DG Interconnections in Massachusetts - First Year Assessment

Since Massachusetts established their interconnection standards for distributed generation projects in February 2004, 105 projects have been approved and about 40 others are under review.

According to the 2005 annual report on DG developments in Massachusetts (prepared by the DG Collaborative for the Massachusetts Department of Telecommunications and Energy), 89 of 103 proposed solar photovoltaic projects have been approved. Other approved projects include 15 fueled by natural gas and a single 10-kW wind generator.

DG Applications in Massachusetts by Fuel Type

In terms of kilowatts, 18,479 kW of total DG capacity has applied for interconnection, 3,900 kW has been approved, 14,576.5 kW is still in the review process, and 2.5 kW were rejected.

The verdict is still out on how effective standardized interconnection procedures themselves are for encouraging DG development. The fact that over 70 percent of the proposed DG projects have been small solar projects could say more about the effectiveness of Massachusetts' renewable incentive programs rather than the effectiveness of the interconnection standards. Data on the number of approved DG projects before the interconnection standards were adopted was not outlined in the report.

The Massachusetts DG Collaborative, which helped devise the uniform interconnection standards, will continue monitoring DG developments and will be working over the next year to determine how well DG can be used to defer infrastructure upgrades by providing congestion relief on the electricity grid.

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Report: MN Biomass Mandate Fails to Meet Original Intent

A new analysis from the Institute for Local Self-Reliance concludes that the Minnesota 1994 biomass mandate, rather than jump-starting a new industry using new energy crops, has become little more than a very costly waste-to-energy program.

The June 2005 report, Minnesota's Biomass Mandate: An Assessment, was authored by David Morris, Vice President of the Minneapolis-based Institute for Local Self-Reliance. "It was a pioneering effort to encourage new energy crops and advanced energy conversion techniques," says Morris, "Legislators knew that to achieve that goal would cost money, but agreed it was money well spent if it created a new homegrown industry," he added.

In 1994, as part of an effort to promote renewable electricity, the Minnesota legislature required the state�s largest utility to generate or purchase 125 megawatts (MW) of biomass-fueled electricity by 2002. As of May 1, 2005 only 20 percent (25 MW) of the original mandated goal has come online. Another 50 MW is expected to become operational by mid 2007. Contracts for the remaining biomass have yet to be approved.

The assessement notes that almost immediately lobbyists began to carve out exemptions for individual businesses that were using wastes as their feedstock and traditional technologies to generate power. In 1999, the legislature even allowed turkey manure, a commercial fertilizer, to receive handsome subsidies if it were instead converted into electricity.

The result? As of May 2005, almost three years after the original biomass mandate was to have been fulfilled, less than 20 percent is operational. None of the currently proposed projects will use new or advanced technologies. Over 90 percent of the fuel will consist of waste wood or turkey manure. The cost to Xcel Energy's electricity customers will be over $1.1 billion.

"Such an expense might have been justified if we had proved that alfalfa could be used as a fuel, or that a new whole tree energy conversion process was economical," says Morris, currently a member of a Congressionally created Committee that advises the U.S. Departments of Energy and Agriculture on biomass-related issues. "Instead it has become a billion dollar reward to aggressive corporate lobbyists."

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Nevada Allows Energy Conservation to Qualify For Renewable Energy Requirements

Under a new law, utilities in Nevada will now be able to count electricity savings from energy conservation programs as meeting the state's renewable energy portfolio standard (RPS).

In June 2005, the Nevada legislature passed a bill (Assembly Bill 03) that modifies the Nevada RPS. The bill extended the deadline and raised the requirements of the RPS to 20 percent of sales by 2015. The bill also allows utilities to receive credits toward meeting the state's RPS by investing in certain energy efficiency measures. The contribution from energy efficiency measures is capped at one-quarter of the total standard in any particular year. No credits are given for load management improvements.

In 1997 Nevada passed an RPS that required each utility to have one percent of total sales from renewables. In 2001 the law was modified to create the most aggressive renewable portfolio standard passed in the United States up to that point - requiring that 15 percent of all electricity generated in Nevada be derived from new renewable energy projects by the year 2013. Additionally, five percent of the RPS was required to come from solar energy projects. As of May 2005, both Sierra Pacific Power and Nevada Power have yet to meet the solar energy requirements of the Nevada RPS.

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Gas Optional Vehicles: Austin Energy Charges Ahead

Preferring the term "gas-optional" vehicles rather than plug-in electric hybrids, Austin Energy has adopted a strategy to diversify and grow its electric utility operations and hopes to convince cities nationwide to follow their lead.

Roger Duncan at Austin Energy is traveling the country promoting the idea that the time is ripe for a convergence of municipally owned electrical operations with the transportation sector. The fit becomes natural through the increased use of gas-optional vehicles (GOVs).

Austin's customer-owned utility has a directive from the Austin City Council to develop an incentive program for GOVs and to spread this idea to 50 major cities across the country. The hope is to demonstrate to manufacturers that there is a significant market potential that needs to be served.

On March 3, 2005, the Austin City Council approved a resolution [No. 050303-48] to create a program based on incentives to encourage the future purchase of GOVs by Austin Energy customers.

A March 2005 report by Duncan and his colleague Michael Osborne titled, "Report on Transportation Convergence", shows how the municipal utility and the community can jointly expand the reliance on electricity as a replacement for traditional transportation fuels. The report states that electric fuel at 9 cents/kWh is equivalent to 56 cent per gallon gasoline.

Increased reliance on GOVs that are recharged overnight will provide the utility with a new revenue stream and help to even out its overall electric load on any given day (Austin Energy’s load at night is 50% of its load in the afternoon). Austin Energy estimates that 100,000 GOVs in its service area would raise nighttime load by about 125 MW and provide $27 million in new revenues.

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