THE FIGHT FOR NEW ENERGY IN FLORIDA

The fight in Florida for New Energy is heating up, pitting legislators against utilities.

Republican Governor Charlie Crist has been pushing for years for a Renewable Electricity Standard (RES) requiring utilities to obtain 20% of their power from New Energy sources by 2020.

Florida Power & Light (FP&L), a big New Energy developer nationally and Florida’s biggest utility, likes 20% – by 2030 (instead of Crist's 2020). The utility has even offered what they consider a progressive time line, 5% by 2017 and 10% by 2025.

FP&L are the folks who catch heck if the lights go out, so their opinion deserves attention. They might, however, be inclined to match their time line more closely with the obsolescence and payoff periods for existing plants than the availability of New Energy. As The Gipper said, trust but verify.

Another question: Does nuclear count as New Energy? The utilities like nuclear. Politicians see it as political poison, mainly because so many sensible people have noticed nuclear fuel and nuclear waste are LITERALLY poison. And the nuclear industry has no really safe way to manage them

The best news on nuclear: It is simply too expensive to build.

Amory Lovins, CEO, Rocky Mountian Institute: “All the meager nuclear orders nowadays come from centrally planned electricity systems, because despite strong official support and greatly increased U.S. subsidies, nuclear power’s bad economics make it unfinanceable in the private capital market. Official studies compare new nuclear plants only with coal- or gas-fired central stations. But all three kinds of central stations are uncompetitive with windpower and some other renewables, combined-heat-and power (cogeneration), and efficient use of electricity, all compared on a consistent accounting basis…” (See Nuclear power: economics and climate protection potential)

RECs: Florida’s RES is expected to include a provision for utilities to purchase Renewable Energy Credits (RECs) from Florida New Energy producers to meet their New Energy obligations. RECs fund the development of New Energy. The debate is over whether RECs purchased from New Energy producers in other states, in the absence of locally available New Energy sources, should be counted toward utilities’ compliance.

Utilities want RECs for investing in any New Energy. Legislators want to promote investment in the local constituencies, their campaign contributors. NewEnergyNews has another suggestion along similar lines: How about allotting New Energy credit to utilities for investing in new transmission in service to New Energy?

Good news: Pending regulations expand Florida’s net metering provisions to solar energy systems installers, allowing owners to sell more power to the grid and creating incentives for large-scale installations. As prices rise, the logic of New Energy will become more apparent not just to homeowners but to those who control warehouse and shopping mall rooftops where big arrays of solar panels could defray operational costs dramatically.

George Philippidis, researcher, Applied Research Center/Florida International University: "With the escalating prices of energy and fuel, [New Energy] will only become more attractive down the road…"

The new rules also increase remuneration to farms for agricultural waste- and biomass-produced biogas used to generate electricity for the grid. This is likely to make struggling farms more economically viable.

Progress Energy, Florida’s 2nd biggest electric utility, is developing 3 biomass generation sites.

Controversy is difficult but is often like the dirt in the oyster’s shell that causes the friction that produces the pearl.

George Philippidis, researcher, Applied Research Center/Florida International University: "As long as we have a long-term vision and are persistent, I think we're going to be successful…"

Florida's long-term energy future includes Gulf Stream current energy. (click to enlarge)

Florida to mandate greater use of renewable energy
David Fischer, August 8, 2008 (AP via BusinessWeek)

WHO
Charlie Crist, Governor, Florida; Florida Power & Light (FP&L) (Randolph Clerihue, spokesman); Progress Energy(C.J. Drake, spokesman); George Philippidis, researcher, Applied Research Center/Florida International University; Lakeland Electric; Florida Public Service Commission

WHAT
Governor Crist continues to push his legislature to establish a Renewable Electricity Standard (RES) for Florida while legislators and utilities debate the specifics.

An experiment in Lakeland, FLA, showed an energy efficient house with a solar PV system used 90% less grid-generated energy over a year. (click to enlarge)

WHEN
- Crist wants an RES calling for Florida to obtain 20% of its electricity from New Energy sources by 2020.
- The Florida Public Service Commission is required to submit a final plan by February 2009.

WHERE
- For comparison: Maine presently gets 18% of its electricity from New Energy and 100% of Maine’s state buildings’ power comes from New Energy sources.
- FP&L has 3solar projects and a wind farm in Florida but many wind and solar projects around the country.

New Energy needs new transmission. Florida is building new transmission at increasing taxpayer expense. Why not allow some RES credit for funding it? (click to enlarge)

WHY
- Florida presently gets ~3% of its electricity from New Energy.
- Crist called for 20% by 2020 in 2007. In 2008, the legislature’s energy bill directed utilities to establish New Energy production rules.
- Florida’s energy mix: 38% natural gas, 29% coal, 13% nuclear, 7% oil, 13% privately generated.
- Solar energy and biomass/agricultural waste are Florida’s most immediately-accessible sources of New Energy power generation.
- Gulf Stream tide energy is a huge potential resource but for some years off.
Municipal utilities like Lakeland Electric will be exempt from the Florida RES requirements and will sell RECs to the statewide utilities.

QUOTES
Governor Crist: "We have goals that are clearly achievable and within reach, but at the same time, we want to continue to push forward and stretch…"