How Can New Transatlantic Collaboration Overcome Barriers to Renewable Energy Goals? EESI Briefing December 3, 2015

12/3/15 Speakers

12/3/15 INTRODUCTION Project, Report, Key Findings and Recommendations

12/3/15 About CCS Better Safer World Catalyst, Capacity Action Plans US -- States and Localities Alaska, Arizona, Arkansas, Colorado, Connecticut*, Florida, Kentucky, Iowa, Maine*, Maryland, Michigan, Minnesota, Montana, Oregon, Pennsylvania, New Mexico, North Carolina, New York, South Carolina, Southern California, Vermont, Washington Action Plans and Capacity Building Global – Nations, States, Provinces China, DR Congo, Eastern Europe, European Union, Guatemala, Mexico, Philippines, Ukraine, others

12/3/15 About the Project

12/3/15 About the Report

12/3/15 Key Findings

12/3/15 Key Recommendations

12/3/15 EU-US COMMON GROUND Findings

12/3/15 New Goals

12/3/15 US Clean Power Plan

12/3/15 EU Goals

12/3/15 Regional Price Variation

12/3/15 Center for Climate Strategies, 2012 Economic Success Strategies

Renewable Energy Growth US renewable electricity production by source, IEA EU renewable growth EUROSTAT

12/3/15 Market Penetration Barriers

12/3/15 Cost Components Levelized cost of energy in the US, 2014 (Lazards)

12/3/15 Cost Differentials Appalachian Power, 10/27/15

12/3/15 Cost Comparisons Levelized cost of energy in the EU, 2012 (Ecofys)

12/3/15 EU vs. US Costs Rocky Mountain Institute, 2013

12/3/15 Investment barriers

12/3/15 Technology barriers

12/3/15 POLICY BARRIERS Findings

12/3/15 Collaboration Areas

12/3/15 Federal Production Tax Credit Union of Concerned Scientists at renewables/production-tax-credit-for.html#.VkYlb66rS3A renewables/production-tax-credit-for.html#.VkYlb66rS3A Up to $22/MWh tax credit for RE generation Critical for historical RE development

12/3/15 Investment Tax Credit 30% tax credit has dramatically reduced costs of solar PV Cyclical measure: demand dries up during recessions US States (OR) have pass- through provision Equity partners have high returns

12/3/15 Feed In Tariffs and Premiums Feed-in-tariff rates have been reduced EU Commission moving toward competitive bidding rules

12/3/15 Renewable Portfolio Standards CA and NY target 50% renewables by 2030 VT 75% by 2032

12/3/15 Group Purchasing

12/3/15 Attract Institutional Investors “YieldCo” securities that pay regular dividends: NRG Yield, Greencoat Energy, Pattern Energy “opened the floodgates to a sea of lower-cost capital” (Deloitte, 2015)

12/3/15 Grid Integration Strategies Duckbill in CA: 11,000 MW of flexible resources are required to meet late afternoon- early evening demand

12/3/15 Transmission Line Expansion

12/3/15 COLLABORATION BARRIERS Key Findings

12/3/15 Key Barriers

12/3/15 Virtual Mechanisms

12/3/15 RECOMMENDATIONS Collaboration enhancements

12/3/15 Enhanced Collaboration

12/3/15 Virtual Mechanisms

12/3/15 Counterparts

12/3/15 Third Party Partnerships

12/3/15 Regional Collaboration

12/3/15 NEXT STEPS Report Completion, Endorsement, Transition

12/3/15 Next Steps

12/3/15 Thank you for your time and attention! QUESTIONS? Center for Climate Strategies 1800 K Street NW, Suite 714 Washington, DC Thomas D. Peterson