The URL can be used to link to this page

Home My WebLink AboutREFAC Meeting documents 9-22-2014The Alaska Affordable Energy Strategy Gene Therriault Renewable Energy Fund Advisory Committee Sept. 22, 2014 ° ~ ; SK on Wet. Regional Energy Planning - Energy Pathways led to regional planning - Address unique challenges while capitalizing on regional resources * Locally driven and community-vetted blueprint for sustainability - Provide specific, actionable recommendations - Identify means of providing stable and affordable electric, heat and transportation energy from renewable and fossil fuels + Build capacity at local and regional level to enable stakeholders to continue planning process = ALASKA / am ENERGY a Relationship between Planning Efforts | a ENERGY AUTHORITY Senate Bill 138 LAWS OF ALASKA Alaska Affordable Energy Strategy - Plan and recommendations to the Legislature on infrastructure needed to deliver affordable energy to areas in the state that do not have direct access to a North Slope natural gas pipeline. Due: January 1, 2017 [= ALASKA gm ENERGY satiate, SB 138 Section (a) «= Work with AGDC, AIDEA and DOR; « Consider state energy policy under AS 44.99.115 and sec. 1, ch. 82, SLA 2010; * Plan for areas with no direct access to a North Slope natural gas pipeline; = Identify ownership options, different energy sources, including fossil fuels, hydro projects, tidal, and other alternative energy sources; « Most cost-efficient manner of delivering more affordable energy « Where there is no economically viable infrastructure available, recommend underwriting to make energy affordable; » Consider development of regional energy bulk storage and distribution within regions. iat y= ALASKA mm ENERGY AUTHORITY SB 138: Section (b) and (c) (b) Consult with DOR for financing of design, development, and construction of the required infrastructure; = may identify rent, royalty, income, or tax received by the state that may be appropriated for plan. (c) AEA shall provide the plan and suggested legislation for the design, development, construction, and financing of the required infrastructure before January 1, 2017. = ALASKA @@mmm> ENERGY AUTHORITY SB 138: Alaska Affordable Energy Fund Special account in the general fund to provide a source from which the legislature may appropriate money to develop infrastructure to deliver energy to areas of the state that are not expected to have or do not have direct access to a North Slope natural gas pipeline * Interest stays with the fund = 20 percent of the revenue from the state’s royalty gas from an Alaska LNG project (after the payment to the permanent fund) = ALASKA... mm ENERGY AUTHORITY Alaska’s Energy Policy: AS 44.99.115 institute a comprehensive and coordinated approach to supporting energy efficiency and conservation; encourage economic development; support energy research, education, and workforce development; coordinate governmental functions. mm ENERGY AUTHORITY Alaska’s Energy Policy: AS 44.99.115 = Legislative state energy goals: 1. a 15 percent increase in energy efficiency on a per capita basis between 2010 and 2020; 2. the state receive 50 percent of its electric generation from renewable and alternative energy sources by 2025; 3. ensure a reliable in-state gas supply for residents of the state; 4. the power project fund (PPF) serve as the main source of state assistance for energy projects; 5. the state remain a leader in petroleum and natural gas production and become a leader in renewable and alternative energy om ALASKA. ea mm ENERGY AUTHORITY Describing Alaska’s Energy Resources = Community and regional access to energy sources varies and often drives cost Four Energy Quadrants: Natural Gas/Renewable Energy No Natural Gas/Renewable Energy No Natural Gas/No Renewable Energy ae isan) eeacel || Say Natural Gas/No Renewable Energy = Energy for heat & electricity are separated into distinct quadrants = ALASKA @@mm> ENERGY AUTHORITY All Four Quadrants by Community: Electricity The Alaska Affordable Energy Strategy Current Use of Natural Gas and ‘Quadrant 1 ELECTRICITY Gas/No Renewable Gas/Renewable O 570,000 Residents All Four Quadrants by Sie Population: Electricity 61,000 a Residents 95,000 Residents No Gas/No Renewable No Gas/Renewable = ALASKA. mm ENERGY AUTHORITY The Alaska Affordable Energy Strategy Current Use of Natural Gas and Renewable Energy for Electric Quadrant 1: Natural Gas/Renewable Energy (Electricity) Quadrant 2: No Natural Gas/Renewable Energy (Electricity) The Alaska Affordable Energy Strateg Current Use of Natural Gas and Renewable Energy for Electric Quadrant 2: No Natural Gas/Renewable Energy Quadrant 3: No Natural Gas/ No Renewable Energy (Electricity) The Alaska Affordable Energy Strategy Current Use of Natural Gas and Renewable Energy for Electric Quadrant 2: Gas/Renewable The Alaska Affordable Energy Strategy Current Use of Natural Gas and Renewable Energy for Electric Quadrant 4: Natural Gas/No Renewable Energy Quadrant 4: Natural Gas/ No Renewable Energy (Electricity) All Four Quadrants by Community: Heat ae a 3 dR $e hg: The Alaska Affordable Energy vs Current Use of Natural Gas and Renewable Energy for Heat HEAT Gas/No Renewable Gas/Renewable 500,000 Residents All Four 0 Quadrants by rare Population: Heat OC) 50,000 Residents 180,000 Residents No Gas/Renewable y= ALASKA @mm> ENERGY AUTHORITY No Gas/No Renewable The Alaska Affordable Energy Strategy Current Use of Natural Gas and Baroy Renewable Energy for Heat Ge Quadrant 1: Natural Gas/Renewable Energy Quadrant 1: Natural Gas/ Renewable Energy (Heat) & The Alaska Affordable Energy Strategy Current Use of Natural Gas and nae Renewable Energy for Heat a Quadrant 2: No Natural Gas/Renewable Quadrant 2: No Natural Gas/ Renewable Energy (Heat) The Alaska Affordable Energy Strategy Current Use of Natural Gas and Renewable Energy for Heat Quadrant 3: No Natural Gas/ No Renewable Energy (Heat) & j= a The Alaska Affordable Energy os Current Use of Natural Gas and Renewable Energy for Heat Quadrant 4: Natural Gas/No Renewable Energy Quadrant 4: Natural Gas/ Qy No Renewable Energy (Heat) & Potential Strategies Quadrant 1: Natural Gas/Renewable Energy = Energy Efficiency—Residential & Non-residential » Heat Recovery/Combined Heat and Power * Operations and Maintenance Improvements = Utility Management * Transmission & Distribution Improvements * Transportation Improvements « Gas Transportation & Storage Improvements « Renewable Energy = ALASKA... @@mm> ENERGY AUTHORITY Potential Strategies Quadrant 2: No Natural Gas/Renewable Energy =» Energy Efficiency—Residential & Non-residential » Heat Recovery/Combined Heat and Power * Operations and Maintenance Improvements « Utility Management » Transmission & Distribution Improvements * Transportation Improvements » Diesel Efficiency * Bulk Fuel Improvements » Renewable Energy » Possible Direct Subsidy j= ALASKA... = (@mm ENERGY AUTHORITY Potential Strategies Quadrant 3: No Natural Gas/No Renewable Energy = Energy Efficiency—Residential & Non-residential « Heat Recovery/Combined Heat and Power = Operations and Maintenance Improvements * Utility Management * Transmission & Distribution Improvements « Transportation Improvements * Diesel Efficiency « Bulk Fuel Improvements « Possible Direct Subsidy = ALASKA _. @@m> ENERGY AUTHORITY Potential Strategies Quadrant 4: Natural Gas/No Renewable Energy = Energy Efficiency—Residential & Non-residential » Heat Recovery/Combined Heat and Power » Operations and Maintenance Improvements » Utility Management = Transmission & Distribution Improvements = Transportation Improvements » Gas Transportation & Storage Improvements « Possible Direct Subsidy f= Cost-Effective Strategies Impact a Community’s Energy Mixture Gas/No Renewable —> Community B: Natural Gas Community A: Wind Project Community C: Efficiency Measures Cost Effective Measures to Improve Energy Affordability Gas/Renewable No Gas/No Renewable | No Gas/Renewable| = ALASKA... mm ENERGY AUTHORITY Potential Strategy: Residential Energy Efficiency Residential Energy Costs per AHFC Star Rating (Assuming 1200 sf, 3 bedroom house, and PCE) $25,000 $20,000 $15,000 $10,000 : ‘oO BE: 1-star 2-star 3-star 4-star S-star 1-star 2-star 3-star 4-star 5S-star 1-star 2-star 3-star 4-star 5-star Bethel Unalaska Wrangell te) @Heat “DHW B® Appliances/lights eG @@mm> ENERGY AUTHORITY Costs & Benefits of Potential Community Strategies Current Energy Cost Project Benefit —_— Project Cost Total Annual Community Energy Cost Final Energy Cost (not to scale) Annualized Project Cost Strategies would be developed per community and may be implemented concurrently. Strategies may include project types such as energy efficiency, diesel efficiency, heat recovery, aD ALASKAn. direct underwriting, improved O&M, and other cost effective measures for the community ae @@m> ENERGY AUTHORITY Flowchart: Determining Effective Strategies, Financing Options, and Revenue Sources Compile & Analyze Previous Work on Affordable Energy Community Energy Infrastructure Screening Tool Energy Planning Timelines July 2014 oa. 2015 act 2015 jJanuary 2016 july 2016 | 1 = a ae _ ena ae i | a ———— — | | Finish | Sun 1/1/17 | Start | wun 5/5/14 | : Regional Energy Plans Regional Energy Plans: ee aL Alaska Affordable Energy Strategy AKEnergyAuthority.org > ENERGY AUTHORITY The Alaska Affordable Energy Strategy Gene Therriault Renewable Energy Fund Advisory Committee Sept. 22, 2014 rf ~ - SK eo Regional Energy Planning - Energy Pathways led to regional planning - Address unique challenges while capitalizing on regional resources - Locally driven and community-vetted blueprint for sustainability - Provide specific, actionable recommendations - Identify means of providing stable and affordable electric, heat and transportation energy from renewable and fossil fuels * Build capacity at local and regional level to enable stakeholders to continue planning process = ALASKA mm ENERGY AUTHORITY Relationship between Planning Efforts Senate Bill 138 LAWS OF ALASKA i Alaska Affordable Energy Strategy Plan and recommendations to the Legislature on infrastructure needed to deliver affordable energy to areas in the state that do not have direct access to a North Slope natural gas pipeline. Due: January 1, 2017 y= ALASKA mm ENERGY eae SB 138 Section (a) * Work with AGDC, AIDEA and DOR; « Consider state energy policy under AS 44.99.115 and sec. 1, ch. 82, SLA 2010; = Plan for areas with no direct access to a North Slope natural gas pipeline; = Identify ownership options, different energy sources, including fossil fuels, hydro projects, tidal, and other alternative energy sources; = Most cost-efficient manner of delivering more affordable energy = Where there is no economically viable infrastructure available, recommend underwriting to make energy affordable; * Consider development of regional energy bulk storage and distribution within regions. idea = ALASKA... @mm ENERGY AUTHORITY SB 138: Section (b) and (c) (b) Consult with DOR for financing of design, development, and construction of the required infrastructure; = may identify rent, royalty, income, or tax received by the state that may be appropriated for plan. (c) AEA shall provide the plan and suggested legislation for the design, development, construction, and financing of the required infrastructure before January 1, 2017. = ALASKA. J @@—mm ENERGY AUTHORITY SB 138: Alaska Affordable Energy Fund Special account in the general fund to provide a source from which the legislature may appropriate money to develop infrastructure to deliver energy to areas of the state that are not expected to have or do not have direct access to a North Slope natural gas pipeline * Interest stays with the fund « 20 percent of the revenue from the state’s royalty gas from an Alaska LNG project (after the payment to the permanent fund) = a mm ENERGY AUTHORITY Alaska’s Energy Policy: AS 44.99.115 institute a comprehensive and coordinated approach to supporting energy efficiency and conservation; encourage economic development; support energy research, education, and workforce development; coordinate governmental functions. /= ALASKA mm ENERGY AUTHORITY Alaska’s Energy Policy: AS 44.99.115 = Legislative state energy goals: 1. a15 percent increase in energy efficiency on a per capita basis between 2010 and 2020; 2. the state receive 50 percent of its electric generation from renewable and alternative energy sources by 2025; 3. ensure a reliable in-state gas supply for residents of the state; 4. the power project fund (PPF) serve as the main source of state assistance for energy projects; 5. the state remain a leader in petroleum and natural gas production and become a leader in renewable and alternative energy a ALASKA. mm ENERGY AUTHORITY Describing Alaska’s Energy Resources «= Community and regional access to energy sources varies and often drives cost Four Energy Quadrants: Natural Gas/Renewable Energy No Natural Gas/Renewable Energy No Natural Gas/No Renewable Energy ee eS ete Natural Gas/No Renewable Energy = Energy for heat & electricity are separated into distinct quadrants = ALASKA... y= ALASKA The Alaska Affordable Energy Strategy Ovearae a rrr Current Use of Natural Gas and ®=rrow To. a Renewable Energy for Electric nee All Four Quadrants by Community: Electricity ELECTRICITY | Gas/No Renewable Gas/Renewable 570,000 All Four O Residents Quadrants by 5,000 Residents Population: Electricity O) 61,000 Residents O) 95,000 Residents No Gas/No Renewable No Gas/Renewable y= ALASKA__ gm ENERGY AUTHORITY The Alaska Affordable Energy Strategy Current Use of Natural Gas and Renewable Energy for Electric Quadrant 1: Natural Gas/Renewable Energy (Electricity) The Alaska Affordable Energy Strategy Current Use of Natural Gas and Renewable Energy for Electric Quadrant 2: No Natural Gas/Renewable Energy Quadrant 2: No Natural Gas/Renewable Energy (Electricity) Quadrant 3: No Natural Gas/ No Renewable Energy (Electricity) The Alaska Affordable Energy Strategy Current Use of Natural Gas and Sue Renewable Energy for Electric ‘Quadrant 1: Gas/Renewable Quadrant 4: Natural Gas/ No Renewable Energy (Electricity) The Alaska Affordable Energy Strategy Current Use of NaturalGas and = Bamow” Renewable Energy for Electric 4 Quadrant 4: Natural Gas/No Renewable Energy The Alaska Affordable Energy aay Quadrant 4: Gas/No Renewable Current Use of Natural Gas and Renewable Energy for Heat g 2 L All Four Quadrants by Community: Heat All Four Quadrants by Population: Heat Gas/No Renewable O 5,000 Residents O) 50,000 Residents No Gas/No Renewable HEAT Gas/Renewable 500,000 Residents 180,000 Residents No Gas/Renewable [= ALASKA [ae aa aaa The Alaska Affordable Energy Strategy Current Use of Natural Gas and Renewable Energy for Heat Quadrant 1: Natural Gas/ Renewable Energy (Heat) The Alaska Affordable Energy Strategy Current Use of Natural Gas and i: Quadrant 2: No Natural Gas/ Renewable Energy (Heat) The Alaska Affordable Energy Strategy Current Use of Natural Gas and Renewable Energy for Heat Quadrant 3: No Natural Gas/ No Renewable Energy (Heat) & The Alaska Affordable Energy oo Current Use of Natural Gas and ae Renewable Energy for Heat om 2 a Quadrant 4: Natural Gas/ No Renewable Energy (Heat) Potential Strategies Quadrant 1: Natural Gas/Renewable Energy « Energy Efficiency—Residential & Non-residential « Heat Recovery/Combined Heat and Power * Operations and Maintenance Improvements = Utility Management « Transmission & Distribution Improvements * Transportation Improvements = Gas Transportation & Storage Improvements » Renewable Energy = ALASKA... @@mm> ENERGY AUTHORITY Potential Strategies Quadrant 2: No Natural Gas/Renewable Energy » Energy Efficiency—Residential & Non-residential » Heat Recovery/Combined Heat and Power * Operations and Maintenance Improvements « Utility Management » Transmission & Distribution Improvements « Transportation Improvements « Diesel Efficiency * Bulk Fuel Improvements » Renewable Energy « Possible Direct Subsidy — l p SKA, oe ENPGY AUTHORITY Potential Strategies Quadrant 3: No Natural Gas/No Renewable Energy = Energy Efficiency—Residential & Non-residential « Heat Recovery/Combined Heat and Power = Operations and Maintenance Improvements » Utility Management * Transmission & Distribution Improvements « Transportation Improvements « Diesel Efficiency « Bulk Fuel Improvements « Possible Direct Subsidy = ALASKA... @@mm> ENERGY AUTHORITY Potential Strategies Quadrant 4: Natural Gas/No Renewable Energy =» Energy Efficiency—Residential & Non-residential » Heat Recovery/Combined Heat and Power » Operations and Maintenance Improvements » Utility Management » Transmission & Distribution Improvements » Transportation Improvements # Gas Transportation & Storage Improvements « Possible Direct Subsidy = ALASKA. = (@m ENERGY AUTHORITY Cost-Effective Strategies Impact a Community’s Energy Mixture Gas/No Renewable —>» Natural Gas Cost Effective Measures to Improve Energy Affordability Gas/Renewable Community B: Community A: Wind Project Community C: Efficiency Measures | No Gas/No Renewable No Gas/Renewable = ALASKA... mm ENERGY AUTHORITY Potential Strategy: Residential Energy Efficiency Residential Energy Costs per AHFC Star Rating (Assuming 1200 sf, 3 bedroom house, and PCE) $25,000 $20,000 $15,000 $10,000 ; =o BEEZ: 1-star 2-star 3-star 4-star S-star 1-star 2-star 3-star 4-star 5S-star 1-star 2-star 3-star 4-star 5-star Bethel Unalaska Wrangell ee mHeat = DHW mAppliances/lights el @@mm> ENERGY AUTHORITY Costs & Benefits of Potential Community Strategies Current Energy Cost Project Benefit _ Project Cost Total Annual Community Energy Cost Final Energy Cost (not to scale) Annualized Project Cost Strategies would be developed per community and may be implemented concurrently. Strategies may include project types such as energy efficiency, diesel efficiency, heat recovery, ea ALASKA direct underwriting, improved O&M, and other cost effective measures for the community a @@mm> ENERGY AUTHORITY Flowchart: Determining Effective Strategies, Financing Options, and Revenue Sources Compile & Analyze Previous Work on Affordable Energy a on acres a Community Energy Infrastructure Screening Tool y= ALASKA__ j= ENERGY AUTHORITY Energy Planning Timelines July 2014 |January 2015 jJuly 2015 jJanuary 2016 jJuly 2016 | a ne — Start | | ! | Finish 15/5/14 | ° | Sun 1/1/17 Regional Energy Plans ” dar eas ee ee Alaska Affordable Energy Strategy | AKEnergyAuthority.org y= ALASKA ) ENERGY AUTHORITY