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Obama Commits Feds
To Renewable Energy

President Barack Obama has issued a presidential memorandum directing the U.S. federal government to pursue a goal of deriving 20% of its energy from renewable sources by 2020. The document also instructs all federal agencies to take specific steps to better manage building performance, enhance energy efficiency and reduce energy waste.

The missive represents a follow-through on the president’s plan to counter climate change, announced in June 2013. It directs agencies to achieve the renewable energy consumption target through a number of approved actions. The actions, in order of priority, are the following:

• Installing agency-funded renewable energy on-site at federal facilities and retaining renewable energy certificates (RECs);
• Contracting for energy that includes the installation of a renewable energy project on-site at a federal facility or off-site, and the retention of RECs for the term of the contract;
• Purchasing electricity and corresponding RECs; and
• Purchasing RECs.

The memorandum sets a number of interim targets for renewable energy usage up to the ultimate 20% by 2020 goal. The first of these is a 10% target for 2015.

In terms of energy efficiency, the document instructs federal agencies to take a number of measures, such as installing building energy and water meters and publicly disclosing annual benchmark energy performance data through the Department of Energy’s Web-based tracking system.

The document does offer some wiggle room in that actions are to be taken where practical, economical and technically feasible.

- Michael Puttré

 

New FERC Interconnect Rule Could Help Solar

The U.S. Federal Energy Regulatory Commission (FERC) has issued a modification to its Small Generator Interconnection Agreements and Procedures rule, enabling certain appropriately located, inverter-based generators below 2 MW to qualify for “fast track” approval procedures. Previous rules required such small generators be between 2 MW and 5 MW to quality for fast track consideration.

The rule change also specified that energy storage be included in the definition of what constitutes a small generator.

The FERC decision is not likely to have an immediate impact on residential photovoltaic installations as they cover projects that interconnect directly with grids under its jurisdiction, which relates to interstate electricity sales. The vast majority of residential connections are under the jurisdiction of state public utility commissions. Nevertheless, solar sector observers expect states to take notice of the decision and use it as a model for their own interconnect policies.

“The FERC decision is not only a model and a suggestion for states to modify their interconnect policies, it is a nudge to do so,” says Sky Stanfield, an attorney with Keyes, Fox & Wiedman LLP, who represents the Interstate Renewable Energy Council in regulatory matters. Generally speaking, states tend to follow FERC recommendations closely, she says, citing California’s adoption of its Rule 21 that modified project interconnect screening policies along FERC’s guidelines.

Stanfield says the rules enabling interconnection screens with fewer studies are a very important development because a utility’s need to perform studies is what really creates a backlog of interconnect agreements. The modified rule puts in place a supplemental review process for generators that fail initial fast track review screens rather than proceeding to a full utility study.

“By restructuring the process, a greater number of small generators can proceed without studies,” Stanfield says. “At the same time, it enables a utility to increase the number of projects it can review.”

- Michael Puttré

 

New Mexico Alters SREC Valuation Policies

According to a report on the website of the Santa Fe New Mexican, the New Mexico Public Regulations Commission (NMPRC), which regulates the state’s public utilities, voted to change the way renewable energy certificates (RECs) were calculated, effectively cutting the value of solar RECs (SRECs) in half.

In a three-to-two vote, the board of commissioners created a multi-tiered system wherein 1 kWh from wind produces 1 REC; 1 kWh from solar produces 2 RECs; and 1 kWh from other renewable sources, such as biomass, produces 3 RECs. Prior to the ruling, all forms of renewable energy produced RECs on a one-for-one basis.

Some expect the decision to cut demand for utility-scale solar under the state’s renewable energy standard by granting twice as much credit for its generated or purchased capacity, reducing incentives for future capacity. Others say the falling price of solar is likely to maintain demand, and that the NMPRC decision will serve as a needed boost for biomass energy projects, which will improve brush clearing and fire mitigation efforts for forests.

“Solar demand is healthy,” says one New Mexico developer of renewable energy infrastructure projects. “We are not worried about demand for solar energy.” R