A presentation by

1. Cooperating for Community
Renewable Energy
A presentation to the South Dakota Resources Coalition
John Farrell
October 31, 2009
@ Inst. For Local Self-Reliance

2. Thesis
By creating decentralized, community-
based renewable energy projects, tapping
into the existing grid, and applying new
smart grid technology, South Dakotans can
maximize the economic returns of energy
production.
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

3. The Opportunity!
! Percent of power from coal: 47%
! Number of SD coal mines: 0
! Percent of coal power owned locally: 5%
! Possible percent of power from wind: > 1000%
! Possible percent of wind power owned locally:
~100%
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

4. Getting There!
! Smarter grid
! Scale and ownership
! Smarter policy and strategy
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

5. Smart grids
! $9.6 million for South
Dakota
! Will provide grid
interactivity and
information
! Empower the
consumer
! More than a meter…
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

6. Smart grids
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

7. Smart grids
! Bay Localize did a survey of rooftops in a section
of East Oakland, CA and determined that 70% of
the electrical power needs for that area could be
generated on the rooftops of the existing structures
in the area. My own sense is that if the new
technologies were available 100 years ago, we
would have had very few long distance
transmission lines and large power companies.
! Arthur Boone, Oakland
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

8. Smarter grid
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

9. Smarter grid
! Minnesota Distributed Generation Study
! High level engineering analysis done by
utilities
! 600 MW of dispersed wind (10 to 40 MW)
with little to no infrastructure upgrades
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

10. Smarter grid
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

11. Smart about scale
or
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

12. Smart about scale
Most wind power economies of scale are captured at 10 MW
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

13. Smart about scale
! Price of transmission = $3 million per mile
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

14. Smart about scale
! Distributed projects are
enabled by new technology
! They tie into existing
infrastructure
! They capture most economies of
scale
! They enable local ownership
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

15. Absentee = lost opportunity
! I live out on the Buffalo Ridge...I
look out my window and I see
hundreds of wind turbines. Most
of those turbines are owned by
the foreign multinationals. Out
of two counties in Minnesota
we export about $80 million
dollars a year to France,
Florida, Italy, Portugal, Spain.
-Dan Juhl, community wind
developer
$80 million
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

16. Local Ownership = growth
! Two times the jobs
! Four to five times more economic impact
Absentee owned Locally owned
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

17. Smart policy
! Federal incentives inhibit local ownership
! Production Tax Credit is not accessible
! Tax bill of $100,000 a year
! Nonprofits, rural electric coop, city, or county need not apply
! Only income from rental or business partnership
! Rewards income instead of production
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

18. Smart policy
! Collective investment rules
! Securities and Exchange Commission
exemptions
! State registration
! Audits
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

19. Smart policy
! Reform the PTC
! Allow all income
! Make refundable
! Reward production
e.g. Stimulus grants
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

20. Smart policy
! Property Assessed Clean Energy
! Municipal bonds & aggregate purchasing
! Opt-in
! No upfront money, long-term loans, fixed to
property
! California, Colorado, New Mexico
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

21. Smart policy
! Utility-based community energy
! Rural electric cooperative United Power
community solar farm
! 25-year lease for a solar panel
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

22. Smart strategy?
! Long-distance ! Harness renewable
centralized renewable energy everywhere
energy - “hot spots”
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

23. Renewable Resources (wind)
Credit: NREL
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

24. Renewable Resources (solar)
Credit: SEIA
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

25. Renewable Resources (geothermal)
Credit: NREL
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

26. Hot spot strategy
Strong wind
resource
Strong solar
resource
Strong
geothermal
resource
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

27. Hot spot strategy
Federal
preemption of
alternatives
Strong wind
resource
Strong solar
resource
Strong
geothermal
resource
Proposed high voltage
transmission line (765kV)
Transmission plan credit:
American Electric Power Existing high voltage
transmission line
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

28. Hot spot strategy: costly
$100 billion Strong wind
resource
to 200 billion
Strong solar
resource
Strong
geothermal
resource
Proposed high voltage
transmission line (765kV)
Existing high voltage
transmission line
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

29. Hot spot strategy: unpopular
! Want this in your backyard?
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

30. Hot spot strategy: unpopular
! In May 2009, 10 East Coast governors:
! Requiring our residents and businesses to pay
billions of dollars for new transmission lines that
would import electricity from the upper
Midwest and Southwest into their region
“could jeopardize our states’ efforts to develop
wind resources ... “ They added, “it is well
accepted that local generation is more responsive
and effective in solving reliability issues than long
distance energy inputs.”
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

31. Hot spot: caveat emptor
! A victory for interstate transmission may be
at the expense of broader public support for
renewable energy
=
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

32. Hot spot strategy: unnecessary
Source:
ILSR
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

33. Smart strategy
! Massachusetts Secretary of Energy and
Environmental Affairs, Ian Bowles:
! Lawmakers should resist calls to add an extensive
and costly new transmission system that would
carry electricity from…the Great Plains…to
places with high energy demands like Boston,
Chicago, and New York ... Renewable energy
resources are found all across the country; they
don’t need to be harnessed from just one place.
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

34. Smart strategy
! Smart grids
! Electric cars
! Distributed generation
! Local ownership
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

35. Smart strategy: Willmar, MN
! Willmar, MN
! Municipal utility
! Two wind turbines, cheaper than coal
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

36. Smart strategy: Morris, MN
! University of Minnesota
! Wind turbine(s)
! Biomass district heating
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

37. Smart strategy: MMPA
! Minnesota Municipal Power Association
! 12 wind turbine, 12 cities
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

38. Thesis
By creating decentralized, community-
based renewable energy projects, tapping
into the existing grid, and applying new
smart grid technology, South Dakotans can
maximize the economic returns of energy
production.
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC

39. Thank you!
! John Farrell
! New Rules Project -
www.newrules.org
! jfarrell@ilsr.org
John Farrell, ILSR, jfarrell@ilsr.org
Oct. 31, 2009: SDRC