Smith EGR 325 - Renewable Energy Gets the Green Light in Chicago

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34IEEEpower & energy magazine november/december 2003MMOST OF US CAN EASILY NAME THE FAMOUS CHARACTERISTICS THAT symbolize Chicago. If we made a list it would undoubtedly include the Sears Tower, very coldwinters, and deep-dish pizza. But one of the city’s best-kept secrets is its commitment to solarpower, wind energy, and everything green in-between. Mother Nature herself describes thiscommitment best saying, “The answer, my friend, is blowing in the Windy City.”The city’s electric utility [Commonwealth Edison (ComEd)] has been a major player in theefforts to make Chicago one of the greenest cities in the country. Through its many solar initia-tives, it has committed millions of dollars to developing renewable energy technology through-out Chicago. A significant solar portfolio has helped Illinois rank fourth among U.S. states interms of installed solar photovoltaic (PV) capacity, based on preliminary data compared againstMay 2003 National Renewable Energy Laboratory statistics.Driving the results are initiatives such as net metering that allows customers to sell theirexcess generation from solar electric systems back to the utility, easy-to-use interconnectionguidelines for solar systems, and solar installation incentives for Chicago residents and busi-nesses.“ComEd is helping to spur the Midwest market for renewable energy,” said ComEd PresidentFrank M. Clark. “As the energy provider for Northern Illinois, we are committed to helpingexplore renewable energy resources and bringing the benefits of this clean energy resource toour customers.” The installations in ComEd’s service territory account for nearly 80% of Illi-nois’ total installed photovoltaic capacity.Some noteworthy results of these initiatives are the Chicago Solar Partnership, the ChicagoCenter for Green Technology, building integrated photovoltaic technology in Chicago’s Millen-nium Park, and adding solar to the Chicago 911 Emergency Communications Center, all ofwhich are discussed in detail in this article. But first we begin with an influential and ground-breaking milestone—jumpstarting the green certificate market in the Midwest. Midwest Green Power Market A green certificate (also called a green tag or green ticket) represents the environmentalattributes of the renewable energy resource, separate from the energy. Customers interested inpromoting environmentally friendly power buy green certificates to encourage the develop-ment of additional generation from these resources. In March 2000, an agreement was signedRenewable Energy Gets the “Green”Light in ChicagoGabriela Martin1540-7977/03/$17.00©2003 IEEEnovember/december 2003 IEEE power & energy magazinebetween the electric utili-ty and the EnvironmentalResources Trust (ERT) tobegin marketing EcoPow-er®(a green certificateproduct) at wholesale tomunicipalities, retail elec-tric suppliers, and other utilities. ERT is a nonprofit, Wash-ington, DC-based group that promotes the development ofrenewable energy resources and markets. The EcoPowerproduct is based on green certificates that come fromrenewable resources like the sun, wind, and landfill gas, andit has a net environmental benefit compared to conventionalenergy sources in the region. As part of the ERT agreement, the utility has exclusiverights to sell green certificates produced in Illinois under theEcoPower name. Wholesale customers purchase EcoPowerthrough bilateral contracts. In 2001, the utility entered into aninnovative agreement with ERT to support the City of Chica-go’s interest in green power. Under this agreement, the compa-ny sells EcoPower certificates to ERT who supplies them to thecity and other local governmental agencies. The city has a goalof purchasing EcoPower certificates in an amount equal to20% of its electrical usage in five years. The agreement is thelargest clean energy deal ever signed by a municipality, and itwill represent approximately 80 MW of annual renewablepower capacity, enough to power 80,000 homes. Initially the green power produced by 18 area landfills thatconverted landfill gas into energy was purchased. Up to 50%35Solar Initiatives Help Create a ModelEnvironmental City and Invigorate theMidwest Renewable Energy Market© DIGITAL STOCK 1996 & 1998 CORBIS CORP.of the green power supplied under the agreement with ERTcan be derived from landfill gas to energy. Sources are being expanded to include wind and solarpower. For example, the entire output of the Crescent Ridgewind project will be purchased. Illinois Wind Energy andTomen Power Corporation are building Crescent Ridge on2,200 acres of farmland in Bureau County, Illinois. Whencompleted, the 51-MW facility will be one of the largestcommercial wind developments east of the Mississippi Riverand will generate enough energy to power 20,000 homes. Energy for the green certificates is also derived from grid-tied solar installations throughout the city. Through the Pho-tovoltaic Incentive Program, ComEd and Spire Solar Chicago(a local PV manufacturer) offer rebates for locally manufac-tured and installed solar electric systems. Systems must be 1to 50 kilowatts (kW) of direct current nameplate capacity andinstalled within the city. The incentives are offered through2004 or while funds are available. Rebates are $1,250 per kWin 2003 and $1,000 per kW in 2004. The program comple-ments other state financial incentives that are availablethrough the Illinois Department of Commerce and EconomicOpportunity (IL DCEO) Renewable Energy Resources Pro-gram and the Illinois Clean Energy Community Foundation.For PV systems larger than 2 kW, the IL DCEO programoffers grants of $6,000 per kW, up to $300,000 per project. By the fifth year of the bilateral agreement with the city, itis estimated that the environmental benefits from the sale ofEcoPower will include 249,151 fewer tons of carbon dioxide,1,884 fewer tons of sulfur dioxide, and 1,007 fewer tons ofnitrous oxides. A substantial portion of the proceeds from EcoPower cer-tificate sales is directed into a renewable energy reinvestmentfund managed by ERT. The fund has been set up at a localChicago bank and will be used to promote new renewableenergy resources in northern Illinois. For example, the Fundwill be used to purchase solar panels for the zero energyhomes being built in Chicago this year and in 2004.Chicago Solar PartnershipMuch of the city’s solar energy contributing to the green cer-tificates is from public building installations


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