1 Resources for Action Rob Pratt Director, Massachusetts Renewable Energy Trust Presented to Berkshire Renewable Energy Leadership Summit June 7, 2005 ~ Lenox, Massachusetts

2 Renewable Energy Trust Funded by a system benefits charge as part of 1998 electricity restructuring ($25 million/year) Mission:  Increase the supply of and demand for clean energy  Promote the development of a vibrant Massachusetts renewable energy industry  Maximize benefit to Massachusetts ratepayers Managed by the Massachusetts Technology Collaborative, the state’s development agency for renewable energy and the innovation economy.

3 Renewable Sources Wind Biomass Solar Hydroelectric Fuel cells Ocean Wave/Tidal

4 Renewable Energy Cost Trends Wind PV COE cents/kWh Biomass Geothermal COE cents/kWh Source: U.S. National Renewable Energy Laboratories

5 Renewable Energy Capacity Trends

6 Fossil Fuel Prices: Crude Oil Oil prices: $57+/barrel and heading up?

7 Fossil Fuel Prices: Natural Gas 12-mo. NG prices: Over $7.7/MMBtu

8 Reasons for Optimism Cost of renewable technology continues to decrease while fossil fuel prices increase Renewables demand continues to increase  19 states have RPS requirements  15 states have funds dedicated to renewables  Voluntary markets are starting to form (particularly for C&I customers) Utilities, oil companies and major energy companies are becoming major players in renewable energy market

9 Renewable Energy Trust Programs Clean Energy  Supporting large-scale clean energy development in the state  Educating Massachusetts citizens, teachers, and students about the benefits of clean energy Green Buildings and Infrastructure  Developing green building projects powered by clean energy Industry Support  Accelerating job growth, economic development, and technological innovation in the state Policy Unit  Collaborating with interested stakeholders to address market and regulatory barriers to new clean energy development

10 Massachusetts Renewable Portfolio Standard (RPS) Facility Eligibility  Wind, solar PV, landfill gas, biomass, ocean Applies to utilities and competitive suppliers Ways to Comply:  Renewable Energy Certificates (RECs)  Alternative Compliance Payment ($50/MWh)

11 New England Renewable Energy Certificates New England Generation Information System (NE-GIS)  System to track attributes of power generated in New England Goal: separate attributes from energy  Encourage flexible trading across region RECs are from eligible renewables in any NE state Six month shift between production and REC creation: e e Jan 05 Mar 05 Energy (MWh) Generated in Q1 Time shift to REC creation Q RECs created/traded in Q3 Jul 05Sep 05

12 Large-Scale Renewable Energy Support Massachusetts Green Power Partnership (MGPP)  Goal: Provide REC revenue certainty to developers through long-term contracts (up to 10 years).  Trust manages market risks regarding future REC value and demand Predevelopment Financing  Goal: Provide early-stage support for large renewable energy projects serving Massachusetts  Grants available to public entities  Financing available to all eligible applicants

13 Community Wind Initiative Goal: Help MA cities and towns tap into the power of the wind to:  meet local electricity needs and  be a potential source of revenue. Communities can participate by: 1. Developing and hosting local, community-scale wind turbines. Trust assistance includes: wind monitoring equipment and data analysis, technical assistance, and access to competitively secured resources (e.g. wind turbines) 2.Communities that do not have adequate wind can: participate as part of a regional development or by purchasing clean electricity from a nearby wind turbine

14 $8.9 million budgeted over 5 years Over 10 kW projects; no upper size limit Up to $650,000 per project available All renewable technologies can apply Next round applications due in September Investor owned electric utility areas only Extra $ for public buildings, economic target areas, low income housing, etc. Must participate in efficiency programs Large Renewables Initiative formerly known as “Commercial, Industrial & Institutional”

15 $5 million available over 3 – 5 years kW or smaller projects are eligible 2. Rebates for PV, wind, or micro-hydro 3. Open or “rolling” application process Apply anytime; applications processed monthly 4. Applications available on MTC website Applications must be pre-approved! Small Renewables Initiative

16 Ratepayers can choose to pay a premium on their monthly electric bill to support renewables. MTC matches each dollar of household or small business support with: Up to $1 to the consumer's community for renewable energy educational materials or projects. NOTE: These funds may be combined with the Small Renewables Initiative rebates to cover up to 100% of project costs on a municipally-owned facility! Up to $1 additional to low-income energy projects $2.5 million in matching funding available annually To learn more visit: Massachusetts Clean Energy Choice

17 Hedge Program Supports pursuit of long-term, price certain power for Massachusetts end-users: 1.Long-term contracts with renewable energy generators provide a hedge against fossil fuel price volatility 2.Supports financing of renewable generation facilities

18 Green Buildings 1/3 of U.S. energy consumption is used for heating, cooling, lighting and appliances in buildings. Green Buildings  Encourage the combination of high-performance design, energy efficiency and renewable energy  Reduce the energy consumption of this sector  Enhance the sustainability of the built environment Trust commitment to Green Buildings:  Financial and technical support to include renewable energy technologies in Green Buildings  Encouraging designs and solutions that are replicable  Documenting and disseminating lessons learned

19 Green Schools Initiative Partnership between MTC and MA Dept. of Education Promotes high performance green design in new schools and major renovations Goal is a new set of standards for school construction in MA MTC provided funding for:  16 pilot schools (each received up to $130k for design and up to $500k for construction)  38 schools received feasibility study $20k each Dept. of Ed. adds 2% to total state construction grant for eligible projects Skylight - Capuano School in Somerville. Photo by HMFH Architects, Inc. Schematic – new Dedham Middle School Drawing by Dore and Whittier, Inc.

20 $10.6 million budgeted over 5 years Partnerships w/ MassHousing and others Coordinate with Energy Star Homes All renewable technologies can apply Investor owned electric utility areas only Must participate in efficiency programs Leveraging other funds for “green” elements of the projects Affordable Green Housing Initiative

21 Industry Support Program Goal: accelerate job growth and economic development in the MA Renewable Energy industry cluster 1.Massachusetts Green Energy Fund (MGEF) a privately managed venture capital fund 2.Sustainable Energy Economic Development (SEED) Initiative Invest with companies that have yet to demonstrate commercial viability of their tech. 3.Emerging Technology Solicitation Grants to demonstrate emerging renewable energy technologies at the commercial scale

22 Investing in Massachusetts’ Clean Energy Economy Win-win Leverage MA strengths: technology, offshore resources, human capital Massachusetts Clean Energy Cluster  Approx. 10,000 jobs today  One of top states in U.S. on per capita basis  Experienced double digit growth last year  Accelerates technology innovation and adaptation MRET can be a lead and patient investor where technology-intensive product development bears high costs... And beyond Massachusetts A geographic focus can nevertheless have a global perspective (e.g., PV Export, MGEF) Funding many technologies will prove more robust than a single “bet”

23... and investors are interested Compiled by UMass EBTC 2004

24 Trust Accomplishments As of December 2004: More than $119 million invested in more than 350 projects serving Massachusetts Supporting approximately MW of new renewables Planning and siting support for 7 projects expected to result in additional 630 MW 47 green buildings funded 93 green building feasibility studies funded

25 For more information: