Reprinted from my article on Creative Loafing
I recently attended a meeting with local business people who are working on promoting a Renewable Energy Dividend program for the state of Florida. In attendance was Michael Antheil, the Executive Director of the Florida Alliance for Renewable Energy.
If you had to explain in simple terms, what is FARE’s main objective?
FARE’s objective is to achieve rapid, widespread deployment of renewable energy in Florida. Our goal is to see solar and other types of renewable energy on every rooftop and property in the state. Most importantly we want to see this outcome delivered in a reliable, safe and cost efficient manner to the consumer.
Last year, the city of Gainesville, Fla., adopted a Renewable Energy Dividend (RED) program to promote the use of renewable energy with its municipal utility. Your organization lobbied this past legislative session to support a bill written by Rep. Fitzgerald for a statewide RED. Why do you feel REDs are the direction that Florida take on a statewide level?
Gainesville deserves the economic rewards it is reaping as a result of adopting this policy, and the rest of the state deserves the same opportunity. I would suggest in order to make sure the most prudent decision is made, the state legislature should make their decision based on logical criteria: A) What policy will create the highest number of long term jobs and highest amount of local economic stimulation? B) What policy is proven to be the most cost effective to the ratepayer? C) What policy will do the most to create a reliable and secure energy grid?
The policy that best fits these criteria should be the one that is implemented. I must admit, however, that I am biased. You can only listen to the worlds experts on renewable energy so many times without realizing that their message is not only simple, but true: A Renewable Energy Dividend is the most cost effective mechanism to achieve rapid, widespread deployment of renewable energy anywhere in the world.
What is the biggest benefit to the consumer for an RED program and why?
The need for reducing our consumption of fossil fuels and having a more secure energy grid has been on Americans’ top-priority list for years. The biggest benefit to a consumer is the fact that they too, can participate and profit from the renewable energy revolution that is being played out every day. In addition to their role in this renewable energy future, with widespread and homegrown energy production, the consumer can enjoy fixed rates for their electricity costs as well as participate in the overall economic stimulation created by an RED policy.
Criticism has been made that the effort to have legislation on an RED program was responsible for the failure of the Florida Legislature to pass a Renewable Energy Portfolio (RPS). Critics had said that RED complicated and weighed down their efforts. How do you respond to that?
First I would like to see exactly what legislation they are referring to seeing as how the House never even introduced a Renewable Energy Bill last session. Chairman of the House Energy and Utility Committee, Rep. Paige Kreegel, was held back by House leadership from even introducing any bill from his committee. Although admittedly, with the clear amount of time and effort put in to the offshore drilling bill touted by House Leadership during the last nine days of session, it is not surprising that they could not get around to it.
The Senate, who did pass an energy bill, faced setbacks with their time line which did in fact contain a Feed in Tariff Study Language amendment by Sen. Nancy Detert, but it is largely accepted that the nature of their debate was changing a Renewable Portfolio Standard to a Clean Portfolio Standard in order to include nuclear production. It is honestly laughable to say that the RED somehow weighed down legislation. These are probably the same critics who thought it was the Florida Energy and Climate Commissions responsibility to propose legislation last year. Ultimately, we have 160 elected officials who make laws in Tallahassee, and it is they who will pave the road to our renewable energy future.
Many feel that the RED is too hard to understand. They also shy away from its European roots because they feel that it doesn’t apply here. How do you plan on combating the stigmas attached to it and better educating not only the state Congress, but also the people of Florida?
The RED policy does in fact have European roots, but then again so does our country itself. However we are not talking about importing a socialistic way of life and asking everyone to start eating crêpes for breakfast, we are talking about replicating a policy that has proven to work. The prudent man or woman in all of us should jump at the opportunity to let someone else go through the growing pains of creating a policy that works, and then reap the limitless harvest that they have created.
Aside from a pure rebate, which has both strengths and weaknesses but is simple to understand, the Renewable Energy Dividend is an extremely simple concept: any producer of renewable energy can sell all of the electricity that they produce directly to the grid. For this sale they will receive a fixed payment for a fixed period of time, typically 20 years. And this creates a reliable, financeable vehicle for each and every citizen or entity to produce renewable energy, ultimately achieving widespread distribution and “solar on every rooftop.” I would love to see someone explain a tradeable Solar Renewable Energy Certificate (SREC) model (which is favored by utilities) in three sentences or less.
The simplicity of the RED model is by far one of our biggest strengths with both the public and the Legislature. At any given time an average legislator has hundreds of issues and dozens of decisions facing him every day. That is why it is crucial to be able to explain the concept previously outlined in a simple and direct manner.
Concerning education of the public, our strength lies in the ability to rally around this cause. Again, this is one of the only policies that ultimately benefits every single resident and citizen of the State of Florida. Our ability to deliver homegrown renewable energy to every last corner of the state will accelerate the public’s learning curve as every day ticks by, and every penny is spent on ever increasing electricity rates. As FPL is raising rates, we are raising awareness on what residents can do about it. In educating the public the wind is at our backs and the need for change is as urgent as ever. People want answers to how they can help solve this energy crisis and a Renewable Energy Dividend mechanism provides one.
FPL is one of the largest investor-owned utilities (IOUs) in Florida. They have already developed a renewable energy program that is, by their account, doing really well. Florida Crystals has incorporated renewable energy into their efforts to cut costs on their energy bill. Developers of the Babcock Ranch in Charlotte County are working with FPL to create a “green” development that will incorporate renewable energy into their energy plan. Why do you feel that it is necessary to have state legislation for renewable energy, when it appears that companies are already doing it on their own?
FPL Group Inc. owns an energy company called NextEra, who showed record profits during the second quarter of 2009 to the tune of $183 million increase in revenues over the second quarter in 2008. If my logic is correct, the state regulated utility company (FPL) who sells me my electricity is owned by a publicly traded company (FPL Group Inc.) who also owns a privately held renewable energy company (NextEra), and these are the same folks who are against a policy that would allow me to put solar on my own roof. Yes, that does make sense.
Projects like Babcock Ranch and the like make fantastic headlines and beautiful artist’s renderings and the millions of dollars in ratepayer money that FPL spends on marketing and advertising these projects has gained them considerable attention, but the nature of these projects is problematic in a number of ways. First is the fact that creating large, concentrated arrays does not improve energy security through distributed generation. Second, these projects are still years away from completion with no guarantees that they will ever even get done while the need for local job creation is here today. Finally, the fact is that these projects are perpetuating a state regulated monopoly with a guaranteed profit margin which is owned by a privately held company. It is akin to everyone chipping in to have the only gas station in town built and then being forced to shop there at a price the owner sees fit.
Florida Crystals is a different story altogether. They are not only a leader in our State, but a leader and an innovator in the entire renewable energy industry. They have raised the bar and set the standard for other producers of renewable energy through biomass production. In my opinion they deserve their success and hold the bar for the agricultural community to aspire to.
States, like Vermont, have passed legislation on REDs. California and Washington state have a modified version of what Vermont has. What is Florida missing when it comes to understanding the value of a RED program?
What Florida is missing are the real reasons why this legislation is so important: energy security and job creation. Although the states that have enacted this policy mechanism would traditionally be considered liberal or progressive, it is the inherent benefits of the policy that appeal to any side of the political spectrum. Job creation is a bipartisan issue, and the need to have a safe, secure, and reliable energy grid serves every single American, left right and center.
Where do you see the future of renewable energy in Florida for the future and how will FARE play a part in achieving those goals?
I am an eternal optimist, and the future of renewable energy in Florida, if you’ll pardon the pun, is sunny. The goal has been already been embraced — to achieve energy independence and job security through effective renewable energy policy, but how we achieve that goal is what is absolutely critical. We are faced with a once in a generation opportunity to get it right. We have an opportunity to answer one of the State’s biggest needs: the need for job creation and economic stimulation, with another of the State’s biggest priorities; achieving energy security; and reducing consumption of fossil fuels. With the right policy in place, we can create long term jobs, attract manufacturing, and provide a platform for a thriving clean technology industry, where innovation and growth are the benchmarks of our progress. It is due time that we claim our rightful place as this country’s leader in renewable energy. From our sun resources to our biomass and everything in between, Florida is bubbling with the potential to lead the country and even the world in renewable energy. After all, we are the Sunshine State.
Please visit farenergy.orgto learn more.
Hi Chris,I believe the difference is between the way it is now – your reference – to the RED program is the rate at which the electricity is purchased.If you are the purveyor of solar panels, then you must know that the cost of the system can be costly. The RED program will help off-set the cost of system set up and help promote more people to participate.
Solar Renewable Energy Certificate, in 3 sentences or less:Owners of solar panels produce 2 things with their panels: Electricity, and SRECs. The owners use the electricity, decreasing their monthly electricity bill, and for each 1000 kW of electricity their system generates, they generate 1 SREC. They can sell these SRECs to utilities, which the utilities buy as a means of meeting their RPS.