Energy / Reno, Nevada: 2010 Smarter City - Energy

Retrofits and Wind Turbines

City Hall plays a prominent role in Reno’s emerging green energy culture. As a signatory to the Mayor’s Climate Change Agreement, the city is committed to a 20 percent reduction of its 2003 greenhouse gas emissions by the year 2012.

In August 2008 the city contracted an energy services company (or ESCo) to audit municipal energy use and propose upgrades. The resulting slate of projects put Reno ahead of the curve when it came time to apply for Energy Efficiency and Conservation Block Grants, says Jason Geddes, the city’s Environmental Services Administrator. High-profile projects include the replacement of the 2,076 light bulbs on the iconic Reno Arch with LED lights and the installation of wind turbines on the roof of City Hall. Other less photogenic retrofits include the replacement of lighting, cooling and boiler systems in City Hall, which will reduce operating costs by about 44 percent.

The ESCo projects, most of which are at or near completion, have supported 222 jobs and reduced annual carbon emissions by 17,200 tons, according to Geddes. In addition to stimulus monies from the American Recovery and Reinvestment Act, funding came from CREBS federal tax credits and bonds issued by NV Energy, the state energy utility. The annual energy savings from the retrofits will allow the city to pay off the bonds without additional taxpayer contributions.

In a sign that Reno aims to be a producer, not just a consumer, of green energy knowledge, the city is testing eight different designs of wind turbines throughout the metro area. Each turbine, including the two atop City Hall, will link to a website that posts live information on wind speed and electricity generation. Engineers from the firm CH2M HILL, which has offices in Reno, will analyze the data to see which designs are most productive. The idea is to use Reno’s experience to help citizens and other cities decide which turbine designs work best for specific microclimates.

Researchers, Entrepreneurs and Renewable Energy

In addition to its steady winds, Reno sits on one of the most important geothermal reserves in the country. Senator Harry Reid has said that Nevada could be “the Saudi Arabia of geothermal energy”—if that happens, Reno stands to become a major energy hub. Three geothermal companies already have their headquarters in Reno, and another six have offices there. Given the potential of this sector, city government offers a number of incentives, such as a fast-track permitting process and discounted land purchases, to energy entrepreneurs.

Perhaps one of the most attractive features for energy startups is Nevada’s tax code, which includes neither a corporate nor a personal income tax. However, low taxes mean fewer cash incentives to tantalize industry, says Tom Matter, business development of the Economic Development Authority of Western Nevada. Reno’s strategy is to lure businesses with a dynamic research and development sector.

“We’re saying that if you locate here you will have access to experts at the university and at other companies,” says Matter. “We don’t have a million dollars to hand out, but we have a community that will support you. Not to mention that we’re just 30 miles from one of the biggest economies in the world, which is the state of California.”

Reno is home to various earth science and energy research centers, including the Desert Research Institute and the Great Basin Center for Geothermal Energy at the University of Nevada-Reno.  In May 2010, the University of Nevada announced the launch of the National Geothermal Institute, a consortium of top research institutions that will be located on the Reno campus.

Matter and other city officials hope that the new Institute will help situate Reno as a center of innovation and entrepreneurship, much like MIT anchors the scientific community in Massachusetts. Plans are already underway to house new startups, including an Eco-Industrial Park that could include a recycling center and a plant that turns garbage into fuel.