Thursday, July 7, 2011

NJ's solar growth confronts difficult land-use issues


Solar energy development in New Jersey is second only to California. So far, it has proceeded in a way that is generally consistent with smart growth principles. But that may be changing.  

In this  guest post, Chris Sturm, senior director of state policy for New Jersey Future, examines the challenges that lie ashed for the state and and for this popular form of alternative energy.  

  
New Jersey’s Solar Ambitions Raise Difficult Land-Use Issues
By Chris Sturm

  • Solar power has become increasingly popular in New Jersey over the past decade, due largely to state financial incentives designed to encourage solar development.
  • Home to more than 9,000 solar projects with a total capacity of more than 320 megawatts, New Jersey ranks second only to California in total installed solar capacity. Due to its much smaller land area, New Jersey has by far the most solar capacity per square mile of any state.
  • New Jersey’s Solar Advancement Act of 2010 calls for adding 4,000 megawatts of electricity output from solar by 2026, a 13-fold increase from today’s level. This goal could be met using an estimated 24 square miles of land or 300 million square feet of rooftop—or, most likely, a combination of the two.
  • Because of New Jersey’s small size, the effects of solar development on other land uses are more pressing than in other states. As solar development continues, the issue of whether a solar installation is the best use of a given parcel of land will become increasingly salient.

Regulatory, Incentive and Policy Framework Needed For Sizing, Siting


Solar development in New Jersey has so far proceeded in a way that is generally consistent with smart growth principles. Most of the development has been in the form of net-metered installations (supplying electricity predominantly for on-site use) on rooftops in developed areas, rather than sprawling solar arrays on farmland or other sensitive lands in rural areas. The largest rooftop solar installation in the United States, with a capacity of 4 megawatts, was completed in April in Edison.

At industrial facilities and some other sites with extensive electricity needs and large amounts of land available, solar installations have been mounted on the ground. This is the case, for example, at the Rutgers Solar Farm in Piscataway, which generates about 11 percent of the electricity used on the university’s Livingston Campus. Last month, McGraw-Hill announced plans to install the nation’s largest privately owned, net-metered, ground-mounted solar array at its East Windsor facility, with a potential capacity of 14.1 megawatts.

Even the largest solar facilities in New Jersey to date have primarily supplied electricity for on-site use. There has been much discussion recently, however, about increased development of large, utility-scale solar facilities that function as power providers, much like traditional power plants. Although only a handful of projects of this scale have actually been built or approved for construction in the state, several more are under active consideration, especially in South Jersey.

As New Jersey considers how and where solar energy should be developed in the years to come, some general principles will ensure that solar facilities are sized—and sited—in ways that are appropriate to their surroundings. Because of its small size and big ambitions for solar energy, the state will need to be sensitive to the land-use impacts of solar development.

For example, establishing a hierarchy of state incentives that gives priority to rooftop installations over ground-mounted projects would encourage a proven source of solar energy that has minimal impact on land consumption. Discouraging utility-scale solar development on farmland would ensure that agriculture retains its role as a thriving contributor to the Garden State’s economy, environment and quality of life. Enacting and enforcing regulations that mitigate any negative impacts from solar development, such as visual impairment or noise from inverters that link solar panels to the electricity grid, would protect residents from unwanted intrusion on their neighborhoods.

Brownfield sites, especially closed landfills, have great potential for solar development, as well as other productive uses. Considerable attention must be paid to the issue of whether a more active use of a given site, especially in a developed area, might be preferable. Other marginal sites, such as underutilized industrial properties, may have significant potential not only for solar energy, but also for commercial, residential or mixed-use redevelopment.

The land-use issues raised by solar development are numerous and complex, and the policy and regulatory options available to state and local government agencies to deal with them are equally diverse and complicated. Although the recently released Energy Master Plan recommends scaling back some of the state incentives for renewable sources, the incentives will likely continue to provide a powerful tool to shape solar siting decisions. If New Jersey is to remain in the forefront of solar energy development, policymakers will have to marshal all of the regulatory and fiscal options to confront these issues directly—and soon.

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Chris Sturm, Senior Director of State Policy, NJ Future
Chris is responsible for policy development and advocacy in the areas of state and regional planning and land conservation. She holds a masters degree in Public Policy from the Woodrow Wilson School at Princeton University where she concentrated on Urban and Regional Planning. Her career experience includes serving as the Assistant Director of the Capital City Redevelopment Corporation, as well as working for the MSM Regional Council (now PlanSmart NJ), the Eagleton Institute, and the Office of State Planning. Email Chris or reach by phone at 609-393-0008 ext. 114.
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We welcome your thoughts on solar energy development in New Jersey--and elsewhere.  Use the comment box below. If one is not visible, click on the tiny 'comments' line to activate it. 

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5 comments:

  1. Land use is important and everyone can agree that roofs and parking lots coupled with brownfields make a ample opportunity to power the entire states needs. Each square foot in NJ can generate 20kWh of photovoltaic (PV) electricity per year.
    The economic contribution to the state is substantial.

    Each megawatt (MW) of PV manufactures in the US employees 14 people
    Each MW of PV installed on commercial roofs employs 9 people

    If you took just NYC flat roofs, for example, you could generate 120 billion kWh/year of clean pollution free PV or more than twice what Con ED sells there. So there is no lack of space in most states.

    The real problem in NJ and other states is consistent and reasonable legislation to provide equal access to the grid, a level playing field and a floor price for power produced in the case of NJ's Solar Renewable Credits (SREC= power produced by renewable energy sold at auction or by contract) sales.

    There are also bad players like oil companies funding sneaky lobbyists going state by state trying to kill Regional Greenhouse Gas Initiative legislation (RGGI) all ready in place to protect our air quality. The RGGI "debate" in NJ comes amid protests that New Jersey is forfeiting its status as a national leader in green economy and a debate over what impact the state's two years of participation has really had. By the way, Revenues from RGGI purchased through the pact are earmarked for renewable-energy projects, but Gov. Christie diverted $65 million in RGGI funds and $158 million from the Clean Energy Fund in 2010 to help plug the state's budget gap and now wants to withdraw from RGGI all together ???

    NJ PV industry is actually facing a crisis as we debate this due to the collapse of SREC prices. A recent New Jersey Board of Public Utilities report indicates that the RY 2012 mandate of 442,000 SRECs may potentially be exceeded.
    Since there is no floor price in NJ (unlike what is available in MA that has at lease a bottom price for clean power for 10 years with their SREC's) the price has widely bounced and caused many to pull out of this once vital NJ market. NJ is only exceeded in renewable energy by CA installations.

    So we can fiddle while Rome burns or all sit down and fix the problem. It is actually simple enough in the short term. New Jersey State Senator Bob Smith introduced legislation designed to prevent prices dropping from cross border sales for solar in the Garden State. Most parties, however, agreed with Smith's suggestion that the legislation be changed to establish a floor price for solar credits.

    ReplyDelete
  2. IMCO the longer term fix is FIT which stands for "Feed in Tariff". There is no real state taxpayer money being used to fund projects this way. The FIT just sets a price for renewable energy sold to the grid. Knowing this the installers can go to the banks to borrow the funds to do the projects and not rely on on and off again Government handouts.

    The old saw is this will drive up electric prices (mostly promulgated by utilities and their paid spokesmen). What do you think, that turns out not to be the case. If you look at the the combined value of distributed solar generation to New Jersey’’s rate and tax payers is estimated to be in the range of 15-41 cents per kWh. To break that down:
    Transmission Energy Value 6 to 11 ¢/kWh
    Transmission Capacity Value 0 to 5 ¢/kWh
    Distribution Energy Value 0 to 1 ¢/kWh
    Distribution Capacity Value 0 to 3 ¢/kWh
    Fuel Price Mitigation 3 to 5 ¢/kWh
    Solar Penetration Cost 0 to 5 ¢/kWh
    Grid Security Enhancement Value 2 to 3 ¢/kWh
    Environment/health Value 3 to 6 ¢/kWh
    Long term Societal Value 3 to 4 ¢/kWh
    Economic Growth Value 3+ ¢/kWh
    Another source for this data:
    http://www.renewableenergyworld.com/rea/news/print/article/2011/06/value-of-solar-power-far-exceeds-the-electricity

    But let's make believe that savings from renewable distributed power dosn't matter, that we don't want clean air, REGGI, or that the utilities don't game the system and increase the rates all by themselves.
    Using these failed SREC (in NJ's case) methods to fund clean power it cost way more and produce less results. To prove that you need only to look at Germanys results using FIT over many years.
    Germans Paying Nearly One-Fourth Less per Kilowatt-hour for Solar than Californians (the biggest solar state in the nation). Germans paid an average of €0.26/kWh ($0.38/kWh) lets face it it cost more to live there. If the Golden State applied German feed-in tariffs to solar PV under its bright, clear sky, Californians would only pay the equivalent of $0.24/kWh. The average value of rebates under the CA CSI program in 2010 was $0.058/kWh.

    ReplyDelete
  3. By the way if that German information dosen't move you and you think that the price for electricity is higher than what you normally pay well think about what kind of investment (that means JOBS) flows into a state when they enact FIT legislation and choose clean power for the future.
    Ontario says green plan spurs $20 billion in investment
    Thu, Jul 7 2011
    By Claire Sibonney and Nicole Mordant
    TORONTO/VANCOUVER (Reuters) - The Canadian province of Ontario says its program of providing incentives for green energy production has brought in commitments for C$20 billion ($21 billion) in private-sector investment since the program was put in place in 2009.
    Ontario's energy ministry released a report outlining the investments on Thursday, and giving an investment figure for the first time, as the province's governing Liberals get set to campaign ahead of the October 6 election in which their green energy plan is seen as a major and contentious issue.
    The plan is the most comprehensive subsidy scheme for clean energy production in North America, and the report said Ontario has signed or offered more than 21,000 contracts to developers of small, medium and large clean energy projects so far.
    The C$20 billion figure includes a C$7 billion commitment by South Korea's Samsung C&T, as well as investments already made and planned by other producers who have contracts under the province's feed-in tariff (FIT), Ontario energy minister Brad Duguid said in an interview.
    Ontario, Canada's most populous province and its biggest energy consumer, introduced the European-style FIT program two yeas ago as a way to create jobs, cut greenhouse gas emissions and fill some of the electricity supply gap left by its plan to shut down all its coal-fired power stations by 2014.
    Polls show the Liberals trailing the opposition Progressive Conservatives, who say the green plan is financially wasteful and has pushed electricity rates too high.
    The Conservatives have already said that if elected they will scrap the FIT, which offers generous, above-market rates to producers of green energy under fixed 20-year contracts.
    They have also vowed to scrap the Samsung agreement, which is the biggest single investment commitment under the program.
    "We are quite comfortable that there is no real contract with Samsung. It's a memorandum of understanding, we've seen the redacted copy," John Yakabuski, energy critic for the opposition Conservatives said.
    "We've been clear from outset that these expensive energy experiments do not represent good value for Ontario families paying the bills, we're not going to support that," he said.
    The green energy program had created 13,000 jobs by the end of last year and is "very much on target" to reach the 50,000 mark by the end of 2012, Duguid said.
    "You've got to remember that the bulk of the projects are still about to go under construction in the next year, so the biggest part of that job creation is yet to come," he said.
    The 50,000 figure includes jobs for constructing wind and solar farms, which Duguid admitted were not permanent jobs.
    The report said the program has so far brought online 2,000 megawatts of renewable energy, equal to about 5 percent of the province's installed electricity generation.
    That includes 200 MW of solar capacity, which produces enough electricity to power about 30,000 homes a year. Wind turbines erected in the province produce enough energy to power 350,000 homes.
    Duguid said a review of the FIT rates paid to green energy producers, which are up for review every two years and are almost sure to be cut as prices for green energy components have fallen, is underway and expected to be completed by year-end.
    ($1=$0.96 Canadian)

    ReplyDelete
  4. This is actually comment TWO it is confusing if these are read out of order.
    IMCO the longer term fix is FIT which stands for "Feed in Tariff". There is no real state taxpayer money being used to fund projects this way. The FIT just sets a price for renewable energy sold to the grid. Knowing this the installers can go to the banks to borrow the funds to do the projects and not rely on on and off again Government handouts.

    The old saw is this will drive up electric prices (mostly promulgated by utilities and their paid spokesmen). What do you think, that turns out not to be the case. If you look at the the combined value of distributed solar generation to New Jersey’’s rate and tax payers is estimated to be in the range of 15-41 cents per kWh. To break that down:
    Transmission Energy Value 6 to 11 ¢/kWh
    Transmission Capacity Value 0 to 5 ¢/kWh
    Distribution Energy Value 0 to 1 ¢/kWh
    Distribution Capacity Value 0 to 3 ¢/kWh
    Fuel Price Mitigation 3 to 5 ¢/kWh
    Solar Penetration Cost 0 to 5 ¢/kWh
    Grid Security Enhancement Value 2 to 3 ¢/kWh
    Environment/health Value 3 to 6 ¢/kWh
    Long term Societal Value 3 to 4 ¢/kWh
    Economic Growth Value 3+ ¢/kWh
    Another source for this data:
    http://www.renewableenergyworld.com/rea/news/print/article/2011/06/value-of-solar-power-far-exceeds-the-electricity

    But let's make believe that savings from renewable distributed power dosn't matter, that we don't want clean air, REGGI, or that the utilities don't game the system and increase the rates all by themselves.
    Using these failed SREC (in NJ's case) methods to fund clean power it cost way more and produce less results. To prove that you need only to look at Germanys results using FIT over many years.
    Germans Paying Nearly One-Fourth Less per Kilowatt-hour for Solar than Californians (the biggest solar state in the nation). Germans paid an average of €0.26/kWh ($0.38/kWh) lets face it it cost more to live there. If the Golden State applied German feed-in tariffs to solar PV under its bright, clear sky, Californians would only pay the equivalent of $0.24/kWh. The average value of rebates under the CA CSI program in 2010 was $0.058/kWh.

    ReplyDelete
  5. You are kidding yourself. Solar in NJ is essentially a political boondoggle. There is no logical reason for NJ to be the second largest solar-power state after CA; just look at the relative cloud cover data for the two states. The West and Southwest are much more suited to solar than we are.

    Princeton University is about to install a huge (27 acre, 16000 panel) system which will supply a whopping 5-1/2% of its electricity. I can hardly contain my enthusiasm. 90% of the press release is about how to get somebody else (i.e. you, the taxpayer) to pay for it. Unsurprisingly, the actual energy saved is rather far down in the article.

    Meanwhile, over here:

    http://www.nucleartigers.org

    is a proposal to eliminate nearly 100% of Princeton's carbon emissions from electricity, by installing a small modular reactor designed for passive safety and unattended operation for 10 years. It uses liquid lead (actually a lead-bismuth eutectic) for cooling and heat transmission. Think of it as artificial geothermal energy, magma being in short supply around here.

    If you are reflexively anti-nuclear because of, well, you're not quite sure why, but you just know radiation is really really bad, take a look at this:

    http://www.scribd.com/doc/54904454

    you will find that a task force of European scientists examined the total life-cycle risk of various forms of electric generation and found nuclear to be the safest, in terms of deaths per terawatt-hour delivered. Not just safer than coal, but safer than hydro, wind and solar. If you don't believe me, read the data. There are citations or search pointers for everything.

    ReplyDelete