Renewable Energy Technology Assessments - Kauai Island Utility ...
Renewable Energy Technology Assessments - Kauai Island Utility ...
Renewable Energy Technology Assessments - Kauai Island Utility ...
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Kaua’i <strong>Island</strong> <strong>Utility</strong> Cooperative<br />
<strong>Renewable</strong> <strong>Energy</strong> <strong>Technology</strong> <strong>Assessments</strong> 6.0 <strong>Renewable</strong> <strong>Energy</strong> Financial Incentives<br />
fire prevention. Grant programs are generally advertised with a Notice of Funds<br />
Available (NOFA) in the Federal Register. At this time it is not possible to forecast<br />
exactly which technologies or project types will be supported by federal agencies, and for<br />
whom these grants will be applicable.<br />
6.1.11 Federal Green Power Purchasing Goal<br />
The US government is the single largest consumer of energy. With the goal of<br />
improving the US government’s energy management, Executive Order 13123 was<br />
promulgated by President Clinton, which requires federal agencies to increase purchases<br />
of renewable energy to a percentage set by the Secretary of <strong>Energy</strong>. 63 In 2000, Secretary<br />
of <strong>Energy</strong> Bill Richardson set the target for federal agencies at 2.5 percent of electricity<br />
consumption by 2005, and 20,000 solar roofs on government facilities by 2010. 64 Since<br />
the enactment of this goal, various federal agencies have been active in installing<br />
renewable energy projects and purchasing renewable energy to meet this goal.<br />
Consequently, government renewable energy use has increased to about 1.25 percent, or<br />
about 48 percent of the goal for 2005.<br />
Implication for KIUC: This goal may create opportunities for KIUC to work with the<br />
local military or other government facilities. Joint projects could be developed, or KIUC<br />
could negotiate with the government to be an "anchor tenant" for a new green pricing<br />
program.<br />
6.2 Valuing <strong>Renewable</strong> <strong>Energy</strong> Attributes<br />
In addition to the government incentive programs described previously, utilities,<br />
marketers, and others have developed additional programs to address the sometimes<br />
higher cost of renewable energy. This section describes green pricing, green marketing,<br />
and tradable renewable energy credits.<br />
6.2.1 Green Pricing<br />
A small but significant percentage of the population is willing to pay extra for<br />
electricity generated from “green” or renewable resources. Green pricing of electricity is<br />
offered to utility customers in regulated markets. Customers can choose to pay a small<br />
premium on their monthly electricity bills to cover the higher cost of renewable energy.<br />
Typical premiums for green pricing are 1¢/kWh to 4¢/kWh, but can be much higher for<br />
specialty products, such as solar power.<br />
63<br />
Database of State Incentives for <strong>Renewable</strong> <strong>Energy</strong>, Federal Government – Green Power Purchasing<br />
Goal, Available at www.dsireusa.org<br />
64<br />
President Clinton, Executive Order 13123 – Greening the Government through Effective <strong>Energy</strong><br />
Management, Printed in the Federal Registry on Tuesday June 8, 1999.<br />
21 March 2005 6-13 Black & Veatch
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