Distributed Generation & Renewable Energy Matt Brown TVA - PowerPoint PPT Presentation

Distributed Generation & Renewable Energy Matt Brown TVA Renewables

About TVA TVA provides electricity to an area of about 80,000 square miles that serves 9 million people in portions of 7 states 2

Public Power and TVA “Public power companies serve over 25% of the nation’s electric consumers.” Source: EIA The Tennessee Valley Authority is the nation’s largest public power provider and one of the country’s largest electric utilities 3

Building A Balanced Portfolio Provides greater flexibility to use sources currently most economical 4

Past and Future Load Growth Energy (GWh) 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2016 2020 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 5

Technological Advances in Solar 6

IRP provides the framework for the future IRP Recommendations Nuclear generation Coal capacity idled Currently Natural gas as an intermediate updating IRP supply source process now! Energy efficiency and demand Learn more at response www.tva.com Add 1500-2500 MW cost-effective renewable capacity Pumped storage hydro capacity 7

Well positioned in the IRP range Nameplate Capacity Resource (MW) Operating Hydroelectric 4,659 Wind* 1,542 Solar 78 Biomass 37 Total Operating 6,316 Nameplate Capacity Resource (MW) Committed ** Hydroelectric 5 Wind 18 Solar 49 Biomass 31 Total Committed 103 Total 6,419 1,614 IRP Renewable Operating Capacity *** * The owner of a 300 MW facility is retaining the renewable attributes, but TVA has the option to purchase in the future. As of Sept. 1, ** Includes contracted and approved projects, including hydromodernization projects included in the current FY budget. 2013 *** All midwest wind projects. Other renewable projects that began operations beginning in FY 11 and later.

Renewable program offerings vary by size SUPPLY Negotiated Renewable Standard Offer Green Power Proposals/DPP Providers Solar Solutions Initiative >50 kW - 20 MW > 20 MW Up to 50 kW >50 kW – 1 MW >50 kW to DEMAND Products Green Power  Original Switch  Pure Solar (pilot)  Southeastern (pilot) 9

Companion voluntary programs balance low cost and cleaner energy Green Power Green Power Switch Providers • Launched in 2000 • Launched in October 2012 to replace the Generation Partners pilot program • 1st Green Power Program in Southeast • Targeted to homeowners & businesses • $ 4.00/150 KWh block • Currently premium on top of retail • Local Supply: solar, wind, methane gas price: 9¢/kWh (solar), 3¢/kWh (other) • Participants sell 100% of renewable • ~ 12,000 participants energy back to TVA; MW capacity limited each year • Program currently under re-design to • 20 yr contracts, load requirement, fast increase participation track process for smaller systems 2014 Program Details to be updated online in mid-December 10

Distributed solar projects have increased MW 11

Generation Partners/Green Power Providers, as of 10/1/13 12

Market-based programs Renewable Standard Offer • Launched in 2010 for mid-size projects in the TVA service area • Contracts up to 20 years • Market prices paid based on peak electricity demand times • 48 MW still available in CY 2013 Solar Solutions Initiative • Two year pilot launched in 2012 for projects using regional certified installers • An overlay to the Renewable Standard Offer • Additional $0.08/kWh incentive • 18.7 MW contracted – not taking applications at this time 2014 Program Details to be updated online in mid-December 13

Example – RSO only project > 50 kW up to 20 MW RSO Market Price Contract - Solar $0.15 $0.13 $0.11 $ per kWh $0.09 $0.07 $0.05 RSO - Market Based Price Forecast $0.03 Example Only with 5% annual escalation $0.01 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 $(0.01) Year

Example – RSO and SSI, > 50 kW up to 1MW solar RSO and SSI - 1,000 kW Solar $0.15 $0.13 $0.11 $ per kWh SSI - $0.08/kWh (2013) $0.09 $0.07 $0.05 RSO - Market Based Price Forecast $0.03 Example Only with 5% annual escalation $0.01 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 $(0.01) Year 15

Renewable Standard Offer, as of 10/1/13 16

Solar Solutions Initiative – pilot, as of 10/1/13 17

Total Operating Solar Projects in Valley 18

Utility of the Future It is difficult to make predictions, especially about the future. Yogi Berra