Energy Programs and Incentives
for Connecticut Farms
Connecticut Department of Energy and Environmental Protection
&
Clean Energy Finance and Investment Authority
November 5, 2013
Connecticut’s Energy Strategy
Cleaner energy
Cheaper energy
More reliable energy
Presentation Overview
Cleaner, cheaper, and more reliable energy for Connecticut’s farms:
• Choose Your Electric Supplier
• The Comprehensive Energy Strategy and Opportunities for Natural Gas
Connections
• Reliability and Renewable Energy Programs
– Virtual Net Metering
– Microgrid Program
– Anaerobic Digestion
– Combined Heat and Power
– LREC/ZREC Program
– C-PACE
Choose Your Electric Supplier
• You may be able to save money by selecting a different electric supplier
• Your electric bill is divided into two parts: Delivery and Generation
• Delivery services are provided exclusively by CL&P and UI and are not
subject to competition
• Generation services are available from your electric company, referred to
as Standard Service, as well as from third party electric suppliers
• www.EnergizeCT.com includes a resource that allows customers to
compare available generation plans and rates
Choose Your Electric Supplier
• For most customers, CL&P and UI bill on behalf of third party electric
suppliers
• This means that you will continue to receive one electric bill even if you
select one of the alternate suppliers
• Some suppliers enroll customers through promotional offers which move
to a variable rate plan
• Some fixed rate plans also move customers to a variable rate when the
fixed period ends
• The Department has seen variable rates fluctuate dramatically
We encourage customers to regularly check your generation rate and to visit
www.EnergizeCT.com/suppliers to see if you can lower your electric costs.
Comprehensive Energy Strategy
Gas Expansion Plan for Connecticut
• Comprehensive Energy Strategy provides a systematic basis for addressing
the state’s energy challenges and opportunities
• Provides a foundation for better energy choices at the household and
business level, focusing on cleaner, cheaper, more reliable
• Includes a plan for expanding the availability of natural gas in Connecticut
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Making gas available to 280,000 new customers over 10 years
Increasing gas pipeline capacity into Connecticut
Making conversion to natural gas affordable through rebates and incentives
Assuring that rate impacts on existing customers are minimal
Integrating gas conversions with energy efficiency measures
Reducing emissions and greenhouse gasses
Creating jobs and economic growth
Reducing heating costs for ratepayers
Contact Info for Gas Distribution
Companies in Connecticut
Connecticut Natural Gas:
www.cngcorp.com
860-727-3000
Greenwich Office: 888-264-2677
Southern Connecticut Gas:
http://www.soconngas.com/
800-659-8299
Yankee Gas:
http://www.yankeegas.com/
800-989-0900
Virtual Net Metering Overview
• Policy is meant to encourage the installation of distributed generation by
providing a financial incentive to do so.
• Allows customers (Customer Host) to assign surplus production to other
metered accounts (Beneficial Accounts), that are not physically connected to
the Customer Host’s generator.
• Must generate electricity from either Class I (solar, wind, fuel cell,
geothermal, landfill gas, anaerobic digestion, hydro, etc.) or Class III (energy
efficiency, combined heat and power) resources, from facilities up to 3 MW.
• Production from the generator is first used to reduce the electric bill of the
Customer Host.
• Surplus production is then assigned (virtually) to reduce the monthly electric
bill of one or more designated Beneficial Accounts.
Virtual Net Metering
Applying Credits
• An Agricultural Customer Host can assign up to ten Beneficial Accounts.
• Surplus production (aka Virtual Net Metering Credit) is assigned to the
monthly bill of each Beneficial Account and will appear as a credit.
• If the Customer Host produces more electricity than the Host and the
Beneficial Accounts together use in a billing period the excess (aka
Unassigned Virtual Net Metering Credit) is ‘banked’ and can be applied to
a future electric bill.
• Any Unassigned Credits that remain ‘banked’ at the end of the calendar
year are credited to the Customer Host.
Virtual Net Metering
Value of Credits
• Customer Host production reduces the amount purchased from the utility.
• As a result, the value of each kWh produced equals the total kWh price for
delivery and energy, (the full retail price) the Customer Host would
otherwise pay to purchase each kWh.
• Virtual Net Metering Credits applied to Beneficial Accounts will offset the
full kwh energy charge and a portion of the kWh Transmission and
Distribution charges.
• Unassigned Credits that remain at the end of the calendar year are
credited to the Customer Host at CL&P or UI’s Standard Service
Generation rate and a percentage of the kWh Transmission and
Distribution charges.
Virtual Net Metering
Process and Contact Info
• CL&P and UI are working to finalize the administrative process for this
policy.
• For update, visit www.EnergizeCT.com/virtual
• For more info, contact:
Art Marcelynas, Dept of Energy and Environmental Protection
860-827-2887
Arthur.Marcelynas@ct.gov
Microgrids
• Microgrids will provide critical services to residents
• Generate electricity with cleaner, 24/7 operational power sources
– Natural gas turbines with combined heat and power, fuel cells, solar panels, etc.
• Engineered to “island” from the grid when the larger grid is de-energized
• Built in a cost-effective manner
• Connects more than one critical facility to reliable distributed generation
resources
• Bond funding to help with design, engineering, and interconnection
infrastructure costs
What is a critical facility?
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Hospital
Police station
Fire station
Water treatment plant
Sewage treatment plant
Agricultural facilities
Public shelter
Correctional facility
Municipal center
Telecommunications equipment
Gas station
Pharmacy
Grocery Store
Etc.
Microgrids: Round Two
Notice of Round Two Microgrids Program Schedule and
Outline
October 28, 2013
Comments Due on Round Two Microgrids Program Schedule December 3, 2013
Program Information Release (FAQ)
December 2013
Issue Round Two Request for Proposal (RFP)
January 2014
Round Two RFP Bidder’s Conference
February 2014
Round Two RFP Submission Response Date
June 2014
Announce Selection of Non-municipal and Municipal
September 2014
Awards
Contact Info for
Microgrid Program
Alex Kragie
Deputy Chief of Staff
Connecticut Department of Energy and Environmental Protection
860-424-3000
alex.kragie@ct.gov
Veronica Szczerkowski
Connecticut Department of Energy and Environmental Protection
860-827-2890
veronica.szczerkowski@ct.gov
Anaerobic Digestion Program
•
$6M Pilot Program:
 launched by CEFIA in March 2012
 Funded to $2M/year for 3-years (program
closes Feb. 2015)
 Open to new projects that have not yet
started construction
 Up to $450/kW (incentive in the form of a
grant, loan or PPA)
 Maximum project size  3 MW
 Projects requesting loans or PPAs have a
higher probability of being selected for
program
 Projects that process food waste, in
support of CT’s new recycling legislation,
get greater consideration
 Program can fund up to 5 total projects
Combined Heat & Power Program
•
$6M Pilot Program ($5M remaining):
 Launched by CEFIA in March 2012
 Funded to $2M/year for 3-years
(program closes Feb. 2015)
 Open to new projects that have not yet
started construction
 Up to $450/kW (incentive in the form
of a grant, loan or PPA)
 Maximum project size  5 MW
 Projects requesting loans or PPAs have
a higher probability of being selected
for program
 Program can fund up to 50 MW of
projects
Contact Info for Anaerobic Digestion and
Combined Heat and Power
Rick M. Ross
Senior Manager, Clean Energy Deployment
Clean Energy Finance and Investment Authority
rick.ross@ctcleanenergy.com
860-257-2887
LREC/ZREC Program
• Developed to promote and expand renewable generation
• Creates a market-driven process for small renewable energy producers
to obtain 15-year revenue stream from the sale of RECs to electric
utilities
• REC = the “renewable” attribute of a renewable generation source
• LREC: Low – emission RECs = e.g., Fuel Cells
• ZREC: Zero – emission RECs = e.g., Solar, Wind, Small Hydro
• Each megawatt hour of energy produced = 1 REC
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Eligibility Criteria for
LREC/ZREC Energy Sources
• Must be eligible to qualify as Class I renewable energy project
• Must be located behind contracting utility distribution meter
• Must not have received funding/grants from Clean Energy Finance
Investment Authority, or its predecessor the CT Clean Energy Fund (other
than low cost financing)
• Projects must be in service on, or after, July 1, 2011
• Must certify site control
• LRECs
– No larger than 2,000 kW
– Must have low emissions
– May include fuel cells and other low emission Class I resources, as well as all zero
emission Class I resources
• ZRECs
– No larger than 1,000 kW
– Must have zero emissions
– May include solar, hydro and wind
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LREC/ZREC Future Opportunities
• Utilities expect to offer the Year 2 Small ZREC in first quarter of 2014
• Utilities expect to offer the Year 3 RFP for LRECs and ZRECs in April 2014
• If you are interested in connecting with a renewable energy project
developer, visit: http://www.energizect.com/residents/find-aprofessional?query=1&servicetype=Solar+PV&company=&zip=
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Contact Info for LREC/ZREC
Christie Bradway, Northeast Utilities
christie.bradway@nu.com
860-665-5296
Gary Zielanski, United Illuminating
gary.zielanski@uinet.com
203-499-3982
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Commercial Property Assessed Clean
Energy (C-PACE)
•
An innovative financing structure that enables commercial, industrial, and
multi-family property owners to access financing for qualified energy upgrades
and repay through a benefit assessment on their property tax
Private capital
provides 100%
upfront, low-cost,
long-term funding
Repayment through
property taxes
A senior PACE lien is
put on the property
and stays regardless
of ownership
C-PACE Case Study:
Solar at Rural Hardware Store
Project
• 72 kw solar rooftop facility
• Mortgage held by Farm Credit East/guaranteed
by USDA
Financing
• $259,000 C-PACE assessment (20 yrs)
• $27,000 annual energy savings (including ZREC)
plus 30% ITC
• $21,000 annual C-PACE assessment
Impact
• 274,596 kBTU/year saved
• Produces 80,768 kWh/yr in clean energy
Contact Info for C-PACE
Genevieve Sherman
Manager C-PACE
Clean Energy Finance and Investment Authority
860-257-2897
genevieve.sherman@ctcleanenergy.com
http://www.c-pace.com
Thank you!
Q & A following Amanda’s presentation