Showing posts with label anaerobic digestion. Show all posts
Showing posts with label anaerobic digestion. Show all posts

Maine PUC considers community energy projects

Thursday, September 17, 2015

The Maine Public Utilities Commission is evaluating the viability of proposed community-based renewable energy projects that remain under development.

Maine has run a community-based renewable energy program since 2009.  The program gives qualified wind, solar, and other renewable energy projects long-term contracting opportunities to sell the facility’s output to a Maine transmission and distribution utility at attractive rates.

In 2015, the Maine Legislature adopted P.L. 2015 ch. 232, An Act to Amend the Community-based Renewable Energy Program”.  Beyond minor revisions to the law, the act adds strict deadlines for key program milestones: the Public Utilities Commission has until December 31, 2015 to order or allow utilities to enter into long-term contracts under the program, and all projects selected for a contract must become operational and commence generating electricity by December 31, 2018.

Section 5 of the Act also created a new "viability assessment" process designed to make sure the program is as effective as possible.  The program size is capped at 50 megawatts statewide; all of this capacity was quickly claimed by certified projects.  But not all projects that have been certified are operational; some have yet to be built.  Some stakeholders expressed concern over "permit banking" -- developers obtaining and holding onto program capacity, without actively developing it, while other projects would move forward if they could get the capacity.

As a result, the Legislature directed the Commission to review all certified projects that have not yet reached commercial operations, to determine whether the projects are reasonably likely to achieve commercial operations within a 3-year period.   If the Commission determines a project will not be viable by December 31, 2018, the Act directs the Commission to revoke any contract awarded, but such projects will remain certified under the program.   If the removal of nonviable projects frees up program capacity for contracting, the law directs the Commission to conduct an expedited request for proposals to select community-based renewable energy projects to become program participants and enter into long-term contracts.

The Commission's viability assessment process is now ongoing.  A July 13, 2015 procedural order identified six projects as having been either certified or awarded a contract, but not been placed in commercial operation.  Project developers were invited to submit information related to the viability assessment by August 7. 

The Commission meets on September 22 to deliberate on the viability assessments.

MA considers expanding net metering for small hydro

Tuesday, November 25, 2014

Massachusetts energy regulators are investigating whether to allow more small hydroelectric projects to benefit from a policy known as "net metering."
 
Net metering allows electric customers with their own small generators to sell the power they produce to the utility grid, offsetting the customer's bill for power purchased from the grid.  This effectively incentivizes electricity consumers to develop customer-sited generation that can generate power at a lower cost than grid-delivered power.  Many states have adopted net metering programs to encourage renewable and other distributed generation.  Most states' programs are restricted by size (a project's maximum generating capacity, or the program's total enrolled capacity) and by technology (e.g. solar photovoltaics usually qualify, but coal usually doesn't).

Massachusetts' current version of net metering allows customers to qualify by installing any type of generating facility, including a hydroelectric facility, as long as the facility is smaller than 60 kilowatts.  Size limits are larger for certain projects powered by wind, solar photovoltaics, or anaerobic digestion, as well as for farm-related "Agricultural Net Metering Facilities" -- up to 2 megawatts for most such projects, or 10 MW for some publicly owned facilities.  But under Massachusetts' current rules, hydroelectric facilities that are larger than 60 kW and are not Agricultural Net Metering Facilities are not eligible for net metering.

Whether that restriction makes sense is now the subject of an investigation by the Massachusetts Department of Public Utilities.  The 2014 enactment by the state legislature of An Act Relative to Credit for Thermal Energy Generated with Renewable Fuels, Chapter 251 of the Acts of 2014, directed the Department to study the feasibility, impacts and benefits of allowing customers to net meter electricity generated by micro-hydro and other small hydroelectric facilities.  The Act directed the Department to develop a report based on this analysis, and to submit the report to the legislature by July 1, 2015.

The Massachusetts DPU opened its investigation on October 16, 2014.  In the Department's order opening the investigation, it posed 13 questions to the public.  Topics ranged from the proper definition of "small hydroelectric" to the pros and cons of allowing new or existing small hydroelectric projects to net meter.   Written comments on these questions are due by the close of business on December 5, 2014.  In addition, the DPU held a technical conference on November 7 at which these issues were explored.

What will the Massachusetts Department of Public Utilities find regarding net metering and small hydroelectric projects?  How will the state legislature respond to the DPU's report expected this coming summer?  Will Massachusetts expand net metering opportunities for small hydropower?

USDA awards $68 million for energy projects

Thursday, October 9, 2014

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.

Maine funds available for anaerobic digestion

Monday, April 29, 2013

The state of Maine has announced funds available to help farmers reduce their agricultural impacts to water quality. State agencies have made up to $3 million available to enable low-interest loans to support eligible projects. These projects may include developing anaerobic digesters, as well as improved roof runoff structures, water and sediment control basins, composting facilities, and irrigation system water conservation.

Anaerobic digesters enable the conversion of organic materials such as manure and other agricultural wastes into biogas. Biogas, largely composed of methane, can be used as a fuel source comparable to natural gas. For example, it can be used to power an electric generator and thus to produce renewable electricity – all while making efficient use of manure and agricultural wastes that could otherwise harm water quality.

Two anaerobic digesters at Stonyvale Farm in Exeter, Maine.

Under the program, farmers will be able to borrow up to $450,000 at a fixed interest rate of 2 percent for up to 20 years to develop qualifying projects. The opportunity represents a partnership between the Maine Departments of Environmental Protection and Agriculture, Conservation and Forestry, the Finance Authority of Maine and the Maine Municipal Bond Bank. The initial seed money comes from the DEP-administered Clean Water State Revolving Fund. Since 1989, that fund has provided over $650 million in low-interest loans for water quality projects, primarily hosted by publicly owned wastewater treatment facilities.  For the newly-announced program, the fund will transfer up to $3 million to FAME, which will finance the loans.

For more information on the opportunity, contact either participating department, or consult a professional experienced with anaerobic digestion and state-funded incentive programs. The Preti Flaherty team advises clients on both the development of anaerobic digestion facilities and participation in government-backed loan programs. For more information, please contact Todd Griset at 207-623-5300.

Maine considers renewable feed-in tariff

Wednesday, March 20, 2013

The Maine legislature is set to consider a bill that would create a feed-in tariff for renewable energy.  Maine already has a renewable portfolio standard and other incentives for investment in renewable power production.  Will Maine add a feed-in tariff to the mix?
The Maine State House, home to a consideration of feed-in tariffs.
 A feed-in tariff is a policy tool intended to encourage investment in renewable energy technologies.  Feed-in tariffs typically offer long-term contracts under which utilities purchase power fromrenewable energy producers at predictable prices, often based on the cost of generation of each technology.  Where feed-in tariffs exist, developers of renewable energy projects gain certainty about the revenues their projects will create.  This certainty helps developers secure the financing they need to build projects.

A bill proposed by Maine state senator Christopher Johnson would require the state Public Utilities Commission to establish a renewable energy resources feed-in tariff program.  An Act To Establish the Renewable Energy Feed-in Tariff, also known as LD 1085, has the stated purpose of encouraging the rapid and sustainable development of renewable energy resources and technology for environmentally healthy generation of electricity.  Like feed-in tariffs in other jurisdictions, it would require that utilities purchase renewably produced electricity from all qualified suppliers.  It would have the Public Utilities Commission set the rate that electric utilities must pay for such power at a level sufficient to provide revenues to operate and to attract necessary capital and investment for small renewable electric generators.

Qualified suppliers would be limited to certain small renewable electric generators.  As defined in the bill, such generators would be limited to systems up to 500 kilowatts in size, that are majority owned by a person or entity that owns less than 500 kilowatts of electricity generating capacity in Maine, and that use solar photovoltaic panels or solar thermal or concentrating solar systems, generators fueled by methane from sewage treatment facilities, landfills or agricultural waste, generators fueled by combustion of biomass, tidal power projects, or wind energy.

Existing Maine law provides incentives for the generation of electricity from renewable resources.  Like most states, Maine has a renewable portfolio standard which requires electricity suppliers to source a specified portion of their power from renewable generators.  Maine also has a community-based renewable energy pilot program which functions like a feed-in tariff for eligible projects.  A feed-in tariff would add another incentive to build relatively small (non-utility-scale) projects.

LD 1085 has not yet been scheduled for a public hearing.  It will likely come before the Joint Standing Committee on Energy, Utilities and Technology later this spring.

MA net metering expands under new law

Tuesday, August 14, 2012

Massachusetts legislation signed into law earlier this month provides a variety of incentives for renewable generation in the northeastern US and adjacent Canadian provinces. Senate Bill 2395, An Act relative to competitively priced electricity in the Commonwealth, expands opportunities for net metering, a practice whereby electricity consumers can spin their meters backwards and offset the cost of electricity they buy by producing renewable power themselves.

Under existing Massachusetts law, qualified retail electricity customers who own distributed power generation equipment like solar photovoltaic panels have the right to sell excess power to their local utility at the same retail rates the customers pay to buy power from the utility.  In essence, this allows customers to offset their utility bills for purchasing power by producing more power than the customer needs.  This can be a powerful incentive for customers to develop distributed generation projects, because the retail rates utilities must pay for net metered power are typically higher than the wholesale rates otherwise available to distributed generators.

To limit the size of this incentive, previous law capped net metering to 3% of each utility's historic peak energy load.  Privately-owned equipment like solar panels on businesses or homes was capped at 1% of historic peak load, while publicly-owned facilities (schools, governmental buildings, etc.) were capped at 2%.

The new law doubles the amount of consumer-owned generation eligible for net metering, raising the private and public caps to 3% each.  This amounts to a tripling of the amount of privately-owned distributed generation eligible for net metering.

The law also allows anaerobic digestion to qualify for net metering.  This expansion of eligible technologies is likely to spur the expansion of projects that convert food, farm, and other organic waste to biogas for combustion in engines or turbines connected to electric generators.

An anaerobic digester located on a farm in New England.  The digester breaks organic waste down into biogas that can be used to produce renewable electricity.

As I noted yesterday, the new law also more than doubles the amount of renewable electricity that utilities must purchase from independent generators through long-term power purchase agreements.

Farm waste anaerobic digestion

Friday, June 8, 2012

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.

September 2, 2010 - sewage digestion; dam damage

Thursday, September 2, 2010

In August, news covered the plans of the Lewiston-Auburn Water Pollution Control Authority to build a anaerobic digester plant at its sewage treatment facility.  The plant would reduce the Authority's solids disposal costs and could generate significant energy from the methane produced.  Now, the Lewiston Sun Journal says they're clarifying that it is "not a given" that the Authority will develop the project.

Hydroelectricity: a rock has fallen onto the Ennis Dam on the Madison River in Montana.  Here is a map of the Ennis Lake and gorge area.  You can see pictures here and a map here.  It looks like Ennis Lake will be drawn down 5' to relieve some of the back-pressure on the dam, and then later draw it down another 4' for a full inspection and possible repairs.  Ennis Lake only averages 8'-9' deep, so this drawdown will have noticeable effects -- if not as permanent as the effects of drawdown prior to breach.  Hopefully the drawdown will not cause landslides and erosion as at Fort Halifax on the Kennebec River in Maine.

What's it like behind the gates of Bath Iron Works?  This Working Waterfront piece gives a good description of a tour of the large defense contractor on the Kennebec River.

August 25, 2010 - tidal energy; sewage anaerobic digestion

Wednesday, August 25, 2010

What is the first federal facility anywhere to use tidal power as an energy source?  A Coast Guard station in Eastport, Maine is claiming the title with its project to install Ocean Renewable Power Company's tidal energy turbine and generator.  ORPC installed a 60 kW tidal turbine and generator in March 2010.  Last week, ORPC announced that the unit had commenced powering the Coast Guard's 41' utility boat with electricity of a quality compatible with being grid-tied.  Yesterday, in Eastport, there was a celebration of the project's successes and promises.

Lewiston and Auburn, two of Maine's largest sister cities on either side of the Androscoggin River, share sewer treatment services through the Lewiston-Auburn Water Pollution Control Authority.  Currently, the plant treats 12.7 million gallons of sewage per day.  This process results in two major products: clean water, and the solids that (in technical ways, if not semantically) make up the difference between sewage and water.  The authority mixes about half of the solids with wood to make a marketable compost, but has to pay to dispose the remaining solids.  Now, the authority is considering installing an anaerobic digestion plant.  This plant would have two major effects.  First, it would significantly reduce the mass of solids requiring disposal -- up to a 40% reduction.  Where that mass would go produces the second major effect of the plant: through anaerobic digestion, combustible gas (primarily methane) is produced from the solids.  This gas can be burned in a gas turbine, which can be tied to a generator.  For Lewiston-Auburn, gas production is estimated at 170,000 cubic feet of methane per day; the authority estimates that it can produce 2/3 of its own electricity requirements from this fuel stream. The cost?  $16.6 million.  On September 8, the board of the authority will vote on the project.

The public debate over wind energy's merits continues with this letter to the Lewiston Sun Journal critical of developing wind near small towns and mountains in Maine.  Claims made include "they will not produce enough energy to make a dent in our needs, but it will make some investors very rich" and "the energy will be sold out of state".

Copper theft is an issue in Maine.  Copper is valuable for its scrap value.  Thieves strike utility infrastructure as well as homes.  Here's a news report of a thief busted for stealing the copper piping from a house listed for sale.