1. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 New Jersey’s Clean Energy Programs Rowan University Wind Symposium Renewable Energy - Wind August 2008 Mark Valori Renewable Energy Technical Director Market Management Team

2. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Today 40MW PV solar 2100 installs,.07% 2 nd in US; 7 th in World 170 active installers Tomorrow 1,500 MW Solar 1,000 MW Offshore Wind 200 MW Onshore Wind 900 MW Biomass Renewable Resources Wind: Shore, highlands Sustained winds of 15 mph Solar: Output ~1200 kWh AC Biomass 25% composed of organic & urban residues (food wastes) Government Activism “20/20” RPS plan 20% GHG legislation Energy Master Plan BPU commitment RGGI New Jersey Profile

3. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Clean Power Choice SREC Pilot CORE New Jersey’s Renewable Energy Programs

4. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Renewable Energy Programs CleanPower Choice (CPC) Voluntary purchases Premium charge Managed via utility bill Businesses are eligible SREC - Only Pilot Solar only No queues or rebates Early access to SREC market Customer On-site Renewable Energy (CORE) Solar, wind, biomass 700kw per project cap Entity cap Rebates provided Extensive queues

5. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Customer On-site Renewable Energy (CORE) Program The CORE program supports a variety of technologies such as photovoltaic (solar electricity), small wind, and sustainable biomass equipment, such as fuel cells. On-site behind the meter. Net metered to 2 MW. Rebates for smaller systems Financial incentives are available to reduce the overall cost of renewable generation systems. Incentives are technology based. Incentives are currently paid to incrementally based on size of the system installed and can be used to defray installation, equipment and interconnection costs. CORE program information is available on the web at: www.njcleanenergy.comwww.njcleanenergy.com. Substantial interest in Solar. Interest developing in wind and biomass.

6. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 With almost 50MW in place, NJ is 2 nd in the US and 5 th in the world in installations. Most mature NJ renewable market, with over 170 experienced installers and almost 3,000 customers. Overall installed costs at $8,000 per kw, further cost reductions pending expansion of silicon and manufacturing capacity. The New Jersey market is transitioning to rebates for smaller projects only and SREC’s for larger projects. CORE Program - Solar Market

7. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 The required wind resource (>11mph) is along the shore and highlands. Best example of installed project is at ACUA, similar interest building among utility authorities at Union Beach, Cape May, other coastal municipalities Small wind projects have run into home rule issues; model ordinance adopted by Ocean Gate. $5 million in 2008 funds set aside for wind (and biopower) projects; 2009 program possibly to launch to support larger projects Rule changes required to support Group Net Metering and Community Wind CORE Program - Wind Market

8. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Class I Renewable Energy Solar technologies, photovoltaic technologies, wind energy, fuel cells powered by renewable fuels, geothermal technologies, wave or tidal action, and/or methane gas from landfills or a biomass facility, provided that the biomass is cultivated and harvested in a sustainable manner. Types of class I renewable energy that qualify for use in meeting the requirements of this subchapter are set forth at N.J.A.C. 14:8- 2.5. Electric energy produced from:

9. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 RECs (and S-RECs) Renewable Energy Certificates (RECs) are tradable certificates that represent all the clean energy benefits of electricity generated from a renewable electric system. (SRECs are created from solar energy systems.) 1,000 kWh (1 MWh) of electricity = 1REC RECs are issued to the generator and can be sold or traded separately from the energy. This makes it easier for individuals and businesses to finance and invest in clean, renewable sources of power.

10. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Wind Installed Projects

11. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 New Jersey Wind Resources

12. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Wind Program Incentive is calculated based upon Expected Performance Based Buy-down (EPBB). Expected performance based on output –Specific turbine –Specific site How does the EPBB work? –Performance calculator calculates output for a given location –Input parameters »Wind speed »Turbine power curve The EPBB is designed to produce higher rebates for project which maximize power production More closely calibrates with goals defined in the Renewable Portfolio Standard (RPS) and the Energy Master Plan (EMP). CORE Program - EPBB

13. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 EPBB Incentive levels This is different than the previous wind incentive level which was calculated on the capacity of the system. Factors included in calculating annual input –Cube of the wind speed –Swept area –Air density CORE Program - EPBB Annual Estimated ProductionIncentive Level 1-16,000 kWh$3.20 / Annual kWh 16,000-750,000 kWh$0.50 / Annual kWh

14. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Obtaining locals average annual wind speed –Wind maps for no charge are available at: http://firstlook.3tiergroup.com/ http://www.awstruewind.com/maps/united-states.cfm/region/46688 http://eosweb.larc.nasa.gov Additionally a wind resource site assessment may be performed even though the average wind speed can be determined from the wind maps Site assessments are performed by; –Certified site assessor evaluates topography and site characteristics to give a more accurate evaluation –Engineering firm performs detailed site assessments including wind speed analysis based on anemometer readings CORE Program - EPBB

15. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Wind turbine equipment accepted by the program: If a wind turbine is not presently accepted by the program the following information must be provided –Power curve based on one year of actual energy production data –Engineering certification form the manufacturer based on the power curve CORE Program - EPBB –ARE–Endurance –PGE–Scirocco –Vestas–Entegrity –Bergey–SWWP –Proven–Jake –Whisper–Ventera To apply to the program applicant must complete a pre-application for guidance purposes

16. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Small Wind Turbine Height Comparison

17. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 Renewable Wind in New Jersey

18. Dark blue: RGB=66,132,184 Light blue: RGB=211,230,245 If you have any questions about renewable energy or New Jersey’s Clean Energy Programs, please feel free to contact: Mark Valori at mark.valori@csgrp.com@csgrp.com Phone 732-218-3411