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January 19, 2005

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Palo Alto Online

Publication Date: Wednesday, January 19, 2005

Garbage, wind powering Palo Alto Garbage, wind powering Palo Alto (January 19, 2005)

Utilities department seals multi-million dollar contracts for renewable energy

by Jocelyn Dong

Since December, each time a light has been turned on in Palo Alto, it's been fueled, in part, by wind in Solano County.

Come 2006, electronic appliances in homes and businesses in the city will be powered by something else as well: the gas from Santa Cruz County's rotting garbage.

Both wind and landfill methane are occupying a growing place in the U.S. energy market, which traditionally has relied on burning oil, coal and natural gas or harnessing water.

In recent months, Palo Alto has jumped on the trend toward "renewable" energy -- including wind and landfill gas -- in a big way, entering into multi-million dollar contracts with two Bay Area energy vendors. On Tuesday, the City Council was set to consider another large contract, this one for landfill gas produced by Ameresco Half Moon Bay. The deal could cost up to $61.8 million over 20 years.

The push for renewable energy is the direct result of the city's pledge in October 2002 to have 10 percent of Palo Alto's electric load coming from newly acquired renewables by 2008, and 20 percent by 2015. If the council approves the contract on Tuesday, the City of Palo Alto Utilities will just about make the 2008 goal, if not exceed it, said Girish Balachandran, assistant director of utilities.

By securing the contracts now, he said, "we're way ahead of the curve."

Renewable energy is defined as power generated through the use of any natural, supposedly inexhaustible source, such as sunshine and wind. Although some consider hydroelectric (water) power to be renewable, the State of California does not, in part because of its impact on river ecosystems.

Palo Alto draws about two-thirds of its energy from hydroelectric plants.

Advocates of sustainability love renewable energy because of its environmental friendliness. The city even set up a program in 2003 in which residents and businesses can financially support renewable energy, called PaloAltoGreen. Approximately 2,660 people participate, paying about $10 more each month for their electricity.

Each participating household prevents 10,640 pounds of carbon dioxide emissions a year, the equivalent of driving about 11,800 miles in a car, according to the city.

Wind power, generated by giant turbines, is the fastest growing energy segment in the world, according to PPM Energy, the company with which Palo Alto has made a $78.4 million, 24-year deal.

Landfill gas is also a burgeoning commodity. Methane is released as garbage decomposes. To capture the gas, perforated pipes are drilled into the ground, and the gas is vacuumed out. Many landfill operators simply burn the methane off, as required by state regulations, said Patrick Matthews, solid and recycling services manager for the Santa Cruz County landfill. But that, he said, is "a waste."

A planned facility will instead turn the methane of the Santa Cruz County and Watsonville landfills into electricity, Matthews said. It could be operational by the end of the year and is expected to add 1 percent to Palo Alto's electric load.

The wind power will add 6 percent, according to city staff.

Contracting for renewable energy is not just a "feel good" move, said Balachandran. "It gives us a measure of independence from volatile energy markets."

And yet, converting to 100 percent renewable energy isn't desirable either, he said.

"You don't have the sun shining at night, or the wind blowing all the time. You don't know how much gas there is on a landfill site," Balanchandran said of the drawbacks of renewable energy. Green energy in some years is also more expensive, relative to natural gas.

Instead, the plan is to build a diversified portfolio of energy, balancing economics, reliability and sustainability, he said. In the future, the city will seek additional wind and landfill contracts, to bring the city's renewable energy to 20 percent of the total.

Senior Staff Writer Jocelyn Dong can be reached at jdong@paweekly.com.


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