Apple makes California solar deal

Electronics manufacturer Apple has announced an $848 million deal to buy electricity from a solar energy project to be developed in California. Project developer First Solar has described the power purchase agreement as "the largest agreement in the industry to provide clean energy to a commercial end user."

Solar photovoltaic panels in the Utah desert.

Earlier this week, Apple announced the deal with First Solar, Inc., to buy power from First Solar's California Flats Solar Project in Monterey County, California.  Under a 25-year power purchase agreement or PPA, Apple will buy the equivalent of 130 megawatts of the solar project's output. 

First Solar is a vertically-integrated solar company, manufacturing solar photovoltaic panels, developing utility-scale photovoltaic power plants, and providing solar project support services.  First Solar boasts involvement with over 10 gigawatts of installed solar photovoltaic capacity worldwide.  Its resume includes the 550-megawatt Topaz Solar project in California and the 290-megawatt Agua Caliente project, which was once the world's largest operating solar energy project.

First Solar's California Flats Solar Project will occupy a 2,900-acre site on the Jack Ranch in Cholame, California.  Owned by Hearst Corporation, the project site was formerly a dryland farm, and occupies about 3% of the Jack Ranch property.  First Solar expects to begin construction later this year, and to complete the project by the end of 2016.

With a total project capacity of 280 megawatts, Apple's 130-megawatt commitment covers about 46% of the project's output.  The project's remaining 150 megawatts will be sold to utility Pacific Gas & Electric under a separate long-term PPA.

Apple has developed other renewable energy projects, including fuel cells and solar panels at its Maiden, North Carolina data center.  Other high-tech companies have also made significant investments in renewable energy, including Google's commitment of over $1.5 billion to solar and wind projects through power purchase agreements and direct investments.

USDA awards $68 million for energy projects

The U.S. Department of Agriculture has announced $68 million in grants and loan guarantees for renewable energy and energy efficiency projects.  The latest round of awards under the agency's Rural Development arm's Rural Energy for America Program will support 540 projects at farm and rural business sites across the country.

Since its creation in the 2008 Farm Bill, REAP has supported more than 8,800 renewable energy and energy efficiency projects nationwide with over $276 million in grants and $268 million in loan guarantees to agricultural producers and rural small business owners.  Eligible agricultural producers and rural small businesses may use REAP funds to make energy efficiency improvements or install renewable energy systems including solar, wind, biomass and anaerobic digesters, small hydroelectric, ocean energy, hydrogen, and geothermal projects.  (For looks at previous REAP winners, check out these posts from 2011 and 2013.)

In this year's REAP funding round, USDA awarded about $68 million in investment support.  Of this, $12,376,548 will come in the form of grants, while $56,449,244 will come as loan guarantees.  While most grants are under $100,000 per project (with some below $10,000), there were some larger grant awards: for example, a biomass anaerobic digester in California won $290,000, an off-grid solar project in Hawaii won $123,338, and a direct use geothermal heat pump in Oklahoma won $133,250. Of the loan guarantees, $55.3 million will go to support 22 solar photovoltaic projects in North Carolina, mostly ranging between 2 megawatts and 5 megawatts per project. 

In each case, funding is contingent upon the recipients meeting the terms of the loan or grant agreement. USDA's hope is that these grants and loan guarantees will enable American agricultural producers and rural small business owners to reduce their energy costs.

REAP was reauthorized by the 2014 Farm Bill, so expect USDA Rural Development to solicit more REAP projects later this year.  While not all sites may qualify, USDA's definition of eligibility is more broad than many assume.  The Preti Flaherty team helps our clients understand how to benefit from REAP funding and other incentive programs for renewable energy and energy efficiency.  Contact Todd Griset to learn more.

Vermont, Quebec announce electric vehicle corridor

Will a newly announced electric vehicle charging corridor in Vermont and Quebec lead to more electric vehicles in the region?

Solar panels on the roof of the Farm Barn at Shelburne Farms, in Shelburne, Vermont.

Electric vehicles are receiving increased interest, as drivers and policymakers look for ways to reduce the use of gasoline in the transportation sector.  For pure plug-in cars, the vehicle's range and the logistics of recharging the vehicle's battery are critically important.  Electric vehicle manufacturers try to address range anxiety through technological advances, while policymakers focus on ensuring that drivers have access to conveniently-spaced recharging infrastructure.

Today Vermont Governor Peter Shumlin and Quebec Premier Pauline Marois unveiled the first sites of the Vermont-Québec Electric Charging Corridor.  The 138-mile corridor will eventually connect Burlington, Vermont to Montreal, Quebec, using existing highways including I-89 and Canadian routes A-10, 104 and 133.  The plan calls for over the development of over 20 charging stations along the way.  Some stations are already in place, including charging stations in Sharon, Montpelier, South Burlington and Waterbury.

How quickly charging stations can recharge batteries depends on the technology used.  According to the U.S. Department of Energy's Plug-In Electric Vehicle Handbook, light-duty vehicle charging stations can be broken into three categories.  Level 1 stations offer 2 to 5 miles of added driving range per hour of charging.  Level 2 stations provide 10 to 20 miles of added range per hour of charge.  Much more expensive Level 3 or "DC fast charging" stations can add 60 to 80 miles of range in 20 minutes of charging.

Level 2 stations are proposed for the Vermont-Quebec corridor.  These stations will allow electric vehicle drivers to top off their batteries at the stations, and possibly to fully recharge their batteries overnight.  While the charge rate is still significantly slower than refilling a conventional vehicle's tank with gasoline, Vermont and Quebec hope that the cost and environmental benefits of electric vehicles will drive their greater adoption.

USDA announces renewable and energy efficiency funding

The United States Department of Agriculture has announced a new round of funding for assistance to agricultural producers and rural small businesses for energy efficiency and renewable energy projects.  USDA's Rural Energy for America Program (REAP) offers eligible farms and businesses incentives to improve their energy efficiency or produce energy from renewable sources.

USDA's mission includes revitalization of rural economies to create opportunities for growth and prosperity, support innovative technologies, identify new markets for agricultural producers, and make better use of natural resources. Authorized by the 2008 farm bill (formally the Food, Conservation, and Energy Act of 2008), the USDA REAP program's goals are to help agricultural producers and rural small businesses reduce energy costs and consumption and help meet the nation's critical energy needs.  Through the end of the 2012 fiscal year, REAP has funded over 6,800 renewable energy and energy efficiency projects, feasibility studies, energy audits, and renewable energy development assistance projects.

Today USDA announced that it will accept applications for three REAP program categories:

• Renewable energy system and energy efficiency improvement grant applications and combination grant and guaranteed loan applications until April 30, 2013
• Renewable energy system and energy efficiency improvement guaranteed loan only applications until July 15, 2013
• Renewable energy system feasibility study grant applications through April 30, 2013

USDA plans to make funding available despite the current federal budget sequestration, which appears to have cut REAP funding by at least $2 million in fiscal year 2013. 

Application requirements for REAP assistance vary depending on the type of assistance sought.  Those interested in applying for assistance can contact their local USDA office for more information, or consult a professional with experience working with the REAP program.

Preti Flaherty helps our clients evaluate whether REAP assistance is a good match for their businesses; I have assisted my clients in securing REAP funding for their energy projects.  Please contact us at 207-791-3000 for more information.

USDA funding for biomass energy crops

The U.S. Department of Agriculture has announced $9.6 million in funding for biomass energy crop production in New York, North Carolina and Arkansas. The funding under the Biomass Crop Assistance Program (BCAP) focuses on expanding the production of non-food energy crops for use in manufacturing liquid biofuels and renewable electricity.

Miscsnthus - the dwarf garden variety, related to the giant hybrid energy crop.

BCAP, created in the 2008 Farm Bill, is run by USDA's Farm Service Agency (FSA). BCAP is designed to help farmers and forest land owners switch to crops that can be used to produce usable energy. In many cases, these new energy crops can have significant start-up costs and can take several years before they are ready for harvest. Developing the facilities need to convert these crops into energy products can also involve significant lead time. To overcome these obstacles, BCAP will pay energy crop producers reimbursement for up to 75 percent of the costs of establishing perennial crops. BCAP will also pay for annual maintenance of these crops, for up to five years for herbaceous crops and eleven years for woody crops.

The funding announced this week includes nearly $4 million to fund the production of up to $4,000 acres of grass crops including miscanthus and switchgrass in North Carolina. These crops will be sent to a refinery proposed by Chemtex International where they will be converted into 20 million gallons of bioethanol per year. The refinery is also expected to produce chemicals and biogas. North Carolina farmers will be paid an initial amount to establish the grass crops, plus five years of annual payments for crop maintenance, on top of their crop sales.

$4.2 million in BCAP funding will also support the establishment of up to 3,500 acres of shrub willow in northern New York. Project sponsor ReEnergy Holdings LLC will buy the willow crop as a fuel for biomass electricity production in the area.

BCAP will also provide an additional $1.2 million in funding for an expansion of miscanthus production in northeast Arkansas. Project sponsor MFA Oil Biomass LLC anticipates using the crop to produce a pelletized fuel for both heating use on the producing farms and sale into pellet fuel markets.

Farm waste anaerobic digestion

Yesterday I attended a celebration at Stonyvale Farm in Exeter, Maine, where an innovative anaerobic digester system is now producing renewable electricity from cow manure and other organic waste.  The project demonstrates both a promising technology and an opportunity for farms to produce and market new products.

Two anaerobic digesters at Stonyvale Farm in Exeter, Maine.

Stonyvale Farm is a fifth-generation family dairy farm.  Today the farm is home to 1,000 milk cows and 800 calves.  Several years ago, the family decided to explore the development of an anaerobic digestion system to convert manure and other farm waste to usable biogas.  This led to the creation of Exeter Agri-Energy, a renewable energy company that built and operates a 1-megawatt generator fueled by methane produced through anaerobic digestion at Stonyvale Farm.

Exeter Agri-Energy's digester and generator came online in late 2011.  Today the project converts cow manure and off-farm organic waste from a variety of sources into biogas.  EAE is permitted to accept a variety of food-based and organic wastes from off-farm for conversion into biogas.

The biogas is burned in a combustion engine to produce electricity (enough for about 800 homes) and heat.  I helped the company qualify the project for incentives under Maine's community-based renewable energy pilot program, which gives Exeter Agri-Energy a long-term contract to sell the facility’s output to its local transmission and distribution utility for up to 20 years at average prices up to $100 per MWh (equivalent to 10¢ per kWh).  This works much like a feed-in tariff for qualified projects, giving them a guaranteed buyer and price for the project's output.

Fuel production on the farm: dairy cows at Stonyvale Farm.

This on-farm energy project also enables the creation of additional products and revenue streams, as well as cutting the farm's costs.  Byproducts of the digestion process become organic fertilizer, organic soil additives, and animal bedding used on the farm, creating a variety of products with minimal waste.

July 28, 2011 - Vermont's largest solar array compared to California's

Solar energy projects come in a variety of shapes and sizes: photovoltaic (PV) or thermal, large or small.  A look at Vermont's new largest solar project, and how it compares to the largest solar project in the US under development in California, highlights the range of solar power projects.

Yesterday, Vermont Governor Peter Shumlin officially activated a 2.2-megawatt solar photovoltaic system in South Burlington, Vermont.  Located on a 25 acre site amidst farmland on the fringes of Burlington's metro area, the $12 million project owned by Chittenden County Solar Partners is projected to produce 2.91 million kWh annually.  This output will be sold to Vermont's Sustainably Priced Energy Development (SPEED) Program under a 25-year power purchase agreement.  This PPA, made possible by Vermont's standard offer law, lets sell the solar project sell its output to Vermont utilities at a guaranteed price set by state regulators: in this case, 30 cents per kilowatt-hour.  This is about twice the average retail price for all electricity sold to residential users in Vermont.  Developers note that long-term contracts with guaranteed pricing are often necessary in order to finance projects.  While the Vermont Public Service Board has since lowered the standard offer to 24 cents, the South Burlington project's contract guarantees it the contract price.

Meanwhile, the largest solar project under construction may be the Blythe Solar Power Project in Southern California.  When the project is complete at 968 MW, this solar thermal power station will dward the scale of a distributed photovoltaic project like AllEarth's in Vermont.

What these two projects have in common is that they will both operate by capturing usable energy from the sun.  Both are new, meaning there are jobs involved in designing, constructing, and operating them.  Both can be expected to displace fossil fuel-fired generation, and qualify as renewable under federal and state policy.

The differences are perhaps more striking.  The Blythe project is a massive centralized project, while one of the key features of the Vermont project is its distributed nature.  Not only can distributed generation projects avoid the need to build new large transmission lines just to get the project's power to market -- a significant issue for centralized projects like those in California -- but distributed generation can even enhance the strength of the existing grid by shoring up voltages and reducing line losses.  Combined with the different technologies involved and the different overall project scales, these two solar energy projects illustrate the broad range of projects falling under the solar power umbrella.

June 23, 2010 - the history of the Trafton tide mills; Russia-Belarus gas dispute

Monday's paddle brought me through the remains of the Trafton tide mill. What I hadn't realized is that the eastern branch was home to another tide mill owned by the Trafton family.

From the Georgetown Historical Society's A History of Georgetown Island:

The lumber mill on the western branch, which was built by David Oliver and Thomas Trafton, continued to be operated into the first decade of the 20th century, and the mill dam can still be seen. David Oliver, Jr. had a son David of the 3rd generation (grandson of David and Grace). He and his wife, Hannah Stacy, came to Georgetown from Lynn, Massachusetts. He and his father, David Jr., and Thomas Trafton, built their first lumber mill on the eastern branch of the Cove on what is now the Indian Point Road. Later they built a second lumber mill on the west branch of the Cove Thomas Trafton also had a gristmill on the west bank of the western branch, near the former old Post Office at the bottom of the hill in Georgetown Center.

I found an interesting blog, Five Islands Orchard, which provides some more history and information. Apparently the students of the Georgetown elementary school are considering building a demonstration tidal mill at the western Trafton site. Blogger Ben Polito says he did a rough calculation of perhaps 1.4GJ of energy per tide, equivalent to about 390 kWh or 10 gallons of gas. While this might not seem like a lot of energy today -- particularly since harnessing it would likely require a $1 million-plus hydro facility -- the Trafton mill would have provided the energy equivalent of 300 laborers, all for a relatively low cost.

On the international energy news front: the conflict between Russia and Belarus over gas offers a classic example of how energy policy choices interface with national security. Russia's state-owned utility Gazprom first cut off 35% of Belarus's gas supply, then increased the cut to 70% of normal flows, over about $200 million in debt Belarus is said to owe. In response, Belarus has cited $260 million in unpaid tariffs as a reason cut off Russia's access to the international pipeline needed to get Russian gas to Europe. In today's interconnected world, states and nations rely on fuel supply and infrastructure in neighboring jurisdictions. Russia is dependent on Belarus's pipeline to deliver 20% of its total European exports, and Belarus is dependent on Russia for gas to power electric generation, industry, and (in winter) heating. Though this relationship provides each nation with resources it wouldn't otherwise have, friction in the relationship leads to periodic strife such as we see today. Some cite this downside risk as grounds for increased domestic self-reliance and energy security. Indeed, if the situation progresses to where Russia delivers no gas to Belarus, that nation will need to have an alternate fuel source and contingency planning to keep businesses and homes running.

Finally, hay is for horses: a Kennebec River hay farm, during first harvest.

From Energy Policy Update

June 17, 2010 - hay is for horses

Yesterday, I looked at the U.S.'s historic energy usage.  In 1900, according to the U.S. Census, there were 76,094,000Americans, who consumed an estimated 9.587 quad of energy.  This works out to 125 million Btu per capita -- about 38% of today's U.S. per capita energy intensity.  As noted yesterday, I suspect this figure does not include the substantial energy that was used to feed draft livestock in 1900.  We don't usually think of livestock fodder as containing solar energy, but in a very real way, photosynthesis has been a major energy base for millennia.

To that end, I found an interesting note in the Thirty-Fifth Annual Report of the Secretary of the Maine Board of Agriculture, from 1892:

OUR HAY CROP.
By W. B. Kendall, Delivered at Clinton.

IMPORTANCE.

' On July 4th of each year our State of Maine celebrates its agricultural independence, by presenting its farmers with a constant, and never-failing million ton crop of grasses, the great basis of our agricultural life and wealth, in this northern clime.

So constantly do we gather this king of all crops into our barns, that, while almost every year, some of our cultivated crops, through drought, flood, insect blight or "season" are failures, the great hay crop, because ever present, is not given the gravity of consideration it demands. The hay crop of Maine has averaged, for the past ten years, one and one quarter million tons. At 87 per ton in the field $8,750,000 and at 810 per ton in the barn, $12,250,000,or more than the value of all others combined. We hear much of Maine's great lumber crop, and industry, but even this does not, in primal value, nor in the capital invested in its manufacture, nor in value after it is manufactured, amount to as much as the value of the hay crop in the field, the labor, machinery and barns for its storage and the cash value of the same delivered in Boston market, or consumed on the farm.

Our hay crop, the basis of our dairy industry, supports through our northern winters 1,100,000 head of cattle, horses and sheep.

In fact, a total failure of our hay crop for three years would practically depopulate our State, farm, town and city.

The agricultural report focuses on Maine's export of hay to southern New England, both to feed livestock used for food production (like the dairy farms) and to feed draft animals.  When you drive around the Maine countryside today, and see the hay fields that remain scattered here and there, it's easy to forget that all that hay is a vehicle for storing and consuming solar energy -- and that Maine has a long history of exporting that energy southward.