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EREN NETWORK NEWS -- January 29, 2003
A weekly newsletter from the U.S. Department of Energy's (DOE)
Energy Efficiency and Renewable Energy Network (EREN).
<http://www.eren.doe.gov/>
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Featuring:
*News and Events
           LIPA and GE Wind Turbines Boost U.S. Offshore Wind Prospects
           U.S. Wind Power Growth Slows to 10 Percent in 2002
           Maine Renewable Energy Brings Green Power to the State
           Massachusetts, New Jersey Revise Clean Energy Programs
           President's 2004 Budget Increases Weatherization Assistance
           New Combined Heat and Power Projects Mark a Growing Trend

*Site News
           H2CARSBIZ

*Energy Facts and Tips
           EIA Updates Regional U.S. Reports on Appliance Use

*About this Newsletter


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NEWS AND EVENTS
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LIPA and GE Wind Turbines Boost U.S. Offshore Wind Prospects

The likelihood of offshore wind power developments in the United
States improved last week, thanks to separate actions taken by the
Long Island Power Authority (LIPA) and Cape Wind Associates, LLC.

LIPA, acting on a previous study, requested proposals for an
offshore wind power plant that would produce 100 to 140 megawatts of
power. The utility has identified its preferred location, a five-
square-mile area about 2.5 miles south of Jones Beach on the western
end of the island. LIPA is prepared to enter into a 15- to 20-year
power purchase agreement for the power produced by such a facility,
which the utility hopes would be operational by late 2007. LIPA
would also build the undersea cable to connect the facility to its
electrical grid. Proposals are due on May 1st. See the LIPA press
release and the request for proposals at:
<http://www.lipower.org/newscenter/pr/2003/jan22.html> and
<http://www.lipower.org/projects/wind.html>.

LIPA's wind power proposal is supported by a coalition of
30 environmental, civic, and faith-based groups based on Long
Island, all working together through the Long Island Offshore Wind
Initiative. See the Web site at:
<http://www.lioffshorewindenergy.org/>.

In Massachusetts, Cape Wind Associates may have improved its chances
of building a wind power project in Nantucket Sound by selecting
GE Wind Power's new 3.6-megawatt wind turbine for the proposed
project. The huge generating capacity of the new turbine allows Cape
Wind to decrease the number of proposed turbines from 170 to 130,
reducing the impact on Nantucket Sound. It also increases the
distance of the wind facility from shore. See the January 21st
press releases from Cape Wind and GE Wind Power at:
<http://www.capewind.org/reporting/prele02.shtml#012103> and
<http://www.gepower.com/dhtml/wind/en_us/newsroom/pr.jsp>.

Meanwhile, another potential developer of offshore wind power,
Winergy LLC, has been gradually narrowing its list of potential wind
power projects. The company has eliminated three proposed projects
in Virginia and one in Maryland, so its project list now includes
15 proposed sites that, if developed, would total 8,931 megawatts of
generating capacity. See the Winergy Web site at:
<http://www.winergyllc.com/index.shtml>.


U.S. Wind Power Growth Slows to 10 Percent in 2002

The installed wind generating capacity in the United States
increased by 10 percent in 2002, the American Wind Energy
Association (AWEA) announced last week. Though the 410 megawatts of
new wind power still represent a healthy growth, the results are
disappointing compared to the record growth in 2001, when U.S. wind
generating capacity increased by about 66 percent. AWEA cited energy
industry retrenchment as one reason for the slowed growth, but also
noted uncertainty about the production tax credit, which is due to
expire at the end of this year. The credit provides a tax break of
1.5 cents (in 1992 dollars) per kilowatt-hour of wind power. Despite
continued uncertainties, AWEA projects that renewed growth will
boost U.S. wind capacity by about 1,500 to 1,800 megawatts in
2003, an increase of about 32 to 38 percent. See the AWEA press
release at: <http://www.awea.org/news/news030123cap.html>.

The early signs of that renewed growth are evident in Oklahoma,
which is slated to receive its first large-scale wind plant. Zilkha
Renewable Energy announced Monday that Western Farmers Electric
Cooperative has signed a 20-year agreement to buy power from the
proposed 64-megawatt Blue Canyon wind facility. The cooperative and
its member utilities service most of the state. The new wind
facility will be located north of Lawton and is expected to begin
commercial operation by the end of this year. Zilkha will share
ownership of the plant with Kirmart Corporation. See the Zilkha
press release at: <http://www.zilkha.com/news_single.asp?id=112>.

On a global level, Germany was the clear winner in 2002, achieving
a 37 percent growth in capacity and maintaining its world leadership
with 12,000 megawatts of installed wind capacity. See the "English
summary" link on the Bundesverband WindEnergie e.V. Web site at:
<http://www.wind-energie.de/>.


Maine Renewable Energy Brings Green Power to the State

Maine Renewable Energy, an affiliate of Competitive Energy Services,
LLC, launched a new green power service for the state last week.
Sold at a premium of about 1.5 cents per kilowatt-hour, the power
will come mainly from small hydroelectric plants (less than
30 megawatts in capacity) as well as wood-fired biomass power
plants. The company will use 10 percent of its profits to fund new
zero-emission energy projects in the state. See the company's
press release at: <http://www.energymaine.com/press/pressRelease.asp>.

Maine Interfaith Power and Light (MeIPL), a non-profit organization,
is working in partnership with Maine Renewable Energy to sell green
power in the state. In addition to informing Mainers about the Maine
Renewable Energy option, the organization offers them the option of
buying green tags that support wind and solar energy developments in
the western United States. At least 20 percent of MeIPL's revenues
will go toward new renewable energy facilities in Maine. See the
MeIPL Web site at: <http://www.meipl.org/buy/how.shtml>.


Massachusetts, New Jersey Revise Clean Energy Programs

Massachusetts Governor Mitt Romney gave the state's Renewable Energy
Trust Fund a new direction last week, announcing his plan to use the
fund to encourage economic development while supporting renewable
energy technologies. The governor awarded $9 million to five
renewable energy companies and established a new $15-million Green
Energy Fund to provide equity capital, loans, and management
assistance to the state's renewable energy businesses. Bob Pozen,
the governor's chief of commerce and labor, said states such as New
York, New Jersey and Connecticut are in direct competition with
Massachusetts for economic expansions by fast-growing renewable
energy companies. The Massachusetts Technology Collaborative (MTC)
manages the Renewable Energy Trust Fund. See the press release on
the MTC Web site at:
<http://www.mtpc.org/NewsandReports/press/pr_01_22_03_romney.htm>.

Speaking of New Jersey, the state's Board of Public Utilities (BPU)
launched the New Jersey Clean Energy Program in early January by
approving $2.7 million to develop renewable energy markets,
businesses, and technologies within the state. The program will
award the funds by a competitive solicitation. The BPU also approved
nearly $6 million in funds for three renewable energy projects: a
5.7-megawatt landfill gas facility, a nearly 3-megawatt sludge
digester at a wastewater treatment facility, and a 5- to 7-megawatt
wind power installation at the Atlantic County Utilities Authority
in Atlantic City.

The BPU chose to form the New Jersey Clean Energy Program in
December by revamping the former utility-run Comprehensive Resource
Analysis program, creating a Clean Energy Council to administer the
program, and initiating a new program to offer rebates on compact
fluorescent lights and energy efficient air conditioners. The BPU
also launched a pilot weatherization program for senior citizens
living in all-electric homes. See the BPU press releases, in PDF
format only, at:
<http://www.bpu.state.nj.us/wwwroot/communication/02-03.pdf>,
<http://www.bpu.state.nj.us/wwwroot/communication/03-03.pdf>, and
<http://www.bpu.state.nj.us/wwwroot/communication/42-02.pdf>.


President's 2004 Budget Increases Weatherization Assistance

Energy Secretary Spencer Abraham announced last week that President
Bush's proposed budget for fiscal year 2004 includes $288 million
for DOE's Weatherization Assistance Program. Although the fiscal
year 2003 budget has not yet been finalized, the figure represents
an increase of $11 million over the President's request for fiscal
year 2003. The increased budget should allow energy efficiency
improvements to 126,000 homes of low-income families, saving each an
average of about $218 per year on utility bills. The President's
proposed budget is only the first step in the budget process,
providing a starting point for Congressional budget bills. See the
DOE press release at:
<http://www.energy.gov/HQPress/releases03/janpr/pr03010.htm>.

For every dollar spent, DOE's Weatherization Assistance Program
returns $1.83 in energy savings over the life of the weatherized
home, based on current energy prices. See the Weatherization
Assistance Program Web site at:
<http://www.eren.doe.gov/buildings/weatherization_assistance/>.


New Combined Heat and Power Projects Mark a Growing Trend

Two new combined heat and power (CHP) projects, in New York and New
Jersey, were announced in January. In New York, Calpine Corporation
and the Long Island Power Authority (LIPA) announced a new contract
last week to expand a CHP facility at the State University of New
York at Stony Brook. Calpine will upgrade its existing 45-megawatt
facility to 80 megawatts over the next year and a half. On a smaller
scale, South Jersey Industries, Inc. signed an agreement in
mid-January to build a 6-megawatt CHP plant, capable of producing
10,000 pounds of steam per hour, at a Johnson Matthey plant in West
Deptford, New Jersey. See the press releases from LIPA and South
Jersey Industries at:
<http://www.lipower.org/newscenter/pr/2003/jan21_b.html> and
<http://www.sjindustries.com/sji83.htm>.

CHP, also called cogeneration, is a highly efficient means of
producing power, since the heat energy from the power cycle is used
either to heat buildings or for process heat in industrial plants.
However, as noted in a recent report from the American Council for
an Energy Efficient Economy (ACEEE), significant market and
regulatory barriers at the state and federal level are hampering
development of CHP plants. See the ACEEE press release, with a link
to the full report, at: <http://www.aceee.org/press/ie031pr.htm>.

Despite such barriers, a number of CHP plants have started up in
recent months, including Calpine's 550-megawatt facility in Corpus
Christi, Texas. The plant, which began operating in October 2002, can
supply more than 1.4 million pounds of steam per hour to nearby
industrial plants. Calpine owns six CHP plants in Texas. See the
October 17th press release from Calpine at:
<http://ir.ccbn.com/ir.zhtml?t=CPN&s=400>.

CHP has a lot of potential for federal sites as well. A report
prepared for DOE's Federal Energy Management Program in September
estimated that 9 percent of federal sites could use CHP to generate
as much as 1600 megawatts of power, providing 13 percent of the
electricity used by the federal government. See the report, in PDF
format only, at: <http://www.ornl.gov/femp/pdfs/chp_mkt_020913.pdf>.


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SITE NEWS
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H2CARSBIZ
<http://www.h2cars.biz/>

H2CARSBIZ features international news about the hydrogen economy,
including its infrastructure, markets, financing, investment, car
manufacturers, and hydrogen providers. It's published by Zero
Emission Energy Systems in Denmark.


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ENERGY FACTS AND TIPS
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EIA Updates Regional U.S. Reports on Appliance Use

DOE's Energy Information Administration (EIA) completed on Monday an
update of nine regional reports on the use of appliances in the
United States. The EIA's "Appliance Reports" are brief statistical
reports in which long-term U.S. trends in the use of air-conditioning
units and about two dozen appliances are compared with the trends in
each U.S. Census Division. The Pacific region, for instance, uses
less air conditioning than the rest of the country, and the Southeast
(the South Atlantic and East South Central regions) relies more on
electricity and less on natural gas than the United States as a
whole. The latest update incorporates data from a survey performed
in 2001. See the EIA's Appliance Reports at:
<http://www.eia.doe.gov/emeu/reps/appli/contents.html>.

The reliance on electricity in the Southeast is one reason why last
week's cold snap brought record electricity use to many of those
states. The Tennessee Valley Authority, the North Carolina Electric
Membership Corporation (NCEMC) and Progress Energy Florida all
experienced record power demands on January 24th. See the press
releases from TVA, NCEMC, and Progress Energy at:
<http://www.tva.gov/news/index.htm#demand>,
<http://www.ncemcs.com/Record%20Power.htm>, and
<http://progress-energy.com/cfusion/news/search/article.cfm?id=5142>.


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