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Renewable Energy Means Continued Tourism Mark D. Crowdis Chief Executive Officer Think Energy, Inc.


Think Energy, Inc. „ „ „

Created in 2000 Goal: Environmental excellence in the energy sector Team expertise ™ Architecture ™ Engineering „ Civil Engineering „ Electrical Engineering „ Mechanical Engineering ™ Economics/Finance ™ Environmental Science and Management ™ Physics ™ Biology ™ Government and Public Policy


Think Energy Services „ „

Strategic Planning and Implementation Analyzing and Purchasing Support ™ ™ ™ ™

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On-site Generation Green Power Renewable Energy Certificates Carbon Markets

Product and Service Development Investment Services Incentive and Legislation Navigation


Selected Clients „ „ „ „ „

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AeroVironment, Inc. Amherst College Bentley College Brown University Center for a New American Dream City of Ann Arbor City of Cambridge General Electric Company Global Green USA Los Angeles Unified School District Raytheon Company Roger Williams University

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State of Wisconsin Smith College Springfield College The Timberland Company Toyota Motor Sales, USA Tufts University University of Massachusetts, Lowell WindHarvest WindCurrent World Resources Institute World Wildlife Fund The World Bank Group Xerox Corporation


Case Study: Toyota Motor Sales, U.S.A., Headquarters Location

Toyota Motor Sales, USA, Torrance, CA

Technology

Solar PV

Size

536 kW

Vehicle

LEED

Time

1.2 years

Payback

Approx. 5 years simple payback

Installation

Roof Mounted

Benefits

Energy Security, Press, Company Satisfaction, Community, Environmental Commitment


Solar PV Installation, Ontario, CA, 2007 „

Ontario, CA ™ West coast parts and distribution center

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2.3 MW system ™ 3,400,000 kWh/year ™ Will supply 58% of facility’s electricity ™ Largest single-roof corporate system in North America

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Purchase is through a Power Purchase Agreement (PPA) Construction commenced in April 2008

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™ Expected operational in October 2008

Construction in Progress


New Orleans Holy Cross Project „

Goal ™ Renewable electricity generation for five single family homes, apartment complex, community center

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Think Energy assists with technology selection, feasibility analysis and implementation ™ PV, solar street lights, solar hot water, geothermal heat pumps, and river turbines considered ™ Performed technical and financial analyses of renewable technologies ™ Arranged for river flow study by the Center for Bio-environmental Research ™ Investigated licensing and permitting requirements for a river turbine ™ Researched energy monitoring systems and assisted with the selection of a vendor ™ Assisted with the selection of a PV installer ™ Managed renewable energy demonstration project for construction kick-off


Galapagos Islands „

Electric power sector „ „

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Transportation „ „

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Power plants Renewable resources assessment Incentives for alternative modes of transportation Biofuels

Fishing Tourism „

Hotels and facilities


Renewable Energy Definition Energy from sources that naturally replenish over time and are inherently cleaner than currently dominant fuel sources: oil, coal and natural gas.


Why is Renewable Energy Necessary?


Problems „

Energy costs can eliminate ability to operate ™Oil ™Natural gas ™Electricity ™Gasoline

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Remote locations of tourist destinations = ™Higher fuel costs ™Lower fuel availability ™High amounts of atmospheric pollution ™Greater expense to travel


Challenges for Hawaii „ „

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MDC6 MDC4

Main industry is tourism Petroleum provides nearly nine-tenths of MDC5 all the energy consumed in Hawaii The transportation sector leads energy demand due in large part to heavy jet fuel use Large potential for MDC7 wind and solar energy


Slide 12 MDC4

Find the number for percentage of revenue and insert.

MDC5

Let's get a pie chart that shows what they have for electricity production.

MDC6

Please get a chart of electricity costs in Hawaii for the last seven years.

MDC7

Let's create another slide regarding to opportunities for renewable energy on Hawaii. Solar PV potential, Solar H20 and wind potential.

Mark D. Crowdis, 10/16/2008 Mark D. Crowdis, 10/16/2008 Mark D. Crowdis, 10/16/2008 Mark D. Crowdis, 10/16/2008


Hawaii energy facts „

Energy Use ™ In 1995 Hawaii ranked 50th in energy use per capita in the U.S. ™ Hawaii spends $2.76 billion on energy each year ™ This equals 8% of the states GDP

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Price of Electricity ™ Hawaii has the highest electrical rates in the country ™ In 2003 residents paid an average of 16 cents per kilowatt hour, while the average in the rest of the U.S. was only 8 cents per kilowatt hour

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Cost ™ As of 2002 the average household paid $123.65 on their monthly electric bill


Challenges for Alaska „

Most Alaskan consumers are not linked to large, interconnected grids through transmission and distribution lines

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Communities are far away from each other and difficult to access

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Rural communities rely almost exclusively on diesel electric generators

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Alaskans operate one of the Nation's largest fuel cell systems and the world's largest battery storage system

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Alaska’s numerous rivers offer some of MDC8 the highest hydroelectric power potential in the US

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Large swaths of the Alaskan coastline offer wind and geothermal energy potential

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Due to harsh weather conditions, Alaska’s oil infrastructure is particularly vulnerable to weather-related accidents and disruptions. E.g. Exxon Valdez


Slide 17 MDC8

Once again, let's make the problems more detailed here. Show costs, consumers, lack of electricty per consumer, etc. On another slide, let's create some numbers on potential. Mark D. Crowdis, 10/16/2008


Price of Electricity 2007

2008

Alaska

11.75

12.8

US average

6.68

9.47


Geothermal Energy in Alaska Electric Resource potential

189 MWe

Installed capacity

None to date

Electricity generation

None to date

Thermal Resource potential

434 MWt

Installed capacity

4.4 MWt

Electricity generation

23,300 MWht

US Department of Energy


MDC9

Challenges for the Galapagos Islands „

Fuel is handled, transported and stored at several stages before consumption, increasing the probability that leaks will occur

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Usage of diesel fuel for transportation on land and water, and for electricity generation is both inefficient and highly polluting

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Waste disposal from various energy sectors harms ground water quality, as reinjection of waste into ground water is commonplace


Slide 21 MDC9

Let's create another slide with opportunities in the Galapagos. Mark D. Crowdis, 10/16/2008


Price of Electricity Cost of Fossil-Fuel Receipts at Electric Generating Plants (Nominal Dollars per Million Btu, Including Taxes )


MDC10

Rising cost of oil


Slide 23 MDC10

Please create rising cost of natural gas slide. Also, I want a slide on the rising amount of carbon dioxide in the atmosphere. Mark D. Crowdis, 10/16/2008


Cost of Natural Gas


Greenhouse Gas Emissions


How can renewable energy be part of the solution?


Business case for clean energy „

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Rising cost of oil and declining cost of clean energy makes clean energy more cost effective in the long run Secure power supply Islands, seashores, mountains and other ecotourism locations are abundant in renewable resources such as wind, solar, and geothermal Remoteness of ecotourism locations makes importing fossil fuels costly as well as damaging to the environment Clean energy is low in environmental impact and helps to preserve the pristine nature of ecotourism locations Clean energy appeals to customers of ecotourism


Environmental Benefits „ „ „

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Cleaner air and water Reduced greenhouse gas emissions Less spoilage of the landscape through the erection of transmission grids Less damage to the environment in the form of oil spills and air pollution


MDC12

Technologies ƒ Solar photovoltaics ƒ Geothermal heat pumps ƒ Solar thermal ƒ Pyrolysis ƒ Potable hot water ƒ Dam-free Hydropower ƒ Pool heating ƒ River turbines ƒ Space heating / cooling ƒ Tidal current turbines ƒ Heat to electricity ƒ Wave energy devices ƒ Daylighting ƒ Battery storage ƒ Wind ƒ Small – 1 to 100 KW ƒ Large – 100 KW to 5 MW ƒ Biofuels ƒ Biogas to energy ƒ Landfill gas ƒDigesters


Slide 29 MDC12

Mark D. Crowdis Changxin,

10/16/2008

I have realized what I want here. I want one to two slides per technology. In those slides I want costs and potential paybacks, power output and limitations. I am not sure if you have enough technical information to do this. I think you may have work with Elyse, Owen and Helen on it. I think the technologies listed on this slide are good. Mark D. Crowdis, 10/16/2008


Biodiesel „ „ „ „ „ „

Renewable, clean fuel Named by percentage biodiesel (B20 contains 20% bio-, 80% petrodiesel) Existing generators can generally operate on B20 or less with no adverse effects Generators can be located inside or outside Can also be used in vehicle fleets, no modifications needed when B20 is used in vehicles newer than 1993 Biodiesel Users ™ ™ ™ ™

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Mt. Holyoke College, MA University of Massachusetts Amherst Middlebury College, VT University of Vermont

Several B5 distributors in area, few B20 distributors Recent price comparison (10/2006) ™ Diesel ™ B20 ™ B100

$2.62/gal $2.66/gal $3.31/gal


Biomass Market PAST ƒ

Combustion of bio materials, such as wood and waste, since beginning of civilization

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Some of the first automobiles ran on bio-based fuels

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Less than 200 MW in 1979

PRESENT ƒ

10 GW capacity in US, 7 GW derived from forest-product-industry and agricultural-industry residues, 2.5 GW of municipal solid waste (MSW) generating capacity, and 0.5 GW of other capacity

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Provides about 14% of world’s primary energy

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Co-firing of biomass and typically coal can reduce amount of fossil fuels used

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Biodigestion systems in commercial operation, pyrolysis and gasification in commercial use in limited applications

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$0.05 – 0.12 per kWh

FUTURE ƒ

Pyrolysis and Gasification become more widespread technologies

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Growth averaging 2.5% per year will continue

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Potential capacity of 55 GW in 2010

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Biomass could meet 50% of world energy needs in next century


Solar Photovoltaics „

™ Shortage in silicon ™ High market demand all over the world, especially Germany Rising Solar Photovoltaic Costs Solar PV $/W 6 5.5 5 4.5 Ja n02 Ju l-0 2 Ja n03 Ju l-0 3 Ja n04 Ju l-0 4 Ja n05 Ju l-0 5 Ja n06

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For large installations, $7-9/Watt installed For residential installations, $8-10/Watt installed Photovoltaic module costs dropped 71% since 1980, but prices have been high in the last few years

Dollars per Watt

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Date


Solar Photovoltaic Market PAST • Technology was 6% efficient in 1954 • 2002 PV installations were 427 Megawatts • $0.30 to $0.60 per KWH PRESENT • Most efficient silicon solar cells capture about 25 percent, average is 6-15% • Multijunction solar cells boost efficiency as high as 36 percent, but are difficult to make and expensive • Building integrated photovoltaics • Installed capacity of 2500 MW globally in 2004 • Major Market Players •

Shell Solar, Sharp, Kyocera, BP Solar

$0.10 to $0.25 per KWH FUTURE • Up to 50% efficiency predicted in next three years • Potential in 2010 is 11 GW •


Outlook for Solar „

High demand generated by government subsidies worldwide and a shortage of processed silicon have kept prices for solar-generated power much higher than average electricity prices over the past few years

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Decline in the cost of silicon will boast production of solar panels

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Prices for solar panels could drop by as much as 50 percent from 2006 to 2010

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In areas that get a lot of sun, that will translate to solar electricity costs of about 10 cents per kilowatt hour, matching the average price of electricity in the United States


Solar Thermal Wall „

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Use solar energy to preheat air Install on south face of buildings Suitable for mild, cool, and cold climates and Applications with high heating requirements


Financial Information „

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Turnkey installation ™ $12 - 15 / ft2* Heat savings ™ 2-3 therms / ft2* „ „

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IL: $0.75 / therm KY: $0.83 / therm

™ $1.50 - $2.50 / ft2* Operations and maintenance ™ None Typical payback ™ Two – seven years *Square footage refers to area of installed Solar Wall, not interior floor area

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Natural gas price escalation ™ 3-5% annual increase Emissions reductions ™ 54 ft2* saves 1 ton of CO2 per year


Solar Hot Water „

Uses sun’s energy to heat water or air

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Can produce even on cloudy days Roof or ground mounted Direct vs. indirect

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Uses ™ Floor heating with tiles ™ Domestic hot water ™ Supplement to forced air heating ™ Swimming pools ™ Some large scale commercial and industrial


Solar Hot Water Market PAST • First solar hot water system patented in 1981 • Very popular in 1970s and 1980s, but posed problems - some systems were heavy and leaked PRESENT • Increased reliability • Thousands of systems installed across US on homes and businesses • 2006 30% tax credit now applies to solar hot water • Heats 1-2 gal water per sq. ft. per day • Heat water to 140 to 350 degrees • Major Market Players •

Heliocol, Edwards, Heliodyne

Payback 6 – 25 years FUTURE • Additional incentives make systems more cost-effective •


Daylighting „ „ „

Using sunlight instead of electric light Passive technology Decrease or eliminate electric light ™ Approximately 8 hours daily ™ Typically 75% to 90% noncloudy

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Different sizes for different applications Primary vendors ™ Solar Tracking Skylights ™ Solatube


Daylighting „ „ „

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Improves productivity and mood Block infrared and ultraviolet rays Better thermal resistance than typical skylights Solar Skylights ™ Uses three reflector panels to direct light and track sun ™ Four feet square

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Solar Tubes ™ Tube directs light up to 40 feet into a space ™ Tubes 21 inches diameter


MDC13

On-site Wind: Architectural Wind „ „

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Small building-top wind turbine Modular, 600 W each, can combine to make larger systems Sits on parapet of tilt-up concrete structures No roof penetrations Utilizes wind speed as it flows up and over building wall Can be used in urban and suburban applications


Slide 41 MDC13

Elyse has a great slide with many types of turbines on it. Let's get that one. Mark D. Crowdis, 10/16/2008


Small Wind Market PAST „ Rebirth in energy crisis of 1970s „ $0.25 to $0.40 per KWH „ Barriers – some products created noise, vibrations, visually unattractive PRESENT ƒ Annual sales in 2001 of 13,400 turbines ƒ Generating capacity up to 100 kW, less than 60 ft rotor diameter ƒ Barriers – few technologies and incentives can make costs prohibitive ƒ New attractive technologies mitigate noise and vibrations ƒ US companies lead small wind market ƒ Major Market Players ƒ

Shell, General Electric, Siemens, AES Corp., Bergey Windpower, AeroVironment,

ƒ $0.12 to $0.22 per KWH

FUTURE „ 50,000 MW by 2020 „ 15 million homes and 1 million small businesses „ High volume manufacturing can reduce costs 15 – 30% „ Cost potential of $1.50/W


Case Study: Architectural Wind in New England Location

Undisclosed location, New England

Technology

Architectural Wind Turbines, 55 @ 400 W each

Size

22 kW, 41,000 kWh annually

Cost

$160,000, $72,000 after buy-down

Buy-down by fund at $4.00/watt

$88,000

Cost of Utility Delivered Electricity

$0.14/kWh

Annual Avoided Electricity Costs

$5,740 - $12,577 (assumes a 4% inflation and fuel increase annually)

Simple Payback

7.9 years

Installation Time

1 month

Benefits

52,480 lbs CO2 offset annually, avoided electricity, price hedge, positive press


Large Wind Market PAST „ Total of 2.8 GW in 1993 „ 1980: 5 meter rotor diameter, 10 KW average „ $0.25 to $0.40 per KWH PRESENT ƒ 2005 – 11,769 MW new capacity added globally ƒ Total of over 50 GW installed capacity globally ƒ 9,149 MW of installed wind capacity in US, 1% of total electricity use ƒ 70 meter rotor diameter, 2000 KW average ƒ Major Market Players ƒ Shell, General Electric, Siemens, AES Corp. ƒ $0.028 to $0.9 per KWH FUTURE „ 150,000 MW by 2012 (German Study) „ 161,000 – 312,000 MW by 2012 (EWEA Study) „ 6% of total US electricity use by 2020


Case Study: Harbec Plastics, Inc. Location

Harbec Plastics, Inc., New York

Technology

Wind Turbine

Size

250 kW, 1/3 kWh usage

Cost

$.04 - $.06/kWh

Payback

4.2 – 7.8 years

Installation Time

2 weeks

Benefits

Meets corporate social responsibility demands, financial


Microturbines „ „

Small, High Speed Gas-Powered Turbines Can Use a Variety of Fuels ™ Natural Gas ™ Diesel and Bio-Diesel ™ Propane ™ Landfill Gas ™ Bio Gases

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Basic Components ™ Compressor ™ Combustor ™ Turbine ™ Generator

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Lower Emissions than Reciprocating Engines


Microturbine Costs Microturbine Costs Capital Cost (includes hardware, manuals, software, and training)

$600 (large) - $1100 (small) per kW

Heat Recovery System

Adds $75 - $350/kW

O & M Cost

$0.005 - $0.016/kW

Site Preparation and Installation Costs

Add 30-70% to Total Capital Cost

Maintenance Interval

5000 – 11,000 hours

Target Future Capital Cost: Less that $600/kW


Case Study: Essex Junction Wastewater Treatment Facility Location

Essex Junction Wastewater Treatment Facility, Essex Junction, VT

Technology

Co-generation system, 2 microturbines and heat recovery, burns methane gas blend

Size

60 kW, Over 400,000 kWh annually, 41% of demand

Cost

$0.0246 /kWh

Savings

$0.0637 /kWh, $30,000 a year

Subsidy

$40,000 from Efficiency Vermont


Geothermal „ „

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From Internal Heat of Earth Natural Steam Used to Power Turbine Generators Heating and Cooling Utilizes pipes deep in the ground filled with fluid that are heated and cooled by the earth Emit Water Vapor Waste Water Re-injected Into Reservoir Three Types ™ Dry Steam ™ Flash Steam ™ Binary Cycle


Clean Energy Purchasing Options „

On-site Generation ™ Ownership ™ Power Purchase Agreement ™ Third Party Lease

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Green Power Purchasing ™ “Green Pricing” from current utility ™ Alternative Energy Supplier

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Renewable Energy Certificates (RECs)

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Important Considerations ™ Federal Tax Implications ™ Timing of Ownership ™ Ownership of Renewable Energy Attributes


RECs and Carbon Markets Production of Renewable Energy

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Environmental & Other Benefits (from displacement) Commodity Electricity

Renewable Energy Credits (RECs) are the environmental benefits associated with renewable electricity Carbon credits are the avoided carbon dioxide emissions associated with energy reductions Both are considered unique commodities and have value RECs can be used to satisfy statewide energy goals ™ Renewable Portfolio Standards

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Carbon credits can be traded in the voluntary market ™ Chicago Climate Exchange

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Legislative changes could make RECs and Carbon offsets even more valuable


Direct Purchase of On-site Generation „ „

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Host owns and operates the system Claims or sells benefits ™ Renewable Energy Certificate (REC) market ™ Carbon market Federal Tax Credits Modified Accelerated Cost Recovery System ™ Asset depreciation Low-interest loans Grants ™ System Benefits Funds (e.g. NYSERDA) State and Local Incentives ™ Government ™ Utilities


Power Purchase Agreement (PPA) „

Third party owns and operates renewable energy system for 6 to 20 years

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Host leases land to owner and purchases energy from owner at negotiated rate

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No upfront investment

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Predictable energy costs ™ Rate per kWh is fixed or increases by a percentage each year ™ Rates starting at $0.10 - $0.20/kWh ™ No operations or maintenance costs

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Option to purchase RECs

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Third party accesses all incentives & tax credits

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Only larger or aggregated systems attract PPA investment

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May involve a “buyout” option at a later date


Energy Services Contract „

Bundled renewable energy and energy efficiency technology upgrades ™ Example: Lighting upgrade, solar thermal wall, photovoltaics, small wind, boiler upgrade

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Payments based on projected performance No up-front costs Option to retain environmental benefits ESCO provider accesses all incentives (state, utility and federal)


From EPA’s Guide to Purchasing Green Power


Solving the Problem „

Facilities ™ Conduct energy needs analysis (Minimum 10 year forecast) ™ Identify energy efficiency opportunities ™ Assess renewable energy resources ™ Conduct renewable energy feasibility analysis ™ Choose most attractive options (Energy, capital costs, $ savings, carbon/pollution) ™ Conduct RFP ™ Negotiate contracts ™ Implement energy efficiency and renewable energy systems


Solving the problem „

Transportation ™ Quantify the situation – vehicle count, age, fuel using Cardenas (2001) as a starting point ™ Assess alternatives „

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bicycles, walking, horses, biofuels, electric vehicles & plug in hybrids Test market to understand all costs Ensure vendors have capability

™ Do profit and loss analysis on solutions ™ Request Proposals ™ Negotiate contracts ™ Implement


Renewable energy is… „

Wise risk management ™ Managing costs ™ Protecting profit ™ Managing carbon ™ Managing other pollutants

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Smart Business ™ Over 90% of U.S. citizens say the power source they most desire is solar energy ™ Green Gauge Report states that approximately 10% to 20% of consumers will pay more for green, while another 30% to 50% will choose the greener option when given a choice


Contact Information

Mark D. Crowdis Chief Executive Officer Think Energy, Inc. (301) 589-9522 mcrowdis@thinkenergy.net www.thinkenergy.net


Clean Energy for Clean Tourism