Innovation, Renewable Energy, and State Investment:
Case Studies of Leading Clean Energy Funds


By

Ryan Wiser and Mark Bolinger, Berkeley Labs
and
Lewis Milford, Clean Energy Group
Kevin Porter, Exeter Labs
Roger Clark, Clean Energy Group

September 2002

Case Studies of State Support for Renewable Energy


About the Case Study Series
A number of U.S. states have recently established clean energy funds to support renewable electricity. The 15 states that have established these funds to date are expected to collect $3.5 billion between 1998 and 2012 for renewable energy investments. This represents a new trend towards aggressive state support for renewable energy, but few efforts have been made to report and share the early experiences of these funds.

Clean Energy Group, in collaboration with the Berkeley Lab, has initiated a case study series that will report on the use of these clean energy funds. The primary purpose of this series is to briefly report on the innovative programs and administrative practices of state (and some international) clean energy funds, to highlight additional sources of information and to identify contacts. Our hope is that these case studies will be useful for administrators of clean energy funds and other stakeholders that are interested in learning about the pioneering renewable energy efforts of newly established clean energy funds. We expect to produce several new case studies each year.

Download the Authors' Note
Download the Authors' Note and a brief description about how clean energy is emerging as a new investment area for many states.


Download the Complete Set of Case Studies

Download a compilation file of all the formatted case studies (for printing ease): Renewable_Energy_Case_Studies.pdf, 4.2 MB

Download a full Berkeley Lab report of the initial 21 case studies, including more information on our overall methods and findings: Innovation, Renewable Energy, and State Investment: Case Studies of Leading Clean Energy Funds. (September 2002). 704 KB


Download the Individual Case Studies

Don't show one sentence description of each case



Large Scale Renewables Cases

Production Incentive Auctions to Support Large-Scale Projects in California and Pennsylvania (September 2002). This case summarizes California's production incentive program and the difficulties it has faced, and then focuses on how Pennsylvania has attempted to innovate on California's approach to bring new wind capacity on line quickly and prior to the then-expected expiration of the federal production tax credit (PTC) for wind power at the end of 2001.

The U.K. NFFO and Ireland AER Competitive Bidding Systems (September 2002). This case describes how the incentive structures used in the U.K. and Ireland eliminate "power purchase agreement uncertainty" for large-scale renewable energy projects, which has been a major concern in the U.S.

An Open-Ended Renewables RFP in Minnesota Funds Biomass and Innovative Wind Applications (September 2002). Chosen in part because it provides an example of an open-RFP process that has funded a diverse set of projects, this case describes the first solicitation and results from Xcel Energy's Renewable Development Fund.

Use of Low-Interest, Subordinated Debt to Finance a Wind Project in Pennsylvania (September 2002). The innovative offering of low-cost debt described in this case marks a significant departure from standard grant-based project support.

Distributed Generation Cases

The Use of Capital- and Performance-Based Buy-Down Programs for PV in California, Pennsylvania, and Massachusetts (September 2002). This case highlights California's successful capital-based buy-down program, and how Pennsylvania and Massachusetts have attempted to build upon the success in California by incorporating performance-based incentives into their programs.

Support for PV in Japan and Germany (September 2002). Examining the factors that have led to extensive grid-connected PV deployment in Japan and Germany, this case is valuable because both of these countries have a longer history of program experience (dating back to the early 1990s) than the U.S.

Using Bulk Purchase Commitments to Foster Sustained Orderly Development and Commercialization of PV (September 2002). The efforts of the Sacramento Municipal Utility District, the California Power Authority, the Western Solar Utility Network Cooperative, and the City of Chicago to lower the installed cost of PV systems through bulk purchase and installation programs are described in this case.

A Multi-Faceted Approach to Supporting PV in New York (September 2002). This case highlights NYSERDA's efforts to target different segments of the PV market, including commercial, industrial, and institutional buildings, the residential PV market, "high-value" PV installations, solar on schools, and PV systems on new Energy Star-labeled homes.

A Targeted Approach to Support PV and Small Wind in Montana (September 2002). Montana has targeted niche and other high-value applications such as PV-powered livestock watering systems and solar on schools (with a strong educational component); this experience is described in this case.

PV (and Small Wind) Pricing Programs that Link Supply with Demand (September 2002). This case provides information on the use of "green tags" to support distributed PV and small wind applications in Pennsylvania, the Pacific Northwest, and Switzerland.

Quality Assurance for Photovoltaic Systems (September 2002). The various approaches that certain states have taken to help ensure the quality and reliability of PV systems are described in this case.

Two Different Approaches to Funding Farm-Based Biogas Projects in Wisconsin and California (September 2002). This case relates the approaches and experience of two states that are actively supporting the development of a technology that has not received much attention in recent years, but whose fortunes seem to be shifting as the environmental impacts from both conventional electricity generation and agricultural waste continue to mount.

Other Program Cases

Using Customer Credits to Stimulate Green Power Sales in California, Rhode Island, and New York (September 2002). This case describes California's pioneering experience in offering a per-kWh incentive to encourage customers to purchase green power, and how Rhode Island and New York have attempted to apply lessons learned from California in the design of their own green power programs.

Information, Training, Education, Project Facilitation, and Technical Assistance in Wisconsin (September 2002). Wisconsin has taken a somewhat unique approach in raising awareness and shepherding new renewable energy projects to completion through education, marketing, training, and project facilitation (i.e., technical assistance and project "hand holding").

Renewable Energy Loan Programs (September 2002). This case describes the structure and experience of renewable energy loan programs in Idaho, New York, Ohio, Oregon, Pennsylvania, and Wisconsin.

Massachusetts' Green Buildings Program (September 2002). This program ÷ by far the largest and most aggressive effort among state clean energy funds at promoting the use of renewable energy in green buildings ÷ supports feasibility studies and provides design and construction grants for both green schools and green buildings.

Administrative Cases

Massachusetts' Solar-To-Market Initiative: Using a Collaborative Approach to Create PV Programs (September 2002). This case describes a novel collaboration between the Massachusetts Renewable Energy Trust and the in-state PV industry that has resulted in a new industry group and a consensus set of PV programs.

Wisconsin's Use of Program Evaluation (September 2002). Consistent and frequent program evaluation has been a significant component of Wisconsin's renewable energy efforts, and has lead to several real-time changes in program offerings.

Public Education, Marketing, and Consumer Action: The Multi-Party Programs of Connecticut and Pennsylvania (September 2002). This case describes two of the first large-scale renewable energy education and marketing efforts in the nation, funded and supported not only by state clean energy funds, but also by a variety of other organizations.

Organizational Structure: The Sustainable Development Fund of Southeastern Pennsylvania (September 2002). This case study focuses on three key elements of organizational structure that have enabled this fund to design and administer innovative and effective programs, despite limited staffing.

Competitive Solicitations and Unsolicited Proposals: Examples from Several State Funds on How to Balance and Refine the Process (September 2002). This case describes how a number of states have balanced a preference for competitive solicitations with the flexibility to consider unsolicited proposals.


Other Reports Specifically Related to State Renewable Energy Policies

Analyzing the Interaction Between State Tax Incentives and the Federal Production Tax Credit for Wind Power (September 2002).

Customer-Sited PV: A Survey of Clean Energy Fund Support (May 2002).

Utility-Scale Renewable Energy Projects: A Survey of Clean Energy Fund Support (May 2002).

The Renewables Portfolio Standard in Texas: An Early Assessment (November 2001).

Clean Energy Funds: An Overview of State Support for Renewable Energy (April 2001).

Financing Investments in Renewable Energy: The Role of Policy Design and Restructuring (March 1997).


Other Renewable Energy Analysis Reports

Members of the Electricity Market Studies group have written extensively on renewable energy economic, market, and policy analysis. Click here for a complete listing of these renewable energy publications.


 



 

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