Federal Energy Management Program

Renewable Working Group

Renewable Power Purchasesat

Federal Facilities

By David McAndrew

Federal Energy Management Program

Federal Energy Management Program

Why Purchase Renewable Power?

• Demonstrates Federal Leadership • Relatively easy way to meet energy

conservation and greenhouse gas goals• Preferable for agencies with limited capital

budgets• Allows generation to be sited in most

economical location• Helps grow market to critical size• Promotes National Energy Security• Because you have to meet you RE goal

somehow

Federal Energy Management Program

Federal Energy Management Goals Executive Order 13123

• Reduce energy consumption (renewable use counts)– Facility energy per square foot to be reduced by 30 percent

in 2005 and 35 percent in 2010 relative to 1985– Industrial/laboratory energy to be reduced by 20 percent in

2005 and 25 percent in 2010 relative to 1990

• Reduce greenhouse gas emissions 30 percent by 2010 compared to 1990

• Expand use of renewable energy– 2.5% of Federal facility electricity consumption by 2005

Federal Energy Management Program

WHAT PURCHASES COUNT WHAT PURCHASES COUNT TOWARDS GOALTOWARDS GOAL

E.O. 13123, Sec 710. “Renewable Energy” means energy produced by solar, wind, geothermal, and biomass.

Does not give a preference to a specific technology Does not differentiate between types of biomass

E.O. 13123 Guidance Requirements Contract must specify renewable purchase requirement Excludes system supply and state RPS requirements Purchase must come from new renewable resource

On line after 1990

Should have consistent standard for purchases and on-site

Federal Energy Management Program

FEMP Renewable Purchasing Program

• Direct Assistance• Individual agency initiatives

• Map correlating federal agencies with purchasing opportunities

• Guidance

• DESC and GSA

• Regional/Utility Aggregations

• WAPA

•Coordination •Federal agencies•DESC and GSA•Share experiences

•Share resources•EPA GP Partnership

•Free publicity•Demonstrate Leadership

•Private Initiatives•Utility Green Pricing•Green-e•WRI

Federal Energy Management Program

FEMP Renewable Purchasing Program

• Education & Outreach– Workshops

– Presentations

– Communications Material

• Guidebook• Green Power Toolkit

– Annual FEMP Awards

• Strategy Development– Making a Federal

case for renewable power

– Product development for Federal Agencies

– Identifying funding opportunities

Federal Energy Management Program

Federal Purchasing Methods

– Utility Green Pricing • Areawide Contract (AWC) Exhibit• Utility contract

– “If it is a PUC approved rate then it must be just and reasonable”

– Solicitation in competitive electricity market• General Services Administration (GSA)

– Ken Shutika (202) 260-9713

• Defense Energy Support Center (DESC)– John Nelson 703-767-8333

– Renewable Energy Certificates Purchases• Can be a tough sell• Competitive Purchase?

Federal Energy Management Program

Select Federal Renewable Power Purchase Contracts

Federal Agency Location Gwh Resource

Utility Green Pricing

18 Agencies Denver, CO 4.1 Wind

DOE -WIPP (Sandia) White Sands, NM 1.5 Wind

Retail Competitive Electricity Procurements

NASA Johnson Texas 10 Wind

DOE, GSA, DOA, Army Washington DC 44 LFG/Wind

Wholesale Competitive Electricity Procurements

Edwards AFB California 133 Wind/Bio

Renewable Certificate Purchases

EPA CA,OH,MA,WA 21.4 Various

Federal Energy Management Program

Premium Funding Sources

• Direct Appropriations

• Savings from competitive procurement of electricity or natural gas

• Bundled into a “Best Value” electricity procurement– FAR Part 23.703 (Environmentally Preferable

Purchasing) can be used as justification for renewables purchase

• Energy Efficiency Savings

• SEPs ??

Federal Energy Management Program

Renewable Power PurchasingLessons Learned

• Load aggregations can lead to big purchases but:– Target big users

– Don’t herd cats– Keep it simple

• Utility green pricing should be a Partnerships – Consider customizing product

– Be upfront and clear on sources and benefits

• “So, now I understand what renewable power is, What’s this certificate thing you’re trying to sell me?”

• Anything that costs less than a penny must be a good deal!!! ($0.01 X 5% of load = .0005 per kwh)

Federal Energy Management Program

Assistance,Advice,Concerns

• David McAndrew, FEMP HQ202-586-7722, david.mcandrew@hq.doe.gov

• Chandra Shah, National Renewable Energy Laboratory (NREL)303-384-7557, chandra_shah@nrel.gov

• Bill Golove, Lawrence Berkeley National Laboratory (LBNL)510-486-5229, whgolove@lbl.gov