C-BED Initiatives

Cheryl Glaeser, Program SpecialistSouthwest Initiative Foundation

C-BED Initiative Overviews

� Community-based Energy Development

� Rural Energy Development Initiative

� Dispersed Generation Study

What is C-BED?

� Locally owned renewable energy projects where one or

more members of the local

community have a significant, direct financial stake in the

project

� Specific measurement currently

tied to C-BED Tariff

� Community-Based Energy Development

What are the Primary

Benefits of C-BED?

� Stimulates local economy

� Strengthens rural communities

� Provides clean energy

� Promotes additional

renewable energy

through education and

awareness

How is C-BED Defined by

Current Legislation?

� Legislation established in 2005 to encourage the development of locally-owned energy projects

� Established C-BED tariff as a framework for community-based projects to negotiate effectively with utilities

• Key aspect is higher payments in the first 10 years of a power purchase agreement

� Requires electric utilities to consider C-BED projects when seeking to add generation to its supply mix to meet Minnesota’s aggressive renewable energy requirements

Who Qualifies for Tariff?

� Minnesota resident

� Limited liability company

organized under chapter 322B

and made up of members who

are Minnesota residents

� Minnesota nonprofit organization

under chapter 317A

� Minnesota cooperative

association organized under

chapter 308A or 308B, including

a rural electric cooperative

association or a generation and

transmission cooperative on

behalf of and at the request of a

member distribution utility

� Minnesota political subdivision or

local government, including but not limited to a:

• municipal electric utility

• municipal power agency on

behalf of and at the request of

a member distribution utility

• county, statutory or home rule

charter city, town, school

district, public or private

higher education institution

• any other local or regional

governmental organization

such as a board, commission,

or association

� A tribal council

Other C-BED Tariff Rules

� No single qualifying owner owns more than 15% of a

C-BED wind energy project

• Exceptions: 1-2 turbines; qualifying owner is a

“public entity” that is not a municipal utility

� Demonstrates that at least 51% of the gross revenues

from a power purchase agreement over the life of the

project flow to qualifying owners and other local

entities

� Has a resolution of support adopted by the county board of each county in which the project is located

Rural Energy Development

Initiative (REDI)

Three categories of support:

� Outreach and public education

� Assistance with formation of energy project development entities

� Low interest rate revolving loans

Goal of REDI is to maximize rural economic development and stabilize rural economies by building renewable energy capacity, expertise, and leadership throughout the state of Minnesota.

Getting “REDI” for Wind

� Education related to wind energy development

� Guidance through initial project concepts and

formation efforts

� Assistance with formation of project development

entities

� If interested in these items contact us:

• redi@swifoundation.org

• 1-866-966-6749

• REDI Interest Form

REDI Technical Assistance

� Low interest loans to help pay for project feasibility studies, business plans and

transmission interconnection applications

� Project feasibility studies include items such as:

• Site-specific layout

• Permitting

• Performance and cost analysis

• Discussions for PPA and turbine supply

• Preparation for interconnection agreement & transmission study

• Securing onsite wind resource assessment

Rural Energy

Development Initiative

� Administered by SWIF

� Sponsored by the State of Minnesota and the

Center for Rural Policy and Development

Dispersed Generation Study

� Analyze transmission impacts of 1200 MW of new dispersed renewable generation located statewide

� Goal: Identify project sites that will minimize impacts to the transmission system

� Two phases

• Study Phase I: 600 MW

• Report came out June 16, 2008

• Study Phase II: 600 MW

• Report due September 2009

Northwest

Northeast

West Central

Southwest Southeast

Minnesota

Transmission

Zones

DRG Legislation

� Part of Next Generation Energy Act of 2007

� Definition of dispersed

• RES eligible (wind, biomass, solar)

• 10 to 40 MW in size

� Study Basis

• Public input, regional availability of renewable resources, current DG in MISO, access to existing transmission

� Study Team

• National, regional and state technical experts representing the national energy laboratories, MISO, wind and community energy advocates and Minnesota utilities

Map Of

Potential

Short List

Of DRG

Sites

AC analysis Single Site

Map Of

Final DRG

Sites

AC Analysis Statewide

Aggregation

Summary of DRG Findings

� The analysis successfully demonstrated a DRG scenario where 600 MW could be sited without significantly affecting

any transmission infrastructure

� Extensive study and analysis showed that even dispersed generation can have substantial impacts on the electric grid

� This study report represents a snapshot in time and is only a representative of the results which may be discovered during more extensive analysis

� DRG developers need to contact the local utility to examine opportunities for DRG site selection and foster coordination for further study work and/or interconnection requirements

� There may be existing interconnection requests in a utility queue or MISO queue that might occupy these potential DRG sites

DRG Phase I Study

For a link to the full report visit:

www.swifoundation.org/renewableenergy.html

Additional comments & feedback for study to: DGStudy.Commerce@state.mn.us

Thank You!

Cheryl Glaeser, Program SpecialistSouthwest Initiative Foundation

REDI: redi@swifoundation.org

1-866-966-6749 (NRGY)