public power companies served by TVA), and shall maintain the PV installations for a minimum of twenty years following approval of project plan. The objective of SAVE is for TVA to partner with the regional community to raise solar energy awareness and education, reduce solar energy costs, and to test the market for upfront Renewable Energy Credit (REC) purchases. The SAVE initiative is based on a community solar business model which brings together individual donors, organizations, and investors to leverage community engagement and maximize stakeholder value.
1. it does not address distributor’s concerns; 2. It does not address soft costs; 3. It does not avoid borrowing of money; 4. It may not locate the solar where it can be best incorporated; 5. It is too small to make an impact on increasing consumer demand; 6. Who manages the overall program(s)? 7. Continue the concept of asking for donations?
As Debbie Dooley co-founder of the Atlanta Tea Party explains, “I’m a grandmother, and I want to be able to look my grandson in the eyes and tell him I’m looking out for his future. Conservation is conservative, and protecting our children and our natural resources is a conservative value.” Those who believe in the free market need to reexamine the way our country produces energy. Giant utility monopolies deserve at least some competition, and consumers should have a choice. It’s just that simple, and it’s consistent with the free-market principles that have been a core value of the Tea Party since we began in 2009.
“In Georgia, we have one company controlling all of the electricity production, which means consumers have no say in what kind of power they must buy. A solar company could not start up and offer clean power to customers because of restrictions in state law. Our Constitution does not say that government should pick winners and losers, but that is what government is doing when it protects the interests of older technologies over clean energy that’s now available at competitive prices. I say, let the market decide” says Debbie.
She goes on to explain, “Georgians are currently and unjustly denied this opportunity, and will continue to be unless a law is passed to change the system. That is why the Atlanta Tea Party supported Senate Bill 401 in the past legislative session. Georgia Power opposed it and it never made it out of committee. We will try again when the Georgia legislature reconvenes in January 2014. All states should allow their citizens the opportunity to generate and sell their own solar power.”
So I ask our elected state and federal officeholders, “Why hesitate in voting for extending the Master Limited Partnership to renewables?” Level the energy playing field. Here in Tennessee, our citizens have the same demands as our neighbors in Georgia. TVA board serves the people in the valley, why not listen to their demands for cleaner energy?
Postscript: Americans for Prosperity, which like the Tea Party have been nurtured and sponsored by the Koch brothers oil billionaires, is dismissing the Georgia faction as an aberration, or even more damming, as a “green Tea Party.” It has sought to turn the issue of rights on its head by arguing that rooftop solar will “infringe upon the territorial rights to the distribution grids” of the network operators.