Resources for Action Rob Pratt Director, Massachusetts Renewable Energy Trust

1. Resources for Action Rob PrattDirector, MassachusettsRenewable Energy Trust Presented to Berkshire Renewable Energy Leadership SummitJune 7, 2005 ~ Lenox, Massachusetts

2. Renewable Energy Trust • Funded by a system benefits charge as part of 1998 electricity restructuring ($25 million/year) • Mission: • Increase the supply of and demand for clean energy • Promote the development of a vibrant Massachusetts renewable energy industry • Maximize benefit to Massachusetts ratepayers • Managed by the Massachusetts Technology Collaborative, the state’s development agency for renewable energy and the innovation economy.

3. Renewable Sources • Wind • Biomass • Solar • Hydroelectric • Fuel cells • Ocean Wave/Tidal

4. Renewable Energy Cost Trends 100 80 60 40 20 0 4030 20 10 0 Wind PV COE cents/kWh 1980 1990 2000 2010 2020 1980 1990 2000 2010 2020 10 8 6 4 20 1512 9 6 30 Biomass Geothermal COE cents/kWh 1980 1990 2000 2010 2020 1980 1990 2000 2010 2020 Source: U.S. National Renewable Energy Laboratories

5. Renewable Energy Capacity Trends

6. Fossil Fuel Prices:Crude Oil Oil prices: $57+/barrel and heading up?

7. Fossil Fuel Prices:Natural Gas 12-mo. NG prices: Over $7.7/MMBtu

8. Reasons for Optimism • Cost of renewable technology continues to decrease while fossil fuel prices increase • Renewables demand continues to increase • 19 states have RPS requirements • 15 states have funds dedicated to renewables • Voluntary markets are starting to form (particularly for C&I customers) • Utilities, oil companies and major energy companies are becoming major players in renewable energy market

9. Renewable Energy Trust Programs • Clean Energy • Supporting large-scale clean energy development in the state • Educating Massachusetts citizens, teachers, and students about the benefits of clean energy • Green Buildings and Infrastructure • Developing green building projects powered by clean energy • Industry Support • Accelerating job growth, economic development, and technological innovation in the state • Policy Unit • Collaborating with interested stakeholders to address market and regulatory barriers to new clean energy development

10. Massachusetts Renewable Portfolio Standard (RPS) • Facility Eligibility • Wind, solar PV, landfill gas, biomass, ocean • Applies to utilities and competitive suppliers • Ways to Comply: • Renewable Energy Certificates (RECs) • Alternative Compliance Payment ($50/MWh)

11. Jul 05 Sep 05 Mar 05 Jan 05 e e New England Renewable Energy Certificates • New England Generation Information System (NE-GIS) • System to track attributes of power generated in New England • Goal: separate attributes from energy • Encourage flexible trading across region • RECs are from eligible renewables in any NE state • Six month shift between production and REC creation: Energy (MWh) Generated in Q1 Q1 2005 RECs created/traded in Q3 Time shift to REC creation

12. Large-Scale Renewable Energy Support • Massachusetts Green Power Partnership (MGPP) • Goal: Provide REC revenue certainty to developers through long-term contracts (up to 10 years). • Trust manages market risks regarding future REC value and demand • Predevelopment Financing • Goal: Provide early-stage support for large renewable energy projects serving Massachusetts • Grants available to public entities • Financing available to all eligible applicants

13. Community Wind Initiative • Goal: Help MA cities and towns tap into the power of the wind to: • meet local electricity needs and • be a potential source of revenue. • Communities can participate by: • Developing and hosting local, community-scale wind turbines. Trust assistance includes: • wind monitoring equipment and data analysis, • technical assistance, and • access to competitively secured resources (e.g. wind turbines) 2. Communities that do not have adequate wind can: • participate as part of a regional development or • by purchasing clean electricity from a nearby wind turbine

14. Large Renewables Initiative formerly known as “Commercial, Industrial & Institutional” • $8.9 million budgeted over 5 years • Over 10 kW projects; no upper size limit • Up to $650,000 per project available • All renewable technologies can apply • Next round applications due in September • Investor owned electric utility areas only • Extra $ for public buildings, economic target areas, low income housing, etc. • Must participate in efficiency programs

15. Small Renewables Initiative • $5 million available over 3 – 5 years • 10 kW or smaller projects are eligible • Rebates for PV, wind, or micro-hydro • Open or “rolling” application process • Apply anytime; applications processed monthly • Applications available on MTC website • Applications must be pre-approved!

16. Massachusetts Clean Energy Choice • Ratepayers can choose to pay a premium on their monthly electric bill to support renewables. • MTC matches each dollar of household or small business support with: • Up to $1 to the consumer's community for renewable energy educational materials or projects. • NOTE: These funds may be combined with the Small Renewables Initiative rebates to cover up to 100% of project costs on a municipally-owned facility! • Up to $1 additional to low-income energy projects • $2.5 million in matching funding available annually • To learn more visit: www.cleanenergychoice.org

17. Hedge Program Supports pursuit of long-term, price certain power for Massachusetts end-users: • Long-term contracts with renewable energy generators provide a hedge against fossil fuel price volatility • Supports financing of renewable generation facilities

18. Green Buildings • 1/3 of U.S. energy consumption is used for heating, cooling, lighting and appliances in buildings. • Green Buildings • Encourage the combination of high-performance design, energy efficiency and renewable energy • Reduce the energy consumption of this sector • Enhance the sustainability of the built environment • Trust commitment to Green Buildings: • Financial and technical support to include renewable energy technologies in Green Buildings • Encouraging designs and solutions that are replicable • Documenting and disseminating lessons learned

19. Partnership between MTC and MA Dept. of Education Promotes high performance green design in new schools and major renovations Goal is a new set of standards for school construction in MA Green Schools Initiative Schematic – new Dedham Middle School Drawing by Dore and Whittier, Inc. • MTC provided funding for: • 16 pilot schools (each received up to $130k for design and up to $500k for construction) • 38 schools received feasibility study grants @ $20k each • Dept. of Ed. adds 2% to total state construction grant for eligible projects Skylight - Capuano School in Somerville. Photo by HMFH Architects, Inc.

20. Affordable Green Housing Initiative • $10.6 million budgeted over 5 years • Partnerships w/ MassHousing and others • Coordinate with Energy Star Homes • All renewable technologies can apply • Investor owned electric utility areas only • Must participate in efficiency programs • Leveraging other funds for “green” elements of the projects

21. Industry Support Program Goal: accelerate job growth and economic development in the MA Renewable Energy industry cluster • Massachusetts Green Energy Fund (MGEF) • a privately managed venture capital fund • Sustainable Energy Economic Development (SEED) Initiative • Invest with companies that have yet to demonstrate commercial viability of their tech. • Emerging Technology Solicitation • Grants to demonstrate emerging renewable energy technologies at the commercial scale

22. Investing in Massachusetts’ Clean Energy Economy Win-win • Leverage MA strengths: technology, offshore resources, human capital • Massachusetts Clean Energy Cluster • Approx. 10,000 jobs today • One of top states in U.S. on per capita basis • Experienced double digit growth last year • Accelerates technology innovation and adaptation • MRET can be a lead and patient investor where technology-intensive product development bears high costs . . . And beyond Massachusetts • A geographic focus can nevertheless have a global perspective (e.g., PV Export, MGEF) • Funding many technologies will prove more robust than a single “bet”

23. . . . and investors are interested Compiled by UMass EBTC 2004

24. Trust Accomplishments As of December 2004: • More than $119 million invested in more than 350 projects serving Massachusetts • Supporting approximately 226.52 MW of new renewables • Planning and siting support for 7 projects expected to result in additional 630 MW • 47 green buildings funded • 93 green building feasibility studies funded

25. For more information:www.masstech.org