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Home My WebLink AboutAEA AkAES REFAC 09 22 2014The Alaska Affordable Energy Strategy Gene Therriault Renewable Energy Fund Advisory Committee Sept. 22, 2014 Photo by: Cassandra Cerny, GVEA 2 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 Regional Energy Plans AkAES 3 Relationship between Planning Efforts Technical & Economic Analysis Senate Bill 138 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 4 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. 5 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. 6 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) 7 Alaska’s Energy Policy: AS 44.99.115 1.institute a comprehensive and coordinated approach to supporting energy efficiency and conservation; 2.encourage economic development; 3.support energy research, education, and workforce development; 4.coordinate governmental functions. 8 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 development. 9 Describing Alaska’s Energy Resources Community and regional access to energy sources varies and often drives cost Four Energy Quadrants: 1.Natural Gas/Renewable Energy 2.No Natural Gas/Renewable Energy 3.No Natural Gas/No Renewable Energy 4.Natural Gas/No Renewable Energy Energy for heat & electricity are separated into distinct quadrants 10 All Four Quadrants by Community: Electricity 11 All Four Quadrants by Population: Electricity Gas/RenewableGas/No Renewable No Gas/No Renewable No Gas/Renewable 5,000 Residents ELECTRICITY 570,000 Residents 95,000 Residents 61,000 Residents 12 Quadrant 1: Natural Gas/Renewable Energy (Electricity) 13 Quadrant 2: No Natural Gas/Renewable Energy (Electricity) 14 Quadrant 3: No Natural Gas/ No Renewable Energy (Electricity) 15 Quadrant 4: Natural Gas/ No Renewable Energy (Electricity) 16 All Four Quadrants by Community: Heat 17 All Four Quadrants by Population: Heat Gas/RenewableGas/No Renewable No Gas/No Renewable No Gas/Renewable 500 ,000 Residents 5,000 Residents HEAT 180 ,000 Residents 50,000 Residents 18 Quadrant 1: Natural Gas/ Renewable Energy (Heat) 19 Quadrant 2: No Natural Gas/ Renewable Energy (Heat) 20 Quadrant 3: No Natural Gas/ No Renewable Energy (Heat) 21 Quadrant 4: Natural Gas/ No Renewable Energy (Heat) 22 Potential Strategies 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 Quadrant 1: Natural Gas/Renewable Energy 23 Potential Strategies 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 Quadrant 2: No Natural Gas/Renewable Energy 24 Potential Strategies 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 Quadrant 3: No Natural Gas/No Renewable Energy 25 Potential Strategies 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 Quadrant 4: Natural Gas/No Renewable Energy 26 Cost-Effective Strategies Impact a Community’s Energy Mixture Gas/RenewableGas/No Renewable No Gas/No Renewable No Gas/Renewable Cost Effective Measures to Improve Energy Affordability Community A: Wind ProjectCommunity B:Natural GasCommunity C: Efficiency Measures 27 Potential Strategy: Residential Energy Efficiency $- $5,000 $10,000 $15,000 $20,000 $25,000 1-star 2-star 3-star 4-star 5-star 1-star 2-star 3-star 4-star 5-star 1-star 2-star 3-star 4-star 5-star Bethel Unalaska Wrangell Residential Energy Costs per AHFC Star Rating (Assuming 1200 sf, 3 bedroom house, and PCE) Heat DHW Appliances/lights 28 Costs & Benefits of Potential Community Strategies Total Annual Community Energy Cost Annualized Project Cost Current Energy Cost Final Energy 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 , direct underwriting, improved O&M, and other cost effective measures for the community Strategy Strategy Strategy Project Benefit Project Cost (not to scale) Flowchart: Determining Effective Strategies, Financing Options, and Revenue Sources Regional Plans Community Energy Infrastructure Screening Tool Revenue Options Proposed Budget Policy Recommendations Prioritize Energy Infrastructure Human Capital Long-Term Affordability Final Report Compile & Analyze Previous Work on Affordable Energy Technical Analysis of Energy Infrastructure Technologies Energy Infrastructure Funding Gap Analysis Prioritize Energy Programs Improvements Energy Planning Timelines Start Mon 5/5/14 Finish Sun 1/1/17 July 2014 January 2015 July 2015 January 2016 July 2016 Develop Alaska Affordable Energy Strategy Program Plan 5/5/14 - 9/12/14 Regional Energy Plans: Phase II 5/5/14 - 1/30/15 Energy Infrastructure Funding Gap Analysis 9/8/14 - 7/31/15 Infrastructure Technical Analysis 7/6/15 - 1/22/16 Compile & Analyze Previous Work on Affordable Energy 5/12/14 - 7/31/15 Long-Term Affordability Strategies 9/22/14 - 4/17/15 Regional Energy Plans: Phase III 2/2/15 - 6/30/15 Prioritize and Finalize Recommendations 1/25/16 - 5/27/16 Compile & Review Final Budget & Policy Priorities 5/30/16 -12/12/16 Regional Energy Plans Alaska Affordable Energy Strategy 31 AKEnergyAuthority.org 32