MARYLAND
CLEAN ENERGY CENTER
I NTRODUCTIO N
MARYLAND
CLEAN ENERGY CENTER
Maryland Clean Energy Center
was created as a corporate
not-for-profit instrumentality of
the State of Maryland by the
General Assembly in 2008,
with a mission to:
• Educate consumers,
• Encourage investment in
energy efficiency and clean
energy generation,
• Retain and create new jobs in
the clean energy economy,
• Make clean energy products,
services, and technologies
affordable, accessible, and
easy to implement for
Maryland consumers.
Call us at 443-949-8505, or see us at:
1212 West Street, Suite 200
Annapolis, MD 21401
What is this?
Energy 101 is a reference guide for anyone interested in understanding how the
energy market works in the State of Maryland. It describes the key entities involved
in energy generation, transmission, distribution, and regulation, as well as how
they interact with each other. This publication also contains summaries of energy
technologies currently available in Maryland, an energy policy history timeline, and
milestone goals that frame the market, along with a helpful glossary of industryrelated terms.
Why do you need it?
The energy landscape is complicated. This resource contains valuable information
to help you better understand the energy sector in Maryland. In particular, this
guide has been designed to better enable Maryland consumers, policy makers, and
stakeholders—as well as their colleagues and constituents—to make effective
personal and public policy decisions about managing our energy supply, delivery,
consumption, and costs.
Who provided this?
This reference guide is brought to you by the Maryland Clean Energy Center (MCEC).
As an active voice of industry and a resource for both consumers and policy makers,
MCEC acts as a trusted third-party source of information and technical support. MCEC
has certain project financing capabilities and leverages private sector investment to
help achieve public sector clean energy and energy efficiency goals.
The energy sector is rapidly evolving in Maryland. This “Energy 101” resource is viewed as a
living document that will be updated and improved as circumstances dictate. The most current
version of the material will reside at, and can be downloaded from, the MCEC website.
For more information, visit our website at:
www.mdcleanenergy.org
TA B L E O F C O N T E N TS
Introduction......................................................................................... ii
Table of Contents................................................................................1
Executive Summary............................................................................3
Building a Foundation........................................................................4
Resources...................................................................................................... 4
Generation.................................................................................................... 4
Transmission................................................................................................. 4
Distribution................................................................................................... 4
Regional Greenhouse Gas
Initiative (RGGI) and the Strategic
Energy Investment Fund............................................................................... 12
Power Supply Choice AND
the Retail Energy Market................................................................. 13
Overview...................................................................................................... 13
Utility Distribution Rates Versus
Utility Default Service Rates......................................................................... 13
Availability of Choice in Maryland................................................................. 14
Why Would Customers Switch Their Energy Supplier?................................... 14
Framing the Maryland Energy Marketplace.....................................5
Retail Energy Market Players........................................................................ 15
Maryland’s Energy Portfolio........................................................................... 5
Current Issues.............................................................................................. 16
Maryland’s Energy Challenges........................................................................ 5
Traditional Fossil Fuels AND
Nuclear Energy Generation.............................................................. 17
More Choice and Energy Diversity for Maryland Businesses............................ 5
Maryland’s Year 2022
Renewable Energy Goals................................................................................ 6
Generation from Coal................................................................................... 17
The Regulatory Structure...................................................................7
Nuclear Energy............................................................................................. 18
The Federal Energy
Regulatory Commission................................................................................. 7
Renewable Energy Solutions........................................................... 20
PJM Interconnection...................................................................................... 7
PJM Regional Transmission Area.................................................................... 7
Maryland Public Service
Commission .................................................................................................. 8
Natural Gas ................................................................................................. 18
Solar Energy................................................................................................ 20
Wind............................................................................................................ 23
Biomass and Waste to Energy (WTE)......................................................... 23
Geothermal.................................................................................................. 24
Other Government Agencies
and Related Entities....................................................................................... 8
Hydroelectricity............................................................................................ 25
Policy Drives the Market ...................................................................9
Renewable Energy Credits............................................................... 26
Timeline of Past Policy Decisions
and State Energy Goals................................................................................ 10
Compliance RECs Versus
Voluntary RECs............................................................................................ 26
Wave and Tidal Hydropower.......................................................................... 25
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 1
Types of RECs Based on
Fuel Source.................................................................................................. 27
Energy Efficiency.............................................................................. 28
EmPOWER Maryland.................................................................................... 28
Residential Energy Efficiency
in Maryland................................................................................................. 28
The Smart Grid.................................................................................. 30
Elements of the Smart Grid.......................................................................... 30
Integrated Communications......................................................................... 31
Distributed Generation,
Microgrids, and Storage Capacity................................................... 32
Microgrids................................................................................................... 32
Energy Storage............................................................................................ 32
Electric Vehicles and
Alternative Transportation Solutions.............................................. 34
Other EV Resources...................................................................................... 34
Tax Incentives.............................................................................................. 35
Alternative Fuels............................................................................... 36
Biofuels....................................................................................................... 36
Biofuels Regulation...................................................................................... 36
Other Fuels.................................................................................................. 36
Low-Income Ratepayer
Assistance Programs....................................................................... 38
State Low-Income Ratepayer
Assistance Program (LIHEAP)
Resources.................................................................................................... 38
Maryland Utilities with Low-Income Rate Assistance..................................... 39
Maryland Utilities with Low-Income Energy Efficiency Resources................... 39
Other Sources of Information.......................................................... 44
Energy Sector Jobs........................................................................... 47
EXECUTIVE SUMM ARY
This Energy 101 document is intended to be a
resource for Maryland state legislators, regulators,
energy industry stakeholders, and interested
members of the public. The Maryland Clean Energy
Center designed this resource to be an unbiased
guide to Maryland’s complicated energy landscape,
rather than to provide in-depth technical detail on
energy resources and technologies. It is intended
to provide an overview of Maryland’s energy
portfolio and energy technologies, as well as the
relationships between regulators, industry, and
consumers in the state.
Maryland has experienced significant change in
its energy landscape in the past 20 years, and
more changes are expected to occur in the next 20
years and beyond. National, regional, state, and
local regulators are working together to identify
ways to address reliability, affordability, and
environmental issues, while the economics of clean
energy technologies continue to improve. Homes
and businesses are becoming more dependent on
affordable, reliable energy. Recent severe weather
events, such as the 2012 derecho storm and
Hurricane Sandy, have drawn public attention to the
importance of electricity reliability and
grid resilience.
In the midst of these significant changes, Maryland
and its utilities continue to offer assistance to lowincome households that have to devote a larger
proportion of their income to energy for basic
functions such as heating, cooling, and cooking.
As Marylanders become more informed about
energy choice, they are exploring options such as
purchasing energy from alternative suppliers and
installing local renewable energy generation such
as solar and wind power. Businesses and campuses
are considering microgrids as a method to improve
local electricity reliability and to control their
energy costs.
Consumers are also becoming more educated
about ways to reduce energy consumption
through energy efficiency programs. New energy
efficiency technologies for lighting, heating, cooling,
and appliances are becoming more prevalent
in Maryland homes and businesses, while
weatherization programs are ensuring that less
energy is lost at the point of consumption. Utilities
are also implementing new technologies that give
unprecedented information to consumers about
their electric use, provide suggestions for reducing
that use, and motivate consumers through
peer comparisons.
While electricity generation such as coal, natural
gas, and nuclear plants continue to provide much
of Maryland’s base load and peaking generation,
renewable generation such as solar and wind
is increasing. Renewable energy credits offer a
method for power companies, businesses, and
residential consumers to procure green energy.
Clean energy generation is decreasing in price as
manufacturers and developers increase economies
of scale. Leadership in the public sector will ensure
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y these positive economic trends continue. New
generation technologies are emerging that could
lead to even fewer greenhouse gas emissions while
improving reliability.
Likewise, traditional fuels to power vehicles on
Maryland roadways are incorporating greenhouse
gas reduction methods by including more biofuels
and by utilizing electricity as a primary or additional
mode of power.
Utilities continue to improve the delivery of energy
commodities such as natural gas and electricity
to consumers through smart grid technologies.
These new systems allow utilities to operate more
efficiently and with better reliability thanks to
improved grid visibility and automation.
This resource will provide you with an overview
of the Maryland energy landscape and may
provoke additional questions about resources,
technologies, or regulations. If you would like to
learn more, please contact the Maryland Clean
Energy Center (www.MDCleanEnergy.org).
Katherine Magruder, Executive Director
Maryland Clean Energy Center
3
B U I L D I N G A F O U N DAT I O N
The energy extraction and use process is complex, but the entire system can be broken into four
fundamental parts: resources, generation, transmission, and distribution.
Resources
Transmission
The energy extraction process begins with the resources, or fuel,
from which usable energy is derived. These resources include
fossil fuels such as coal or natural gas; nuclear fuel; or clean,
renewable resources such as wind or sunlight.
Transmission is defined differently by different entities, but
generally it involves the movement of large quantities of
electricity, gas, or liquid fuels over long distance at a high
rate (high voltage, in the case of electricity, or high pressure,
in the case of natural gas). A limited number of high-capacity
transmission lines feed into many distribution lines and
networks.
Generation
Generation is the process of refining the raw resource into
usable electricity. Natural gas, coal, wind, and solar energy are
converted into electricity by combustion, reactive processes, or
physical motion; this electricity can then be sent to the electric
transmission system. If the energy resource is used more
directly—for example, natural gas can be used by a household
cooktop—the resource may be refined instead of being converted
to electricity, then passed directly to the gas transmission system.
RE S OU RCE S
4
G ENER AT ION
T R A NS MIS S ION
Distribution
Distribution systems take the transmitted energy and distribute
it to homes and businesses. The high-voltage and high-pressure
energy is stepped down, or transformed, to more usable
voltage or pressure on the distribution system so that it can be
consumed by individuals and commercial businesses.
DI ST R I BUT I O N
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
F R A M I N G T H E M A R Y L A N D E N E R G Y M A R K ET P L A C E
Maryland’s Energy Portfolio
The majority of electricity used by Maryland
consumers is generated by coal-fired systems, with
less from nuclear power, but recent increases in
natural gas and renewable energy generation are
adding to Maryland’s diverse energy portfolio.
Increasing the percentage of clean energy
generation from renewable sources will not only
help Maryland reduce its dependence on imported
electricity from other states, it will also create more
Maryland jobs in a growing industry. In addition,
building more renewable energy into our portfolio
will help protect Marylanders from some cost
variability in the marketplace and allow us to reach
our goal of generating 20% of our electricity from
renewable sources by 2022.
Maryland’s Energy Challenges
Maryland is part of the Mid-Atlantic regional
electricity transmission grid, PJM. Marylanders
consume more electricity than is generated from
in-state sources. Therefore, more than one-third
of the power consumed in Maryland comes from
resources outside the state through the PJM grid.
As of 2012, the state was a net importer of more
than 82% of its energy and 44% of its electricity.1
With an aging fleet of generation plants and very
little utility-scale generation added since 1999,
Maryland must explore options to continue to meet
consumer demand.
1.
U.S. Energy Information Administration, “Table P3. Energy Production
and Consumption Estimates in Trillion Btu, 2012,” State Energy
Production Estimates 1960 Through 2012, June 27, 2014, http://www.
eia.gov/state/seds/sep_prod/pdf/P3.pdf.
Reliance on imported power supply may affect
businesses and consumers in terms of reliability
and cost. While building new nuclear power
generation capacity could offset carbon emissions
from fossil fuel sources, a significant portion of the
construction expense could also impact ratepayers.
Maryland is working toward achieving a more
diverse mix of power generation; from cleanerburning coal-fired plants and a new fleet of naturalgas-fired plants, to a whole array of renewable
generation sources; that will meet energy demand
and keep carbon at reduced levels moving into
the future.
Stability and grid resilience represent additional
challenges. Because a large portion of our
consumed electricity is generated outside the
state, distant storms or other outage events can
impact the availability of electricity here. On-site
generation, known as distributed generation,
reduces the distance from the point of generation
to the point of consumption, decreasing the
2006
Electricity Generation by
Source in Maryland
60.1
28.3
4.3
3.6
1.2
0.8
0.7
0.6
0.4









Coal
Nuclear
Hydro
Natural Gas
Petroleum
Biomass
Other Gases
Other
Wood
chance of interruption. In addition, localized grids
on campuses, neighborhoods, or large facilities—
called microgrids—represent enclosed systems that
can be isolated from the rest of the grid if needed,
further increasing reliability and resilience.
More Choice and Energy Diversity
for Maryland Businesses
Maryland businesses want reliable, consistent
sources of energy and protection from fluctuations
in energy costs. As the cost of renewable sources
becomes more competitive, the Maryland energy
portfolio broadens, which in turn provides more
stability in the market. While traditional energy
Electricity
Generation
sources
such as
nuclear,bycoal and natural gas
Source in Maryland
will be part of the energy mix for many years to
60.1  Coal
come,28.3
growing
the clean energy percentage of the
 Nuclear
4.3  Hydro
portfolio,
3.6 developing
 Natural Gas more distributed generation,
1.2  Petroleum
and incorporating
energy storage with private
0.8  Biomass
0.7 microgrids
Other Gases will provide greater energy
and public
0.6  Other
stability0.4and
independence.
 Wood
2006
2013
Electricity Generation by
Source in Maryland
44.4
35.1
16.4
1.0
1.1
0.9
0.5
0.4
0.2









Coal
Nuclear
Natural Gas
Hydro
Biomass
Wind
Petroleum
Wood
Other
Source: https://data.maryland.gov/goals/renewable-energy
2013
Electricity Generation by
Source in Maryland
5
Maryland’s Year 2022
Renewable Energy Goals
The chart below shows Maryland’s In State
renewable energy capacity since 2006 and
projections looking forward to 2022.
6
T H E R E G U L ATO R Y S T R U C T U R E
The energy market is highly regulated, with state,
regional, and federal agencies or authorities
overseeing many aspects of its operations. These
regulators impact the shape and size of the
market, as well as the rules governing the market.
In Maryland, distribution is regulated separately
from generation and transmission. This structure
allows consumers to purchase electricity and
natural gas from a variety of suppliers (generators),
but the delivery of those commodities is provided
by regulated utilities.
• The Public Service Commission (PSC) regulates Maryland’s
utilities, including natural gas and electric service providers.
• Maryland’s electricity and gas distribution companies are
regulated based on a rate of return.
• Maryland enacted customer choice laws, which enables
customers to choose their providers.
• The PSC licenses retail electricity suppliers.
• The PSC oversees the EmPOWER Maryland energy
efficiency program.
Following are descriptions of the relevant
regulatory entities:
The Federal Energy
Regulatory Commission
The Federal Energy Regulatory Commission (FERC)
is an independent federal agency responsible for
regulating interstate transmission of electricity,
natural gas, and oil. FERC regulates interstate
issues in the electricity and natural gas supply
industries. FERC also reviews proposals to build
liquefied natural gas (LNG) terminals and interstate
natural gas pipelines, as well as licenses for hydroelectric plants.
PJM Interconnection
PJM Interconnection is the regional transmission
organization (RTO) that is responsible for the grid’s
reliability in our region, and that administers the
wholesale electricity market. It started by covering
Pennsylvania, New Jersey, and Maryland, but it
has now expanded to cover a significant portion of
the Mid-Atlantic out to Illinois, as well as Ohio and
parts of Kentucky. PJM is regulated by FERC.
PJM is also responsible for managing the wholesale
capacity market through the Reliability Pricing
Model (RPM). The RPM is a forward looking pricing
mechanism that compensates power generators
for power they will generate three years in the
future. This auction provides financial incentives to
build new generation or to run demand response
measures to reduce usage in congested areas of
the grid (i.e., central Maryland). Demand response
actions include signals to industrial, commercial,
and residential customers who agree to curtail
their use of electricity during periods of high
demand. The capacity cost is a component of the
consumer’s electricity supply rate. In addition,
PJM’s rules on grid reliability determine when and
how new utility-scale generation can be connected
to the grid. This impacts the costs, profit margins,
and timeline for new generation construction.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y Legend
ZONE
Allegheny Power Systems
American Electric Power Co., Inc.
American Transmission Systems, Inc.
Atlantic Electric Company
Baltimore Gas and Electric Company
ComEd
Dayton Power and Light Co.
Delmarva Power and Light Company
Dominion
Duke Energy Ohio and Kentucky
Duquesne Light
7
“
PJM is a membership organization, composed
of generators, electricity suppliers, utilities,
transmission owners, and some retail end users.
Report (CEIR) which provides
Maryland Public Service
Commission
PPRP biennially produces a
Cumulative Environmental Impact
information on the current status
of knowledge regarding the
effects of power generation on
the State’s natural resources.
A bibliography which lists the
general and site-specific reports
that PPRP has produced since the
”
early 1970s is also available.
Suggested PPRP Resource: Electricity in
Maryland Fact Book 2013 (http://esm.versar.
com/pprp/factbook/factbook.htm)
The Maryland Public Service Commission (PSC)
states its mission is to, “…ensure safe, reliable,
and economic public utility and transportation
service to the citizens of Maryland.” Among the
many duties of the PSC, a few are most relevant to
the electricity industry:
• The PSC sets electric distribution rates and oversees the
utilities’ procurement of Standard Offer Service electricity and
natural gas for Maryland ratepayers. Standard Offer Service
is the set price that customers pay for the electricity and gas
commodity if they do not choose an alternative supplier.
• The PSC oversees the EmPOWER Maryland energy
efficiency initiative, which is run by the major electric
distribution companies.
• The PSC licenses retail electricity suppliers and ensures that
they uphold consumer protection standards.
Maryland Office of People’s Counsel (OPC) –
OPC is an independent state agency that serves
as a residential ratepayer advocate for consumer
interests in the regulatory and policy processes
for energy, as well as in other utility and public
service matters.
Other Government Agencies
and Related Entities
Power Plant Research Program (PPRP) –
PPRP was established under the Power Plant
Siting and Research Act of 1971. This enlightened
legislation provided a model—that several other
states have adopted—for addressing power plant
licensing issues.
8
The enabling legislation established an
Environmental Trust Fund to support PPRP. Funding
is provided through an environmental surcharge
that is assessed on all electricity used in the
state. The surcharge adds between 10¢ and 20¢
per month to the average residential customer’s
electric bill.
PPRP is housed within the Maryland Department
of Natural Resources and provides a continuing
program for study and evaluation of electric
generation issues to recommend responsible,
long-term solutions. It functions to ensure that
Maryland meets its electricity demands at
reasonable costs while protecting the state’s
valuable natural resources.
Maryland Energy Administration (MEA) – As
part of the Office of the Governor, the mission
of MEA is to promote affordable, reliable, clean
energy. MEA’s programs and policies are intended
to help lower energy bills, fuel the creation of
“green collar” jobs, address environmental
and climate impacts, and promote energy
independence.
The MEA operating budget and programs are
funded primarily through the Strategic Energy
Investment Fund utilizing revenues from the
proceeds from the Regional Greenhouse
Gas Initiative (RGGI) auctions. The RGGI is a
cooperative effort by nine states, including
Maryland, to reduce CO2 emissions from
electricity generating plants.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Maryland Department of the Environment
(MDE) – MDE manages the permitting process
for environmental regulation and Maryland’s
participation in RGGI. MDE administration is largely
funded by the General Fund.
P O L I C Y D R I V E S T H E M A R K ET
Maryland Department of Human Resources
(MDHR) – MDHR is the agency that manages the
Low Income Home Energy Assistance Program
(LIHEAP).
Maryland Clean Energy Center (MCEC) –
MCEC is a corporate instrumentality of the
state created by the General Assembly with
a statute-directed mission to advance clean
energy and energy efficiency products, services,
and technologies as part of a specific economic
development strategy.
MCEC is managed by a board of directors who are
appointed by the Governor. MCEC also maintains
an advisory council, composed of both public and
private stakeholders acting in the energy sector,
who help guide the work plan of the organization.
MCEC works directly with industry stakeholders,
has certain project financing capabilities, and
leverages public investment to help achieve related
private-sector goals. The Center has facilitated
approximately $50 million dollars of investment
through public-private partnerships to assist
consumers; as well as municipal, university, school,
hospital and not-for-profit entities implement
energy improvements on their residences or
facilities. MCEC has been funded by grants, loans,
and fee proceeds from financial transactions.
9
Timeline of Past Policy Decisions
and State Energy Goals
2007 RPS Increased from
7.5% to 20%
The Maryland legislature has a long track
record of dealing with energy-related policy
and regulation. In past sessions, the Maryland
General Assembly has established goals related to
energy consumption and supply, as well as to the
associated emissions:
• 15% Demand reduction by 2015
• 20% Renewable Portfolio Standard (RPS) by 2022;
with a 2% mandated carve out for solar generation.
• 25% Reduction in greenhouse gas emissions by 2020
This timeline highlights of some of the most
significant past policy decisions, but it is not a
complete record of those decisions.
Amended the Renewable Portfolio
Standard in 2007 to expand the
requirement to generate 20% of
electricity from renewable source by
2022, up from the original 7.5% goal.
http://mgaleg.maryland.gov/2007RS/
chapters_noln/Ch_119_sb0595E.pdf
The Healthy Air Act addressed air
pollution from power plants by
requiring reductions in nitrogen
oxide, sulfur dioxide, and mercury.
It also required Maryland to join
the Regional Greenhouse Gas
Initiative (RGGI), a regional pact
of northeastern and Mid-Atlantic
states to reduce greenhouse gases
from power plants.
http://mgaleg.maryland.
gov/2006rs/bills/hb/hb0189t.pdf
http://mgaleg.maryland.gov/2008rs/chapters_noln/
Ch_137_hb1337E.pdf
2007 RPS- Expands
Net Energy Metering
Regulations adopted that raised the size
of eligile systems to 2 MW and quanity
of net meters in the state to 1,500 MW.
This allows non-utility generators of
renewable energy to receive a monetary
credit for the power placed onto the grid.
http://mgaleg.maryland.gov/2007RS/
chapters_noln/Ch_119_sb0595E.pdf
2008 EmPOWER Maryland Implemented
The 2008 EmPOWER Maryland Energy Efficiency Act set
a goal for the state to reduce energy use by 15% and
reduce peak demand per capita by 15% by 2015 (based
on 2007 levels) through energy efficiency programs. It also
established a process by which utilities could collect and
utilize a surcharge on ratepayer bills to fund rebates and
other implementation strategies approved in advance by
the PSC.
http://mgaleg.maryland.gov/2008rs/chapters_noln/
Ch_131_hb0374E.pdf
2005
2006 RPS Expands to Include Solar Carve-Out
2004 RPS bill
Tier 1 sources were generally defined at the time
as sources that had no or very little emissions
and very little environmental impact, and
were industries that were not yet established
in Maryland. Tier 1 included wind, solar and
sustainable biomass. Black liquor, a byproduct of
paper manufacturing, was also inserted into Tier
1 by the legislature.
Enabled the creation of the Maryland Clean Energy Center in
statute as a corporate instrumentality of the state to promote
economic development and jobs in the clean energy industry
sector, promote the deployment of clean energy technology
in the state and serve as an incubator for its development;
collect, analyze and disseminate industry data; and provide
outreach and technical support to further the clean energy
industry in the state.
2006 Healthy Air Act
2000
The 2004 Renewable Portfolio Standard (RPS)
set the stage for much of the future sustainable
energy legislation over the past decade. The RPS
set a certain percentage of renewable and/or
clean energy that had to be sold by electricity
suppliers in the state. Maryland is one of many
states that use this policy tool to spark the growth
of renewable energy facilities.One of the key
features of the Maryland RPS was the separation
of energy sources into Tier 1 and Tier 2.
2008 Maryland Clean Energy Center Created
Tier 2 included Municipal Solid Waste
Incineration (MSW) and large scale hydro power.
The RPS set an Alternative Compliance Payment
(ACP) for entities that did not meet the standards.
The ACP is meant to allow market forces to play a
role by giving electricity suppliers flexibility in how
they meet the standard. The ACP acts as a price
ceiling for RECs.
The original RPS legislation in Maryland started
slowly and ramped up over time to max out at
7.5%. This means that 7.5% of electricity sold to
consumers in the state must come from
renewable and/or clean energy sources.
http://mgaleg.maryland.gov/2004rs/bills/hb/
hb1308e.pdf
In 2006, the legislature amended the RPS to create a so-called
“Solar Carve-Out” for solar energy within Tier 1. The solar
carve out effectively created a new tier for solar, with its own
alternative compliance payment and own percentages.
http://mgaleg.maryland.gov/webmga/frmMain.
aspx?ys=2006rs/billfile/sb0175.htm
2008 Regional Greenhouse Gas Initiative –
Maryland Strategic Energy Investment Act
Established the Maryland Strategic Energy Investment Program
and Fund (SEIF) managed by an appointed board and administered
by the Maryland Energy Administration. This legislation structured
the collection formula and codified the terms of the Alternative
Compliance Payments (ACP) collected, as well as the allowed uses
for and formula for distribution of the funds collected.
2009 Greenhouse Gas Emissions
Reduction Act
The Greenhouse Gas Emissions Reduction Act sets a
goal of Maryland reducing emissions of greenhouse
gases such as Carbon Dioxide 25% by 2020 (based
on 2006 levels). Directed the Maryland Department
of the Environment to develop a plan to meet the
goals and promulgate regulation with defined terms
for compliance.
http://mgaleg.maryland.gov/2009rs/chapters_
noln/Ch_172_sb0278E.pdf
http://mgaleg.maryland.gov/2008rs/chapters_noln/ch_127_
sb0268e.pdf
10
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
2011 RPS adds Waste to Energy to
Tier 1(SB 690)
Adds grid tied waste to energy to the category of
energy generation technologies eligible for Tier I
credit in the RPS.
http://mgaleg.maryland.gov/2011rs/
chapters_noln/Ch_519_sb0690E.pdf
2011 RPS Expands Solar Carve-Out
to include Solar Thermal
In 2011, the legislature amended the RPS to add
solar thermal technology, which is typically used to
heat water, into the solar carve out. Previously, the
solar carve out only included solar photovoltaic, or
“PV,” which is typically used to create electricity.
http://mgaleg.maryland.gov/2011rs/chapters_
noln/Ch_407_sb0717E.pdf
2013 Offshore Wind Act
The Offshore Wind Act expanded
the RPS to include a “carve-out” for
offshore wind starting in 2017. The
Act does not specify the percentage
of electricity sold in the state that
has to come from offshore wind,
but rather leaves it to the PSC to
determine each year. The Act has
many protections and alternate
scenarios to provide the PSC
maximum flexibility and keep rate
impacts for ratepayers to a minimum.
http://mgaleg.maryland.
gov/2013RS/bills/sb/sb0275f.pdf
2013 RPS Solar Water
Heating Systems
Altering the definition of “solar
water heating system” for
purposes of the renewable
energy portfolio standard to
include systems that consist
of specified concentrating
solar thermal collectors under
specified circumstances.
http://mgaleg.maryland.
gov/2013RS/bills/hb/
hb1534F.pdf
2014 Sustainable Communities
Tax Credit Program - Extension
and Alteration
2014 Maryland Clean
Energy Center- Green
Bank Financing Study
Extending and altering the Sustainable Communities
Tax Credit Program; providing for a tax credit for
the rehabilitation of small commercial properties;
repealing a tax credit for qualified rehabilitated
structures; altering the tax credit for high performance
buildings; etc.
Directs the MCEC to study gaps in the
marketplace, identify the potential to
develop green bank financing, and
recommend an implementation strategy
based on identified need.
http://mgaleg.maryland.gov/2014RS/chapters_
noln/Ch_601_hb0510T.pdf
2013 Gas Companies - Rate Regulation Infrastructure Replacement Surcharge
http://mgaleg.maryland.gov/webmga/
frmMain.aspx?ys=2011rs/billfile/hb1223.htm
Also enacts Tax Credit for EV
Recharging Equipment
http://mgaleg.maryland.gov/2011rs/
chapters_noln/Ch_402_hb0163T.pdf
To evaluate amending the RPS to Include Wood and
Plant Derived Biomass Systems.
Authorized the Maryland Agricultural Land Preservation
Foundation to amend an easement to authorize the landowner
to use the land subject to the easement for renewable energy
generation.
http://mgaleg.maryland.gov/2013RS/chapters_noln/
Ch_323_hb1084T.pdf
http://mgaleg.maryland.gov/2013RS/bills/hb/
hb0089t.pdf
http://mgaleg.maryland.gov/2014RS/chapters_noln/
Ch_287_sb0259T.pdf
2015
2012 RPS Renewable Energy
Credits-Qualifying Thermal Biomass Systems
2013 School Buildings Solar Technology - Design
Development Documents
2014 Clean Energy Loan Programs Private Lenders - Collection of
Loan Payments
Allows energy from a specified qualifying
thermal biomass system to be eligible for
inclusion in meeting the renewable energy
portfolio standard, restricted incineration
from the types of eligible technologies, and
specifically identified poultry litter with
associated bedding as a qualified feedstock.
Requiring the Board of Public Works
to adopt regulations requiring
design development documents for
the construction or renovation of
school buildings to include specified
information relating to the use of solar
technology; requiring the Interagency
Committee on School Construction
to submit a report on the use of solar
technologies in specified public school
construction and renovation.
Establishes a regulatory framework for the
implementation of Property Assessed Clean Energy
(PACE) loans. Allows a private lender to provide capital
for a commercial loan provided under a local clean
energy loan program; providing that, with the consent of
any holder of a mortgage or deed of trust on the
property, a county or municipality may collect loan
payments owed on a commercial loan to a private lender
or to a county or municipality through a surcharge on a
property owner’s property tax bill.
http://mlis.state.md.us/2012rs/billfile/
HB1339.htm
2012 RPS Geothermal Heating
& Cooling
Specifying that energy generated from a geothermal
heating and cooling system is eligible for inclusion in
meeting the renewable energy portfolio standard.
http://mlis.state.md.us/2012rs/billfile/SB0652.htm
2014 Agriculture - Easements - Renewable
Energy Generation Facilities
Allowing a gas company to recover costs associated
with infrastructure replacement projects through a gas
infrastructure replacement surcharge on customer bills.
2013 Established the Maryland Thermal
Renewable Energy Credit Task Force
2010
2011 Electric Vehicle
Infrastructure Task Force Created
http://mgaleg.maryland.gov/2014RS/
chapters_noln/Ch_365_sb0985T.pdf
http://mgaleg.maryland.gov/2013RS/
bills/hb/hb0103f.pdf
2014 Electric Vehicles
and Recharging
Equipment - Rebates
and Tax Credits
http://mgaleg.maryland.
gov/2014RS/chapters_noln/
Ch_360_hb1345E.pdf
http://mgaleg.maryland.gov/2014RS/chapters_noln/
Ch_472_sb0186T.pdf
Projected Renewable Energy Goal By The Year 2022 >
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 2022
20%
11
Regional Greenhouse Gas
Initiative (RGGI) and the Strategic
Energy Investment Fund
The Regional Greenhouse Gas Initiative (RGGI) is
a cooperative effort by nine Northeast and MidAtlantic states to reduce carbon dioxide (CO2)
emissions from electricity generating plants. RGGI
includes Maryland, Connecticut, Delaware, Maine,
Massachusetts, New Hampshire, New York, Rhode
Island, and Vermont.
In the United States, RGGI is the first program of
its kind, a multi-state emissions cap and trade
program with a market-based emissions trading
system. The cap and trade program is designed to
reduce CO2, a greenhouse gas, while maintaining
electricity affordability and reliability. Maryland’s
participation in RGGI will reduce CO2 emissions
from the State’s electricity generators by roughly
10 percent from current levels by 2019. The
program also directly funds energy efficiency
and cleaner energy programs that will lower
greenhouse gas emissions.
Source: http://www.mde.maryland.gov/programs/
air/rggi/pages/air/rggi.aspx
2014
Strategic Energy Investment Fund
Allocation Formula
50%
Low Income Energy Assistance
20%
Energy Efficiency, Conservation &
Demand Response Programs
20%
Clean Energy & Climate
Change Programs
10%
Administration of Fund
12
Maryland is among a number of states
in the Northeast and Mid-Atlantic
region of the United States that
joined RGGI in 2006, as part
of the Healthy Air Act. Since
power generation and demand
for power overlaps between
states throughout the northeast
United States, this initiative seeks
to mitigate impact on air quality
from coal fired power generation, and reduce
greenhouse gas emissions throughout the region
with the investment of carbon offset or alternative
compliance payments into clean energy and energy
efficiency solutions.
Strategic Energy Investment Act
The Strategic Energy Investment Act of 2008
created the Strategic Energy Investment Fund
(SEIF) as a special, non-lapsing fund made up
of the proceeds from the auction of carbon
allowances to electric power plants under RGGI.
SEIF Administration is funded by a portion of the
proceeds collected, and does not receive any
general funds nor does it include any
ratepayer surcharges.
The Strategic Energy Investment Funds (SEIF)
currently provide ratepayer assistance with
household energy bills as well as grant and loan
programs to promote affordable, reliable, and clean
energy solutions in Maryland. Programs funded
by SEIF have also helped create new green collar
jobs, address global climate change, and promote
energy independence. Auctions are held quarterly.
The first was held on September 25, 2008 which
generated $16.3 million in proceeds for Maryland.
The most recent auction, held on December 3rd,
2014 generated $19,412,157.82, and to date
overall the state has received $401,915,502.10 in
auction proceeds.
For more information, read Using the
Strategic Energy Investment Fund:
Maryland’s Energy Future.
Source: http://energy.maryland.gov/documents/
MEA_YearInReview_2012_Print_012813.pdf
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
POW ER SU PPLY CHOICE AN D
T H E R ETA I L E N E R G Y M A R K ET
Overview
Utilities across the United States have a
common role: ensuring safe and reliable delivery
of electricity and natural gas to customers.
Regardless of the entity from which a customer
purchases the commodity, the utility always
delivers the energy. In some states with
competitive energy markets, such as Maryland,
customers have the choice of purchasing energy
from a variety of companies, although the local
utility continues to deliver the energy and respond
to emergencies and outages.
In states with energy competition, a consumer can
choose the company that procures electricity and
natural gas on their behalf—a supplier—and then
have the utility deliver it to their home or business.
This business practice is similar to how a customer
can choose to purchase a book from one of a
variety of online retailers, but then have it shipped
by a different entity.
In most parts of Maryland, consumers have
the right to switch to an alternative electricity
supplier or natural gas supplier. As in other states,
Maryland utilities continue to serve as one option
among many from which consumers can purchase
their energy (this is often called “default service,”
or, as in Maryland and other states, “Standard
Offer Service”).
Some states have taken a different approach.
Texas and Georgia, for electicity and gas,
Power Supply Choice in Action
respectively, have done away with utility provided
default service—all customers take supply from
competitive suppliers.
The Baltimore Regional Cooperative
Whether customers purchase from a supplier of
their choosing or from a designated supplier, in all
states, the utility serves in the delivery role.
agencies to procure energy on a
Utility Distribution Rates Versus
Utility Default Service Rates
and seeks to procure better energy
Typically, in a competitive energy market, investorowned utilities’ profits come from the delivery of
energy, not from the supply of energy. The delivery
rate is usually referred to as a “distribution charge”
on a utility bill, and this rate is controlled by a
state’s public service commission.
Purchasing Committee combines the
purchasing power of local government
large scale. This approach leverages
Maryland’s competitive energy market
pricing than individual agencies could
achieve on their own.
When the utility also provides the actual energy
commodity under a standard offer service (SOS),
this is generically referred to as a “supply charge”
or “generation charge” on a bill. In most cases,
the utility is passing along the cost of the energy
commodity itself directly to the customer, without
markup. In Maryland, utilities’ standard offer
service supply is typically set at two levels: summer
rates and non-summer rates. Alternative suppliers
may change electric commodity rates on a monthly
basis or fix rates for a set period. Unlike electricity,
the natural gas standard offer service pricing can
fluctuate monthly in Maryland. Alternative gas
suppliers may alter pricing monthly or fix prices for
a set period.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 13
Availability of Choice in Maryland
Electricity choice is available in the following
utility territories:
• Baltimore Gas and Electric (BGE)
• Choptank Electric Cooperative
• Delmarva Power and Light
• Potomac Edison
• Potomac Electric Power Company (Pepco)
• Southern Maryland Electric Cooperative (SMECO)
Natural gas choice is available in the following
utility territories:
• Baltimore Gas and Electric (BGE)
• Washington Gas Light (WGL)
• Elkton Gas (commercial and industrial customers only)
Why Would Customers Switch Their
Energy Supplier?
Different Rate Structures
Variable – A variable-rate product is one
that can change in price from month to
month with no price floor or price cap.
Variable rate products typically do not
have cancellation fees.
Fixed – A fixed-rate product provides
a firm, fixed price for a specified term,
usually one or two years. There can be
a cancellation fee associated with these
products.
14
Customers may choose to switch energy suppliers
to save on the commodity cost, to purchase
alternative generation (e.g., renewable suppliers),
to receive additional benefits the supplier offers, to
leverage a different rate structure (fixed, variable,
indexed, green, etc.), or because they prefer one
supplier over another for other reasons. The
ability to choose a supplier provides consumers
with options previously unavailable to them in fully
regulated mnarkets.
and air conditioning (HVAC) systems. Some plans
may also include different incentives for switching,
ranging from donations to alumni organizations to
airline frequent flyer miles.
Particularly of note, many suppliers offer renewable
energy products, specifically for electricity,
that range from partially to 100% renewable.
These products are typically more expensive
than “regular” electricity but provide significant
environmental benefits. Similarly, a few suppliers
offer natural gas coupled with carbon offsets to
balance the environmental impact of burning the
fossil fuel. These products are also usually more
expensive than standard natural gas products.
Note: When customers choose to purchase a
renewable energy product from a competitive
supplier, because of the physical properties of
electricity, there is no way to know whether the
electricity delivered to their home is the exact same
electricity that was produced from a renewable
source; what happens instead is that the
renewable energy generator delivers the electricity
to the grid on the customer’s behalf—electricity
that would have otherwise been produced by a
coal, natural gas, or nuclear plant. The net effect
of increasing renewable energy is the same as if
there were a direct transmission line between the
renewable energy source and the
customer’s home.
Beyond price, there are a number of benefits a
natural gas or electricity supplier might offer to
encourage consumers to switch. These include
value-added services, such as home and business
energy efficiency audits, or warranty products and
equipment repair services for heating, ventilating,
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Retail Energy Market Players
The retail energy market in Maryland consists
of many players at all levels of the sales and
marketing process. The significant players are
the following:
1. Investor-Owned Utilities (IOUs)
IOUs are the regulated utilities that maintain the
infrastructure of the distribution grid or pipelines,
provide service to customers who don’t switch to
an alternative supplier, and administer billing and
collection of fees or taxes. The PSC oversees the
auctions that set the price of standard offer service
of electricity or natural gas. IOUs do not own any
significant generation. The EmPOWER Maryland
program is run through the IOUs.
2. Electricity Suppliers
Electricity suppliers generate or purchase
electricity on the wholesale market and sell it to
customers on the retail market at rates that are
not subject to government approval. They do not
typically own any generation. Electricity suppliers
are licensed by the PSC.
5. Brokers
Licensed by the PSC, brokers don’t take ownership
of energy commodity and resell it, but match
buyers with sellers. They are often the primary
point of contact for commercial entities.
More information for consumers about
making effective power supply choices
can be found at MCEC “Power to
Choose” website:
http://www.mdcleanenergy.org/powertochoose
6. Aggregators
Aggregators are companies, often web-based,
that bring groups of customers together in order
to approach a supplier with a larger volume of
business. Aggregators are licensed by the PSC and
share many similarities with brokers.
Understanding your BGE bill
http://www.bge.com/myaccount/billsrates/pages/
understanding-my-bill.aspx
7. Telemarketers and Other Agents
Suppliers use telemarketers, direct mail agencies,
and door-to-door groups to approach potential
customers in both the retail and commercial
spaces. These groups often, but not always, work
for only one supplier at a time.
What does this all cost?
Our Utility
“Bill”
Our Utility
“Bill”
Commodity (Electricity) – 67%
3. Natural Gas Suppliers
Natural gas suppliers purchase natural gas on
the wholesale market and sell it to customers on
the retail market at rates that are not subject to
government approval. Natural gas suppliers are
licensed by the PSC.
4. Energy Cooperatives
In some parts of Maryland, an energy cooperative,
or co-op, acts as the energy supplier, the utility,
and the owner of generation. There is not robust
consumer choice in these markets.
Distribution – 27%
Transmission – 6%
RPS – 0.68%
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y RGGI – 0.61%
EmPOWER – 1.98%
15
8. Individuals Who Are Part of a Multi-Level
Marketing (MLM) Model
Some suppliers use MLM to sell their products.
In this sales channel, a person signs up to be an
agent for the supplier, though not an employee,
and sells the supplier’s products to consumers,
usually in the residential space. Consumers who
sign up for the service can then become agents
themselves and sell the product to others. The
agents in an MLM program typically do the work
part time as a way to supplement their incomes.
Current Issues
Consumer Education
Supplier rates versus the cost of Standard Offer
Service, switching and contract termination fees,
and penalties and other specific contract terms are
among the considerations the average consumer
needs to understand when choosing to enter into
an energy supply contract.
Consumer Protection
At the behest of the General Assembly, the PSC
investigates whether consumers have enough
protection in the retail energy market. Consumers
should be careful of false or misleading market
claims, advertising, and contracts that are
confusing and hard to understand.
SB1044: Public Service Commission –
Competitive Retail Electricity and Gas Supply
– Consumer Protection – Report
http://mgaleg.maryland.gov/2014RS/bills/sb/sb1044F.pdf
An act requiring the PSC to submit a report on
or before January 1st, 2015, that will evaluate
adequacy of customer protection in electricity and
natural gas affairs, make recommendations for
further safeguards if necessary, and address any
other issues the Commission considers relevant.
Municipal Aggregation
Some states, such as Illinois, Massachusetts, New
Jersey, and Ohio, have adopted “opt-out” municipal
aggregation as a way to automatically have many
residential ratepayers switch to an alternative
supplier. In these cases, a municipality or group
of municipalities negotiates with a competitive
supplier on behalf of all its residents; residents are
automatically enrolled in the plan unless they take
the extra step to affirmatively “opt out.”
16
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Chalk Point Generating Station located in Aquasco, Maryland
TRADITIO NAL FOSSI L F U ELS AN D
N U C L E A R E N E R G Y G E N E R AT I O N
Generation from Coal
Coal-fired power plants generate a large portion
of the electricity produced within the state of
Maryland (44.4% in 2013), although many of
these plants also generate electricity from both
natural gas and oil. Chalk Point Generating Station,
which is located in Aquasco, Maryland (owned and
operated by NRG), is the largest of these coal-fired
power stations in Maryland, with a capacity of
2,401 megawatts (MW).
Other Coal-Fired Plants in Maryland
•
randon Shores Generating Station (1,370 MW)
B
Baltimore, Anne Arundel County
•
harles P. Crane Generating Station (416 MW)
C
Middle River, Baltimore County
•
ickerson Generating Station (930 MW)
D
Dickerson, Montgomery County
•
erbert A. Wagner Generating Station (1,059 MW)
H
Baltimore, Anne Arundel County
•
•
Luke Mill Power Plant (65 MW), Luke, Allegany County
•
arrior Run Generating Station (229 MW)
W
Cumberland, Allegany County
organtown Generating Station (1,548 MW)
M
Morgantown, Charles County
Electricity from Coal
Coal is a fossil fuel formed from the decomposition
of organic materials that have been subjected
to geologic heat and pressure over millions
of years. Coal is considered a nonrenewable
resource because it cannot be replenished within
a reasonable time frame. While there are coal
deposits in western Maryland, most of the coal
used to generate electricity within Maryland comes
from neighboring states such as West Virginia.
The activities involved in generating electricity from
coal include mining, transport to power plants, and
burning of the coal in power plants. Initially, coal
is extracted from surface or underground mines.
The coal is often cleaned or washed at the coal
mine to remove impurities before it is transported
to the power plant—usually by train, barge, or
truck. Finally, at the power plant, coal is commonly
burned in a boiler to produce steam. The steam is
run through a turbine to generate electricity.
Environmental Impacts
Although power plants are regulated by federal
and state laws to protect human health and
the environment, there is a wide variety of
environmental impacts associated with power
generation technologies. When coal is burned,
carbon dioxide, sulfur dioxide, nitrogen oxides, and
mercury compounds are released. For that reason,
coal-fired boilers are required to have control
devices to reduce the amount of emissions.
If the coal burning process is not properly
handled, other environmental impacts can include
contaminated water discharged from cooling and
boilers at significantly higher temperatures than
the ambient environment, contaminated rainwater
runoff from coal stored outside at power plants, as
well as a solid waste called fly ash—a by-product
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Coal Cleaning Technologies
In 1985, when the United
States and Canada saw that
their rivers, lakes, forests,
and buildings were being
damaged by acid rain,
both countries agreed to a
partnership program for their
governments, several U.S.
states, and private companies
to develop new, cleaner
coal-burning technologies.
This effort, called the Clean
Coal Technology Program,
develops methods to clean
coal, to clean the sulfur from
coal’s combustion gases
(called “scrubbers”), to find
better ways to remove nitrogen
oxides (NOx) from the flue
gases of coal burners, and to
develop other coal-burning
technologies such as coal
gasification.
Coal – Pros & Cons
Pros
•Abundant and relatively
inexpensive regional supply.
•Lower cost to construct new
generation plants than other
options such as nuclear.
•Base load electricity generation.
•Acid gas scrubbing and carbon
capture technologies reduce (but
do not eliminate) greenhouse gas
emissions.
Cons
•Nonrenewable resource.
•Emits greenhouse gases at
electricity production site and via
transport of the resource from
mine to power plant.
•Environmental impacts
around mines.
•Disposal requirements for
by-products of combusted coal.
•Carbon capture technologies can
be costly to implement.
of burning coal (primarily metal oxides and alkali,
about 10% of coal). Much of this solid waste is
deposited in landfills and abandoned mines,
although some amounts are now being recycled
into useful products, such as cement and building
materials.
17
Natural Gas – Pros & Cons
Natural Gas
Pros
Natural gas, a fossil fuel, provides a source of
energy for consumers throughout Maryland. More
than 1,160,000 customers are served via natural
gas pipelines in Maryland, and numerous others
rely on propane supply as a source of energy,
especially in rural areas of the state where pipeline
infrastructure does not exist.
•Fossil fuel with the least associated
greenhouse gas emissions.
•Extensive North American shale gas supply.
•Stable cost for in the U.S. market for the
foreseeable future.
Cons
•Still a fossil fuel and therefore adds CO
to atmosphere.
2
•Extraction process (including hydraulic
fracturing) may have considerable
environmental impacts.
•Transmission infrastructure has not yet been
fully developed in light of relatively new
supplies.
Natural gas prices have decreased more than 50%
in the last seven years, primarily as a result of
advances in the extraction of natural gas in shale
rock formations. Natural gas prices are predicted
to remain stable for the foreseeable future, and the
United States now has proven reserves of at least
100 years. The United States enjoys the lowest
natural gas costs of any major developed country.
Recognition is growing about the revolutionary
change in the U.S. natural gas industry.
Technological development has unlocked vast
amounts of previously unrecoverable resources.
The full implications of these developments are
still being absorbed.
By nature of the physical properties of the
commodity, natural gas is ready and available to
be used by the consumer whenever they need it.
All of the commodity put into the transmission
and distribution network is utilized by customers.2
Unlike the electric power plant generation system,
there is no wasted generation or capacity by having
an excess supply of energy available at every
customer meter to meet instantaneous demand.
Natural gas emits less carbon than other fossil
fuels when burned, though it does emit additional
18
2
emissions when extracted and transported. In
addition, there are considerable environmental
concerns regarding its extraction process.
Nuclear Energy
Calvert Cliffs
Maryland has only one nuclear power plant—the
Calvert Cliffs facility located in Lusby and owned
and operated by Exelon Corporation. Calvert Cliffs
Unit 1 began generating electricity in 1975, and
Unit 2 joined the system in 1977.
The plant is built on a 1,500-acre site on the
western shore of the Chesapeake Bay, about 50
miles southeast of Washington, DC. Its two units
are capable of generating more than 1,700 net
MW annually, enough to power more than 1 million
average American homes each year.
Nuclear Energy – Pros & Cons
Pros
•Nuclear facilities do not produce greenhouse gases when
producing energy.
•The Calvert Cliffs facilities have been operating safely for nearly
40 years, and they will continue to produce reliable, clean
energy for many years to come.
•Low cost base load generation. Once the initial capital costs
of a plant have been recovered, nuclear power offers stable
energy at a low cost.
Cons
•No new nuclear power plants have been constructed since
1977, and the time required to bring new generation facilities
on-line in Maryland is enormous.
•The cost of constructing new plants makes any new
sources of nuclear energy less cost competitive than other
generation sources.
•Fossil fuel emissions are associated with mining and transport
of uranium, and spent nuclear fuel is still expensive to store
and manage due to safety and nuclear proliferation issues.
This is a theoretical 100% utilization. In reality, a small amount of natural gas commodity is lost in the system due to leakage and waste.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
REN EWABLE EN ERGY SOLUTIO NS
19
• Maryland ranks
1st
8th in the nation in solar;
•
for green jobs per capita in
the Mid-Atlantic region;
• and
4th in the nation in green jobs.
(Data as of 2013)
https://data.maryland.gov/goals/renewable-energy
REN EWABLE EN ERGY SOLUTIO NS
Renewable energy and clean technology companies in Maryland are generating employment
and tax revenue for the state. This section describes various renewable energy technologies
and how they may be applicable in the Maryland energy landscape.
Solar Energy
Solar energy is energy produced by utilizing the
Sun. Solar technology can either convert the
Sun’s energy to electricity (photovoltaics), use it to
heat fluids for indirect electric power generation
(concentrated solar power), or use it to heat water
(solar thermal, or solar hot water).
Photovoltaics (PVs)
PV systems do not have the moving parts or
steam production found in most other electricity
generation systems. Instead, the sunlight shines
on a solar cell and causes an electric current to be
generated directly. Common uses are to generate
power in a grid-connected system for use on-site
(e.g., residential, commercial, and other buildings,
or groundwater remediation); other (larger)
systems generate power that is provided directly to
electric utilities.
Solar Thermal
Solar thermal is also known as “solar hot water”
because it is an application that uses heat from
the Sun to heat water. The primary components
of a typical residential solar water heating system
are one or two panels, a solar water heater tank
with a heat exchanger, a small system controller
and circulator pump—known as the pump control
module, some insulated piping, and a nontoxic
20
antifreeze for the heat transfer fluid. All systems
include some form of backup energy, but electric
backup is the most common and allows for a single
water tank.
Solar thermal is also frequently deployed at a
commercial scale to provide solar water heating
for multi-family housing, military installations,
retail and industrial applications, and any other
application that requires a significant, daily, hot
water demand. Largely due to the high efficiency
and technical maturity of this technology, the
Energy Independence and Security Act of 2007
introduced a requirement that at least 30% of the
hot water demand for each new federal building
or existing federal buildings undergoing a major
renovation be met through the use of solar hot
water heating, if it is determined to be life-cycle
cost-effective.
Concentrated Solar Power
Solar thermal technologies can also be used in
large utility-scale power generation systems.
Most of these applications involve focusing
the Sun’s rays via rotating mirror arrays (called
Heliostats) to a central tower core, where the
intense heat creates steam that runs turbines to
generate electricity.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N -
As of the end of 2013, Maryland had ~180 MW
of installed capacity (according to the U.S. Solar Market
Council). The typical system on a residential roof in
Solar is a growing source of
jobs in Maryland — more than 2,000
Maryland is between 4 kilowatts (kW) and 8 kW, which
professionals are employed by the solar
means it can produce from 4,800 kilowatt-hours (kWh)
industry in the state. Leading firms such as
Trends Report by the Interstate Renewable Energy
a year to 9,600 kWh a year, or half to two-thirds of the
typical needs of a Maryland home. Maryland’s existing
Astrum Solar and Standard Solar are based
roof area is sufficient to generate approximately one-
in Maryland, while groSolar, SolarCity,
fourth of our electricity demand from solar systems.
and SunEdison all have major operations
SkyLouver (a Baltimore, MD based company), patent-pending, roof
mounted solar thermal and lighting module produces both diffused
natural light and hot water for commercial building applications.
in the state. Many new electrical and
plumbing contractors that are offering solar
technologies as part of their product line are
also based in Maryland.
Solar Power – Pros & Cons
MD based Solar Energy Services, roof mounted solar hot water for
apartment complex application
Solar PV application on a university campus
Pros
•Renewable resource, no fuels required,
abundant supply.
•Greenhouse gas reductions—non-polluting
except initial development.
•Available at varying scales, from utility
to consumer.
Cons
•Variable resource due to clouds, night.
•Costs not as favorable as traditional (fossil,
nuclear) electricity.
•Visual impact at installation site.
•Manufacturing process can result in pollution.
Thin solar pv panels in a residential application
Large commercial solar array project, Emitsburg, Maryland
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 21
The 2013 Offshore Wind Act expanded the RPS to include a
“carve-out” for offshore wind starting in 2017.
Wind Power – Pros & Cons
Pros
•Renewable resource, abundant supply.
•Significant greenhouse gas reduction.
•Wind prediction models improving for
better siting.
Cons
•Intermittent resource.
•Visual impact, localized noise pollution.
•Wildlife impact—some cases of bird and
bat strikes.
22
Wind
Wind power is derived from wind spinning a turbine
that produces electricity. Wind power generation
does not produce any emissions and has been a
proven, efficient technology for decades across the
globe, but especially in coastal Northern Europe,
where wind energy utilization accounts for a huge
percentage of overall power generation.
Maryland has plenty of wind to generate power
from both onshore and offshore areas. Onshore,
the Eastern Shore and the mountains of western
Maryland have the best wind resources. There is
a lot more potential offshore. According to data
from the National Renewable Energy Laboratory,
Maryland’s onshore wind potential at 80 meters
hub height is 1,483 MW, and Maryland’s offshore
wind potential at 90 meters hub height is
53,782 MW.
Offshore Wind
Offshore wind is wind power produced by turbines
placed off the shore in shallow water. Offshore
wind typically produces more power than landbased wind because the turbines are larger and
the wind is more consistent over the water.
Community Wind
Community wind is much smaller in scale, with
turbines that are no bigger than 50 kilowatts (kW),
and can be designed with only one or a couple
of turbines.
Biomass / WTE – Pros & Cons
Pros
•Renewable, extensive supply.
•Modern biomass heating and cooling can
reach efficiency levels of up to 80-90% of the
BTU content of the fuel.
•Lower greenhouse gas emissions than
fossil fuels.
•WTE offers space management solutions
for landfills.
Cons
•Releases “captured” greenhouse gases
into atmosphere.
Biomass and Waste to Energy (WTE)
•Transportation of feedstock to electricity
Biomass is plant and animal matter—including
crops such as corn and soybeans—as well as
wood, grasses, algae, vegetable oils, municipal
waste, and certain agricultural by-products such as
poultry litter and animal manure that can become
workable feedstocks for energy production.
•If implemented widely, supply may become
production plant requires energy.
locally scarce, requiring a shift to another
supplier or type of feedstock.
Wind energy is already boosting revenue for
landowners in western Maryland and could bring
manufacturing jobs to the state when offshore
wind projects move forward.
At the end of 2013, Maryland had 120 MW of wind
capacity installed and another 150 MW under
construction, according to the American Wind
Energy Association.
Land-Based Wind
Large land-based wind farms use wind turbines
that have a capacity of 2–3.5 MW. In our region,
wind farms typically have 10 to 50 turbines, which
are usually sited on high ridge lines. Most of
Maryland’s land-based wind sites are located in
the mountains of western Maryland.
Chicken litter and other agricultural waste can be used to generate
energy from biomass.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 23
“Currently, the geothermal
industry indicates that
approximately 10,000 tons of
geothermal capacity is installed
”
annually in Maryland. Geothermal Energy – Pros & Cons
Pros
•Base load (always-on) electricity generation.
•Greenhouse gas emission-free.
•Limited visual impact—most equipment
is underground.
•Direct-use geothermal can be installed nearly
anywhere in Maryland.
Cons
•Availability of geothermal heat suitable for
electricity generation is limited in Maryland.
•Drilling costs can be prohibitive and locating
sites can be difficult.
24
Wood biomass includes wood chips from forestry
operations; arborist trimmings; residues from
lumber, pulp/paper, and furniture mills; recycled
pallets; and fuel wood for space heating. Maryland
is rich in raw biomass material from farming,
fishing, aquaculture, and forestry.
Biomass production is a significant industry in the
state, producing nearly 3 million tons of biomass
annually and co-producing 462 gigawatt hours of
electricity. Maryland’s strong agricultural industry
combined with federal research facilities and
significant biotech industry presence position the
state to be a national leader in biomass innovation.
Major facilities such as the Beltsville Agricultural
Research Center and the University of Maryland
Biotechnology Institute, along with state university
research and large agri-business, provide the
knowledge, research and development (R&D),
and workforce required to produce promising new
biomass technologies.
WTE involves recovering energy from waste by
converting refuse materials into usable heat,
electricity, or fuel through a variety of processes,
including combustion (incineration), gasification,
anaerobic digestion, and landfill gas (LFG) recovery.
Maryland is currently home to several large-scale
municipal solid waste (MSW) to energy plants, and
project developers are now demonstrating WTE
technologies as a part of mitigation strategies to
deal with excess poultry waste from agriculture
production operations.
Geothermal
Geothermal technologies utilize a constant
ground temperature beneath the surface of the
earth or thermal heat from hot spots closer to the
surface in heating and cooling applications or for
commercial or utility-scale energy generation.
The Western United States, Alaska, and Hawaii are
the literal “hot spots” for utility-scale geothermal
energy. The geology of Maryland makes largescale geothermal energy production unviable.
Geothermal heat pumps for residential and
commercial heating, cooling, and hot water using
“ground source” energy
to reduce the need to
regulate temperatures
from one extreme
to the other are now
commonly adopted
by consumers and
business operators.
A closed looped
geothermal system
contains a non-toxic
fluid, like glycol, as the
medium to transfer
the constant ground
temperature to a
heat pump for space
heating and cooling,
and hot water heating.
Shown above and to the
right are the most common
geothermal applications
for both residential and
commercial systems.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Hydroelectricity – Pros & Cons
Pros
•Renewable resource, no greenhouse
gas emissions.
•Reliability—base load generation that
requires no startup electricity to recover
from blackout.
•Relatively safe—no combustion,
requirements for spent fuel disposal.
Cons
•Environmental impact—create reservoirs,
alter flow of rivers, impact fish and
wildlife habitats.
•Costly capital expense to develop
new plants.
•Resource availability limited
during droughts.
•Impact downstream resource—availability
of water for irrigation, transportation, or
other uses.
Hydroelectricity
At a utility scale, hydropower in Maryland is used to
generate electricity. This hydroelectricity is derived
from harnessing the energy of falling and running
water. The largest hydroelectric plant in the
state is the Conowingo Hydroelectric Generating
Station, a run-of-the-river hydroelectric power plant
owned and operated by Exelon Power, a business
unit of Exelon Generation. The generation units
are collocated with the Conowingo Dam on the
Susquehanna River in northern Maryland between
Cecil and Harford counties. With 11 turbines, the
plant has an installed capacity of more than
550 MW.
Conowingo Dam at the mouth of the Susquehanna River
has 11 turbines and a generation capacity of 572 MW.
used to turn the turbines, Conowingo can be used
to “jump start” the electric distribution system in
the event of a widespread system outage of the
PJM region.
Wave and Tidal Hydropower
Alternatives to dam-based hydropower include
wave and tidal power generation. These relatively
newer technologies offer high potential—the energy
density of shoreline ocean waves can be 40 kW
for every meter of wave. As promising as this is,
this technology has not been developed at a large
commercial scale yet.
Unlike other base load (always-on) electric
generators, because a constant flow of water is
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 25
R E N E W A B L E E N E R G Y C R E D I TS
A Renewable Energy Credit (or Certificate) (REC)
is a tradable instrument that represents proof
of 1 megawatt-hour of electricity that has been
generated from a renewable energy resource. RECs
separate the benefit of renewable energy from
the electricity itself, which allows for the creation
of markets. These credits are bought and sold
separately from the underlying physical electricity
commodity associated with renewable-based
generation. An owner of a REC can claim to have
bought renewable energy. The REC program allows
consumers or producers who would not otherwise
have access to renewable energy, or sufficient
quantities of renewable energy, to support
renewable generation. Ultimately, the purchase
of a REC supports renewable generation by
subsidizing its development and operation. RECs
are registered by the green energy generator and
then sold into the market, often via a broker.
RECs are at the heart of the Maryland Renewable
Portfolio Standard (RPS) and are used to measure
compliance. They can also be sold as part of a
voluntary purchase by consumers.
Compliance RECs Versus
Voluntary RECs
RECs come in several types, depending on the
fuel source and their use. All RECs are either
compliance RECs or voluntary RECs. Compliance
RECs are further categorized by two renewable
tiers. Tier 1 renewables include solar, wind,
biomass, anaerobic decomposition, geothermal,
26
ocean, fuel cells powered through renewables,
small hydro, poultry-litter incineration facilities,
and WTE facilities. Tier 2 renewables include
hydroelectric power other than pump-storage
generation. Starting in 2006, electricity suppliers
were required to provide 1% of retail electricity
sales from Tier 1 renewables and 2.5% from Tier
2 renewables. By 2022, the Tier 1 requirement
increases to 20%, while the Tier 2 requirement
reduces to 0% by 2019. To provide some ceiling
protection to the electricity suppliers, an Alternative
Compliance Payment (ACP) cap has been
implemented. This ceiling effectively ensures that
compliance RECs will stay manageably priced. For
example, for Tier 1 compliance, the ACP is $40/
MWh. It would make no sense for a company to
pay $41/MWh for a compliance REC if it can just
pay the ACP at $40. In 2014, Tier 1 Maryland RECs
were priced between $13 and $18, which is much
lower than the $40 ACP.
Voluntary RECs closely follow the prices of
compliance RECs because of the competitive and
open-market relationship between the two types
of RECs. REC generators will sell at the highest
price, which is typically driven by REC supply and
demand in the compliance market. REC buyers will
likewise buy at the cheapest price, which ensures
voluntary REC pricing will not exceed that of
compliance RECs.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Types of RECs
Renewable Energy Credits come in
several types, depending on the fuel source and
their use. All RECs are either compliance RECs
or voluntary RECs.
Types of RECs Based on
Fuel Source
Within these two categories, RECs can differ based
on their fuel source:
SRECs
Solar RECs (SRECs) are produced by a solar PV
or thermal system. SRECs have their own trading
value because Maryland’s RPS requires each
supplier to have a certain percentage of solar in its
mix. This is called the “solar carve-out.” (A generic
Tier 1 REC would not qualify for compliance with
this carve-out.) To qualify for an SREC, a solar
generator must be located in Maryland, thus
keeping the benefits of the solar carve-out local.
SRECs in Maryland have been trading between
about $120 and $180 for the past few years.
ORECs
Offshore wind RECs (ORECs) are produced by
generating electricity from an offshore wind facility.
ORECs have not started trading in Maryland,
as we do not yet have an offshore wind facility.
Once a facility is built and operating, ORECs will
have similar attributes to an SREC because the
Maryland RPS has an “offshore wind carve-out”
that acts like the solar carve-out.
TRECs
Like other renewable resources, biomass used for
heating, cooling and combined heat and power
(CHP) in Maryland helps to reduce greenhouse
gas emissions, decreases our dependence on
The Current Cost
of a REC:
$1
The Current Cost
of an SREC:
$150
foreign fossil fuels, and creates jobs. Allowing
the Renewable Portfolio Standards to include
Thermal Renewable Energy Credits (T-RECs) would
encourage the use of biomass for heating and
cooling. Modern and commercially viable biomass
heating, cooling, and cogeneration technologies
can reach efficiency levels of up to 80-90% of the
BTU content of the fuel.
Biomass generation is currently included as a
part of Maryland’s RPS, but biomass-enabled
thermal energy involves technologies that are not
specifically included in Maryland’s Renewable
Energy Credit (REC) program. Thermal RECs, or
T-RECs, if adopted, could encourage greater use of
biomass for heating an cooling.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y REC – One REC is equivalent to 1,000
kilowatt-hours of energy. This generic
classification may be given to all renewable
power sources outside of solar and offshore
wind. The most common energy sources for
these generic RECs are land-based wind,
biomass, and hydropower.
Compliance REC – A REC used to meet the
Maryland RPS is a compliance RECs.
Voluntary REC – Unlike compliance
RECs, voluntary RECs are purchased by end
users who are not mandated or regulated to
do so. Some retail customers in Maryland
may choose to purchase a percentage of their
electricity supply as renewable. In doing this,
the customer is typically participating in a
voluntary REC purchase.
Within these two categories, RECs can differ
based on their fuel source.
SREC – A Solar REC is a REC produced by
a solar system, whether it is a PV or a
thermal system.
OREC – An Offshore Wind REC is a REC
produced by an offshore wind facility.
TREC – Thermal REC is a credit equal to
the environmental attributes of 3,412,000
BTUs (British Thermal Units) of thermal
energy generated by a Tier I or Tier II thermal
renewable source. 3,412,000 BTUs are
equivalent to displacing the need for 1 MW
of power generated otherwise from nonrenewable sources.
27
EN ERGY EFFICIENCY
The U.S. Environmental Protection
Agency estimates that geothermal
heat pumps can lower energy bills by
30%-40%.
Energy efficiency is simply using less energy to
achieve the same results. For example, an energyefficient light bulb can produce the same amount
of light as a non-efficient bulb, but it uses a fraction
of the electricity to do so. An energy-efficient house
can be just as warm in the winter or just as cool
in the summer as a typical house, but it uses less
energy to achieve those results.
There are many technologies that improve energy
efficiency. Here are just a few:
Insulation – Installing super insulation is by far
the most cost-effective way to reduce energy use in
both homes and commercial buildings.
Lighting and Appliances – Compact fluorescent
light (CFL) bulbs and light-emitting diode (LED)
light bulbs use significantly less electricity than
traditional light bulbs. New ENERGY STAR®
appliances use less energy and water.
Geothermal HVAC – Geothermal heat pump
systems are viable in just about any location in the
state and can provide a consistent, reliable, and
largely clean source of energy for residents.
EmPOWER Maryland
EmPOWER Maryland, which is overseen by the
PSC, is the state’s signature program to promote
energy efficiency. The 2008 EmPOWER Maryland
Act set a goal for the state to reduce energy use by
15% and reduce peak demand per capita by 15%
by 2015 (based on 2007 levels) through energy
efficiency programs. The programs are funded
through ratepayer surcharges, and they must be
cost effective for ratepayers in aggregate, meaning
that ratepayers must receive more savings benefits
than the fees they pay. Residential ratepayers only
pay the residential surcharge, and commercial
ratepayers only pay the commercial surcharge.
These monies do not mix.
Within EmPOWER Maryland, programs are run
through each of the four largest investor-owned
state utilities (BGE, Pepco, Delmarva Power, and
Potomac Edison) and SMECO. Detailed information
about these programs is available at the PSC
28
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
website, under case numbers 9153–9157. These
programs can be categorized as either residential
or commercial programs.
Residential Energy Efficiency
in Maryland
The most popular residential programs are
the following:
Lighting and Appliance Rebates – Highefficiency CFL and LED bulbs are discounted at
the point of sale to encourage customers to buy
these bulbs instead of standard incandescent
bulbs or even the new hybrid halogen bulbs.
Further, ENERGY STAR®–rated appliances such
as refrigerators or clothes washers have mail-in
rebates to encourage people to buy the higherefficiency equipment.
HVAC Upgrades – Customers who replace their
air conditioner, furnace, or other HVAC equipment
can obtain rebates for buying higher-efficiency
appliances. Lists of qualifying models are based
on ENERGY STAR® ratings or Consortium of Energy
Efficiency (CEE) ratings.
Quick Home Energy Check-Up (QHEC) – A
QHEC is a brief energy assessment for residential
ratepayers that is provided at no cost. It also
includes free CFLs, smart power strips, and other
items. A QHEC is positioned as the first step for
many residents to learn about their homes and
how they can participate in EmPOWER Maryland
programs.
Home Energy Audits – A home energy audit
or assessment is a comprehensive investigation
of a home’s energy usage. It looks at the entire
building structure and all its energy uses, which
typically takes several hours. A home energy audit
is a necessary step for a resident to access the
Home Performance rebate program. To encourage
participation, energy audits are subsidized.
Customers typically pay $100 for a service that
would otherwise cost about $400.
Home Performance – Homeowners who make
significant improvements to their home’s building
envelope (the physical barrier between the
conditioned and unconditioned space) or who add
insulation are eligible to receive rebates. These
improvements permanently enhance the comfort
of homes, which enables homeowners to run
heating and cooling equipment less frequently.
Behavior-Based Marketing – Utilities are using
behavior-based messaging to convince customers
to use less energy. This messaging, which is sent
directly to consumers by mail or e-mail, explains
how consumers’ energy use compares to their
neighbors’ use and provides tips for using less
energy. Research has shown that this type of “peer
pressure” is effective in changing behavior.
Commercial Energy Efficiency
in Maryland
The most popular commercial programs are
the following:
Lighting and HVAC Incentives – There are large
rebates available to small and large businesses
for upgrading to LED lighting or for replacing
older fluorescent technology with new technology.
Because many businesses keep their lights on
12–24 hours a day, the incentives are even
larger than residential incentives. Some utilities
even offer small financing programs directly on
their bills to help companies pay for the amount
that is not rebated. HVAC incentives exist for
upgrades to chillers, boilers, and fans, among other
components.
Custom Programs – Custom programs capture
savings from projects that do not fall into the
standard, prescriptive approaches. In these cases,
businesses may apply for a flat dollar rebate
amount per kilowatt-hour saved. These programs
allow customers to flexibly accomplish their goals.
Maryland Home Energy Loan Program
(MHELP) – MHELP is run by MCEC in partnership
with MEA and support from the U.S. Department
of Energy. Its aim is to expand access to energy
efficiency upgrades by providing low-cost loans
to homeowners. The MHELP program is almost
out of funding. Efforts are underway to assess
alternatives to MHELP both within and outside of
EmPOWER Maryland–funded programs.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 29
TH E SM ART GRI D
“Smart grid” refers to an electricity delivery system
that allows for two-way communication between
energy consumers and the entities that deliver
energy. Managing the transmission, distribution,
and consumption of energy has become much
easier as a result of evolving technological
developments. Many technologies are included as
part of the smart grid. A list of the current smart
grid technologies may be found at:
www.sgiclearinghouse.org/Technologies
Integrating smart grid technologies may bring
numerous benefits for grid stakeholders, from the
grid operator to the consumer, including
the following:
• Giving consumers more information about and control over their
energy use so they become more efficient energy users
• Providing more effective management for distributors during
peak times
• Improving utility grid operational efficiency
• Making the grid more resilient
Elements of the Smart Grid
Smart grids may include varying levels of
technologies, from consumer devices and customer
interfaces to utility grid operation and restoration
technologies. Some elements include the following:
1. Smart Meters
Smart meters are digital meters, installed at the
customer’s home, that provide more detailed and
exact measurements of electricity, gas, or water use
as well as other functions such as outage detection.
30
Smart meters can communicate remotely and
frequently with the utility.
Maryland utilities have been working for several
years to install smart meters in every home, with
the idea that consumers will eventually be able to
take advantage of tools and programs that help
them save energy and money.
2. Transmission and Distribution Intelligence
Transmission and distribution intelligence refers to
the part of the smart grid that applies to the wires,
switches, and transformers that connect the utility
transmission, substations, and distribution systems.
A key component of distribution intelligence
is faster and improved outage detection and
response. These technologies permit rerouting
of power around trouble areas, managing power
quality, and proactively monitoring key components
such as transformers to predict potential failures.
3. Advanced Components
Advanced components play an active role in
determining the electrical behavior of the grid.
They can be applied in stand-alone applications
or connected to create complex systems such
as microgrids. These components are based on
fundamental R&D gains in power electronics,
superconductivity, materials, chemistry, and
microelectronics.
Examples of advanced components include the
Flexible AC Transmission System (FACTS), smart
meters, and solid-state transfer switches.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
4. Advanced Control Methods
Advanced control method technologies are devices
and algorithms that analyze, diagnose, and predict
conditions in the modern grid. These technologies
utilize the advanced components of an intelligent
transmission and distribution system to enable
grid managers to determine and take appropriate
corrective actions to eliminate, mitigate, and
prevent outages and power quality disturbances.
These methods also manage both real and reactive
power across state boundaries
Examples of advanced control methods include
substation automation, distribution automation,
feeder automation, and grid-friendly appliance
controllers.
5. Sensing and Measurement
Sensing and measurement is an essential
component of a fully modern power grid. Advanced
sensing and measurement technologies acquire
and transform data into information and enhance
multiple aspects of power system management.
These technologies evaluate equipment health
and the integrity of the grid. They support frequent
meter readings, eliminate billing estimations, and
help prevent energy theft. They also help relieve
congestion and reduce emissions by enabling
consumer choice and demand response and by
supporting new control strategies.
Examples of sensing and measurement
technologies include transformer load monitoring,
components of the advanced metering
infrastructure, wide area monitoring systems, and
outage monitoring and management systems.
6. Improved Interfaces and Decision Support
Improved interface and decision support
technologies convert complex power-system data
into information that can be understood by human
operators at a glance. Animation, color contouring,
virtual reality, and other data display techniques
are parts of improved user interfaces to systems
that help operators identify, analyze, and act on
emerging problems.
Examples of improved interfaces and decision
support technologies include distributed energy
resource interfaces, phasor measurement analysis,
voltage optimization systems, scenario analyses,
and customer gateways.
Integrated Communications
To fully deploy all of the aforementioned smart
grid technologies, implementation of integrated
communications is essential. Integrated
communications create a dynamic, interactive
infrastructure for real-time information exchange,
allowing users to interact with various intelligent
electronic devices.
Examples of integrated communication
technologies include fiber optic communication
rings, power line carrier, WiFi mesh networks that
interconnect meters, WiMax, and ZigBee.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 31
D I S T R I B U T E D G E N E R AT I O N ,
M I C R O G R I D S , A N D S TO R A G E C A P A C I T Y
Microgrids
Microgrids are small, local electric grids that can
disconnect from the traditional grid and generate
electricity using distributed energy resources such
as natural gas turbines, solar PVs, and batteries.
These systems have been shown to provide power
to critical community services during extreme
weather events such as Hurricane Sandy and the
June 2012 derecho storm. Microgrids can also
provide benefits to building owners and the utility
electric grid by offering grid-hardening services
(fortifying the grid against outages) that are critical
to the resilience of the utility electric system.
Microgrid technologies are becoming increasingly
cost-effective investments, especially in
situations where uninterruptable quality
power is required 365 days per year.
Microgrids are being developed
throughout the United States, especially
in the Northeast. Governments are
partnering with businesses to strategically
deploy microgrids where they can
best benefit communities during an
emergency. Many of these systems
are privately financed with revenues
from selling energy services into the
regional energy market. As energy project
developers continue to create new
business models and value streams—such
as energy efficiency or renewable energy
generation projects, or energy pricing
32
based on reliability factors—microgrids will increase
in popularity as an option for local electricity
distribution.
Energy Storage
Storing and distributing power as effectively as
possible is very important because energy supply
(generation) and demand (consumption) are
never constant and rarely equal. Excess energy
is produced during periods of low demand, but
it is lost if it can’t be stored for use during peak
demand. Similarly, electricity produced in one
location might go unused because of low demand,
while another location is underserved by supply
because too little energy is produced. Renewable
generation does not address this issue, and in
many cases, because of the intermittent nature of
many renewable technologies, the energy storage
issue is compounded by renewables.
A 100% efficient energy storage device would
not lose any energy during the energy storage
process—all energy input to the device would be
available for output. This level of efficiency remains
elusive, but some technologies exist at lower
efficiency levels that do capture excess energy to
be used when needed:
Advanced Batteries
Lithium-ion batteries, available in varying sizes
from utility scale down to consumer electronics
sized, are an example of an advanced battery
technology. Batteries composed of other
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
chemistries offer different advantages. In general,
advanced batteries offer several advantages:
• More efficient than lead-acid batteries
• Provide more energy with a smaller unit than traditional
batteries
• Last twice as long as conventional batteries
• Some varieties, such as sodium sulfur batteries, can operate
under much higher temperatures
• High-power and high-capacity uses, such as in a power grid
• Charge is circulated through the battery from a rechargeable
and portable external unit that can be moved to where it is
needed on demand
Compressed Air Energy Storage
Compressed air on a near-utility scale or a utility
scale functions similarly to air compressors used in
construction applications. Air is compressed into a
reservoir, such as a rock cavern or an abandoned
mine, relatively slowly during low energy demand
periods. When needed as an energy source during
high demand times, the air is released rapidly.
The released air can turn a turbine to generate
electricity.
Superconducting Magnetic
Energy Systems (SMES)
SMES provide peak power for short durations,
which can be helpful to manage quick fluctuations
in power quality. SMES store energy in the
magnetic field created by electricity flow through a
superconducting coil.
• Used to bridge periods of power instability or short-term
interruptions, such as those that may occur while switching
from grid electricity to a backup power supply
Flywheel Energy Storage (FES)
Flywheel energy storage involves bringing a largesized (large mass) wheel up to a high rotational
speed using available power during low demand
times. The flywheel turns on a very low friction
shaft, so very little energy is needed to keep it
spinning once it has reached speed. When energy
demands increase to peak, the kinetic energy
of the flywheel is used to provide power back to
the grid very quickly. Because flywheels typically
remain running and available at a moment’s
notice, they can be used to meet quick energy
demands while grid operators wait for other
peaking power systems to spin up to full operation.
Hydrogen Fuel Cells
Hydrogen is the most abundant substance in the
universe, but on Earth it is combined with other
elements and therefore must be extracted from
other sources to be used. This extraction process
takes energy. For utility-scale electric production,
hydrogen is derived via a natural gas process that
can be costly and releases carbon dioxide, albeit
at significantly lower amounts than combustion.
Fuel cells provide electricity similar to batteries,
but unlike batteries, they require a constant input
of a fuel source such as hydrogen. While fuel
cells themselves promise high efficiency and use
an abundant element, the hydrogen extraction
process can be costly and energy intensive, and
those limitations currently restrict mass adoption
of this technology.
Battery storage banks
• Store energy in the magnetic field created when current travels
through supercooled conducting material
• SMES produce immediate high power, but for a very short time.
New R&D is underway to improve the cooling process, using
either liquid helium or liquid nitrogen
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 33
E L E C T R I C V E H I C L E S A N D A L T E R N AT I V E
T R A N S P O R TAT I O N S O L U T I O N S
Just like a conventional car needs gas in its tank,
an electric vehicle (EV) needs energy in its battery.
The big difference between gas cars and EVs is
that gas cars have to be refueled at a gas station
while EVs charge when parked at a charging
station, and most EVs require an extensive
charging time in order to fully refuel. There are
three main types of chargers, or electric vehicle
supply equipment, each with different availabilities
and charging capacities to match the amount
of time an EV is parked. These chargers can be
installed in homes or in public places.
There are three main types of EVs:
• Battery electric vehicles (BEVs) use only a battery
to power the motor, and the batteries are charged by plug-in
charging stations.
• Hybrid electric vehicles (HEVs) are powered by
traditional fuels and by electric energy stored in a battery.
They use regenerative braking (as the car slows down during
braking, energy is absorbed and captured to provide extra
power when needed) or the internal combustion engine to
charge their battery. HEVs work well for both light-duty and
heavy-duty applications.
• Plug-in hybrid electric vehicles (PHEVs) have
internal combustion or other propulsion-source engines
and electric motors. Like HEVs, they are powered by either
conventional fuels or a battery, but the batteries in PHEVs are
larger than those in HEVs. PHEV batteries are charged by a
plug-in charging station, regenerative braking, or the internal
combustion engine.
On average, Americans drive less than 40 miles
per day. Most BEVs can travel close to 75 miles on
a fully charged battery, making them a good option
34
for many motorists. PHEVs offer longer ranges
without the need to stop to charge up. Many hybrid
vehicles can travel between 20 and 35 miles on
pure electricity before switching to gas.
Other EV Resources:
Maryland Freedom Fleet
Voucher (FFV) Program
The Maryland FFV Program provides financial
assistance to drivers who purchase new and
converted alternative fuel vehicles (AFVs)
registered in Maryland and use them for public,
commercial, or nonprofit agency purposes.
Pepco Plug-In Vehicle Charging Pilot
Pepco offers a Plug-In Vehicle Charging Pilot to
help drivers save money and reduce the strain on
the electric grid. To qualify, drivers must meet the
following requirements:
• Be a Maryland residential customer of Pepco
• Have a BEV or PHEV that can travel a minimum of 30 miles
powered by electricity
Algae is a promising
• Have your EV registered in Maryland
source of new biofuels,
For specifics, visit http://www.pepco.com/my-home/saveespecially because other
money-and-conserve-energy/plug-in-vehicle-charging-pilot/
co-products have the strong
potential to create high paying
NRG Plug-In Vehicle Charging Pilot
jobs and make the process
NRG Energy, through its 100% privately-financed
of turning algae into biofuels
electric vehicle services brand called NRG eVgo,
cost effective.
provides customized, turnkey, economical, and
sustainable vehicle charging solutions across
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
NRG eVgo branded electric vehicle charging station.
Maryland and many other states to residential,
commercial, retail, corporate, and governmental
customers; NRG is also the developer and operator
of regional networks of direct current fast chargers
(capable of charging vehicles in less than 30
minutes), of which there are more than two dozen
in the Washington/Baltimore market.
BGE Plug-in Vehicle Charging Pilot
BGE offers a special rate for EV users to encourage
customers to charge in off-peak hours, reducing
demands on the distribution system. Information
on the EV rate is available at BGE.com at:
http://www.bge.com/smartenergy/pluginelectricvehicles/
Pages/Rate-Options.aspx .
Tax Incentives
Starting on July 1, 2014, and continuing through
June 30, 2017, the Maryland Electric Vehicle
Supply Equipment Tax Credit Program will
accomplish the following:
• Offer a tax credit on the purchase of a PHEV for 3 years
• Increase the tax credit provided for most vehicles
• Enhance incentives for the purchase and installation of EV
recharging station equipment
The new tax credit is based on a vehicle’s battery
size; the credit can be as high as $3,000. As part
of the program, residential customers, commercial
entities, retail service stations, and local and state
governments can receive rebates of up to 50% of
costs, with varying caps.
Timber Rock Energy Systems, electric vehicle charging
station, General Motors, White Marsh, MD.
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A L T E R N AT I V E F U E L S
Biofuels
Biofuels are fuels produced from biomass, such
as plant matter. There are several types of biofuel,
ranging from traditional biofuels, which are
designed to be blended with petroleum products,
to more advanced biofuels, which can be a direct
replacement for petroleum fuel. The following are a
few types of biofuel:
Ethanol – Corn-based ethanol is one of the first
biofuels to be widely used in the United States. It
is a mandated oxygenate for gasoline (replacing
methyl tertiary butyl ether [MTBE]), meaning that
it reduces the emissions of gasoline-powered
vehicles.
Biodiesel – Biodiesel is based on soybean oil,
other plant oils, or waste grease. Biodiesel is
typically blended in diesel fuel at blends of 2%–5%
in transportation vehicles, and of up to 20% for
heating applications.
Biofuels Regulation
Algae is a promising
source of new biofuels,
especially because other
co-products, such as fertilizer
and feed, offer other income
potential, making the process
of turning algae into biofuels
cost effective.
36
The Renewable Fuel Standard (RFS) is a federal
mandate requiring oil and gas companies to
blend biofuel into their traditional, fossil fuels.
Companies demonstrate their biofuel use through
Renewable Identification Numbers (RINs) and
an electronic system established with the U.S.
Environmental Protection Agency (EPA). The RFS
allows new biofuels to be approved for use via the
program, especially fuels that reduce greenhouse
gas emissions by 50% or more compared to the
petroleum fuel they displace.
Biofuel Development in Maryland:
• There is one biodiesel facility located in Hagerstown, and
blending facilities are located in Baltimore City.
• A few biofuel companies have launched in Maryland, such as
Fiberite (developing ethanol from MSW).
• TRI also draws on MSW or other waste materials to produce
jet fuel.
• HY-TEK Bio is developing an algae technology in partnership
with the University of Maryland to develop biofuel and other
high-value by-products.
Other Fuels
Compressed Natural Gas (CNG) and
Liquefied Natural Gas (LNG)
A natural gas vehicle (NGV) is an AFV that uses
CNG or LNG as a cleaner alternative to other
fossil fuels. NGVs should not be confused with
vehicles powered by propane autogas (also known
as liquefied petroleum gas, or LPG), which has a
fundamentally different composition. Worldwide,
there were 14.8 million NGVs in 2011. In 2009,
there were 114,270 CNG vehicles (mostly buses)
and 3,176 LNG vehicles in the United States.
Maryland has nine CNG filling stations and two are
open to the public.
Existing gasoline-powered vehicles may be
converted to run on CNG or LNG, either in
dedicated (running only on natural gas) or bifuel (running on either gasoline or natural gas)
operation. An increasing number of vehicles
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Maryland provides a $0.03/gallon tax credit, up
to $500, for individuals and corporations that
purchase bio-heating oil for space and water
heating. The state has been required since 2008
to use 5% biofuel in Maryland state fleet dieselpowered vehicles. Maryland is one of the few
states to support all biofuels that have been
approved by EPA under the RFS, as opposed to
only biodiesel and ethanol.
worldwide are being manufactured to run on CNG.
Until recently, the Honda Civic GX was the only NGV
commercially available in the U.S. market; however,
Ford, General Motors, and Ram Trucks now have
bi-fuel offerings in their vehicle lineups.
Despite their advantages, NGVs face several
limitations, including fuel storage and a lack of
available infrastructure for delivery and distribution
at fueling stations.
Propane Autogas
Propane autogas is an alternative vehicle fuel that
reduces some harmful emissions compared to
other fuels, costs on average $1.50 less per gallon
than gasoline, and is almost entirely domestically
produced. Autogas vehicles achieve 90% of the
range of gasoline vehicles. Autogas vehicles can
be produced by original equipment manufacturers
(OEMs), and gasoline vehicles can be converted to
run on bi-fuel (either gasoline or LPG). Autogas is
the third-most-used vehicle fuel in the world, with
18 million autogas vehicles on the road globally.
Autogas vehicles are ideal for light- to mediumduty, high-mileage fleets. Autogas fueling station
installation costs are much lower than for natural
gas fueling stations (on-site infrastructure is often
installed at little or no cost to autogas fleets),
and installation does not require integration with
pipeline infrastructure.
Autogas Versus Natural Gas
• Autogas incremental vehicle and fueling infrastructure costs
are significantly less than those for natural gas (CNG or LNG);
15 autogas stations can be built for the cost of 1 CNG station.
• Autogas distribution is not dependent on building
new pipelines.
Autogas fueling station
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 37
L O W - I N C O M E R AT E P AY E R
AS S I S TA N C E P R O G R A M S
State Low-Income Ratepayer
Assistance Program (LIHEAP)
Resources
The federal LIHEAP program, administered
through the U.S. Department of Health and
Human Services, offers assistance to low-income
households who pay a high proportion of their
income for home energy. In addition to this federal
program, Maryland offers LIHEAP benefits through
several additional programs:
Electric Universal Service Program (EUSP)
EUSP is authorized through restructuring legislation
and includes current electric bill assistance,
retirement of certain old bills, and weatherization
services to reduce consumption of electricity. Its
funding of $34 million per year is subject to annual
review and approval by the PSC and the legislature.
Electricity customers with incomes at or below
150% of the Federal Poverty Level are eligible for
the program. Eligible customers may receive both
EUSP and LIHEAP.
Universal Service Protection Program (USPP)
Available to LIHEAP recipients, USPP reduces and
evens out monthly utility payments by subtracting
the LIHEAP benefit from a customer’s yearly bill
and dividing the remainder by 12 months. Those
who remain on payment plans are eligible for
credits from some utilities (see below).
Transitional Emergency, Medical, and
Housing Assistance (TEMHA) 11
Low-income households of adult disabled persons
are paid monthly with TEMHA 11 funds, of which
$40 is designated for energy assistance. The
program is administered by recipients’ local
Department of Social Services.
Maryland Energy Assistance Program (MEAP)
Local energy tax dollars are given in a rebate to
low-income households in two counties. In St.
Mary’s County, a payment of $55 is sent to MEAP
households. In Prince George’s County, the MEAP
grant is $72 per household.
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ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Maryland Utilities with Low-Income
Rate Assistance
Many utilities in Maryland offer deposit,
reconnection fee, and application fee waivers to
qualifying customers. These deposits and fees
can be in the hundreds of dollars, so the waivers
can represent a significant savings for low-income
customers. The programs are administered
under different names—the Customer Assistance
Maintenance Program (CAMP) at BGE, Residential
Aid Discount (RAD) at Pepco, and Residential
Essential Service (RES) at Washington Gas—but the
services are often similar.
Maryland Utilities with Low-Income
Energy Efficiency Resources
In addition to direct bill and fee financial
assistance, several Maryland utilities offer energy
efficiency assistance programs to help lowincome customers reduce their bills by consuming
electricity or gas more efficiently. Columbia Gas
offers its Low Income Weatherization Program,
and BGE customers receiving MEAP or EUSP
may receive a home energy audit to determine
efficiency opportunities.
39
GLOSSARY
Aggregators - Can be either a web site or a group that
aggregates customers together in order to approach a supplier
with a larger volume of business. Aggregators are licensed by
the PSC and share many similarities with brokers.
Alternative Compliance Payment (ACP) – The ACP is the
price that LSE’s have to pay if they cannot meet the state’s RPS.
For every mWh short in Tier 1, for example, an LSE has to pay
$40. The ACP for solar is much higher, and for Tier 2 it is
much lower.
Alternative Electricity Suppliers - Electricity suppliers that
purchase electricity on the wholesale market and sell it at
retail to customers at rates that are not subject to government
approval. They do not typically own any generation.
Animal Manure – Animal manure is a category within the
larger biomass category, which refers to using animal waste
(often chicken waste in Maryland) to create energy either
through incineration or anaerobic digestion. Burning animal
waste does produce some emissions, including greenhouse
gases and other air pollutants.
Biofuels –
Biofuels are liquid fuels made from biomass.
Some common sources for biofuels include palm oil, canola oil,
soybean oil, waste cooking oil, grease, and food wastes.
Biogas - Biogas is a gas composed mainly of methane and
CO2 that forms as a result of biological processes in sewage
treatment plants, waste landfills, and livestock manure
management systems.
Biomass - Biomass is plant and animal matter, including
energy crops, wood, grasses, algae, vegetable oils, and
agricultural and municipal wastes, landfill gas and biogas,
ethanol and biodiesel. Wood biomass includes wood chips from
forestry operations, residues from lumber, pulp/paper, and
furniture mills, and fuel wood for space heating.
BPI - The Building Performance Institute, which sets standards
and conducts training for residential energy efficiency work.
Brokers - Licensed by the PSC, brokers don’t take title to
energy, but match buyers with sellers. They are often the
primary point of contact for commercial entities. Brokers do
not focus on residential markets at this time, though there are
some web sites where residents can compare offers of various
suppliers.
BTU - British Thermal Unit is the amount of energy needed to
cool or heat one pound of water by one degree Fahrenheit. It
is typically used in a measurement of power in the heating and
air conditioning space. For example, solar thermal systems are
measured by how many BTUs they produce.
Budget Billing - Most utilities and suppliers offer budget
billing, which allows customers to pay a fixed amount each
month. Budget billing averages bills out over 12 months, so
each monthly bill will be the same amount until the total bill
is paid. The company may adjust the bill at certain
times throughout the year, up or down, depending on
the customer’s use.
Capacity Charge - The capacity charge, sometimes called
“demand charge” or “system use charge,” is assessed on the
maximum or peak amount of electricity used. Often, the charge
is based on the maximum amount of electricity used at any time
in the previous 12 months. Ratepayers that reduce their peak
demand can see their Capacity Charge lowered in future years.
Capacity Factor – Typically applied to renewable generation.
The capacity factor is the percentage of time that a renewable
energy generator could possibly hit maximum generation. For
example, a wind turbine with a 30% capacity factor would only
be able to hit maximum capacity about a third of the time.
Carbon Neutral-A transparent process of calculating
Carbon Offset - Emission savings or storage that can be
considered to cancel out emissions that would otherwise have
occurred. For example, electricity produced from burning landfill
gas is considered to replace electricity from the grid, leading to
a carbon offset because landfill gas production and combustion
results in lower carbon emissions than grid electricity
production from fossil fuels.
CO2 or “Carbon” – CO2 is a naturally and man-made gas,
which is one of the most common greenhouse gases that
scientists report are causing global warming.
Commercial Energy Customer – One of three principal
classes of electricity customers. Commercial customers consist
of non-manufacturing business establishments, including
retail stores, hotels, restaurants, wholesale businesses and
educational institutions, among others.
Compressed Natural Gas (CNG) – CNG is made by
compressing natural gas to a fraction of its normal volume in
order to be used as a fuel for vehicles as a replacement for
gasoline.
Concentrated Solar Thermal – Concentrated Solar Thermal
is utility scale electricity generation via focusing fields of rotating
mirrors called Heliostats at one or multiple central core towers.
The resulting intense heat is used to create steam which runs
turbines to generate electricity.
Curtailment Service Provider - A Curtailment Service
Provider is an entity that helps energy consumers reduce their
energy usage at specified times, typically as part of a demand
reduction program.
Demand Reduction (DR) - Demand reduction is when an
energy consumer reduces their peak demand and energy use at
a specified time. PJM incentivizes DR as a cheaper option than
peak power plants when the grid is over utilized. The typical DR
program pays a consumer to reduce their peak demand.
Black Liquor – Black liquor is a by-product substance
emissions, reducing those emissions and offsetting residual
emissions such that net carbon emissions equal zero.
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ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
produced by the paper pulping process. It can be combusted to
produce electricity.
Distributed Generation (DG) - Any small scale electric
generation that is located at or near the point of end use. It may
be interconnected with a local utility company’s distribution
system or not. It may be owned and operated by a customer, a
utility, or a non-utility company.
Fixed Rate Electricity- A fixed rate product provides a firm,
fixed price for a specified term, usually one or two years. There
is usually a cancellation fee associated with these products.
Distribution System - The network of wires and equipment
(electricity) or pipes (natural gas) that carries energy from
the transmission or transportation systems to the customer’s
premises. Sometimes called “the last mile,” upkeep of
distribution is the utility’s responsibility.
Fuel Cell – Is a device that converts chemical energy from a
EmPOWER Maryland - EmPOWER Maryland is the state’s
energy efficiency program with a goal of a 15% reduction in
energy use and 15% reduction in peak demand per capita by
the year 2015 (based on 2007 levels).
Energy Audit - An energy audit is a comprehensive
investigation of an energy consumer’s energy usage, which
typically takes several hours for homes and several days for
commercial entities. The EmPOWER Maryland program reduces
the cost of an energy audit substantially.
Energy Cooperatives (“energy co-op”) - In some parts of
Maryland, an energy co-op acts as the energy supplier, the
utility, and the owner of generation. There is no consumer
choice in these markets.
Energy Storage – Energy storage is a broad category of
technologies that can store energy for use at a later time. It is
particularly useful with renewable energy sources such as wind
or solar, which are intermittent . There are several technologies
that researchers are looking at to find the most efficient and
cost-effective solutions. These include flywheels (which store
energy through motion), molten salt (which store energy through
a chemical reaction), large-scale batteries, and vehicle-to-grid
resources, such as electric vehicles that can store energy and
discharge to the grid when needed.
EVs - Electric Vehicles (EVs) run on an engine charged by a
battery. They need to plug into an electricity source to recharge
the battery and can potentially discharge electricity back to
the grid.
fuel into electricity. Future-oriented research is looking to utilize
hydrogen for the fuel, but fuel cells can also use natural gas
and methanol.
Fuel switching -- means the substitution of one energy source
for another in a particular end use or process, as a result of
changing relative prices or technologies.
Geothermal Energy – Geothermal energy is energy that
utilizes heat from the earth. Three things are needed to produce
geothermal energy: heat; a working fluid such as water or
steam; and permeable rocks which allow the working fluid to
move within the geothermal reservoir, picking up heat which
can be brought to the surface through a geothermal well.
Green Energy – Green energy in the retail electricity context is
electricity consumers can buy that comes from “green” sources,
usually wind power. Green energy is typically more expensive,
but has less environmental impact than standard energy.
Home Performance with Energy Star – A national
program run by the U.S. Department of Energy and the U.S.
Environmental Protection Agency, designed to promote more
energy efficient homes.
Hydraulic fracturing (“fracking”) - Fracking is a process for
extracting natural gas from previously hard-to-reach areas. The
driller injects waters and chemicals into the well to fracture the
rocks down below, letting the natural gas escape.
Hydrogen – An abundant chemical element, typically used in a
Fuel Cell to create energy.
Hydropower - Hydropower utilizes the natural flows of water to
spin a turbine and create electricity.
Industrial Energy Customer – One of three principal classes
of energy customer. The classification of industrial customer
is made either because the consumer 1) is a manufacturing,
construction, mining, agriculture, fishing or forestry
establishment or 2) uses an amount of electricity that exceeds
some specified limit.
Intermittent or Intermittency - Some renewable resources
such as wind and solar cannot produce at all times and are thus
called “intermittent.” For example, if the wind is not blowing, a
wind turbine does not work.
Investor-Owned Utilities (IOUs) - The regulated utilities
that maintain the infrastructure of the distribution grid or
pipelines, provide service to those that don’t switch to a REP,
and administer billing and collection of fees or taxes. The PSC
regulates the prices IOU’s can charge for standard service
in electricity or natural gas. IOU’s do not own any significant
generation. The EmPOWER Maryland program is run through
the IOUs .
kW - (kilowatt) is a unit of power, used to express how much a
generation source can produce in an instant at its maximum
capacity. It measures capacity, not actual production. Actual
production over time is measured by kWh.
kWh - (kilowatt–hour) is a unit of electrical energy used or
produced in a specified time period. When discussing how
much electricity a generation source produces, kWh is the
most common measurement, and it’s given over a specific time
period. For example, a residential solar system can be said to
produce 12,000 kWh a year.
Land-based Wind – Land based wind can either be large wind
farms or community scale. Large wind farms use wind turbines
that have a nameplate capacity of 2-3.5 megawatts (MW). In our
region, wind farms typically have from 10-50 turbines, usually
on ridge lines. Community wind is much smaller in scale, with
turbines that are no bigger than 50 kilowatts (kW), and can be
designed with only one turbine or maybe a handful.
Large Hydro - Large scale dams that block rivers and produce
significant amounts of power.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 41
GLOSSARY
Liquified Natural Gas (LNG) – LNG is made by converting
natural gas to liquid. It can be used for fuel for vehicles, but is
far less common than CNG for that use.
Net Energy Metering- means measurement of the difference
between the electricity that is supplied by an electric company
and the electricity that is generated by an eligible customer–
generator and fed back to the electric company over the eligible
customer–generator’s billing period.
Power Purchase Agreement (PPA) - A financial agreement
in which a power generator agrees to sell the power produced
by its generation to a customer at rates that can be variable or
fixed. Wind generators typically sign PPAs for long terms, from
10-25 years.
Propane – Propane is normally a gas, but can be compressed
electricity or natural gas. It can be an Alternative Electricity
Supplier, Natural Gas Supplier, or a Utility.
Offshore Wind– Offshore wind is wind power produced by
turbines placed off the shore in shallow water. Offshore wind
typically produces more power because the turbines are larger
than land-based wind, and the wind is more consistent over the
water. There are several operating offshore wind farms off the
European coast.
Maryland Home Energy Loan Program (MHELP) - MHELP
Opt-in Aggregation - Opt-in Aggregation is when a group
LNG Terminal - An LNG terminal is a facility where natural
gas is turned from a gas into a liquid in order to be placed on
a tanker for shipment overseas. The process requires a power
plant on-site.
Load Serving Entity (LSE) – A LSE is an entity that delivers
is a program run by the Maryland Clean Energy Center in
partnership with the MEA and support by the U.S. Dept.
of Energy. Its aim is to expand access to energy efficiency
upgrades by providing low cost loans to homeowners.
of residential and/or C&I ratepayers actively opt-in to join an
aggregation pool, which will then bid out for electricity or natural
gas services using the larger group buying power to hopefully
achieve better terms.
Micro Grids – A self-contained electricity grid that can be
disconnected from the larger grid if need be. A micro grid can
be on a college campus or military base, for example. It requires
its own source of generation.
Opt-out Aggregation - Opt-out Aggregation is when the
government puts residential and/or C&I ratepayers into an
aggregation pool and somebody can only get out of the pool by
actively opting out.
Multi-Level-Marketing (MLM) - Some suppliers use MLM
OREC - An OREC is a REC from an offshore wind generator.
to sell their products. In this scheme, a person signs up as
an agent for the supplier, though not an employee, and sells
their products to consumers, usually in the residential space.
Consumers who sign up for the service can then become agents
themselves and sell the product to others. The agents in a MLM
program typically do the work part-time as a way to supplement
their income .
Nameplate Capacity - The maximum amount of energy
a generator could produce in an instant. The higher the
nameplate capacity, the more power a generator can make.
Natural Gas Supplier - Entities that supply natural gas by
Peak Demand - Peak Demand is the maximum amount of
electricity an end-user needs at the time when it’s using the
most electricity at a given time.
Peak Load Contribution (PLC) - PLC is a designation for
electricity users that describes the charge they will pay relative
to their peak demand. The PLC charge is higher for end users
who have higher peak demands. If an end user lowers its peak
demand, it will see a lower PLC charge in the future.
PV – See “Solar PV”
into liquid form. It is a gas that is the byproduct of natural gas
processing and petroleum refining. Propane has a wide variety
of uses, and is increasingly being used as a vehicle fuel in the
United States.
Quick Home Energy Check-up (QHEC) - A QHEC is a free
brief energy assessment for residential ratepayers as part of
the EmPOWER Maryland program. It also includes free compact
fluorescent lights, smart power strips, and other items.
Regional Greenhouse Gas Initiative (RGGI) - RGGI is a
compact between states to reduce greenhouse gases from
power plants. Maryland is a member of RGGI.
Renewable Energy Certificate (or Credit) (REC) –A REC
represents the environmental attributes associated with
renewable energy. A REC can be sold separately from the
underlying physical electricity associated with renewable based
generation. RECs are used by electricity suppliers to meet
Maryland’s RPS compliance. They can also be sold as part of a
voluntary purchase by consumers.
Renewable Energy- Renewable energy sources regenerate
and can be sustained indefinitely; these include biomass,
hydropower, geothermal, wind and solar.
Residential Energy Customer – One of three principal
classes of energy customers. Residential customers are private
households that consume energy primarily for space heating,
water heating, air conditioning, lighting, refrigeration, cooking,
and washing and drying clothes.
purchasing it on the wholesale market and selling it at retail to
customers at rates that are not subject to government approval.
Plug-in Hybrid - A vehicle that uses both a gasoline internal
combustion engine and a battery powered engine. The battery
can be recharged by plugging the vehicle into a power source
and often it can run on battery power alone.
42
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
RPS - Renewable Portfolio Standard (RPS) is a mechanism
many states use to incentivize the deployment of new
renewable energy generators. The basic approach of the RPS
is to require every entity that sells electricity in the state (LSE’s)
to have a percentage of renewable energy in their mix. There is
typically an Alternative Compliance Payment (ACP) that acts as a
penalty for LSE’s that fail to meet the standard.
RPS Tier 1 - In Maryland, Tier 1 in the RPS is the category for
most energy sources that qualify for the RPS. The Tier 1 ACP is
higher than Tier 2, and Tier 1’s requirements do not sunset.
RPS Tier 2 - In Maryland, Tier 2 refers to large scale hydro and
any other energy source that is not in Tier 1. Tier 2 sunsets after
a set period of time and has a lower ACP than Tier 1.
Solar PV – Solar PV (photovoltaics) systems do not have the
moving parts or steam production found in most other electricity
generation systems. Instead, the sunlight shines on the solar
cell and causes an electric current to be generated directly.
Common uses are to generate power in a grid-connected system
for use on-site (residential, commercial, and other buildings,
or groundwater remediation); other (larger) systems generate
power that is provided directly to electric utilities.
Solar Thermal- Solar Thermal is also known as “solar hot
water,” as it is an application that uses the heat from the sun
to warm up water, which can then be used in a business or a
home. Residential systems typically consist of two large panels
and a system to pump the water.
SREC - An SREC is a REC from a solar PV system or a solar
Run of the River Hydro – Usually small scale, these small
thermal system.
Slamming - The unauthorized switching of a customer’s
account to another utility or competitive energy supplier without
the customer’s consent.
Standard Offer Service (SOS) - SOS is the default rate
electricity ratepayers pay if they do not switch to a Retail
Electricity Provider. It is a rate charged by the utility with
approval by the PSC, based on wholesale electricity auction
results.
Smart Grid – Smart grid is the general term usually meaning
Strategic Energy Investment Fund (SEIF) – The proceeds
dams are placed off to the side, outside the main river’s run, in
order to enable fish to freely traverse the waterway.
an electricity grid that allows for two way communication
between those that deliver energy and those that use energy.
Smart Meters or Advanced Meters – Digital electricity
meters that provide more detailed and exact measurement
of electricity use as well as other functions such as outage
detection. Smart meters can communicate frequently with the
utility.
Solar Power Purchase Agreement (SPPA) - A SPPA is a
financial agreement in which a developer arranges for the
design, permitting, financing and installation of a solar energy
system on a customer’s property, typically at little to no cost.
The developer sells the power generated to the host customer
at a fixed rate, often with an escalator clause, where the rate
rises each year of the agreement.
from Maryland’s sale of carbon allowances, which is part of the
RGGI structure, fund the SEIF. The SEIF has mainly been used
to help lower income Marylanders pay their energy bills and to
fund energy efficiency investments. http://energy.maryland.
gov/documents/MEA_FY10.pdf
Tidal Energy – Utilizes the naturally occurring motion of
incoming and outgoing tides to produce energy. Tidal energy
is still in its infancy and does not yet have any large scale
commercial operation.
Time-of-Use Meter - Measures customer electricity use
and sometimes demand and records that data, along with
the time of day, so the utility or supplier can bill the customer
according to the charges established in the customer’s timedifferentiated rates.
Transmission – The high voltage system that carries electricity
from generation to the various distribution systems.
Variable Rate Electricity - A variable rate product is one that
can change price from month to month with no cap on the limit
of how high or low prices can go. Variable rate products typically
do not have cancellation fees.
Waste to Energy – Waste to Energy is energy recovery from
waste by converting refuse materials into useable heat,
electricity, or fuel through a variety of processes, including
combustion (incineration), gasification, anaerobic digestion, and
landfill gas (LFG) recovery.
Wind Power - Wind power is derived from wind spinning a
turbine that produces electricity. It does not produce
any emissions.
Sustainable Biomass - Biomass fuels that have a neutral
carbon cycle with few if any emissions, and are easy to regrow,
are called “Sustainable Biomass.”
Third Party Verification - A process by which an independent
company (the third party verifier) confirms with the customer
that the customer understands and wants to complete the
transaction initiated by the energy supplier salesperson.
Third party verification is mandatory for door-to-door and
telemarketing sales in many states, and can take a number of
forms, including a conversation with a live telephone operator or
an automated Interactive Voice Response system.
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y 43
O T H E R S O U R C E S O F I N F O R M AT I O N State of Maryland
Public Service Commission:
http://webapp.psc.state.md.us/Intranet/home.cfm
EmPOWER Maryland:
http://energy.maryland.gov/facts/empower.html
Maryland Energy Administration:
http://energy.maryland.gov
Database of State Incentives for Renewables & Efficiency
(DSIRE): http://dsireusa.org/incentives/index.cfm?re=0&ee=0
&spv=0&st=0&srp=1&state=MD
MCEC “Power to Choose”:
http://mdcleanenergy.org/powertochoose
Federal Government
FERC:
http://www.ferc.gov
Department of Energy (DOE):
http://www.energy.gov
Department of Energy, Office of Electricity Delivery and Energy
Reliability (OE):
www.Energy.gov/OE
Smart grid information and projects:
www.SmartGrid.gov
Smartgrid Information Clearing House:
http://www.sgiclearinghouse.org
Regional Utilities & Operators
PMJ:
http://www.pjm.com/
44
BGE:
https://www.bge.com/Pages/default.aspx
BGE – Understanding Your Bill:
http://www.bge.com/myaccount/billsrates/pages/
understanding-my-bill.aspx
Pepco:
https://www.pepco.com
Department of Energy – Office of Energy Efficiency &
Renewable Energy:
http://energy.gov/eere/office-energy-efficiency-renewableenergy
Maryland Energy Administration (MEA):
http://energy.maryland.gov/Business/businesscaseguide/
index.html
Delmarva Power:
http://www.delmarva.com
American Council for an Energy-Efficiency Economy (ACEEE):
http://www.aceee.org/energy-efficiency-sector/state-policy/
maryland/66/all/191
Allegheny Energy (now First Energy)
https://www.firstenergycorp.com/welcome_to_firstenergy.html
Environmental Protection Agency Energy Star program:
www.EnergyStar.gov
Maryland Renewable
Energy Programs, Financing,
and Assistance
Low Income Ratepayers/
Utilities Assistance
Residential:
http://energy.maryland.gov/Residential/index.html
Commercial:
http://energy.maryland.gov/Business/index.html
State & Local:
http://energy.maryland.gov/Govt/index.html
Maryland Energy
Efficiency Programs
Department of Energy: (DOE)
http://energy.gov/eere/femp/energy-incentive-programsmaryland
Low-Income Home Energy Assistance Program (LIHEAP):
http://www.liheapch.acf.hhs.gov/wwa.htm
LIHEAP Maryland:
http://www.liheapch.acf.hhs.gov/dereg/states/maryland.htm
LIHEAP Maryland Programs:
http://www.liheapch.acf.hhs.gov/dereg/states/mdsnapshot.
htm
Data/Technology Labs
National Renewable Energy Laboratory (NREL):
http://www.nrel.gov
Energy Information Association (EIA):
http://www.eia.gov
Data.com:
https://www.data.gov/energy/
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
Biomass
Alliance for Green Heat: Technology and resources on using wood
combustion as a sustainable, local heating solution.
http://www.forgreenheat.org/
Biomass Power Association: Nations leading biomass network to
advance the use of biomass power.
http://www.usabiomass.org/index.php
Bioenergy Technologies Office: Branch of the DOE Office of
Energy Efficiency and Renewable Energy devoted to developing
technology for biomass renewable energy power.
http://www.energy.gov/eere/bioenergy/bioenergy-technologiesoffice
Biomass Thermal Energy Council: Network for the advocacy of the
biomass thermal energy industry for all consumers.
https://www.biomassthermal.org/
Look into Biomass Research Projects from UMD
Energy Research Center.
http://www.umerc.umd.edu/projects/biomass
Energy Storage
U.S. Department of Energy, Office of Electricity Delivery and
Energy Reliability offers useful information and resources on the
DOE’s Energy Storage Program.
http://energy.gov/oe/services/technology-development/
energy-storage
DOE Global Energy Storage Database provides up-to-date
information on grid-connected energy storage projects and state
and federal policies.
http://www.energystorageexchange.org/
Energy Storage Association: Network of companies developing
energy storage technology, research and distribution.
http://energystorage.org/
Joint Center for Energy Storage Research contributes to national
energy storage research at the U.S. Department of Energy’s
Argonne National Laboratory.
http://www.jcesr.org/
Geothermal Energy Association is a network for U.S.
companies supporting and developing geothermal energy
resources worldwide.
http://geo-energy.org/Default.aspx
International Ground Source Heat Pump Associations (IGSHPA)
works to advance ground source heat pump (GSHP) technology.
http://www.igshpa.okstate.edu/geothermal/
NREL Fuel Cell and Hydrogen Technologies Program researches,
develops and analyzes a wide range of storage technologies
http://www.nrel.gov/hydrogen/about_fc_hydrogen.html
MEA: Learn more about Renewable Energy Credits (RECs) in
Maryland with Geothermal Heating and Cooling.
http://energy.maryland.gov/renewable/geothermal.html
Look into Electrochemical Energy Conversion and Storage
Research Projects from the UMD Energy Research Center.
http://www.umerc.umd.edu/research/electrochemical
National Geothermal Data System (NGDS) is a catalog
of documents and datasets providing information on
geothermal resources.
http://www.geothermaldata.org/
Learn about UMD Nanostructures for Electrical Energy Storage
research center publications, news and events.
http://www.efrc.umd.edu/
Geothermal
Database of State Incentives for Renewables and Efficiency: Learn
more about the Maryland Geothermal Heat Pump Grant Program.
http://www.dsireusa.org/incentives/incentive.cfm?incentive_
code=md21f
DOE: Residential information on geothermal heat pumps,
provided by the Department of Energy.
http://energy.gov/energysaver/articles/geothermal-heat-pumps
Office of Energy Efficiency and Renewable Energy, Geothermal
Technologies Office provides information and resources on
geothermal energy technology.
http://energy.gov/eere/geothermal/geothermal-technologiesoffice
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y NREL provides useful information and resources on its innovating
geothermal energy technology.
http://www.nrel.gov/learning/re_geothermal.html
Solar
Department of Energy- “A Homeowners Guide to Financing a GridConnected Solar Electric System”
http://www1.eere.energy.gov/solar/pdfs/48969.
pdf?pub=104&issue=&utm_source=Local+Government+Matters
&utm_medium=email&utm_campaign=
Department of Energy- “Solar Powering Your Community: A Guide
for Local Governments”
http://www4.eere.energy.gov/solar/sunshot/resource_center/
sites/default/files/solar-powering-your-community-guide-forlocal-governments.pdf
Maryland DC Virginia Solar Energy Industries Association:
Network for solar energy system installers, designers
and financers.
http://mdvseia.org/
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O T H E R S O U R C E S O F I N F O R M AT I O N
MEA: Maryland Energy Association- Commercial Clean Energy
Grant Program.
http://energy.maryland.gov/Business/cleanenergygrants/index.
html
Maryland Energy Administration announces the Parking Lot PV/
EV Program for use of solar canopies for charging electric cars in
parking lots.
http://energy.maryland.gov/documents/ParkingLotSolarPVEVPR4-10-14.pdf
Mid Atlantic Solar Energy Society: Network for solar
energy development.
http://www.prsea.org/
Solar Energy Industries Association: Maryland State Solar Policy.
http://www.seia.org/state-solar-policy/Maryland
Look into Solar Research Projects from UMD Energy
Research Center.
http://www.umerc.umd.edu/projects/solar
Wave-Hydro
Bureau of Ocean Energy Management provides information,
resources and programs within the ocean energy field.
http://www.boem.gov/
Learn about Conowingo Dam: Maryland’s largest source of
renewable electricity.
http://www.supportconowingodam.com/about/clean-energy
Learn about the Research and Development of the Office of
Energy Efficiency and Renewable Energy’s Water Power Program.
http://energy.gov/eere/water/water-power-program
46
U.S. Department of Energy’s Marine and Hydrokinetic Technology
Database provides information on marine and hydrokinetic
renewable energy technology and data.
http://en.openei.org/wiki/Marine_and_Hydrokinetic_
Technology_Database
Business Network for Maryland Offshore Wind announces
Maryland Legislative on the Maryland Offshore Wind Energy Act
of 2013.
http://www.bizmdosw.org/maryland-wind-energy-act-2013legislative-history
European Marine Energy Center provides helpful images on
differing tidal energy devices.
http://www.emec.org.uk/marine-energy/tidal-devices/
Department of Energy- “Small Wind Electric Systems: A Maryland
Consumer’s Guide”
http://www.nrel.gov/docs/fy09osti/45911.pdf
National Hydropower Association provides information and
resources on hydropower technology and policies.
http://www.hydro.org/
DNR: Learn about offshore wind potential in Maryland through the
Maryland Department of Natural Resources.
http://dnr.maryland.gov/ccs/coastal_resources/
oceanplanning/
Annual Reports about hydropower data, information and events
through the National Hydropower Association.
http://www.hydro.org/about-nha/annual-reports/
Wind
American Wind Energy Association networks within the wind
industry, providing helpful resources for consumers.
http://www.awea.org/
Bureau of Ocean Energy Management provides helpful
information and resources about offshore wind energy.
http://www.boem.gov/Renewable-Energy-Program/RenewableEnergy-Guide/Offshore-Wind-Energy.aspx
Bureau of Ocean Energy Management announces proposal to
auction two leases offshore Maryland for commercial wind
energy development.
http://www.boem.gov/State-Activities-Maryland/
Maryland Governor’s office: Learn about incentives, data and
information on offshore wind potential for Maryland.
http://www.governor.maryland.gov/wind.html
MEA: Learn how about residential/commercial opportunities
to install wind energy systems with Maryland Energy
Administration’s Windswept Grant Program.
http://energy.maryland.gov/windswept/
NREL National Wind Technology Center provides insight into the
latest wind energy technology.
http://www.nrel.gov/nwtc/
Look into Wind Energy research projects from University of
Maryland Energy Research Center.
http://www.umerc.umd.edu/projects/wind
Business Network for Maryland Offshore Wind networks within the
wind industry for Maryland businesses.
http://www.bizmdosw.org/
ENERGY 101: A R E S O U R C E G U I D E TO B U I L D I N G T H E M A R Y L A N D E N E R G Y E C O N O M Y
E N E R G Y S E C TO R J O B S
The energy sector generates a significant
amount of employment for Maryland both directly
and indirectly.
Job related impact indirectly associated with the
energy sector in certain categories listed below,
include but are not limited to:
Associated categories and subcategories of sector
employment directly associated with the delivery
of energy and energy efficiency products, services
and technologies to the market may include all or
portion of the jobs in categories such as:
• Banking and Financial Services
• Legal Services
• Construction
• Well Drilling
• Research & Product Development
• Marketing
• Shipping, Warehousing and Storage
• Government
• Utilities
• Engineering
• Electrical/ Electrician
• Solar Energy Equipment Manufacturing, Sales,
There are over 109,200 direct and
indirect jobs associated with the energy
sector in the State of Maryland,4 generating
an estimated $ 8,278,910,496
annually in salaries and wages.
Installation and Contracting
• Wind Energy Equipment Manufacturing, Sales,
Installation and Contracting
• HVAC Equipment Manufacturing, Sales,
Installation and Contracting
• Energy Efficiency Contracting, Services
and Equipment
• Energy Management Equipment & Services
• Biofuel Production and Distribution
• Biomass Energy Production Equipment and Services
• Electric Vehicle Manufacturing, Sales, and Service
• Battery and Energy Storage Equipment Manufacturing,
Sales, Installation and Maintenance
MCEC Board Chair, George Ashton, CFO of SOL Systems, with
Congressman John Sarbanes and Hannon Armstrong CEO, Jeff Eckel
4
Source: U.S. Census Bureau, Bureau of Labor Statistics,
QCEW, 1st Quarter 2013
47
MARYLAND
CLEAN ENERGY CENTER
For more information visit our website at:
www.mdcleanenergy.org
Call us at 443-949-8505, or see us at:
1212 West Street, Suite 200
Annapolis, MD 21401