El Paso/Las Cruces Region

Becoming a Leading Center for

Alternative / Renewable Energy

Bob CookPresidentEl Paso Regional Economic Dev Corp

Largest DoD-controlled air & ground space in the United StatesSlightly smaller than Connecticut – 7,105 sq. mi.DoD air traffic control from “mud to space”Joint, interagency, & multinational test and maneuver environment

Unique Air/Ground Space

An Nasiriyah

FORT

BL

ISS

HQFT BLISS

WHITESANDSMISSILERANGE

HQWSMR

Baghdad

GeographicComparison

183 Miles295 kmHOLLOMAN

AFB

20,517

Fort Bliss --Fiscal Years 05-12FY05 FY06 FY07 FY08 FY09 FY11FY10

SGM ACAD

ADA SCHOOL

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+ Added Mission (BRAC, AMF, GDPR, ACP, GTA)

- Loss of Mission (BRAC, AMF, GDPR, ACP)

Start Pt & End State Completed move ADVON arrival / departure

JLENS+I

142ndCSSB

I I+

X+

X+

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MPI I

9,330

15,330

13,178 14,126

21,795

Soldiers

Families

17,17025,898

19,67829,279

23,96735,061

30,23943,637

34,25948,934

Timeline for Action

Pivotal Garrison Meeting

Renewable EnergyRodeo

Renewable Energy

StakeholdersSummit

Winter Storm2011

“Dissonance”                                     

                                           Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar2010 2011

Consultant Interviews

?

Regional StakeholdersUtilities

Local Government DoD

Higher Ed

Economic Development

EL PASO SOLAR ENERGY ASSOCIATION

Community

Renewable Portfolio Standards• 20 renewable energy projects by 2015• Transition 20% of energy supply and 10% of

community supply to renewable sources by 2020• 10% by 2020• Net zero and 100% of power from renewables

generated on site

Economic Development• Become a “clean tech” hub• Establish a system of economic incentives• Tax base & Jobs

Financial• 20% of average savings over past 5 years for installed load growth• Reduce energy costs

Grid• Safety & stability• Develop micro grid with renewables & cogeneration; eventually go grid neutral• Own and operate enough renewable energy on site to power entire installation

Efficiency/ Conservation• Reduce consumption by 30% by 2014• 1% energy efficiency/year 09-13• 100% of buildings smart metered• Decrease usage by 30% of the 2003 baseline• Shave peak demand … to Become a

Cohesive Regional Strategy

Varying Goals & Interests…

Our Goal:A Cohesive Regional Strategy

(1) Jointly Identify opportunities for regional collaboration

(2) Jointly Identify potential barriers/challenges

(3) Jointly develop a cooperative regional framework/process with all stakeholders

– Clear strategic goals & messages that we jointly communicate to all constituents

– Develop a comprehensive vetting process for technologies and the companies that claim to possess them

– Jointly develop solutions -- technical, financial/economic, regulatory/statutory

Essentials….

Understand costs and technological capabilities & limitations of renewables

Find and focus on regional assets that will lead to success

Geotherm

al

Wind (offs

hore)

Solar PV

Hydro

Biomass

Int Gas

CC

CC Gas

Turb0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Installed Cost (2006 $ / kW)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Capacity FactorFixed O&M Cost(2006 $ / kW / yr)

Geotherm

al

Wind (offs

hore)

Solar PV

Hydro

Biomass

Int Gas

CC

CC Gas

Turb0

20

40

60

80

100

120

140

160

180

Comparative Analysis of Energy Sources(NREL Energy Analysis, http://www.nrel.gov/analysis/tech_costs.html; data retrieved Feb 2011)

data

not

ava

ilabl

e

Wind Solar Thermal

Solar PV

CC Gas Turb

Nuclear0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Installed Cost (2006 $ / kW)

Wind

Solar Therm

al

Solar PV

CC Gas

Turb

Nuclear

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Capacity FactorFixed O&M Cost(2006 $ / kW / yr)

Wind

Solar Therm

al

Solar PV

CC Gas

Turb

Nuclear

0

10

20

30

40

50

60

70

80

90

100

Comparative Analysis of Energy Sources(NREL Energy Analysis, http://www.nrel.gov/analysis/tech_costs.html; data retrieved Feb 2011)

Regional Assets for Clean Technologies

• Robust Solar Radiation Characteristics • Over 325 days sunshine yearly• Higher than average capacity

factors

• Grid accessible geothermal

• Utility scale wind resource within 250 miles

• Largest military land area in US (3.1 million acres)

• Major research university with goal to achieve Tier 1 status

• World’s largest inland desalination facility – 27.5 mgd

• More than 1,300 science & engineering grads annually from UTEP & NMSU

• EP and Juarez combine to make one of the most globally competitive manufacturing locations on the planet

• Robust supplies of conventional fuel sources as EP is in main E-W transmission pipeline corridor

Army Potential forSolar, Wind and Geothermal

WSMR

Ft Bliss

Source: “Army Energy Security: The Way Ahead”; a briefing by Dr.Kevin Geiss; Program Director,Energy Security; ACSIM; 20 May, 2009

Ft CarsonFt Riley

Ft Hood

Geographic Center of Renewable Energy Generation

Source: US Department of Energy, EIA

Region represented 39.46% of all geothermal, solar, wind and biomass generation in 2007.

100%

56%

13%

98%

Source: US Department of Energy

Western InterconnectEastern Interconnect

Texas Interconnect

Electric Grids in the United States

Western InterconnectEastern Interconnect

Texas Interconnect

CoronaPalo Verde

Luna

Regional Renewable Energy Transmission Opportunities for Energy Supply Chain

Tres Amigas

Sun Zia Preferred Route

Sun Zia Alternate Route

Centennial West Lines

High Plains Express Lines

• Army / Bliss have stated RPS goals

– Utility Scale Generation

• Deployable/Portable Operating Power

• Expeditionary Systems

• FFID / Evaluation BCT

Military Opportunity

Fiscal Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

DOD RPS Targets 6.5% 7.5% 8.8% 10.2% 11.5% 12.9% 14.2%15.6% 16.9% 18.3%

• There is no cohesive strategy unless key stakeholders are involved

• The host community is essential to war fighter preparedness (we see energy in this way)

• DoD can capitalize on surrounding community assets to support its mission(s)

• Strategy should recognize unique attributes of the installation and the community that surrounds it

• Community involvement in war fighter preparedness means jobs for the community & potential costreductions for the military

Observations

BACKGROUND

Ft Polk

Ft Hood

Ft Irwin

Ft Benning

Ft Leonard Wood

Ft Rucker

Ft Sill

Ft Knox

Ft Riley

Ft Carson

Fort Bliss / WSMR Land Area

Installation Host Community / RegionInstallation Size (acres)

Fort Bliss El Paso, TX / Las Cruces, NM (MSA) 1,100,000

Fort Carson Colorado Springs, CO (MSA) 235,896

Fort Hood Killeen, TX (MSA) 217,337

Fort Riley Junction City, KS (County) 100,656

WSMR El Paso, TX / Las Cruces, NM (MSA) 2,000,000

Alternative/ Renewable Energy Initiatives

• El Paso Electric Company - Renewable Portfolio Standards

- RETAC-- $10 M for solar generation - Solar Rebate Program

• El Paso Solar Energy Association (EPSEA)– Oldest, continuously active local solar association in US

• UTEP Center for Environmental Resource Management (CERM)    – Provides university-wide leadership and coordination for energy and environmentally-related

academic, policy, research, and service activities.

• El Paso County Resolution- “Solar Capital of the Southwest”   – Passed by El Paso County government on February 11, 2008 – announcing the County

leadership’s intent to establish El Paso as the “Solar Capital of the Southwest”.  The resolution also outlines an array of initiatives that are being established to help achieve that status.

• Fort Bliss– Growth on installation, interest in renewables/ partnership opportunities. – Vision of DOD / DA Center of Excellence

• EP Housing Authority- nation’s first LEED Platinum project

Key Messages• Our observation– Bliss plans/desires don’t match budget; which led us to take a closer look at our region’s renewable strategy

which led us to a number of conclusions– there is no regional strategy– Complexity-- realization that no single entity can act independently

• State and federal regulatory issues influence• Expensive implementation

– therefore a need to pull stakeholders together

• Hired BAH (Slide 12) interviews revealed…….– Stakeholders have different goals/expectations

• Efficiency/conservation• Renewable portfolio goals (incl net zero)• Micro grid• Cost

Kickoff stakeholder meeting scheduled for Feb 3 now rescheduled for Mar 2nd. Due to weather, and our Army partner noted that last week’s events underscore the need for this type of regional collaborative process

• Our plan for stakeholder engagement– Identify opportunities for regional collaboration – Identify potential barriers/challenges

• Our goals for stakeholder engagement– Develop a cohesive regional strategy, because we all see opportunity

• Facilitate a cooperative regional framework/process with all stakeholders • Vetting process for technologies and the companies that claim to possess them (more than 40 cos have descended

upon EP last 24 months– all want to see the CG and EPE– and we need to bring sanity)• Jointly develop solutions (technical, financial/economic, regulatory/statutory)