[bouldercouncilhotline] Hotline: RE: More news on the EU's struggle to integrate renewable energy

[cmosupport at bouldercolorado.gov]

Sender: Weaver, Sam


The note below is my opinion, not that of the City Council or the City of Boulder. 
I appreciate your concern for the renewables debate in the EU, but thought I might share some other perspectives and figures. 
You may feel free to forward this note to your whole email list if you would like.
 
While the Washington Times is a somewhat credible news outlet, it has the same issue as Fox News - reporting
 only part of a story to support an ideological position.  While the reduction in a binding renewables requirement is being proposed in the EU as you point out, the emissions reduction target is still being tightened to 40% below 1990 levels by 2030.  Also
 not pointed out in the Times story is the fact that Germany opposed the retreat from binding EU renewables targets, and that in Germany there is 84% popular support for its national renewables program per your Forbes link.  Among the reason for that are the
 1.2 million jobs in cleantech created by that shift, and the 25% GDP growth that has come along with the 25% emissions reductions Germany has achieved since 1990. 
Germany intends to continue playing a major part in a worldwide cleantech economy expansion.
 
It is wonderful that Xcel is going to achieve its (government-mandated) renewables goal by 2020.  Keep in mind
 that Germany will most likely be at 33%-40% renewables nationally by 2020 according to German energy analyst Thomas Gerke.  Germany is the great model of a renewables transition, not the EU.
 
http://www.renewablesinternational.net/germanys-new-goals-in-megawatt-hours/150/537/76320/
 
What are the additional costs for the green German electricity? 0.4% of the average German family budget, or
 an increase in power costs of 18% (0.4%/2.2%) over a no-renewables baseline. 
84% of Germans are happy with the trade, and since our wind and solar are better here in the US (almost double), and since the technology is now much cheaper than when the Germans started adopting, our premium will be much less than 18%, if anything
 at all.  
 
http://www.renewablesinternational.net/germans-up-in-arms-about-retail-power-prices/150/537/76110/
 
And most of the rate increases in Germany have been in the residential sector, by choice.  The German industrial
 sector is not as concerned with industrial electricity rates, which are much more reasonably priced, by design. 
Since 2002, the German industrial electricity rate has gone up 37%.  Xcel/PSCo residential retail rates are up from $0.08/kWh to $0.12/kWh in the same timeframe (a
 50% increase).
 
http://www.renewablesinternational.net/germans-concerned-about-competitiveness-of-their-industry/150/537/76109/
 
Also, given the Xcel/PSCo 2012 gross profit margin of 20%, taking $35M per year out of the city of Boulder
 in pre-tax profits annually, there could be no premium at all to go to a renewables-dominated grid for Boulder.

 
I look forward to continued exploration with Xcel of a potential partnership arrangement. 
I also want to make sure that we are not propagating myths and half-truths about the German progress on reducing carbon emissions, nor looking at the recent Xcel rate increases with rose-colored glasses. 
Rapid change is not easy, but it is much-needed in the energy sector.
 
All the best, 
 


Sam Weaver
Member of Boulder City Council
weavers at bouldercolorado.gov
Phone: 303-416-6130




From: Eicher, Craig L [Craig.L.Eicher at xcelenergy.com]
Sent: Monday, January 27, 2014 12:16 PM
To: Eicher, Craig L
Subject: More news on the EU's struggle to integrate renewable energy





 
As an update to the article I shared last week regarding the European Union’s plans to scale back mandates for renewable energy (link below), here are two more
 poignant pieces discussing Europe’s – and, in particular – Germany’s situation. Germany is often heralded for its aggressive pursuit of renewable energy, particularly considering its inferior solar resource, compared to much of the US. It and many European
 countries are held as examples of how renewable energy is being properly pursued.

 
However, as this article reports, the plan has had “unintended consequences,” which have forced the EU to “retreat” from its climate goals.

 
Ambitious climate change goals too costly for EU
http://www.washingtontimes.com/news/2014/jan/22/ambitious-climate-change-goals-too-costly-for-eu/?utm_source=RSS_Feed&utm_medium=RSS

“Specifically, the European Commission, the EU executive body, proposed ending national targets for renewable energy use. Instead, the
 EU as a whole aims to derive 27 percent of its overall energy consumption from renewable sources by
2030.”

 
By comparison, Xcel Energy in Colorado (Public Service Company of Colorado) is on track to be 30 percent renewable by 2020. This success is often overlooked by
 those who laud Europe’s heretofore efforts.
 
In the wake of Germany’s aggressive move to renewables, as the following column discusses, Berlin now has the highest electric rates in all of Europe (around
 40 cents/kWh), which is nearly four times the rate PSCO residential customers pay.

 
Column: Berlin's Electric Rates Become Highest In Europe
http://www.forbes.com/sites/williampentland/2013/10/27/berlins-ballooning-electricity-rates-become-highest-in-europe/

“To put this in perspective, the highest average electricity price in the continental United States is about $0.18 per kWh in Connecticut,
 according to the Energy Information Administration.  
 
I share these articles to remind our stakeholders in Boulder County that Xcel Energy is also aggressively pursuing renewable energy on behalf of our customers
 and the environment (we have been ranked nine years in a row as the nation’s number-one wind power provider, and number-five in solar). However, we are increasing renewables and lowering carbon emissions while also keeping rates affordable.

 
Thank you for reading,  
 




Craig Eicher

Xcel Energy | Responsible By Nature


Area Manager, Boulder Region


2655 N 63rd St  
 Boulder, CO 80301


P: 303-245-2254   
 C: 303-827-4943    F:
 303-245-2292


E:
craig.l.eicher at xcelenergy.com


________________________________________________________
XcelEnergy.com  

Facebook.com/XcelEnergy   
Twitter.com/XcelEnergy



 









From: Eicher, Craig L

Sent: Tuesday, January 21, 2014 5:23 PM
To: Eicher, Craig L
Subject: Three energy articles of interest

 
 
Hello community leaders in Boulder County,

 
I have some relevant energy news from Europe, New York and Florida, which I believe you’ll find interesting. Please let me know if you would prefer not to be
 provided these kinds of occasional updates. 
 
First, an article analyzing perspectives of Europe’s various goals to grow renewable energy and reduce emissions. Of particular interest is the consideration
 of what is the best balance of these goals and potential financial realities of pursuing them for all members of the EU.

 
Europe Dividing Over Most Ambitious Limits: Carbon & Climate
Energy costs are rising on Europe’s political agenda like never before. German Chancellor Angela
 Merkel has pledged to overhaul support for renewables after consumer electric bills surged with the nation’s shift away from nuclear power and toward more expensive wind and solar power. U.K. Prime Minister David Cameron is looking for ways to reduce utility
 costs after the opposition promised to freeze bills. Spain, Italy, Portugal and the Czech Republic have slashed subsidies for solar power.
http://washpost.bloomberg.com/Story?docId=1376-MZJYSW6K50ZN01-5CNEP5UTQO5EQCRJI87I19LSPA

 
Second, December saw the re-privatization of a public utility – the Long Island Power Authority. I include this article to demonstrate that, while public power
 is and will continue to be a strong and viable solution for many communities across the United States, it is not an emerging trend.

IRS Approves PSEG-LIPA Privatization Deal
The final hurdle in establishing PSEG as the new Long Island utilities provider has been cleared as the IRS
 approved a 12-year deal that would put the New Jersey-based company in control of the Long Island Power Authority’s electric system.
http://www.longisland.com/articles/12-26-13/irs-approves-pseg-lipa-deal.html

 
Finally, an update on Vero Beach, FL’s consideration of selling all or part of its municipal electric utility to investor-owned FPL. The city is working through
 negotiations with Florida’s municipal power agency to cancel long-term power contracts. In the meantime, some in the city hope to accelerate rate relief until this “reverse-municipalization,” which voters approved in 2013, can be accomplished.
 
Winger not willing to detour from FPL sale just yet
Currently, Vero electric rates sit at nearly 40 percent higher than FPL rates. The most recent rate hike was
 1.9 percent, effective Oct. 1, to make up for a nearly $1 million shortfall in revenues.
http://www.veronews.com/news/vero_beach/utilities/winger-not-willing-to-detour-from-fpl-sale-just-yet/article_46cd7cd6-7930-11e3-a51b-001a4bcf6878.html

 
 
Thank you for reading,

 



Craig Eicher

Xcel Energy | Responsible By Nature


Area Manager, Boulder Region


2655 N 63rd St  
 Boulder, CO 80301


P: 303-245-2254   
 C: 303-827-4943    F:
 303-245-2292


E:
craig.l.eicher at xcelenergy.com


________________________________________________________
XcelEnergy.com  

Facebook.com/XcelEnergy   
Twitter.com/XcelEnergy