RENEW lauds PSC for making decision on renewable energy

Ten-month delay harmed renewable energy businesses

RENEW Wisconsin (RENEW) praised the state’s energy regulators for responding to pleas from renewable businesses and potential customers to make a decision and get people working again.

The Wisconsin Public Service Commission (PSC) released an April 26 decision on funding for renewable energy incentives to homeowners and businesses in the next three years.

The PSC decided to allocate $10 million per year in incentives for renewable energy installations in 2012, 2013, and 2014. Beginning in 2013, three-quarters of the funds will be reserved for energy systems using biogas, biomass combustion, and geothermal heat pumps. The remaining 25% will fund incentives for solar and small wind installations.

Ten million dollars per year for renewable energy incentives is a reasonable starting place and is consistent with previous funding for incentives provided by Focus on Energy (Focus), the utility-ratepayer-supported energy efficiency and renewable energy program in Wisconsin, according to Don Wichert, executive director of RENEW Wisconsin, a nonprofit advocacy organization that leads and represents businesses, organizations, and individuals who seek more clean, renewable energy in Wisconsin.

“After nearly 10 months of needless uncertainty and delay, renewable energy activity has now nearly come to a complete halt in Wisconsin,” Wichert said.

“Many Wisconsin renewable energy companies told the PSC that the delay in the decision and lack of transparency have been a nightmare, forcing some renewable installers to lay off workers and move their business activity to other states, especially when the Focus program administrator, Shaw Environmental, ended all incentives for renewable technologies at the beginning of 2012,” Wichert said.

“RENEW hopes that the PSC’s response to renewable energy businesses means that it will resume collaboration between Focus and Wisconsin’s renewable energy community,” he said.

“In a time of decreased resources and increased demand, RENEW believes it is imperative for Focus decision makers to involve people who know the industry best,” said Wichert.

“Without a collaborative process, the industry and customers will always be second guessing the decisions and the assumptions behind them. It doesn’t have to be a one-way, top-down approach. The renewable energy industry is just trying to make a living and should be involved.”

END

RENEW Wisconsin is an independent, nonprofit 501(c)(3) organization that leads and represents businesses, organizations, and individuals who seek more clean renewable energy in Wisconsin. More information on RENEW’s Web site at www.renewwisconsin.org.

RENEW Lauds PSC for Making Decision on Renewable Energy

Ten-month delay harmed renewable energy businesses

RENEW Wisconsin (RENEW) praised the state’s energy regulators for responding to pleas from renewable businesses and potential customers to make a decision and get people working again.

The Wisconsin Public Service Commission (PSC) released an April 26 decision on funding for renewable energy incentives to homeowners and businesses in the next three years.

The PSC decided to allocate $10 million per year in incentives for renewable energy installations in 2012, 2013, and 2014. Beginning in 2013, three-quarters of the funds will be reserved for energy systems using biogas, biomass combustion, and geothermal heat pumps. The remaining 25% will fund incentives for solar and small wind installations.

Ten million dollars per year for renewable energy incentives is a reasonable starting place and is consistent with previous funding for incentives provided by Focus on Energy (Focus), the utility-ratepayer-supported energy efficiency and renewable energy program in Wisconsin, according to Don Wichert, executive director of RENEW Wisconsin, a nonprofit advocacy organization that leads and represents businesses, organizations, and individuals who seek more clean, renewable energy in Wisconsin.

“After nearly 10 months of needless uncertainty and delay, renewable energy activity has now nearly come to a complete halt in Wisconsin,” Wichert said.

“Many Wisconsin renewable energy companies told the PSC that the delay in the decision and lack of transparency have been a nightmare, forcing some renewable installers to lay off workers and move their business activity to other states, especially when the Focus program administrator, Shaw Environmental, ended all incentives for renewable technologies at the beginning of 2012,” Wichert said.

“RENEW hopes that the PSC’s response to renewable energy businesses means that it will resume collaboration between Focus and Wisconsin’s renewable energy community,” he said.

“In a time of decreased resources and increased demand, RENEW believes it is imperative for Focus decision makers to involve people who know the industry best,” said Wichert.

“Without a collaborative process, the industry and customers will always be second guessing the decisions and the assumptions behind them. It doesn’t have to be a one-way, top-down approach. The renewable energy industry is just trying to make a living and should be involved.”

END

RENEW Wisconsin is an independent, nonprofit 501(c)(3) organization that leads and represents businesses, organizations, and individuals who seek more clean renewable energy in Wisconsin. More information on RENEW’s Web site at www.renewwisconsin.org.

PSC Issues Flawed Decision on Renewable Energy

Immediate release
April 16, 2012

More information
Michael Vickerman
Director, Programs and Policy
608.255.4044
mvickerman@renewwisconsin.org

Statement of RENEW Wisconsin&nbspPSC Issues Flawed Decision on Renewable EnergyIncentives Will Favor Biogas and Biomass, Penalize Solar, Small Wind
In deciding last Friday on a new approach to funding renewable energy systems through the Focus on Energy program, the Public Service Commission (PSC) reserved the bulk of the incentives for energy systems using (1) biogas from agriculture and industrial operations; (2) biomass combustion; and (3) geothermal heat pumps. In so doing, it consigned solar and small wind to a minor role for the next couple of years.

The PSC’s decision came more nine months after Focus on Energy’s program administrator announced in June 2011 that it would temporarily discontinue awarding incentives to renewable energy systems beginning that July. Systems approved for incentives prior to that time were allowed to go forward.

Beginning in 2012, the PSC will impose a $10 million cap on program outlays dedicated to renewable energy in a given year. The percentage of that amount that flows to energy producers in the form of incentives has not been determined. Shortly after the Friday open meeting, the agency issued a statement which can be accessed at http://psc.wi.gov/pdffiles/News%20Releases/2012/04%20April/04132012RenewablesPlan.pdf.

The following represents RENEW Wisconsin’s reaction to the new Focus on Energy policy on funding renewable energy systems. For the record, RENEW Wisconsin’s advocacy was a driving force behind the creation of Focus on Energy renewable energy program in 2002.

+++++++++++++++++++++++++++++++++++++++++++

“We wish we could be more supportive of the long-overdue action the Commission took last Friday, but unfortunately it is flawed in at least one key respect, and the result will be a very unbalanced resource portfolio going forward,” said Michael Vickerman, RENEW’s director of programs and policy.

“The biggest problem with the new policy is that it reserves three-quarters of available funds for biogas, biomass and geothermal heat pump systems while limiting funding for solar and small wind projects to only one-third of the program budget for biogas and biomass energy. Under the new policy, the amount awarded to biogas, biomass, and geothermal determines the overall funding level for renewables.”

“Let’s do the math. If it’s a good year for biogas, biomass, and geothermal, and enough applications come in to obligate in full the $7,500,000 reserved for this category, then solar and small wind could receive the remaining funds up to $2,500,000. But if biogas, biomass, and geothermal have an off year and only $3,000,000 worth of applications is approved, the share that remains for solar and small wind shrinks to $1,000,000.”

“We are strong supporters of biogas and biomass energy systems, but this allocation goes too far in that direction. Even under the best-case scenario, solar and small wind will see a significant reduction of incentive support.”

“Whether intended or not, the PSC’s funding formula effectively picks winners and losers going forward. Although state law directs the PSC to place a higher priority on non-combustible renewables than on combustibles, this policy does the reverse.”

“As long as funding for solar and small wind systems remains contingent on outlays for biomass, biogas, and geothermal, uncertainty and instability will prevail in that market segment. Administering this aspect of the Focus on Energy program will present a number of challenges. ”

“We believe this problem flows from the PSC’s continuing difficulties in fairly evaluating the cost-effectiveness of non-combustible renewables. Basically, the PSC treats those resources as though they were an expensive form of energy efficiency. But small, non-combustible renewables and energy efficiency are different animals, yielding very different outcomes and benefit streams. Small-scale renewables are clean and homegrown energy sources. The PSC’s test for determining cost-effectiveness in large part ignores those attributes,” Vickerman said.

END

PSC Issues Flawed Decision on Renewable Energy

Immediate release
April 16, 2012

More information
Michael Vickerman
Director, Programs and Policy
608.255.4044
mvickerman@renewwisconsin.org

Statement of RENEW Wisconsin&nbspPSC Issues Flawed Decision on Renewable EnergyIncentives Will Favor Biogas and Biomass, Penalize Solar, Small Wind
In deciding last Friday on a new approach to funding renewable energy systems through the Focus on Energy program, the Public Service Commission (PSC) reserved the bulk of the incentives for energy systems using (1) biogas from agriculture and industrial operations; (2) biomass combustion; and (3) geothermal heat pumps. In so doing, it consigned solar and small wind to a minor role for the next couple of years.

The PSC’s decision came more nine months after Focus on Energy’s program administrator announced in June 2011 that it would temporarily discontinue awarding incentives to renewable energy systems beginning that July. Systems approved for incentives prior to that time were allowed to go forward.

Beginning in 2012, the PSC will impose a $10 million cap on program outlays dedicated to renewable energy in a given year. The percentage of that amount that flows to energy producers in the form of incentives has not been determined. Shortly after the Friday open meeting, the agency issued a statement which can be accessed at http://psc.wi.gov/pdffiles/News%20Releases/2012/04%20April/04132012RenewablesPlan.pdf.

The following represents RENEW Wisconsin’s reaction to the new Focus on Energy policy on funding renewable energy systems. For the record, RENEW Wisconsin’s advocacy was a driving force behind the creation of Focus on Energy renewable energy program in 2002.

+++++++++++++++++++++++++++++++++++++++++++

“We wish we could be more supportive of the long-overdue action the Commission took last Friday, but unfortunately it is flawed in at least one key respect, and the result will be a very unbalanced resource portfolio going forward,” said Michael Vickerman, RENEW’s director of programs and policy.

“The biggest problem with the new policy is that it reserves three-quarters of available funds for biogas, biomass and geothermal heat pump systems while limiting funding for solar and small wind projects to only one-third of the program budget for biogas and biomass energy. Under the new policy, the amount awarded to biogas, biomass, and geothermal determines the overall funding level for renewables.”

“Let’s do the math. If it’s a good year for biogas, biomass, and geothermal, and enough applications come in to obligate in full the $7,500,000 reserved for this category, then solar and small wind could receive the remaining funds up to $2,500,000. But if biogas, biomass, and geothermal have an off year and only $3,000,000 worth of applications is approved, the share that remains for solar and small wind shrinks to $1,000,000.”

“We are strong supporters of biogas and biomass energy systems, but this allocation goes too far in that direction. Even under the best-case scenario, solar and small wind will see a significant reduction of incentive support.”

“Whether intended or not, the PSC’s funding formula effectively picks winners and losers going forward. Although state law directs the PSC to place a higher priority on non-combustible renewables than on combustibles, this policy does the reverse.”

“As long as funding for solar and small wind systems remains contingent on outlays for biomass, biogas, and geothermal, uncertainty and instability will prevail in that market segment. Administering this aspect of the Focus on Energy program will present a number of challenges. ”

“We believe this problem flows from the PSC’s continuing difficulties in fairly evaluating the cost-effectiveness of non-combustible renewables. Basically, the PSC treats those resources as though they were an expensive form of energy efficiency. But small, non-combustible renewables and energy efficiency are different animals, yielding very different outcomes and benefit streams. Small-scale renewables are clean and homegrown energy sources. The PSC’s test for determining cost-effectiveness in large part ignores those attributes,” Vickerman said.

END

Catching Wind updates Wisconsin wind news

Catching Wind, a newsletter from RENEW Wisconsin, includes the following updates on wind in Wisconsin:

Siting rule survives challenge, takes effect
Capping a bitter four-year struggle, the Legislature cleared the path for wind energy development to resume in Wisconsin under clear and consistent rules.

By adjourning without passage of bills restricting wind development, the Legislature allowed a statewide permitting rule developed by the Public Service Commission (PSC) to take effect.

Community wind sweeps into western Wisconsin
Two privately owned utility-scale wind turbines are set to rise this spring near Organic Valley Cooperative’s distribution center in Cashton, home of Wisconsin’s first Community Wind project. Called Cashton Greens, the wind project is a joint venture of LaFarge-based Organic Valley and La Crosse-based Gundersen Lutheran Health System.

St. Croix County Wind Project seeks PSC approval
In a first for the Badger State, western Wisconsin, specifically, St. Croix County will provide the backdrop for a high-profile permitting battle over a utility-scale wind energy project. The 41-turbine project would be located in the towns of Forest and Cylon, about 30 miles northeast of Hudson.

Catching Wind updates Wisconsin wind news

Catching Wind, a newsletter from RENEW Wisconsin, includes the following updates on wind in Wisconsin:

Siting rule survives challenge, takes effect
Capping a bitter four-year struggle, the Legislature cleared the path for wind energy development to resume in Wisconsin under clear and consistent rules.

By adjourning without passage of bills restricting wind development, the Legislature allowed a statewide permitting rule developed by the Public Service Commission (PSC) to take effect.

Community wind sweeps into western Wisconsin
Two privately owned utility-scale wind turbines are set to rise this spring near Organic Valley Cooperative’s distribution center in Cashton, home of Wisconsin’s first Community Wind project. Called Cashton Greens, the wind project is a joint venture of LaFarge-based Organic Valley and La Crosse-based Gundersen Lutheran Health System.

St. Croix County Wind Project seeks PSC approval
In a first for the Badger State, western Wisconsin, specifically, St. Croix County will provide the backdrop for a high-profile permitting battle over a utility-scale wind energy project. The 41-turbine project would be located in the towns of Forest and Cylon, about 30 miles northeast of Hudson.