Making Energy Work: Building a Sustainable Energy Economy in the Southeast

NCSEA Announces New Renewable Energy Business Network in NC

NCSEA is excited to announce the arrival of a local chapter of the Renewable Energy Business Network (REBN), a national organization promoting renewable energy and cleantech enterprises.  REBN has chapters in 10 US cities and brings together business professionals with an interest in clean technology to connect with one another and to promote the growth of this industry.

To kickoff the new Triangle chapter, NCSEA is partnering with the REBN NC co-organizers, SJF Ventures and the Council for Entreprenuerial Development (CED), to host a networking reception, which will be held on April 14 from 4:30-6 pm at the McKimmon Conference & Training Center in Raleigh.  The event will be sponsored by the NC State Energy Office and will follow its Sustainable Energy Conference which is being held earlier in the day.

Click here to register for this free reception.  Please email Cody Nystrom at cnystrom@sjfund.com for more details.

Nationally, REBN represents a group of over 16,000 individuals including entrepreneurs, venture funds, law firms, investment banks and service providers.  SJF Ventures co-leads the New York City REBN chapter, which has proven to be a tremendous success with events generating more than 300 attendees every two months.  SJF Ventures and CED expect equivalent success here in the Triangle.

Mark your calendar now to attend this wonderful opportunity to network with local individuals who have professional interest in cleantech.


3/31/09 Net Metering Ruling by the NC Utilities Commission

On March 31, 2009, the NC Utilities Commission issued their much anticipated Order changing North Carolina's "Net Metering Policy," which will become effective June 1, 2009. NCSEA's initial analysis of the Order identifies the following (minor) hard fought victories, which are listed below. After 3 years of NCSEA's work with our members, donors, grant funders, the NC Utilities Commission, Duke Energy and Progress Energy leading up to this most recent ruling on net metering, the Commission has agreed in part or entirely with NCSEA on many points; however, much more work lies ahead.

NCSEA first appeared before the NC Utilities Commission on October 19, 1998, to make a presentation regarding renewable energy and electric utility industry restructuring. In its presentation, NCSEA asked the Commission to institute a generic proceeding to consider adopting a net metering requirement in North Carolina. Due to NCSEA’s request, the Commission issued an Order on November 18, 1998, that initiated investigation and comments on the issue.

Click here to view the full net metering Order (e100, sub 83), issued on March 31, 2009.
 
The Commission made the following (minor) improvements to North Carolina's net metering policy, and ordered Duke Energy, Progress Energy, and Dominion to revise their net metering programs accordingly:

  • Increase eligible system size up to 1 MW
  • Remove the aggregate limit on net metered systems (previously restricted at 0.2% of the prior year's retail peak load
  • Customers can choose which rate schedule they net meter under, BUT can only retain ownership of excess Renewable Energy Credits (RECs) associated with excess generation if a customer chooses to net meter under Time of Use Demand rate offered by the utility
  • The Commission rejected Progress Energy's motion to include the "cost of net metering" under the REPS incremental cost rider, which means they cannot inflate the cost of compliance with the REPS in CEO Bill Johnson's attempts to minimize the amount of renewable energy implemented under the REPS law
  • All technologies defined as "renewable energy resource" by NC's REPS law, except for thermal energy, are eligible to net meter up to 1 MW system size
  • Duke Energy will revise their "SCG Rider" which is an alternative to "net metering" to also increase the eligible system size limit for this rider to 1 MW

The utility still cannot bill for "standby charges" on renewable energy systems under 20 kW residential and 100 kW commercial. In fact, NCSEA called the Commission's attention in this proceeding to Dominion's violation of the no standby charge ruling in the existing net metering tariff. The Commission Order specifies that Dominion remedy this violation.
 
NCSEA's initial analysis: For commercial customers, who are typically already on Time of Use Demand rates, that install distributed generation, all the RECs are clearly owned by the customer and can be sold. This especially benefits commercial customers that install systems that are 100 kW and under. For residential customers, the ruling allows net metering on the same predictable rate structure that they're accustomed and they will offset their energy consumption in the near- and long-term future as electricity rates rise. The new rules also remove the aggregate cap so distributed generation can be widely adopted.

North Carolina's strong interconnection standard and new net metering policy are proof positive that NCSEA is succeeding in our mission to create a sustainable energy economy for NC; however, much more work lies ahead. Your membership dues, investments in NCSEA and personal support make it possible for us to help you create a sustainable energy future for North Carolina and the broader Southeast.

This ruling was made possible due to NCSEA's work with our members, donors, grant funders, the NC Utilities Commission, Duke Energy and Progress Energy. In 2008, many of our members joined NCSEA and Vote Solar to petition the NC Utilities Commission and General Assembly, asking them to make net metering fair for consumers across NC. Also in 2008, many citizens attended public hearings and submitted consumer letters declaring their agreement with NCSEA's position on net metering, along with the highly credible filings of the Interstate Renewable Energy Council (sponsor of NCSEA's Making Energy Work forum in February) and WalMart. Telling the story of their personal experiences helped frame the context within which the Commission's decision developed, and thus improving our State's net metering policy.

 
What is that?  "Defining" the New Energy Economy...
 
"Net metering" refers to a billing arrangement whereby a customer who owns and operates an electric generating facility, such as solar on their rooftop, is billed according to the difference over a billing period between the amount of energy the customer uses and the amount of energy it generates. Additionally, they're able to rollover the excess energy generated for the current month to offset next month's bill. Net metering is commonly referred to as the policy that "lets your meter spin backwards".
 
"Interconnection" is the technical rules for customers to "plug in" or connect to the electricity grid. In July 2008, the NC Utilities Commission largely agreed with NCSEA in making dramatic improvements to NC's simplified interconnection standard. As a result, the 2008 national "Freeing the Grid" report increased NC's grade for interconnection from an 'F' to 'B+'.

"Standby charges" are fees assessed on a distributed generation owner's bill to cover the utility's cost of "standing by" ready to provide electricity at times when the owner's generation system goes down.

A "tariff" is a rate schedule that has contractual requirements.
 


Cree CEO, Institute for Emerging Issues & NCSEA Announce Energy Policy Recommendations for NC

In early 2008, the Institute for Emerging Issues held its annual forum, "North Carolina's Energy Futures: Realizing A State of Opportunity,"  which focused on our state's new energy economy. After the forum, IEI along with NCSEA, NC's regional economic development partnerships, the NC Cooperative Extension Services and others continued their work on these issues during a series of regional energy forums across the state to explore ideas for creating and expanding jobs and businesses locally.

Culminating a year of work, IEI's Business Committee on Energy released recommendations seeking to ensure an energy future that enhances North Carolina's short-term and long-term economic competitiveness and maximize the number of green jobs created and retained in our state.
Click here to view the energy recommendations.

As a special feature for NCSEA's eNews and website, Chuck Swoboda, who served on IEI's Business Committee on Energy and is the CEO of
Cree, an LED lighting company based in Durham, offered the following remarks regarding these energy policy recommendations:

North Carolina took a bold leadership step in 2007 when it passed Senate Bill 3, the "renewable energy and energy efficiency portfolio standard", the first of its kind in the southeastern United States. This new law created a significant market for renewable energy and energy efficiency companies, but as an increasing number of states seek to position themselves as leaders in the new energy economy, more work remains to be done to signal to these companies that North Carolina wants their business and will work with them to flourish here.
 
North Carolina has a visionary track record on energy, as investments made 30+ years ago continue to pay dividends today - well into the new millennium. However, North Carolina needs to lead not just the southeast, but the U.S. and the world, in creating a new energy future. North Carolina enjoys some of the lowest electricity rates in the world, which becomes a disincentive for new investments. It is critical that our state continue to be a leader on the energy front, or we risk losing ground to more innovative states. Our challenge is to invest in a more progressive energy approach, while we still enjoy the benefits of past investments.
 
Based on the work of IEI's Business Committee on Energy, the State of North Carolina must reconsider how it's organized to meet the energy challenges and opportunities ahead. Companies consistently cite the lack of clarity about the state's energy policy priorities as a barrier to doing business here. The state must offer a coherent voice and strategy for energy policy, including appointing an executive-level energy official in the Governor's office, reforming existing Energy Policy Council and redesigning and relocating the State Energy Office. Then, North Carolina could more effectively consider how economic development incentives, renewable energy tax credits, small business assistance, and workforce education can meet companies' needs.
Click here to view the energy recommendations.
 
These policy recommendations are essential for North Carolina to emerge as a leader in energy efficiency, renewable energy and green technology. Our actions will set the stage for North Carolina's future growth and we must move with swiftness and clarity of purpose.


Green Jobs Reports & Information

  North Carolina's renewable energy and energy efficiency businesses employ  
  more than 6,400 and are expected to grow dramatically. Click here for recent green
  jobs reports released by NCSEA and other organizations.
  www.energync.org/greenjobs
 

 

 

 

 


Renewable Energy in NC: The Potential Supply Chain

Dr. Keith G. Debbage, Professor of Urban Geography at the University of North Carolina at Greensboro and GlaxoSmithKline Faculty Fellow at the Institute for Emerging Issues, published a report in August 2008 that looks at the spatial distribution and economic magnitude of North Carolina's renewable energy supply chain in wind, solar, biomass and geothermal and identifies companies with the technical potential to enter the renewable energy market in North Carolina.

The report finds that North Carolina's potential new energy economy supply chain is a diverse and mature sector of the state economy comprising just over 1,300 firms and employing over 61,000 workers.

Click here to view the full report and state maps detailing North Carolina's current manufacturers that are part of the solar energy, wind energy, biomass and geothermal energy supply chain which could transition into the new energy economy.