Solar PV panels soak up the sun on top of Progress Energy commercial customer Deltec Homes, Inc, in Asheville, N.C. Real-time and historical production data from this system can be viewed by clicking here.
Renewable energy is a key component in our long-term balanced approach to meeting growing energy demand. We are committed to increasing the use and development of renewable energy technologies, including solar, wind, biomass and hydrogen.
In 2008, we purchased approximately 1 million megawatt-hours (MWh) of renewable energy from small hydroelectric producers, municipal solid waste incinerators, heat-recovery/cogeneration plants, landfill methane producers and small residential solar systems in the Carolinas and Florida. Also in 2008, both Progress Energy Carolinas and Progress Energy Florida continued to seek new renewable energy projects through requests for proposals from renewable energy suppliers.
Renewable portfolio standards Volatile fuel prices, global climate change and other environmental issues heightened customer interest in renewable energy and energy efficiency in 2008. A renewable portfolio standard (RPS) was approved in North Carolina in 2007 and both Florida and South Carolina are actively evaluating renewable energy options. The Florida legislature is expected to vote on an RPS in 2009, and Congress is discussing sweeping changes to energy policy, including a federal RPS.
Progress Energy does not support a “one size fits all” regulatory mechanism that could put a disproportionate share of the burden on certain economies and customers. When it comes to renewable energy targets, the company believes that states are in the best position to implement appropriate policies for clean energy development and deployment, based on their unique resource characteristics and market dynamics.
North Carolina Renewable Energy and Energy Efficiency Portfolio Standard (REPS) On August 20, 2007, North Carolina became the first state in the Southeast to enact an RPS. This law established a renewable energy and energy-efficiency portfolio standard (REPS), which requires the state’s electric companies to increase their use of renewable energy. Progress Energy Carolinas (PEC) must purchase or generate:
3 percent of our energy from renewable resources in 2012;
6 percent in 2015;
10 percent in 2018; and
12.5 percent in 2021.
PEC may meet up to 25 percent of the renewable requirement with energy-efficiency measures through 2020, and up to 40 percent thereafter. The law also includes specific energy requirements related to solar, swine and poultry derived energy. PEC is continually monitoring the implementation rules while aggressively seeking solar resources to meet a requirement that begins in 2010.
REPS Purchases: In 2008, Progress Energy Carolinas continued its formal request for proposals from renewable energy suppliers in anticipation of purchasing up to 1 million MWh of renewable energy by 2012. The companyis making progress toward compliance with the REPS through the following renewable energy purchase agreements:
Solar
1 MW from SAS, Inc., in Cary, N.C.
1 MW from SunEdison, installed at Progress Energy’s Sutton Plant in Wilmington, N.C.
Almost 2 MW from planned facilities in Person and Haywood counties, N.C.
Various commercial-scale solar and solar thermal projects throughout North Carolina.
Biomass
50 MW wood biomass from Peregrine Energy in Hartsville, S.C.
25 MW wood biomass from Coastal Carolina Clean Power in Kenansville, N.C.
4 MW landfill natural gas from Ingenco in New Bern, N.C.
Hydroelectric
Various small hydroelectric projects within PEC’s service territory.
Progress Energy Renewable Projects and Initiatives
Hydroelectric plants
Progress Energy has four hydroelectric plants in North Carolina, with a total generating capacity of 228 MW of electricity. In April 2006, we submitted an application to renew the operating licenses for the Tillery and Blewett plants. The new license is expected to be issued in 2009. Company hydroelectric resources include:
Blewett – The six-unit, 22-MW Blewett Plant is located near Lilesville, N.C. The site also includes four combustion-turbine units.
Marshall – The two-unit, 5-MW Marshall Plant is located near Marshall, N.C.
Tillery – The four-unit, 89-MW Tillery Plant is located near Mt. Gilead, N.C.
Walters – The three-unit, 112-MW Walters Plant is located near Waterville, N.C.
Solar projects Cost-effective, reliable solar power will play an important role in a balanced energy portfolio. We have invested in solar thermal and solar photovoltaic (PV) projects for several years and continue to seek new solar initiatives. There are some promising projects in the works, but we are also encountering real-world limitations in terms of cost and availability. Solar technology currently is more expensive than traditional generation and cannot produce the amount of electricity we need at the times our customers need it.
We are actively working to overcome these challenges. One project that will help unlock the full potential of intermittent renewable technologies is the Sustainable Electric Energy Delivery System, or S.E.E.D.S., partnership with the University of South Florida’s Power Center for Utility Explorations. Two solar arrays are installed, with one on the USF St. Petersburg campus and the other in Albert Whitted Park in St. Petersburg. The output of these solar arrays is stored in an advanced battery system known as a Vanadium Redox Battery Energy Storage System. The stored solar energy will help reduce the peak load in both winter and summer. This solar battery system will generate a maximum of 14 kW in the summer and 5,840 kWh, or 5.8 MWh, of energy per year.
Another example is our partnership with the Electric Power Research Institute (EPRI) to explore solar thermal technology. Our Mayo Plant in Roxboro, N.C., is a host site for a technology and economic feasibility study of integrating solar thermal energy with existing coal and natural gas power plants. By evaluating the viability of hybrid power plants that combine the low cost and reliability of existing fossil power plants with the environmental benefits of renewables, this project could greatly influence a near-term, widespread adoption of large amounts of solar energy on a commercial scale.
Solar PV panels are placed on a roof as part of Progress Energy's Manufactured Housing Photovoltaic Project. This project won the 2003 Sustainable Florida Award.
In addition to the 3 MW of “commercial-scale” solar PV generating capability that Progress Energy placed under contract in 2008 in North Carolina, we continue to work with several residential and commercial customers to interconnect small-scale PV systems to the electrical grid in all our service territory. One notable example is the Bingham Ridge subdivision in Chatham County, N.C. We helped connect this new subdivision of high-efficiency homes to the grid and buy back the power generated by the PV panels on their roofs.
PEF: Year-end 2008, customer-owned solar photovoltaic systems total 880 kW
PEC: Year-end 2008, customer-owned solar photovoltaic systems total more than 250 kW
Progress Energy has also implemented a program to promote renewable energy and advance residential load management. One measure under this program is Progress Energy Florida’s Solar Water Heater with EnergyWise. Solar Water Heater with EnergyWise provides a $450 incentive for the installation of a new solar water heater for residential customers. There are currently 1,257 customers participating in the program.
In 2008, a pilot to drive additional participants in Solar Water Heater with EnergyWise and support the hospitality industry was conducted with Orange County, Fla., and McDonald’s. This carbon offset pilot created a local reduction of carbon emissions by providing additional incentives to solar water heating installations within Orange County. Through the pilot, 65 customers installed new solar water heaters, which will provide equivalent carbon offsets for McDonald’s international convention.
A complete list of our solar initiatives can be found by following this link.
Biomass projects Biomass studies show that our service territory has good biomass resource potential. Typical sources of biomass include agricultural or animal residues, wood residues, municipal discards and dedicated energy crops. We are taking advantage of this potential by conducting biomass trials at our facilities, signing contracts to purchase more than 400 MW of electricity generated from biomass, and partnering with local research organizations to develop new technologies.
One example of our biomass leadership is our work with local North Carolina universities and companies on the development and commercialization of a pretreatment process for wood biomass called torrefaction. Torrefaction improves the physical properties of biomass fuel to make possible a greatly expanded use of biomass co-firing at existing power plants. Once commercialized, this technology could allow sustainably produced, carbon-neutral wood biomass to displace a significant portion of the coal consumed at any existing coal power plant. We are preparing to conduct the world’s first large-scale co-firing trial of torrefied wood at the Cape Fear Plant near Moncure, N.C.
Another example is our partnership with New Generation Biofuels on a test burn of a new biofuel in our Bartow Plant in St. Petersburg, Fla. The trial in March 2009 involved burning the biofuel to evaluate its technical and environmental performance in a utility boiler. Preliminary results from the trial were positive. This testing is important to determine the fuel’s potential for use as part of Progress Energy’s renewable energy portfolio. Biofuel is fuel derived from carbon sources such as wood waste, canes, palm oil, soybeans, algae, animal waste, food byproducts or agricultural waste.
To learn more about our other biomass trials, purchase contracts and research partnerships, please click this link.
This hydrogen fuel cell system, which includes an electrolyzer, hydrogen storage and fuel cell, is located at the Homosassa Springs Wildlife State Park in Florida.
Hydrogen and fuel cell projects Hydrogen is the most abundant element in the universe and can be extracted from many sources, including biomass, water or natural gas. Hydrogen holds much promise as an environmentally friendly and sustainable means of storing and delivering energy. The challenge is developing an economical way to extract hydrogen to justify replacing existing fuels. We are investing in fuel cell companies and participating in research and pilot projects to test the feasibility of this fuel source for future electric generation. To learn more about our hydrogen projects, please click this link.
Wind projects We are researching wind power as a possible renewable energy source for our service territory. Wind resources in our states are concentrated along the Atlantic Coast and the higher ridge crests in North Carolina’s mountains.
Carolinas: We are developing a program in North Carolina to install and test small wind turbines around our service territory. The goal of this program is to test the potential for small-scale, grid-tied, distributed wind-generation projects in the 1 to 100 kW range. We have identified several micro-turbine vendors and are working toward an agreement with them. An announcement is expected in 2009.
Florida: We received a grant in 2008 from the Florida Energy Office to install and test small-scale wind-power technologies at five locations across our service territory. The first micro-turbine is scheduled to be installed in 2009 at a turnpike service plaza in Okahumpka, Fla.
NC GreenPower NC GreenPower is a nonprofit, statewide program that encourages residential and business customers in North Carolina to support improvements in the environment through the development of “green energy” and offering carbon offsets to balance or reduce the impact of greenhouse gas emissions. More than 4,189 of our customers voluntarily pay $4 or more on their monthly electric bills to subsidize the purchase of renewable energy for the grid and reduction in their “carbon footprint” on the environment. Every contribution of $4 purchases a 100-kWh block of electricity generated from renewable energy resources, or the customer can elect to purchase 500 pounds of carbon dioxide or carbon dioxide equivalent emissions. All contributions are tax-deductible. We sponsor and play an active role in the program’s development by marketing the program, registering participants and providing billing and collection services at no cost to the program. More than 224 renewable energy generators are now under contract or operating under this program, including solar, wood waste, small hydroelectric, animal biomass and landfill methane gas.
Palmetto Clean Energy (PaCE) Similar to NC GreenPower, PaCE is a statewide South Carolina program that encourages residential customers to support renewable energy development. Customers can volunteer to make a tax-deductible contribution of $4 or more on their monthly electric bills to purchase blocks of electricity generated from renewable resources. Each block is 100 kWh. As of March 2009, the PaCE program includes 45 Progress Energy customers purchasing 64 blocks.
Advancing renewable and alternative energy through education Progress Energy recognizes the benefits of educational programs that promote science, mathematics and critical thinking skills. Our company actively partners with K-12 schools in our service territory to develop and implement energy education programs that raise awareness of the environmental and economic benefits of energy conservation and alternative energy.
Wind for Schools – In 2008, the company announced a partnership to build three small wind turbines at schools in Madison County, N.C. The Wind for Schools program includes the installation of a 3-kW turbine and the implementation of an alternative energy curriculum at each school.
Progress Energy SolarSchools – In 2008, the Progress Energy Foundation committed to fund a program to install solar photovoltaic panels on five schools in the Progress Energy Carolinas service territory. The program was announced in April 2009 and is available to middle schools.
Energy Efficiency World – In 2009, Progress Energy launched a new educational resource for teachers and students, focused on grades K-6. The resource is a Web site, called Energy Efficiency World, and includes teacher guides, classroom activities, and an interactive learning tool with games to help teach kids about energy efficiency. The site is linked from the Progress Energy home page and www.savethewatts.com.
H2Now Exhibit – This special hydrogen-focused exhibit, unveiled in 2008 at the Orlando Science Center, interactively showcases current and future uses of hydrogen for energy.
Pinellas Science Center – In 2008, the company helped create a special energy-focused Progress Energy room, where students from throughout Pinellas County can get a fun hands-on experience to learning about generation, alternative and renewable energy and energy efficiency. Students also participate in a Home Energy Check for Kids before their visit to the Science Center.
SolarWise for SchoolsSM – Through customer participation in the EnergyWise program, SolarWise for Schools provides renewable energy education through a hands-on learning opportunity for the selected schools that have the photovoltaic panels from the customer program. In addition, these schools also have access to curriculum materials focusing on solar energy.
Student Home Energy Check – The Student Home Energy Check is a student-focused version of our Home Energy Audit. After students complete the Home Energy Check with their parents, they are given an incentive for completing the check and will receive a customized energy report for their home based on their responses.
Hydrogen – The Power and the Potential – This student curriculum provides an opportunity for students, guided by teachers and supported by the partnership of Progress Energy and the Florida Solar Energy Center, to envision a world using a variety of energy sources, including hydrogen.
Elementary School Energy Curriculum – During the 2006 school year, we worked with the Seminole County, Fla., school district to produce and distribute an energy curriculum for elementary students. During the 2007 and 2008 school years, the program was expanded to reach an increased number of students throughout our Florida service territory.
Florida Public Service Commission Energy-Efficiency Play – “Turn It On, Turn It Off” is an energy-efficiency play that was written by the FPSC. We partnered with the agency to secure interested school involvement to help stage performances for elementary school students.
Solar Energy Education Program – Implemented in 2001, the Solar Energy Education Program benefited 7,500 students and equipped 30 schools in Florida with solar energy education kits, curriculum materials and an interactive energy-focused Web site.
Hydroelectric plants
