Island Affordable Energy Project

Fox Islands ME, Spring 2010

During the winter months, the Fox Islands Wind Power Project exported significant amounts of electricity over a ten-mile submarine cable, selling it on the wholesale market for less than 5¢ per KWh. At the same time heating with fuel oil cost the equivalent of over 10¢ per KWh. This project demonstrated the ability to use the excess energy to heat homes, selling eletricity to residents at 2¢ above realtime wholesale prices.

An ETS unit leaves Del and Sue Webster's garage, 3/2010

The Island Affordable Energy Project asked VCharge to develop technology to control Electric Thermal Storage heaters. VCharge monitored the meter at the mainland end of the submarine cable, and whenever the island exported electricity and the wholesale price was below 7¢ per KWh, allowed the heaters to charge. In each of the three months of the pilot, the participants--homes, businesses, and a greenhouse--saved over 40% on the energy their heaters were using to heat their space.

Islands represent closed energy systems. Energy moves to islands via a limited, expensive, and very visible set of modes (barges, ferries, cables). The vast majority of heating and transportation on the Fox Islands is powered by imported petroleum-based fuels. Increases in the efficiency of energy consumption, especially across uses, is especially noticed and valued.

A New Kind of Tariff

Between March and May 2010, these heaters were only allowed to turn on when (1) the islands had exported energy during the previous hour and (2) the current wholesale price of electricity was less than 7¢. Using a rebate program, the pilot simulated a variable "wind tariff" that equaled 2¢ per kWh above the wholesale price of electricity at the time the energy was used, whenever the island was exporting.

Heat Locally

The pilot delivered 4000 kWh of energy to the participants and displaced 130 gallons of fuel oil. As a result, the total energy traffic to and from the island was reduced by approximately 9000 kWh, or approximately 0.2% of the total energy traffic (including gasoline, heating oil and electricity). This small number is in keeping with the intentionally limited scope of the pilot project. The technology, though crude, worked successfully and the community's interest in the pilot has been widespread and the reaction very enthusiastic.

Background

With the December 2009 commissioning of the 4.5MW Fox Islands Wind Power Project (FIWPP) on the island of Vinalhaven, Maine, FIWPP became the largest community-owned wind project on the East Coast. Operated by the Fox Islands Electric Coop, and owned by the Coop's 2000 members, the project generates 11,500 MWh per year of electricity, slightly more than the Fox Islands use. The project has lowered electric rates on the islands by about 5¢ per kWh. The islands use significantly less electricity in the winter than in the summer: the island population more than doubles in the summer. At the same time, wind power generation is significantly higher in the winter. As a result, the Fox Islands Electric Coop is a significant net power seller during the winter months. During the months of December, January, and February the wind project generated 700 MWh more than the islands used, exporting about 1600 MWh and importing 900. These exports were sold on the wholesale market, at the mainland end of the submarine cable, for roughly 4¢ per kWh on average.

At the same time, the island was importing large amounts of fuel oil to heat homes. The price of fuel oil on Vinalhaven was between $3.05 and $3.20 during this period. At this price for oil, and assuming a 75% efficient oil burner, the break-even price for heating with electric heat is between 10¢ and 10.5¢ per kWh.

With this analysis as a starting point, the Island Affordable Energy Project was born as a collaboration between the Island Institute, the Island Energy Task Force (a group of citizens concerned with island energy use and policy) and VCharge. The project was supported with funds raised by the Island Institute; in addition Thermal Energy Storage of Maine and Steffes Corporation provided the six portable heaters.