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Abner Casillas-Colon

CAS 138T
Issue Advocacy Paper


I remember the first time I filled up my Mothers Pilot with gas; while it was
one of those stereotypical coming of age experiences it also left with me another
unfortunate fact of life; the cost of gas. Entering the 21
st
century the subject of
Climate Change and general environmental issues has come to the forefront of
issues for the global community. This involves issues ranging from trading between
nations and the management of resources (OPEC being a prime example), how to
deal with nations that have low regulations and are having massive impacts on the
environment, and coming to a consensus in terms of how much damage has already
been done and how much we can reverse. While the United States and its citizens
can only do so much at the international level at a more local level you have begun
to see different ways of addressing the issue. For energy consumption fuel efficiency
for cars is now a major factor for many in terms of deciding to buy the product or
not, this extends into the home where nowadays many school programs encourage
families to do simple things to reduce consumption. Companies such as Mosaic now
offer programs that investors of all incomes can invest to pay for the installation of
solar panels and receive profits from the selling of the solar energy. Overall the issue
of energy dependence is coming to the forefront for many American families and
communities.
Large Universities such as Penn State often do (and should) have a
vested interest in terms of energy consumption and energy related statistics. This is
due to the large amount of resources it takes to run such institutions where they
may have upwards of 40,000 people (such is the case for Penn State UPark)
Abner Casillas-Colon
CAS 138T
Issue Advocacy Paper
working, living and interacting with the facilities. For Penn State University Park,
which purchases over 3,000,000 MMBTUs in energy, the direct impact it has on the
surrounding region is massive where students account for over 50% of the
population. Indirectly the size of Penn State as a university means that the
education, values, and habits developed at the have the ability to make life changing
impacts on students. As such it would behoove of the University to take initiatives to
encourage more alternative energy initiatives as a way to deal with the problem of
fossil fuel emissions and climate change.
As it currently stands Penn State University consumes approximately 400
million kWh of electricity annually with 355 million of that being purchased (most
of it from West Penn Power) and 45 million being produced in house. Of the energy
being produced 39.4% is Coal, 3.4% is Natural Gas, 24% is Nuclear, 8% is Hydro,
11%, is Wind, 4% is Biomass, and 10.2% other (co-gen, oil) (Vandenbergh, Lydia).
When it comes to heating buildings Penn State uses 86% Coal and 14% Natural Gas.
(Vandenbergh, Lydia). However, the current data on renewable energy is misleading
because of the Alternative Energy Credit System. This system provides one
Renewable Energy Credit for every 1,000 kWh (1 MWh) of energy created by
Renewable Energy. As of 2011 Penn State is the third largest purchaser among
universities in the United States with about 20% of electrical demand (83,600,000
kWh) being met through RECs (Rayl, Jeff, and Charith Tammineedi). When it comes
to electricity Penn State has a very affordable system thanks to the bargaining
power it holds with the cost being approximately $.07 kWh. While this is not the
only source of energy for Penn State the low cost of the system means that this is
Abner Casillas-Colon
CAS 138T
Issue Advocacy Paper
what the administration uses as a benchmark to compare other future initiatives
(Rayl, Jeff, and Charith Tammineedi). When it comes to greenhouse gas emissions at
Penn State around all campuses a total of 506,445 metric tons of carbon dioxide
equivalent (MTCDE) were released as a result of the Penn State and of this 222,776
or 44% came from purchased electricity (Energy & Environment - Campus
Inventories). Of this approximately 80% or 177,764 MTCDE was from Penn State
University Park (Energy & Environment - Campus Inventories).
Looking at all this it stands to reasons that Penn State should take steps to
procure a certain amount of its electricity from solar energy. When looking at solar
energy cost and profits there are a few things that are important to consider.
Depending on the type of ownership system that is implemented the cost can vary
for the University. The two most common systems that are now implemented are a
Power Purchase agreement (PPA) and the owning of the Solar Energy system itself
by the university or institution. A PPA involves the University paying for an energy
supplier to install and maintain the system for the University, while in return the
University is contractually obliged to purchase the energy at a certain rate from the
provider. The other system that is less commonly seen from Universities is
maintenance and full installation being done outright by the University which is less
attractive due to the much higher level of upfront incurred cost that serve as a
barrier to entry. For Penn State this is a more serious problem due to the fact that
the University being tax exempt would not have nearly as many opportunities in
regards to tax incentives making the programs more viable for the University. A
study done by the Penn State chapter of the American Solar Energy Society in 2011
Abner Casillas-Colon
CAS 138T
Issue Advocacy Paper
shows that the two most effective ways to install 200kW solar systems are focused
on Loans with incentives and using a third party (PPA). For the loan based system it
would have a net present value of $32,939.31 with the amount of time it would take
for the University to earn the money back being approximately 13.5 years and
having the localized cost of energy being $0.06 kWh. If Penn State were to take the
3
rd
party approach the return on revenue for the system would be 9.17% with the
localized cost of energy being $0.30 kWh. Both of these systems indicate viable
options for Penn State to consider with regards to the consideration of solar energy.
Other studies were shown in terms of placement on campus that showed potential
for placement of Solar panels on Pollock halls with a potential for rooftop energy
being at 2,184,000 kWh (Rayl, Jeff, and Charith Tammineedi). Another study showed
that in terms of effectiveness the two best buildings for solar energy on campus
would be the IM building or Rec Hall (Rayl, Jeff, and Charith Tammineedi).
Another thing to take into consideration for solar energy and affordability is
what is known as the Swanson Effect. This looks at historical data trends and states
that with the doubling of global manufacturing capacity the cost of pv cells falls by
20% (Pricing Sunshine). This corresponds with the average per annum growth of
the industry historically being approximately 30% resulting in a doubling of the
industry less than every two years (Solar Energy Market Growth | Solarbuzz). This of
course means that as the application of solar energy for Penn State is under review
the price is rapidly decreasing as time passes.
Other things that should be considered are the positive externalities that
such an investment presents for Penn State. Potential students are more likely to be
Abner Casillas-Colon
CAS 138T
Issue Advocacy Paper
drawn by a more eco-friendly and trend-setting Penn State. Furthermore, for
graduating students the access to solar energy on campus can provide internship or
work-study opportunities that make them more competitive in the professional
world if done correctly. This corresponds with attracting corporations or the
government to Penn State, with the government pushing for solar initiative that
rewards large institutions that take such initiatives. Possibilities flow from here
were Penn State can use garnered expertise to attempt to gain lucrative
partnerships with the United States Military which is also expanding into the realm
of solar energy as a means by which to cut cost from an ever decreasing budget. This
is reminiscent of 1960s Silicon Valley spending where while at the time it was quite
expensive to attempt to enter and use computer chips corporations stayed afloat
and become competitive through the assistance of the military and government
subsidiaries.
On campus right now the major player for championing solar energy is the
American Solar Energy Society. The chapter focuses on encouraging renewable and
sustainable energy and contributes to projects around campus by providing liaisons
that can assist with solar energy aspects of potential projects (Rayl, Jeff, and Charith
Tammineedi). Penn State also has the center for sustainability which offers
information on all renewable energy initiatives and in general making Penn State
more environmentally friendly in whatever way possible.
Pennsylvania is state were energy independence and sources of energy are
hotly contested from varying standpoints. This is no different in Penn State which
should serve as an example for the rest of the state by leading the way in more
Abner Casillas-Colon
CAS 138T
Issue Advocacy Paper
renewable energy alternatives. Considering the major ramifications on a local level
of natural gas and oil fracking, coupled with the growing cost-effectiveness of solar
energy as a means to provide electricity it is crucial for Penn State to invest some of
its resources into solar energy.

Abner Casillas-Colon
CAS 138T
Issue Advocacy Paper
Works Cited

College of Agricultural Sciences. Solar PV Electric Systems; Is There a Good Fit for
Me? State College: The Pennsylvania State University, n.d. PDF.

"Energy Consumption." Office of Physical Plant. The Pennsylvania State University,
14 Mar. 2014. Web. 10 Apr. 2014.
<http://www.opp.psu.edu/services/energy/energy-usage>.

"Energy & Environment - Campus Inventories." Learn, Live, Lead. The Pennsylvania
State University, n.d. Web. 10 Apr. 2014. <http://sustainability.psu.edu/live/what-
penn-state-can-do/energy-environment/campus-inventories>.

"Energy." Energy. The Pennsylvania State University, n.d. Web. 10 Apr. 2014.
<http://sustainability.psu.edu/live/what-penn-state-doing/energy#consumption>.

"Pricing Sunshine." The Economist. The Economist Newspaper, 28 Dec. 2012. Web. 10
Apr. 2014. <http://www.economist.com/blogs/graphicdetail/2012/12/daily-chart-
19>.




Abner Casillas-Colon
CAS 138T
Issue Advocacy Paper


Rayl, Jeff, and Charith Tammineedi. SOLAR ON STATE: CASE STUDY FOR
STUDENT EFFORT TO ADVANCE PHOTOVOLTAIC AND SOLAR HOT
WATER DEPLOYMENT AT THE PENNSYLVANIA STATE UNIVERSITY.
American Solar Energy Society, n.d. Web. 07 Apr. 2015.
<http://php.scripts.psu.edu/clubs/up/ases/papers/ASES2011_Rayl_Tammineedi.p
df>.

"Solar Energy Market Growth | Solarbuzz." Solar Energy Market Growth | Solarbuzz.
NPD Group, n.d. Web. 10 Apr. 2014. <http://www.solarbuzz.com/facts-and-
figures/markets-growth/market-growth>.

United States. Department of Energy. Sunshot. Solar Accounting: Measuring the
Costs and Benefits of Going Solar. The Solar Foundation, 23 Aug. 2012. Web.
07 Apr. 2014.
<http://thesolarfoundation.org/sites/thesolarfoundation.org/files/TSF_Sola
rAcct_Final.pdf>.

Vandenbergh, Lydia. Sierra. State College: The Pennsylvania State University, 19
Mar. 2010. PDF.

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