Showing posts with label discussion. Show all posts
Showing posts with label discussion. Show all posts

More discussion: breaking the regulatory logjam, economic development opportunities

How do we provide incentives for offshore energy development? Can we afford it? John Kerry answers: if state govt. sets a framework and the guidance to demonstrate that renewables can be profitable, a good investment, we don't need incentives. The private market will do it on its own. Kerry is advising the Governor to create frameworks that allow private enterprises to thrive... renewable energy developers should be assured that the state's policies will support them in the long run.

Kerry also emphasizes the need to educate policymakers and entrepreneurs about the economic opportunities of energy development.

Elizabeth Butler is now standing up and expressing some frustration with the regulatory issues we've heard today. We have a "moral obligation" to develop renewables. Why, then, are we regulating these projects on an ad-hoc, project-by-project basis, just like any other project - the same way we'd regulate the construction of a Wal-Mart big-box store or a summer camp. What gives? Where's the action?

A fellow from Mass. Audubon responds: we need Legislative action, on state and federal levels. [Editor's note: is he saying that Legislators need to clear the bureaucratic logjam themselves? If so, maybe agencies like FERC, MMS, state planners, etc. should have a self-preservation interest in getting with the program and figure out their ideal, streamlined process before they're legislated out of the picture.]

The fellow from New Jersey is now talking about building the industrial base necessary to create offshore development: undersea engineering, exploration, etc. A new economic development opportunity.

Chris Sauer, Ocean Renewable Power Co.: People invest in startups when there's a clear path to commercialization. His company abandoned a project in Florida's Gulf Stream b/c of regulatory uncertainty with MMS. Also, Maine has a unique opportunity re: tidal power... no one has yet developed a commercial tidal turbine yet. It could happen here, [and Sauer's company is working on it] and Maine could potentially become an exporter of technology and equipment.

Discussion

Afternoon discussion:

A woman stands up and talks about her film documentary project, which is following the development of tidal power here in Maine. She and a following speaker talk about the importance of education, the value and importance of renewable energy development.

A fellow from Vinalhaven's Fox Island Electric Cooperative speaks up: they're developing 4-5 MW nameplate capacity to power the islands. He notes that Hull has no NIMBY problems; Vinalhaven has minimal NIMBY problems because wind will diminish power rates significantly (the islands currently rely on expensive-to-maintain undersea cables, so transmission costs are nearly twice the cost of the electricity itself). Here's a research paper on the viability of utility wind power on the Fox Islands from the Renewable Energy Research Laboratory.

Another speaker suggests that developers sort through Maine communities according to who has the highest electric rates: go there first. People chuckle, but I think there's real validity in this sentiment.

Someone else stands up and cites everything said about regulation and public trust - the private sector is also an important institution, and he urged power developers to listen to the public - both neighbors and the public institutions in government.

A developer/fisherman working on an offshore project in New Jersey is talking about the need for regulatory consensus. In NJ, commercial fishermen opposed offshore wind at first, then engaged in a two-year dialogue; now, the same fishermen are engaged in the development proposal. [ed: pretty neat story; I'd read about this in the Wall Street Journal's excellent Environmental Capital blog a few days ago.]

Q and A: Politics and Outreach

One audience member brought up a point about energy units - nameplate capacity of wind power projects versus actual production of megawatt-hours (which depends on the wind blowing, for wind turbines). Of course, one of the strong arguments for offshore wind power is that turbines generate at or near their nameplate capacity for a greater proportion of the time.

Q: How should a power developer approach a community?
A: Three different panelists generally endorse reaching out to all members of the community first. Don't come in with an aura of invincibility, or of inevitability. Invite participation.

Q: An observation that Hull's two projects were developed by the town, without outside developers.
John Meschino: Wind power began with an experimental project at the high school. Then the municipal power company installed two utility-scale turbines that now generate about 10% of the town's power. Both turbines paid for with town money. The current project is much larger and thus will require outside financing.

Q&A - Conflicts and Solutions

Question: Might a sustained marketing effort convince people that turbines are beautiful as sustainable sources of energy?
Pete D.: Some will find them beautiful, others will find them threatening no matter what. A broad middle can be educated. Most importantly, people need to be aware of the problems of the status quo: exporting harm and air pollution to midwest coal power plants, Virginian Appalachian mountains, etcetera.


Question: Need to identify specific places, before the developer comes in, to say "this is where it's acceptable." Local cost and a global benefit [ed: which too frequently stymies these projects, since the minority harmed is much more vocal than the global majority who benefits: the tragedy of the commons problem].

Pete D.: Took a step towards this with the Gov. Task Force. In the ocean, it's potentially possible. Even in state expedited areas, conflicts will flare up.

Economic Development

A second panel question asked about the jobs impact in rural Washington County.

Sauer points out that in rural communities, adding a few new construction or maintenance jobs can have the same relative impact as hundreds of jobs in greater Portland. This new investment and activity helps maintain Eastport's social fabric and instills a sense of economic opportunity.

Mandelstam: European wind industry businesspeople have told him that as soon as the US adopts a consistent and regular policy for offshore wind development, then European companies will invest in and build new projects, providing potentially thousands of local fabrication and marine construction jobs.

Governor for the Day?

A question for the previous three presenters: given that an energy emergency exists, and we have a "moral authority" for this kind of economic development, what would you do to make it happen, if you were governor for a day?

Mandelstam: Bring people together. Decide whether we're going to have turbines near shore? If there's a crisis, are we willing to have turbines visible from our islands? Think about and agree whether we can allow and approve (with streamlined permitting) ocean-based turbines. Also force negotiations to get power companies to contract to purchase clean power, without subsidy.

Sauer: Agrees with Peter. Brings up other stakeholders as well: the fishing industry. Also address transmission issues - investing in the grid, bringing in system operators and delivery companies.

Sean: If I were governor, I would have a cabinet-level position for new and emerging technologies, and a task force (including the previously-mentioned stakeholders), applying the principles of adaptive management to find solutions and get projects in the water.

Questions for John Kerry

A couple of questions from people wondering about the state's official policiies:

One woman asked if Maine was considering a feed-in tariff for renewables. The answer is no.

Someone else asked whether the state was encouraging offshore development in state waters, closer to shore, or in federal waters further out. Kerry's answer was essentially "both," though he cautioned that onshore or nearshore development would be more difficult thanks to NIMBYs.