New Jersey’s Clean Energy Program
Energy Efficiency and
Renewable Energy for
New Jersey Farms
Dr Peter Mark Jansson, PP PE
Rowan University
New Jersey Wind & Energy Efficiency Symposium at Rowan College, Glassboro NJ, April 20, 2007
New Jersey’s Clean Energy Program is a statewide program
administered by the New Jersey Board of Public Utilities that
promotes energy efficiency and renewable energy for all New
Jersey ratepayers including residences, businesses, schools
and municipalities.
New Jersey’s
Integrated Approach
New Jersey is employing an integrated set of
Clean Energy Programs to
•
•
•
•
•
•
Improve the New Jersey economy
Increase New Jersey employment
Reduce dependence on fossil fuel
Reduce need for imported fuels
Reduce greenhouse gas emissions
Reduce air contaminant emissions
New Jersey’s
Integrated Approach
New Jersey Clean Energy Programs address:
• Efficiency of energy use for residential, commercial
and government to lower demand while maintaining
service.
• Installation of renewable energy technologies that
enhance local and regional electricity supply.
• Promotion of markets for advanced efficiency and
renewable technology to lower the cost of new
technologies.
New Jersey’s
Integrated Approach –
Program Goals:
• Energy Efficiency (including CHP) and Renewables
will provide for growth in energy use by 2012
• 20% annual increase in electric and natural gas
saved through energy efficiency
• 785,000 MWh of electricity and 0.6 billion cubic feet
of gas will be saved through efficiency by 2012
• 300 MW of Class I Renewable Energy facilities
including 90 MW of PV will be installed by 2008
New Jersey’s Energy
Efficiency Programs for
Residential, Commercial
and Industrial Sectors
New Jersey Clean Energy Programs that have been provided through
the New Jersey investor owned utilities will soon be provided by
Market Managers working under contract to the State of New Jersey.
The programs will be administered by the Office of Clean Energy in
the NJ Board of Public Utilities.
Entities that pay a utility bill to one of the NJ investor owned electric or
gas utilities are eligible for the programs.
Customers Served by a Municipal Utility Authority need to determine
eligibility by calling the Office of Clean Energy at 973-648-7405.
New Jersey’s Energy Efficiency
Programs for
Commercial and Industrial
Sector users
Commercial and Industrial website: www.njcleanenery.com
New Jersey’s Energy
Efficiency Programs for
Commercial and Industrial
Sector users
 New Jersey SmartStart Buildings (working name),
http://www.njsmartstartbuildings.com/main/contact_us.html
New Construction in Smart Growth areas
Retrofit of commercial buildings and schools
Assistance for building design
Support for Custom Measures
Rebates for high efficiency equipment
 Combined Heat and Power Program (CHP)
Power & Hot Water
from Microturbine
Natural
Gas
MicroTurbine
~26%
+
Integrated
Heat
Exchanger
~45%
=
Total Energy
Utilization
70%+
Waste Heat
Typical Heat Transfer Rates
Free
Fuel
338,000 Btu/hr @ 200oF inlet
392,000 “
140oF “
440,000
“
80oF “
delta T = +/- 20oF
40 gal/min flow
PPT06287
032207
New Jersey’s Energy
Efficiency Programs for
Commercial and Industrial
Sector users
Building Projects Under 50,000 sq. ft.
Projects Past Preliminary Design Stage or Those Begun
After the Design Stage, May Take Advantage of:
– Project Review and Screening
– Recommendations for Energy-Efficiency Measures
– Equipment Incentives
– Additional Multiple Measures Bonus
Large Building Projects – comprehensive support
http://www.njsmartstartbuildings.com/main/design_support.html
New Jersey’s Energy
Efficiency Programs for
Commercial and Industrial
Sector users
Rebates for High
Efficiency Equipment
– To receive equipment incentives, you must submit
an Application for the appropriate types of
equipment, and accompanying Worksheet (for
Performance Lighting, Prescriptive Lighting, and
Lighting Controls Applications), and a Registration
Form - all completed and signed - before equipment
is purchased (a few exceptions apply - click here).
– eForms at your fingertips! – To complete forms
on your computer to be mailed or faxed.
– Now there's an even faster, better way to participate
in New Jersey SmartStart Buildings - eForms you
can complete right on your computer! (Acrobat
Reader 5.0 is required to use these forms.)
– Online Registration form
– To register your project, you can complete the
Registration Form online right away. Natural Gas
Cooling
– Electric Chillers
– Natural Gas Cooling
– Desiccant Units
– Electric Unitary HVAC Systems
– Natural Gas Heating Systems
– Natural Gas Water Heating
– Premium-Efficiency Motors
– Prescriptive Lighting
– Lighting Controls
– LED Traffic Signals
– Variable Frequency Drives
– Ground Source Heat Pumps
ECO #8 Raritan
Millstone High Lift #8
and #9 Pump and Motor
Replacement and VFD
installation
•
•
•
•
•
•
•
•
Economics (with VFD installation and
#14/#15 engine shut down savings
from ECO #24)
Implementation Costs $842,000
Annual Cost Savings
$384,000
Simple Payback
2.2 years
Economics (with Pump and Motor
Replacement only)
Implementation Costs
$460,095
Annual Cost Savings
$110,000
Simple Payback
4.2 years
ECO #11 –
Netherwood Lighting
Retrofit
• Implementation Costs
• $21,160
• Annual Cost Savings
• $7,900
• Simple Payback
• 2.7 years
• Conversion of old T12
fixtures to T8 fixtures
Raritan Millstone
Lighting
•
•
•
•
•
Implementation Costs $77,000
Annual Cost Saving
$23,000
Simple Payback 3.3 years
Converting T-12 fluorescent fixtures
to modern T-8 types.
Converting metal halide fixtures to
T-8 types.
•
Converting
high-pressure
fixtures to T-8 types.
•
Converting incandescent fixtures to
compact fluorescent types.
Replacing existing T-8 fixtures with
high reflective fixtures to reduce
bulb quantity.
•
Sodium
Combined Heat
&Power Program
On July 27, 2004 the New Jersey Board of Public Utilities
approved the funding level of $5 million for the Office of
Clean Energy’s Combined Heat and Power (CHP)
Program
CHP INCENTIVE PROGRAM
TECHNOLOGY AND INCENTIVE
LEVELS
Eligible Technology
Incentive($/Watt)
(Up To 1 MW)
Maximum % of
Project Cost
Minimum System Size
Level 1
Fuel cells operating on nonrenewable fuel
$2.50/W
40%
None
Level 2
Micro Turbines
Internal Combustion Engines
- Gas Turbines
$1.00/W
30%
None
Level 3
Heat Recovery or Other
Mechanical Recovery Electric
Generation Equipment
$0.50/W
30%
None
120 kW Power,
700,000 Btu/hr Hot
Water on skid
Integrated Cooling Heat
& Power System:
240-360 kW
Integrated Cooling
Heat & Power System:
240-360 kW
New Jersey’s Energy
Efficiency Programs for
Residences
Home Energy Analysis – a free computer based analysis of
energy usage in a home and suggestions for savings.
WARMAdvantage – provides rebates for high efficiency
furnaces, boilers, and water heaters.
COOLAdvantage – provides rebates for high efficiency central
air systems, air to air and groundsource heat pumps.
NJ ENERGY STAR© Homes – certifies homes built to
specifications that make them 30% more efficient than
homes that meet present NJ building code requirements
http://www.njcleanenergy.com/residential.html
New Jersey’s Energy
Efficiency Programs for
Residences
ENERGY STAR© labeled products are certified to meet specific high
efficiency standards. http://www.energystar.gov
Home Performance with ENERGY STAR©
http://www.njcleanenergy.com/homeperformance/index.html
• Offers state residents access to trained, certified home improvement
contractors that deliver state-of-the-art energy-efficiency improvements
to their home to save money, energy and the environment.
• Provides extensive technical training, financial incentives and business
development support to established contractors and building
professionals, with the purpose of increasing market opportunities for
energy-efficiency services within the state.
New Jersey’s Clean Energy
Program 01 – 08 Funding Level
Non-bypassable fee - all electric
and natural gas customers
Year
2001
2002
2003
Total ($M)
$115
$119
$124
EE ($M)
$86.25
$89.25
$93
%
75%
75%
75%
RE ($M)
$28.75
$29.75
$31
%
25
25
25
2004
$124
$93
75%
$31
25
01 - 04
2005
2006
$482
$140
$165
$361.5
$103
$113
75%
74%
68%
$120.5
$37
$52
25
26%
32%
2007
2008
05 – 08
$205
$235
$745
$123
$133
$472
60%
56%
63%
$82
$102
$273
40%
44%
37%
$1,227
$833.5
68%
$393.5
32%
Total
New Jersey’s Clean
Energy Program
2005 – 2008 Allocation Bill and rate impact
SBC Allocation
•
•
•
44% of the SBC allocated for electric Energy Efficiency
17% of the SBC allocated for natural gas Energy Efficiency
37% of the SBC allocated for Renewable Energy
Bill Impacts
•
•
$18 per year per the average residential electric customer
$14 per year yr per the average residential natural gas customer
Or as calculated by SBC allocation percent of $32
$14 per year per household for electric Energy Efficiency
•
$ 5 per year per household for natural gas Energy Efficiency
•
$12 per year per household for Renewable Energy
•
1% rate impact over 4 years – 0.25% PER YEAR)
New Jersey’s
Clean Energy Program 2003-08
Annual Accumulated Savings
and Renewable Capacity
Achievements and Goals
Year
EE Electric
EE NG
RE Solar
RE Class I
MWh
Dtherm
MW
MW
2003 A
285,586
408,583
1.7
76
2004 A
328,912
432,758
2.1
3.7
2005 A
382,845
617,261
5.5
15
2005 G
341,770
489,305
4
19
2006 G
409,454
586,206
14
38
2007 G
486,958
697,167
27
66
2008 G
575,568
824,028
39
89
New Jersey Wind Working Group
for Terrestrial & Small Wind Energy Systems
•The Office of Clean Energy through a grant provided by the United States
Department of Energy has formed a Wind Working Group to conduct
outreach activities on the use of small terrestrial wind systems.
•The goal of the workshop is to solicit stakeholder input on how best to
support and employ terrestrial small wind systems in New Jersey.
•The NJ Wind working Group will provide input and recommendations to
OCE on the support and use of small wind generation systems.
•For more information including the minutes of the October 6, 2006 meeting
go to http://www.njcep.com/wind/index.html.
New Jersey Anemometer Loan Program
The Anemometer Loan Program is funded by a federal grant from the US
Department of Energy’s Wind Powering America Program.
USDOE, NJBPU/NJCEP, Rutgers and Rowan University have partnered to
offer free wind energy analysis to farms seriously considering wind energy
1 – year onsite wind measurement
Tower and anemometer installed at no charge
Contacts:
• NJCEP: Alma Rivera 1.973-648-7405 or email: alma.rivera@bpu.state.nj.us
• Rowan: Dr. Peter Mark Jansson 1.856.256.5373 or email: jansson@rowan.edu
• Rutgers: Dr. Michael R. Muller 1.732.445.3655 or email: muller@caes.rutgers.edu
New Jersey’s
Integrated Approach
for Renewable Energy
•
Net Metering/
Standard Interconnections
• Capital Cost
Incentives/Rebates
• Portfolio Standard –
Longer term financing
New Jersey’s Standards
for Net Metering and
Interconnection
Standards Reduce barriers to installation
Standards apply to systems
• Up to 2 MW, <=100% of Annual Use
• Small Commercial (<=10 MW peak)
•
< 10 kW Inverter-based - No fee
• and set timeframes for review
New Jersey’s
Incentives/Rebates
To Lower Capital
Cost of
Renewables
Lower the initial capital cost
and, including the value of RECS, reduce the
payback period to 5-10 years or better –
Provide 50% of capital cost for up to 1 MW
20% grants - 80% loan for RE Power Plants
New Jersey’s Clean
Energy Program
Rebates for Onsite
Renewable Energy
Solar Electric (PV) Systems Rebate per watt
# of
kW
2003 thru
06-24-05
08-05-05
in service
by 1/1/06
08-05-06 in
service after
12/31/05
03-16-06
PRESENT
Fr.09-01-06
1 to 10
$5.50
$5.30
$5.10
$4.35
$3.80
10.01
to 40
$4.00
$4.35
$3.90
$3.20
$2.75
40.01
to 100
$4.00
$3.75
$3.45
$3.00
$2.50
100.01
to 700
$3.75
$3.60
$3.20
$2.80
$2.25
500 to
700
0.30
$2.00
New Jersey’s Clean
Energy Program
Rebates for Onsite
Renewable Energy
Wind and Sustainable Biomass Systems Rebate/ watt
Systems < 10 kW
Systems > 10 kW
Maximum incentive is 60 percent
of eligible system costs
$5.00
Maximum incentive is 30 percent
of eligible system costs
1 - 10 kW
$3.00
10 - 100 kW
$2.00
100 - 500 kW
$1.50
500 kW up to - 1000 kW
$0.15
New Jersey Wind
Installations, Capacity
and Rebate Cost
New Jersey Wind Installation Projects (CORE)
2001-2006 (through October 15, 2006)
*Total NJCEP + Utilities
CORE program managed by utilities 2001 through mid-2003
New Jersey’s rebated
Solar Systems Installed,
in-Construction and
Awaiting Approval
As of September 2006
Status
Number
Capacity
Rebate
Installed with
OCE rebate
1,706
22 MW
$101 M
Approved for
Rebate
638
25 MW
$84 M
Applications
in Queue
894
37 MW
$110 M
3,238
84 MW
$295 M
TOTAL
New Jersey Solar
Installations, Capacity
and Rebate Cost
New Jersey’s
Renewable Energy
Portfolio Standard RPS
•
•
•
The RPS requires all NJ electric suppliers to provide a set percentage
of their electricity as Class I renewable (wind, solar or sustainable
biomass)
EY 2005 0.75% including - 4 MW of PV
EY 2009 4.0% including by 90 MW of PV
EY 2021 20% including 2% solar PV or 1500 MW
•
•
•
Bill cost to the average electric residential customer
EY 2005 -- $1.40 per year per household
EY 2009 -- $4.50 per year per household
EY 2021 -- $23.00 per year per household
New Jersey’s
Renewable Energy
Portfolio Standard
NJ’s RE goals will be achieved through the RPS and financed by RECs
Compliance with NJ’s RPS is through Renewable Energy Certificates
(RECs) issued and tracked through either PJM’s Generator Attributes
Tracking System (GATS) or NJCEP’s Behind the Meter system.
Each MWh of energy produced by a renewable energy generator
creates 1 REC. This REC has a unique serial number. When it is
traded and used for compliance, it is matched with a MWh or energy
supply and retired. In NJ’s system RECs have a 1 year life and must
be used in the year they are generated plus a 3 month true up period.
Current prices for RECs:
Landfill Gas REC $5, Wind REC $15, Solar REC $200
New Jersey’s
Renewable Energy
Portfolio Standard
A Renewable Portfolio Standard (RPS) provides the basis for Renewable
Energy Credits or RECs which gain value from the regulatory requirement
that suppliers of electricity in New Jersey include a certain percentage of
renewable energy.
A Renewable Portfolio Standard specifically for wind supplied
electricity would provide a source of capital for wind installations that
could supplant the need for rebates.
Solar Renewable Energy
Certificates (RECs)
represent environmental benefits and other
attributes associated with electricity generated
from a renewable energy generator and may be
traded independently of underlying electricity.
Renewable Generator:
Production of
Renewable Energy
Commodity Electricity
Environmental Benefits
(S02, NOX,CO2 )
Electric Supplier:
Retires the REC
New Jersey REC or
Solar REC
New Jersey’s RPS
Renewable Energy
Credit (REC)Values
Classes 1 & 2
and Solar RECs
Solar RECS
2005
2009
$ 14,009,400
$ 1,448,000
$ 48,746,600
$ 15,080,000
2021
$ 222,275,800
$ 126,000,000
Year
GHG Credits
REC
-> $25
-> $250
$15 -> $5 ($2.5)
$200 -> $70
New Jersey Solar
Renewable Energy
Credit (REC)Values
New Jersey RECs
Reporting in
PJM GATS
• PJM – Environmental Information Systems (EIS launched its
Generator Attributes Tracking System (GATS) in Oct 2005 for
the Mid-Atlantic States
• NJ, MD,PA, DE and DC all use GATS for their RPS Compliance
Reporting
• Feb 2006 GATS reported 14,282,070 REC generated during the
first 2005 trading period
• This represents 2.02% of PJM total system mix
• 82 account holders
• 734 generators
• More info available at www.pjm-eis.com
New Jersey RECs
Reporting in
PJM GATS
• More info available at
www.pjm-eis.com
New Jersey’s Transition to
an Open Market
RECs based System
• New Jersey’s 20 % by 2020 Renewable Energy
Portfolio Standards (RPS) will require at a
minimum approximately 4,400 MW of renewable
energy capacity and 1500 MW of Solar capacity.
• NJ cannot simply “buy” our way to the RPS
goals by providing rebates or grants to construct
this capacity.
• We must consider other models ….
New Jersey
Residential 10 kW
Solar Electric System
Installed Cost: $77,500
Electric cost savings /
Net Metering: $1,500/ yr
NJCEP Rebate:
$38,000
Insert Residential Home
Federal Tax
Credit: $2,000
Out of Pocket
Expense: $37,500
Total savings :
$1,500
assuming a 12,000 kWh annual energy usage
Payback Period: 25 yrs
New Jersey
Residential 10 kW
Solar Electric System
Installed Cost: $77,500
Electric cost savings /
Net Metering: $1,500/ yr
NJCEP Rebate:
$38,000
Insert Residential Home
SRECs Income:
$2,400 / yr
2005 $0.14/hh/yr
2009 $1.40/hh/yr
2020 $23/hh/yr
Federal Tax
Credit: $2,000
Out of Pocket
Expense :$37,500
assuming a 12,000 kWh annual energy usage
Payback Period: 9.6 yrs
Total savings :
$3,900
New Jersey
Residential 10 kW
Solar Electric System
Installed Cost: $77,500
Electric cost savings /
Net Metering: $1,500/ yr
NJCEP Rebate:
$0.00
Insert Residential Home
Federal Tax
Credit: $2,000
Out of Pocket
Expense : $75,500
Total savings :
$1,500
assuming a 12,000 kWh annual energy usage
Payback Period: 50.3 yrs
New Jersey
Residential 10 kW
Solar Electric System
Installed Cost: $77,500
Electric cost savings /
Net Metering: $1,500/ yr
NJCEP Rebate:
$0.00
Insert Residential Home
SRECs Income:
$6,050 / yr
Federal Tax
Credit: $2,000
$502/ SREC
Out of Pocket
Expense : $75,500
Total savings :
$7,550
assuming a 12,000 kWh annual energy usage
Payback Period: 10 yrs
New Jersey Energy
Efficiency Portfolio
Standard - Potential
Value of EECs
Year
2006
2012
2021
Class 1
Res EE
Class II
C&I EE
$ 5,124,000
$ 5,124,000
$ 38,024,000 $ 38,024,000
$ 84,900,000
EEEC
Class III
Class IV
Clean DG Load Mgmt
$ 5,124,000
$ 38,024,000 $ 38,024,000
$ 84,900,000 $ 84,900,000
2006 -> 2021
$ 5,124,000
$70 -> $20
$ 84,900,000
New Jersey’s Clean
Energy Program
Achievements
• Provides incentives for investments in energy
New Jersey’s
Clean energy
Energy Program
efficiency
and renewable
– $492 million2001-2004
in energy efficiency
investments
Results
• These investments help to:
–
–
–
–
reduce customers energy bills
reduce pollution levels
reduce reliance on imported fuels
stimulate the local economy and keep energy dollars in the State
New Jersey’s Clean
Energy Program
Achievements
New
Jersey’s
Clean
Energyuse
Program
• The
programs
reduced
electrical
by
1,216,403 MWh
over 5 years
2001-2004
Results
• These savings equal the electric use of
approximately 135,000 average homes or
243,280 MWh of energy savings per year
New Jersey’s Clean
Energy Program
Achievements
• These savings continue over the life of the
New
Jersey’s
Clean
Energy
Program
measures which averages 15 years.
2001-2004 Results
• Savings over the life of the measures:
14,888,209 MWh of energy savings
New Jersey’s Clean
Energy Program
Achievements
• These programs reduced natural gas use by
2,048,981 Dtherms per year
New Jersey’s Clean Energy Program
• These savings
are equivalent
to the annual use
2001-2004
Results
of over 20,000 average homes heated with
natural gas
• Savings over the life of the measures:
38,943,822 Dtherms
New Jersey’s Clean
Energy Program
Achievements
• New Jersey Renewable supply programs have
New
Jersey’s
Clean
Energy
Program
reduced electric demand by 450 MW and has
2001-2004 Results
• Eliminated the need to site, build and operate a
mid-sized power plant and
• Reduced demand also improves the reliability of
the electric transmission and distribution system
New Jersey’s Clean
Energy Program
Achievements
• Energy efficiency and renewable energy
generation reduce emissions resulting in cleaner
New Jersey’s Clean Energy Program
air and other environmental and health benefits.
2001-2004 Results
• Annual Emission Reductions:
CO2: 317,467 metric tons
NOX: 550 metric tons
SO2: 1,217 metric tons
HG (mercury): 15 lbs
New Jersey’s Clean
Energy Program
Achievements
• Cumulative
emission
reductions
the life of
New Jersey’s
Clean
Energyover
Program
the measures over the five years of the program:
2001-2004 Results
CO2: 13,190,265 metric tons
NOX: 21,798 metric tons
SO2: 46,283 metric tons
HG: 558 pounds
BOTTOM LINE
New Jersey can either incorporate more energy
efficiency (including increased building energy codes
and appliance standards) including combined heat and
power and clean distributive and renewable energy into
the over energy mix or pay for larger and larger
transmission lines into NJ that will move your payments
to out of state facilities and out of state jobs with the
associated transport of out of state emissions
contributing to the reasons NJ does not meet its clean air
states putting more pressure on existing NJ business to
reduce emissions
New Jersey’s
Integrated
Approach
• New Jersey’s Clean Energy Program:
www.njcleanenergy.com
•
New Jersey Wind Working Group for Terrestrial and
Small Wind Energy Systems:
http://www.njcep.com/wind/index.html
•
•
•
•
Rutgers’ Center for Energy, Economics and Environmental
Policy (CEEEP) http://policy.rutgers.edu/ceeep
Clean Energy Council – Committees
Portfolio Management Work Group
State Energy Master Plan and Energy data management
Thank you
Questions ??
mona.mosser@bpu.state.nj.us
joseph.sullivan@bpu.state.nj.us
www.bpu.state.nj.us
Visit: NJCleanEnergy.com