Iowa: The #1 Solar Utility in America. Iowa? Kudos to Iowa!

by John Farrell.

It may be one of the oldest cooperative utilities in the country, but in the next six months, Farmers Electric Cooperative (FEC) of southeastern Iowa will be leading the nation in this 21st century energy source. Upon completion of a new solar array, the 640-member cooperative will have over 1,500 Watts of solar per customer on their system, nearly double the #2 utility. It’s also the most reliable utility in Iowa. How can a small, member-owned utility be “America’s Most Progressive Utility“?

Find out in this interview with FEC Manager Warren McKenna, recorded via Skype, on November 18, 2013.

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Flexibility

Unlike many small cooperative or municipal utilities, Farmers Electric Cooperative only buys 30% of its energy on long-term contracts. Instead, McKenna explains, they buy power on the spot market, using local power generation and demand management to avoid price spikes. This leaves them open to buying power from local generators, especially solar.

Creativity

FEC hasn’t limited itself to just one strategy for adding solar to the grid. In fact, they don’t even have net metering, the most common policy for connecting small-scale solar projects.

Instead, they have a feed-in tariff at pays 20¢ per kilowatt-hour (kWh) for solar energy, as long as it’s 25% or less of a customer’s own use. For solar energy produced that is between 25 and 100% of a customer’s monthly usage, customers still get 12.5¢ per kWh (the retail electricity rate for residential customers). Surplus generation is purchased by the utility at 6¢ per kWh.  Participating customers still buy all their electricity from the utility

FEC also has a 25 kW community solar project, selling shares to new customers in phase 2 for just $1.63 per Watt. Current participants can buy additional panels for $2 per Watt.

Finally, the cooperative has also commissioned a new 750 kW solar array which will sell power to the utility for its first 10 years, and the revert to cooperative ownership thereafter.

Participation

Since it’s a cooperative, technically every FEC member is an owner in a local solar project. But ignoring that for the moment, about 20% of the cooperative’s members either have their own solar array, own shares in the community solar project, or participate in the Green Power Project (a $3 per month green pricing program for purchasing local renewable energy).

Replicable?

The big question is, could your local utility do what Farmers Electric is doing?  If your utility happens to be locally owned, says McKenna. Cooperatives are often very open to comments from their members, and if not, you can run for the board.  Municipal utilities are overseen by elected officials, who are always looking for examples of strategies to increase local jobs, particularly from clean energy.

It’s inspiring to see what FEC has accomplished, regardless.  Most of the greenest utilities in the U.S. are among the largest, and Farmers Electric shows that you don’t have to be a big utility to do big things with locally owned renewable energy.

This is the 12th edition of Local Energy Rules, an ILSR podcast with Senior Researcher John Farrell that shares powerful stories of successful local renewable energy and exposes the policy and practical barriers to its expansion. Other than his immediate family, the audience is primarily researchers, grassroots organizers, and grasstops policy wonks who want vivid examples of how local renewable energy can power local economies.

It is published twice monthly, on 1st and 3rd Thursday.  Click to subscribe to the podcast: iTunes or RSS/XML

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This article, The #1 Solar Utility Is In…Iowa?, is syndicated from Clean Technica and is posted here with permission.

About the Author

Renewable Energy. John Farrell.John Farrell directs the Energy Self-Reliant States and Communities program at ILSR and he focuses on energy policy developments that best expand the benefits of local ownership and dispersed generation of renewable energy. His latest paper, Democratizing the Electricity System, describes how to blast the roadblocks to distributed renewable energy generation, and how such small-scale renewable energy projects are the key to the biggest strides in renewable energy development.   Farrell also authored the landmark report Energy Self-Reliant States, which serves as the definitive energy atlas for the United States, detailing the state-by-state renewable electricity generation potential. Farrell regularly provides discussion and analysis of distributed renewable energy policy on his blog, Energy Self-Reliant States (energyselfreliantstates.org), and articles are regularly syndicated on Grist and Renewable Energy World.   John Farrell can also be found on Twitter @johnffarrell, or at jfarrell@ilsr.org.

An Inside Look At Living In One Of The World’s Most Sustainable Cities — Melbourne, Australia

by Ari Phillips, Guest Contributor — Special to JBS News

Capital_city_trail,_melbourne,_australia
Capital city trail, Melbourne, Australia. Image courtesy of: wikipedia/commons

Originally published on ClimateProgress

Melbourne is a sprawling network of neighbourhoods, trams, trains, bikes, laneways and, around almost every corner, coffee shops — a bit like Portland, Oregon but bigger, more European feeling and with giant bats. There are tall skyscrapers, Robert Moses-era public housing blocks, dense row houses, overgrown bungalows and suburban complexes.

Over 15 years ago, Melbourne mounted a long-term campaign to change the way it uses energy and has attracted international acclaim for its commitment to sustainability. This has included encouraging bike riding and public transport and improving building efficiency. One notable example of this is the Council House 2 building, Australia’s first six-star green star new office design building. Completed in 2006, some of the building’s features include recycled water use, automatic windows, sun-tracking facades for shade and roof-mounted wind turbines to draw out hot air.

While good public transport and efficient office buildings are a big part of being a sustainable city, residences — and the way people live in those residences — are likely just as important. Melbourne is only as sustainable as its Melbournians.

A person’s carbon footprint, or energy economy, is some combination where they live and how they live. Two forward-thinking approaches to this idea in Melbourne are the 5×4 House, a soon-to-be-built super energy efficient, zero carbon dwelling on a 5×4-meter plot of land, and the Murundaka Co-housing Community, a new eco-housing complex of 20 residences based on the principles of sustainable and community living.

Different Approaches To Sustainability

Design and Technology

Ralph Alphonso, a Melbourne-based photographer, is building the 5×4 House on the space occupied by his garage. His current residence is a large, modern condo is located down a small laneway, or alley, in East Melbourne. He decided to go all out and try to build Australia’s most sustainable dwelling after being somewhat disappointed in the construction practices used in building his current house.

Rendering of what the structure of the house will look like. Image Credit: Ralph Alphonso

“In Australia you find houses with one or two elements of sustainable design,” Alphonso said. “We’re using the principles of full life cycle assessment and embodied energy to reduce the total carbon emissions of the house.”

Alphonso is not an environmentalist — his emissions from flying must be in the top one percentile as he seems to be on a plane every other day (he does buy offsets) — but through this process he’s become much more aware of what it means to live sustainably. For him, this includes everything from eating less meat to sourcing local materials.

“I think the house will start changing my behavioural patterns,” Alphonso said. “A big part of sustainable living is actually living the lifestyle.”

For Alphonso, the project is also about education. He thinks there are three main reasons why people choose to live more sustainably: it doesn’t take a large economic toll, it doesn’t alter their lifestyle too much and they are educated and can make informed decisions.

Cost is a major issue with employing sustainable design, and Alphonso has gotten creative about this by establishing project partners who offer services or products at a reduced cost in or in-kind in exchange for exposure (such as this article). He sees the true value-added being in the comprehensive nature of the project.

“Manufacturers are only going to change their production patterns if there’s a demand for it,” Alphonso said. “We want to showcase sustainable products and create that demand so manufacturers will automatically include sustainability, recycled content, efficiency — all those sort of things — in their production decisions. Then, in the longer term, these products will be more available and more affordable.”

As for lifestyle, Alphonso won’t be sacrificing much. He’ll even have a hot tub on the roof, which will be geothermally heated through partner agreements with Bosch Geothermal and Direct Energy Geothermal Heating and Cooling. While the footprint of the house is small, the square footage is around 650 feet (three floors, not including the roof), not too shabby for one person. He explains that part of the reason he’s doing this is to show that it’s possible to maintain a high quality of life while significantly reducing your energy economy.

Another reason is to illustrate how dense, urban living doesn’t have to feel cramped. Alphonso used his frequent travels abroad to visit some of the densest cities in the world, including New York and Tokyo, to gather ideas for his house. Both the City of Melbourne and the Australian Conservation Foundation are supporters of the project.

Alphonso is using the One Planet Living principles as a guide to building a more sustainable life along with the house. He likes the One Planet Living concept because it’s holistic and it’s quantifiable by showing how many planets of resources we consume to sustain our lifestyle.

August 20 was Earth Overshoot Day 2013: the day humanity uses up all the natural resources the planet can sustainably provide for a given year. From that date on, we’re in ecological deficit for the rest of the year, inflicting more damage on global ecology than it can naturally repair. Every year this date moves forward at least a few days.

“Ecological footprint analysis shows that, if everyone in the world lived like the average Australian, we would need five planets to sustain us,” Alphonso said.

Community

“I like a lot of what the 5×4 House is doing, especially with the embodied energy analysis and One Planet Living guidelines,” Heidi Lee, Future Projects Manager for the architecture firm DesignInc and Murundaka Co-housing Community resident, said.

“But I think it kind of misses the point,” Lee continued. “I feel like we’re not really making much ground if we’re going to keep on knocking things down and building something new and keeping the same area and everyone having a hot tub.”

Lee said there’s a lot of talk about hot tubs where she lives as well, but it’s about sharing one hot tub between twenty households.

Image Credit: www.footprintnetwork.org

The Murundaka Co-housing Community consists of 18 self-contained apartments centered around a common house. As a rule of thumb, the apartments are ten percent smaller than what’s on the market — ten percent that gets put into the common house and other shared spaces, such as an office, guest room and expansive garden.

The building is only about two years old and has large, open corridors and panel windows that give it a very welcoming and homey feel for being so large. It is a mix of families, single moms, young couples and individuals, with all different apartment sizes. It is affordable housing so it is rent controlled. They have voluntary group activities, occasional meals, and as of recently, a weekly moderation session to improve communication.

“As a microcosm of how we could live in suburbia this has been built intentionally for people to actively live and work together,” Lee said. “To share time with neighbours, although you could live totally independently and never talk to any of the community members if you didn’t want to.”

But that would also miss the point, according to Lee, which is to rediscover the kinds of things humans lost when they stopped living in the size of settlements where people could know each other and have a certain level of trust and reciprocity even with the people they might not know that well. Lee and her partner recently had a child and she said that the community support surprised even her, with members helping with everything from preparing meals to running errands.

While Alphonso sees his main contribution being to change the way new buildings are manufactured, Lee is more concerned with what’s already standing. According to her, about 80 percent of the structures that will be around in ten years are already built.

“We need to put effort into looking after and improving what’s already built,” Lee said. “Otherwise it’s only going to get worse. Old buildings often have high air infiltration, leaking around windows and doors and other energy-wasting problems.”

The Larger Landscape

In June, Melbourne and Sydney launched a new program called Smart Blocks, designed to help apartment owners and their managers save money by improving energy efficiency. Energy audits show that on average up to 30 percent can be saved on just power bills alone.

In an interview, City of Melbourne Environment Portfolio Chair Councillor Arron Wood said population growth needs to be supported by innovative and practical initiatives like Smart Blocks.

“Our population is growing quickly. By 2031, we expect an additional 42,000 homes will be built in the City of Melbourne, accommodating 80,000 people. We need to be smart about the way we develop in the future but we also need to make our existing buildings more efficient. This is a critical step to reaching our ultimate goal of becoming a carbon neutral city.”

To Lee, however, just maintaining the existing suburban home infrastructure totally misses the point as well. She shudders at the thought of the nearly 70 percent of Australian dwellings with a spare bedroom, or large, underutilized yard space.

“Overall a key part of the message is missing: that we have to be living better together,” Lee said.

In Melbourne, and even across Australia, some of these ideals may be within reach. Approximately 40 percent of all new housing in Australia is in medium to high density developments. Over 70 percent of residents in both Melbourne and Sydney live in apartments, and these figures are only set to grow.

The transition from dense living to community living is not to be taken for granted though. While living in smaller spaces may cause people to spend more time outside at cafes or in public parks, which Alphonso plans to do, the idea of cooperative living is still in its infancy in Australia.

Lee recently toured cooperative housing communities in the States, and she was surprised that most of the communities she saw were doing it for social reasons. “In Australia the idea of a co-housing community is still pretty left-wing, and gets lumped in with other lefty ideals: less environmental impact, shared resources, growing your own food,” Lee said. “What I saw in the U.S. influenced how I think of it more as a social experience now.”

Lee would also like to see more collaboration — or more sharing — within the industry, and for the manufacturing and construction bar to be raised to higher energy economy standards. Amongst other things, this involves prefabrication or modular techniques that cut down on energy and transportation demands.

“What I worry about is we’re all going to sit back and go on with a business-as-usual approach,” Lee said. “Many firms just do whatever the client says, no matter what the carbon impact of the decision. We could be doing so much more and providing leadership.”

Lee has only been Future Projects Manager for a few weeks, but this is the type of impact she hopes to have going forward. And with clients like Alphonso, it seems likely that Melbourne will build on its reputation as one of the world’s most livable and sustainable cities.

This article, An Inside Look At Living In One Of The World’s Most Sustainable Cities — Melbourne, Australia, is syndicated from Clean Technica and is posted here with permission.

5 Barriers To and Solutions For — Community Renewable Energy

by John Farrell – Special to JBS News

Community renewable energy has significant political and economic benefits, but is often hindered by five major barriers. Read on for a summary of the five barriers, watch them in a 17-minute presentation, or check out the vividly illustrated slideshow.

Barrier one is tradition. Utilities are simply used to operating a grid in a 20th century model, where large-scale power plants are connected in a top-down, one-way grid to power consumers. Policies that have allowed for on-site solar and wind generation, for consumers to be instead producers, have nibbled at the margins of this tradition.  It’s only in the past year that utilities have realized how low-cost solar power can fundamentally up-end their entire business model. And the response has often been to entrench.

A second barrier facing community-based renewable energy is capital — upfront cash to buy a solar array or wind turbine. And the biggest cause is securities law and regulations, intended to prevent fraud like perpetrated by Bernie Madoff and others, that makes pooling capital very difficult for groups of interested local power investors. The federal or state rules often come with high compliance costs or significant limitations that hinder most efforts to raise community capital.

A third barrier is cash flow. American renewable energy policy is a byzantine array of tax incentives, rebates, and bill credits that can challenge a CPA. Figuring out how to pool all these revenue streams together to make a project with reasonable payback is a significant challenge.

A fourth barrier is legal, because of the mis-match between federal renewable energy incentives paid through the tax code and the non-taxable status of many of the logical entities for organizing community renewable energy projects. Want to use a city, county, cooperative, or non-profit structure for your community solar project?  Then you may have to forgo the 30% federal tax credit.  A level playing field for energy cooperatives is a major reason the Germans have such high levels of local ownership of their 63,000 MW renewable energy economy.

Finally, utilities themselves (as implied in #1) have acted as barriers to more community-based renewable energy.  In particular, policies like the “15% Rule” have set artificially (and arbitrarily) low limits on distributed generation under the guise of system safety.

The good news is that the barriers are being broken. 

Tradition has been tossed as utilities have had to grapple with state policies encouraging distributed generation and solar power and others have embraced pro-active measures to accommodate more local renewable energy. Crowdfunding opportunities like those offered by Mosaic are giving people an unprecedented opportunity to pool their money to go renewable. The falling cost of solar is rapidly making incentives unimportant in many areas, reducing the problems caused by half baked, tax-based federal policy.

Most importantly, utilities, regulators, and policy makers are recognizing that the 20th century model of concentrated power and capital doesn’t serve a distributed, 21st century grid.  And as that aging paradigm crumbles, community renewable energy will grow up through the cracks.

This article, 5 Barriers To And Solutions For Community Renewable Energy, is syndicated from Clean Technica and is posted here with permission.

About the Author

John Farrell directs the Energy Self-Reliant States and Communities program at ILSR and he focuses on energy policy developments that best expand the benefits of local ownership and dispersed generation of renewable energy. His latest paper, Democratizing the Electricity System, describes how to blast the roadblocks to distributed renewable energy generation, and how such small-scale renewable energy projects are the key to the biggest strides in renewable energy development. Farrell also authored the landmark report Energy Self-Reliant States, which serves as the definitive energy atlas for the United States, detailing the state-by-state renewable electricity generation potential. Farrell regularly provides discussion and analysis of distributed renewable energy policy on his blog, Energy Self-Reliant States (energyselfreliantstates.org), and articles are regularly syndicated on Grist and Renewable Energy World.

John Farrell can also be found on Twitter @johnffarrell, or at jfarrell@ilsr.org.