Provo-based Raser Technologies announced that it will partner with United Technologies Corp. to build its first three geothermal power plants.
"We believe these types of renewable energy-producing power plants will be a significant part of the U.S. power production portfolio in the future," Brent M. Cook, Raser's chief executive officer, said in a statement Thursday. "Accelerated development of domestic geothermal resources will produce electricity in an environmentally friendly way and contribute to energy independence." Read Article
Friday, April 20, 2007
Friday, April 13, 2007
Southern California Edison Leading Nation's Renewable Energy with Geothermal
Southern California Edison (SCE) announced 2006 renewable energy purchases and deliveries led the nation with 7.5 billion kWh of Geothermal energy, which is over three 3 times the energy delivered by SCE from wind sources and over 12 times the amount from solar sources. read article in Morningstar
Thursday, April 12, 2007
Raser Gets Geothermal Deal With United Technologies
Shares of electric motor maker Raser Technologies Inc. soared Thursday after the company said it reached a deal to work with industrial giant United Technologies Corp. on power plants that use the earth's heat to generate electricity.Read Full Article in Forbes
Thursday, April 5, 2007
Hearing on Production Tax Credit Received Well by Committee
A recent hearing in the Senate Finance Committee titled, “Clean Energy: From the Margins to the Mainstream,” featured His Excellency John Bruton, Ambassador, European Commission Delegation; John Krenicki, President and Chief Executive Officer, General Electric Energy; Todd Raba, President, MidAmerican Energy Company (MEO), Des Moines, IA; Johan van’t Hof, Chief Executive Officer, Tonbridge Corporation, Toronto, Ontario, Canada; and Dr. Ryan H. Wiser, Scientist, Lawrence Berkeley National Laboratory, Berkeley, California.
Addressing geothermal, Raba said:
With regard to geothermal, hydro, biomass and waste-to-energy generation…these resources are more geographically limited than wind; they function as dispatchable, baseload resources, enhancing their value. Drilling new geothermal wells or upgrading existing hydro facilities to create incremental power expansions is highly capital intensive. The vast majority of these projects cannot be completed within the short placed-in-service time frames under the existing PTC legislation, thus severely limiting new investments.
MidAmerican has suggested that Congress consider allowing flexibility with regard to placed-in-service dates for projects involving baseload renewables. We believe this could be done at little budget cost if the law allows projects under construction and with output contracts in place to opt in to tax treatment that reduce the ten-year application of the PTC by a length of time equivalent to the period between date of expiration of the placed-in-service date and the completion of the project. In other words, if a project was brought on line six months after the expiration of the placed-in-service date, it could choose to receive the tax credit for only nine and on-half years instead of ten.
The better answer, though, would be a five- or ten-year extension of the PTC that would provide long-term certainty to utilities, independent project developers and manufacturers while solving the base load renewable issue.
The speakers, who focused predominantly upon wind energy, agreed across the board that a ten year extension of the production tax credit would be one of the best actions Congress could take to ensure continued renewable development. Several speakers suggested coupling the PTC with a renewable portfolio standard.
The committee responded favorably to the proposed enhancements of the PTC, both in terms of a placed in service change and also an extension of the credit. Chairman Baucus said that renewables are “more important now than they were when we last extended the credit,” Some industry insiders expect a stand-alone energy tax bill to come out of the finance committee this summer.
When Senator Baucus asked about “scaling down” the tax credit over time in order to reduce the cost to the treasury, speakers generally agreed that such action would be reasonable if a tax credit was allocated over a ten year timeframe, rather than the usual one to two year extensions. Wiser cautioned that the costs of wind energy have increased in the past four years (largely due to increases in the price of wind turbines), and so Congress should not scale down too quickly. Long term, stable policy emerged often as the most pressing need for renewable energy producers.
Transmission issues were also discussed at length, with van’t Hof speaking almost exclusively about the difficulties surrounding renewables and transmission. According to van’t Hof, the need for transmission, specifically related to renewables, is continuing to grow. Raba said the following about transmission:
Combining the remote location of most of our renewable potential with the potential with the diffuse nature of these resources, transmission becomes a disproportionately larger component of the retail cost compared to conventional resources. This situation will only grow more pronounced as we increase the amount of renewable generation, because the most cost-effective locations have already been developed.
Burton, who opened the hearing, spoke about the example some EU countries have set of using taxation to reach renewable energy goals. “Polluters must pay,” Burton said. He expressed “concern” about the growing use of coal energy around the world, and discussed the importance of sequestration activities, which, he noted, are still in the early research stage both in Europe and in America. When pressed about the “one message about renewables” he’d like to leave with Congress, he cited renewables as a “vital” part of any system dealing with electricity needs and climate change. Renewables are a necessary part, but not the only part, he said.
See Hearing Website
Addressing geothermal, Raba said:
With regard to geothermal, hydro, biomass and waste-to-energy generation…these resources are more geographically limited than wind; they function as dispatchable, baseload resources, enhancing their value. Drilling new geothermal wells or upgrading existing hydro facilities to create incremental power expansions is highly capital intensive. The vast majority of these projects cannot be completed within the short placed-in-service time frames under the existing PTC legislation, thus severely limiting new investments.
MidAmerican has suggested that Congress consider allowing flexibility with regard to placed-in-service dates for projects involving baseload renewables. We believe this could be done at little budget cost if the law allows projects under construction and with output contracts in place to opt in to tax treatment that reduce the ten-year application of the PTC by a length of time equivalent to the period between date of expiration of the placed-in-service date and the completion of the project. In other words, if a project was brought on line six months after the expiration of the placed-in-service date, it could choose to receive the tax credit for only nine and on-half years instead of ten.
The better answer, though, would be a five- or ten-year extension of the PTC that would provide long-term certainty to utilities, independent project developers and manufacturers while solving the base load renewable issue.
The speakers, who focused predominantly upon wind energy, agreed across the board that a ten year extension of the production tax credit would be one of the best actions Congress could take to ensure continued renewable development. Several speakers suggested coupling the PTC with a renewable portfolio standard.
The committee responded favorably to the proposed enhancements of the PTC, both in terms of a placed in service change and also an extension of the credit. Chairman Baucus said that renewables are “more important now than they were when we last extended the credit,” Some industry insiders expect a stand-alone energy tax bill to come out of the finance committee this summer.
When Senator Baucus asked about “scaling down” the tax credit over time in order to reduce the cost to the treasury, speakers generally agreed that such action would be reasonable if a tax credit was allocated over a ten year timeframe, rather than the usual one to two year extensions. Wiser cautioned that the costs of wind energy have increased in the past four years (largely due to increases in the price of wind turbines), and so Congress should not scale down too quickly. Long term, stable policy emerged often as the most pressing need for renewable energy producers.
Transmission issues were also discussed at length, with van’t Hof speaking almost exclusively about the difficulties surrounding renewables and transmission. According to van’t Hof, the need for transmission, specifically related to renewables, is continuing to grow. Raba said the following about transmission:
Combining the remote location of most of our renewable potential with the potential with the diffuse nature of these resources, transmission becomes a disproportionately larger component of the retail cost compared to conventional resources. This situation will only grow more pronounced as we increase the amount of renewable generation, because the most cost-effective locations have already been developed.
Burton, who opened the hearing, spoke about the example some EU countries have set of using taxation to reach renewable energy goals. “Polluters must pay,” Burton said. He expressed “concern” about the growing use of coal energy around the world, and discussed the importance of sequestration activities, which, he noted, are still in the early research stage both in Europe and in America. When pressed about the “one message about renewables” he’d like to leave with Congress, he cited renewables as a “vital” part of any system dealing with electricity needs and climate change. Renewables are a necessary part, but not the only part, he said.
See Hearing Website
Tuesday, April 3, 2007
Renewable Energy Trades, Including GEA, Call For Increased R&D Funding
Senator Menendez Seeks Support from Other Senators for Full Funding of Renewable Energy Research
"In a March 21 letter to the Chair and Ranking Member of the Subcommittee on Energy and Water Appropriations, GEA, the American Wind Energy Association, Solar Energy Industries Association, and National Hydropower Association called for increased funding for renewable energy programs in the federal FY2008 budget. Noting that each of these renewable energy technologies has the vast potential to help solve our energy and climate problems, the groups explained that robust funding for R&D is needed to accelerate adoption of these technologies and strengthen energy independence, create jobs, and provide more clean, reliable, domestic electricity generation. The groups’ request for geothermal energy is $113 million in FY 21008. The funding levels recommended for the other technologies are $250 million for solar, $22 million for hydropower, and $110 million for wind." More info...
"In the Senate, Senator Robert Menendez (D-NJ) has circulated a draft letter to Senators Dorgan and Domenici, Chairman and Ranking Minority Member of the Senate Energy and Water Appropriations Committee, respectively. The draft letter supports full funding for these renewable programs. “These programs represent critical investments for our nation’s energy future,” the letter argues, “and we respectfully urge you to fund them at robust levels.” Senator Menendez is looking for support from other Senate offices. As of last week when the letter first began circulation, Senators Wyden and Lieberman had agreed to co-sign the letter."
"In a March 21 letter to the Chair and Ranking Member of the Subcommittee on Energy and Water Appropriations, GEA, the American Wind Energy Association, Solar Energy Industries Association, and National Hydropower Association called for increased funding for renewable energy programs in the federal FY2008 budget. Noting that each of these renewable energy technologies has the vast potential to help solve our energy and climate problems, the groups explained that robust funding for R&D is needed to accelerate adoption of these technologies and strengthen energy independence, create jobs, and provide more clean, reliable, domestic electricity generation. The groups’ request for geothermal energy is $113 million in FY 21008. The funding levels recommended for the other technologies are $250 million for solar, $22 million for hydropower, and $110 million for wind." More info...
"In the Senate, Senator Robert Menendez (D-NJ) has circulated a draft letter to Senators Dorgan and Domenici, Chairman and Ranking Minority Member of the Senate Energy and Water Appropriations Committee, respectively. The draft letter supports full funding for these renewable programs. “These programs represent critical investments for our nation’s energy future,” the letter argues, “and we respectfully urge you to fund them at robust levels.” Senator Menendez is looking for support from other Senate offices. As of last week when the letter first began circulation, Senators Wyden and Lieberman had agreed to co-sign the letter."
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