Local renewable power generation can fulfill the rural electric philosophy of self-reliance and economic development in the 21st century just as electrification did in the 20th century. This presentation by ILSR's Director of Democratic Energy John Farrell to the Electrons on the Run mini-conference on 3/12/14 explains how democratic energy can cost-effectively meet local power needs and contribute to the rural economy.
How Democratic Energy Fits the Rural Electric Philosophy
1. T H E C O M I N G D E M O C R AT I C
E N E R G Y F U T U R E
E L E C T R O N S O N T H E R U N
John Farrell
Director of Democratic Energy
March 12, 2014
2. Two Themes
S E L F - R E L I A N C E
E C O N O M I C D E V E L O P M E N T
3. D E M O C R AT I C E N E R G Y
I N T H E 2 0 T H C E N T U RY
S E L F - R E L I A N C E
E C O N O M I C D E V E L O P M E N T
4. P E R C E N T O F FA R M S W I T H E L E C T R I C S E R V I C E
0%
25%
50%
75%
100%
1935 1940 1945 1950 1955 1960 1965 1970 1975 1980
!
Volunteers for REA went door-to-door
signing up farmers for $5 a share.
Runestone Electric Association
S E L F - R E L I A N C E
5. What REA service means to our farm home
Lights
Radio
Refrigerator
Washing machine
By Rose Dudley Scearce
Member, Shelby (Ky.) Rural Electric Cooperative
E C O N O M I C D E V E L O P M E N T
Clothes iron
Electric range
Electric water pump
Vacuum cleaner
Source: New Deal Network
6. E C O N O M I C D E V E L O P M E N T
“The REA loans contributed significantly to increases in
crop output and crop productivity”
Source: Flip the Switch: The Spatial Impact of the Rural Electrification Administration 1935-1940 (December 2013)
7. D E M O C R AT I C E N E R G Y
I N T H E 2 1 S T C E N T U RY
S E L F - R E L I A N C E
E C O N O M I C D E V E L O P M E N T
14. L O C A L P O W E R VA L U E
Not local
0 25 50 75 100
very negative negative neutral positive very positive
15. L O C A L P O W E R VA L U E
Attitude towards increased use of local wind energy
Not local
0 25 50 75 100
very negative negative neutral positive very positive
-44%
+33%
+77% net approval
Local
Ownership
18. How fast are electricity prices rising?
0¢
3¢
6¢
9¢
12¢
2004 2005 2006 2007 2008 2009 2010 2011 2012
R A P I D LY R I S I N G AV E R A G E R E TA I L
E L E C T R I C I T Y P R I C E S ( R U N E S T O N E )
???% per year
19. 0¢
3¢
6¢
9¢
12¢
2004 2005 2006 2007 2008 2009 2010 2011 2012
R A P I D LY R I S I N G AV E R A G E R E TA I L
E L E C T R I C I T Y P R I C E S ( R U N E S T O N E )
¢ per kilowatt-hour
Source: EIA
4.7% per year
20. 0¢
10¢
20¢
30¢
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Average Retail Price
Solar No Subsidy
Solar w/ ITC
Solar w/ ITC+MACRS
S O L A R “ PA R I T Y ” H E R E ?
¢ per kilowatt-hour
22. POTENTIAL PERCENT OF
POWER FROM LOCAL
RENEWABLES
100% or more
50 to 100%
25 to 50%
10 to 25%
10% or less
L O C A L R E N E WA B L E P O T E N T I A L
32 states - 100%+
24. Distributed Solar Potential at Parity (unsubsidized) by 2022
(residential and commercial MW)
8500
590
750
30,000
16,000
7200
11,000
1800
990
3600
12,000
780
7000
8200
5100
11,000
1900
26,000
2400
7300
5100
360
2600
1100
1200
800
1400
4800
1800
32,000
5000
580
970
2300
4100
4400
2900
7200
6800
2800
7100
11,000
11,000
550010,000
12,000
20
1140
700
4000
Percent of Sales
1-5%
5-10%
10% or more
25. C O M M U N I T Y S O L A R
Wright-Hennepin Cooperative Electric Association
Lake Region Electric Cooperative
26. L O C A L G E N E R AT I O N
Saving $100 million
in new power
infrastructure
Long Island Power Authority
27. L O C A L P O W E R
S A N TA F EB O U L D E R
2x
Coal
Local studies suggest the
cities could double
renewable energy on the
local grid at a comparable
cost of electricity
28. T H A N K Y O U !
http://www.ilsr.org/initiatives/energy/
S E L F - R E L I A N C E
E C O N O M I C D E V E L O P M E N T