2008 Bonbright Conference Session 5:  Current Environmental Issues

2008 Bonbright Conference Session 5: Current Environmental Issues PowerPoint PPT Presentation


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Who is EnerVision?. OverviewManagement, engineering and technical consulting firmSince 1998, an independent employee-owned companyPrimarily serving electric utilities in more than 30 statesPrimary ServicesAlternative Energy Technical AdvisorRenewable Energy (RE)Energy Efficiency (EE)Demand S

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2008 Bonbright Conference Session 5: Current Environmental Issues

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1. 2008 Bonbright Conference Session 5: Current Environmental Issues The Alternative Energy Picture Nelson Hawk Chairman EnerVision, Inc. Atlanta, GA [email protected] 888-999-8840 October 10, 2008

2. Who is EnerVision? Overview Management, engineering and technical consulting firm Since 1998, an independent employee-owned company Primarily serving electric utilities in more than 30 states Primary Services Alternative Energy Technical Advisor Renewable Energy (RE) Energy Efficiency (EE) Demand Side Management (DSM) Demand Response (DR) Power Supply Transmission Pricing & Rates End-User & Energy Systems Management Consulting

3. Today’s Discussion – Key Points Alternative Energy Sources Strategic Overview Why Alternative Energy? What/How? Southeastern Update Key Contingency Planning Issues/Conclusions

4. 1. Alternative Energy Sources Strategic Overview Electric Utility Basic Mission: Provide reliable, affordable electric services to meet customers’ needs and community requirements

5. 1. Alternative Energy Sources Strategic Overview Power Supply Options

6. “Today I challenge our nation to commit to producing 100 percent of our electricity from renewable energy and truly clean carbon-free sources within 10 years.” Al Gore July 17, 2008 1. Alternative Energy Sources Strategic Overview

7. 1. Alternative Energy Sources Strategic Overview The Man with the Plan? Build Wind to offset natural gas generation. Use natural gas as transportation fuel. “The United States is the Saudi Arabia of wind power.” “An economic revival for rural America.” “A cheap new replacement for foreign oil.” T. Boone Pickens

8. 2. Why Alternative Energy? Rising Energy Prices/Future Construction Costs Environmental Drivers Energy Security/Independence Technology Advancements Government Emphasis Commercial Customers/ Community Focus Economic Development

9. 2. Why Alternative Energy? A. Rising Energy Prices/Future Construction Costs

10. 2. Why Alternative Energy? B. Environmental Drivers Biggest Concern: Climate change/greenhouse gases (GHG) Carbon emissions reduction – carbon footprints Key Question: Are alternative energy sources the “low-hanging fruit” to reduce carbon emissions? Other environmental concerns: Air Water Land-use

11. 2. Why Alternative Energy? C. Energy Security/Independence Transportation Sector Dependency on foreign sources of oil Major focus on improving biofuel opportunities Corn-based ethanol Cellulosic ethanol Biodiesel Weather/Storm Impacts Not another Katrina situation Natural Gas Growing potential dependency on foreign sources More Liquefied Natural Gas (LNG) Facilities

12. 2. Why Alternative Energy? D. Technology Advancements Renewable Resources Wind/solar designs/equipment efficiency gains Expanding solar markets Geothermal experiences increasing Biomass technologies improving Increased R&D activities Ocean/wave/tidal power technologies Governments/Universities emphasis

13. 2. Why Alternative Energy? D. Technology Advancements Energy Efficiency (Smart Grid) Automated thermostats Equipment operating cost calculators Web services Energy cost calculators On-line audits Whole house controls Home energy monitors

14. 2. Why Alternative Energy? D. Technology Advancements Load Management (Smart Grid) Intelligent switches Two-way communications/remote control-configuration Customer web access Demand Response Tariffs (Smart Grid) Time of use (TOU) rates Real-time pricing (RTP) Critical peak pricing (CPP) Others (Smart Grid) Solar power options – PV/water heating Plug-in hybrids Combined heat and power (CHP)

15. 2. Why Alternative Energy? E. Government Emphasis Federal/state tax incentives Energy Independence and Security Act (EISA) – 2007 Renewable production tax credit (PTC) status Feed-in tariff options Appliance standards/building codes Government programs/plans Larger R&D funding EPA ENERGY STAR State energy strategies Government facility programs/mandates Approval of power plants Renewable Portfolio Standards (RPS)

16. 2. Why Alternative Energy? E. Government Emphasis

17. 2. Why Alternative Energy? E. Government Emphasis EE/DSM/DR – National Action Plan (NAP) Major players – DOE, EPA, NRECA, APPA, EEI, many others Key Implementation Steps: Recognize as high-priority Make a strong commitment Communicate benefits/opportunities Promote cost-effective program funding Modify internal policies and ratemaking practices Proposed NAESB Standard

18. 2. Why Alternative Energy? F. Commercial Customer/Community Focus Major “green” business initiatives Cities/communities adopting climate change initiatives Coordinated university/college networks

19. 2. Why Alternative Energy? G. Economic Development State governments focusing on creation/ addition of alternative energy jobs Consideration of carbon reduction strategies with industry recruitment More environmental considerations Focus on clean/green businesses

20. 3. What/How? What constitutes renewable resources/green power? (utilities/customers/third parties)

21. 3. What/How? What constitutes EE/DSM efforts? Energy Efficiency (EE) Offerings Energy Audits Energy Information/Education/Training End-Use Equipment Measures/Funding-Incentives

22. Energy Efficiency (EE) Offerings Building Programs (Touchstone Energy Homes) Existing Facilities New Facilities Advisory Services LEED Certification ASHRAE Standard 189P – Green Buildings – new 3. What/How?

23. Demand-Side Management (DSM) Offerings Load Control HVAC Water Heating Pumps – Pools/Irrigation, etc. Other 3. What/How?

24. Demand Response (DR) Offerings Advanced Metering Systems Smart Metering Equipment Options Rate Options 3. What/How?

25. 3. What/How?

26. 4. Southeastern Update TVA Current Traditional Power Supply Strategies 2007 activities Drought reduces hydro output Market purchases raise rates (over 20%) Browns Ferry nuclear unit – mid-2007 Next steps – future plans Complete Watts Barr nuclear unit – 1200 MWs by 2012 Explore Bellefonte nuclear options Continue to meet environmental emissions requirements – existing coal units Do not build new coal units until carbon situation defined Work with Seven States Corporation (TVPPA) Own/operate generation resources within + or – 5% of peak load

27. 4. Southeastern Update TVA Current Alternative Energy Strategies Major commitment – reduce system peak demand – 1400 MWs by 2012 - $1 billion five-year budget Focus on energy efficiency (EE), demand side management (DSM), and demand response (DR) Pricing strategies (wholesale/retail) evolving Exploring DR technology options – smart grid Develop, implement and measure effective programs Continue renewable energy (RE) efforts Green Power Switch Program No RPS

28. 4. Southeastern Update TVA Contingency Plans – Short Term Hope for rain Measure/verify alternative energy activities Buy/build natural gas options – CCs and CTs as necessary Contingency Plans – Long Term Build nuclear plants Monitor evolving carbon constraint plans for coal possibilities in the future

29. Current Traditional Power Supply Strategies 2007 Activities Move forward with Cliffside coal unit Phase out existing old coal plants Next Steps – Future Plans Pursue nuclear options Continue to meet environmental emissions requirements – existing coal units Do not build new coal units until carbon situation defined 4. Southeastern Update North Carolina

30. Current Alternative Energy Strategies REPS legislation enacted – August 2007 RE/EE/solar/waste requirements Utilities’ renewable resource RFPs New NCUC rules – February 2008 (general) Interconnection requirements updated New net metering docket underway IRP/REPS compliance plans filed – fall 2008 Duke solar program Duke Save-A-Watt Program decision – fall 2008 Focus on EE, DSM, DR and RE DENR Climate Change Plan – 2008 4. Southeastern Update North Carolina

31. Contingency Plans – Short Term Comply with REPS requirements Measure/verify alternative energy activities Comply with climate change state requirements Build natural gas options – CCs and CTs as necessary Contingency Plans Long-Term Build nuclear plants Monitor evolving carbon constraint plans for coal possibilities in the future 4. Southeastern Update North Carolina

32. Current Traditional Power Supply Strategies 2007 Activities Coal options cancelled (over 4000 MWs) – except recent Seminole unit Governor/legislature emphasis on climate change/GHG efforts Next Steps/Future Plans Move forward with nuclear power plants Improve/expand natural gas facilities 4. Southeastern Update Florida

33. Current Alternative Energy Strategies HB 7135 – passed/signed – June 2008 FPSC working on RPS recommendations – 02/09 Navigant renewable energy assessment underway DEP working on climate change recommendations – 02/09 FPSC approves new interconnection/net metering standards for IOUs – 2008 (detailed) Emphasis on biofuels/biomass Focus on EE, DSM, DR and RE Overall goal – impact climate change results 4. Southeastern Update Florida

34. Contingency Plans Measure/verify alternative energy activities Expand solar options – utility/customers Build nuclear plants Build natural gas options – CCs and CTs as necessary 4. Southeastern Update Florida

35. Current Traditional Power Supply Strategies 2007 Activities Follow-up on State Energy Strategy (SES) Next Steps/Future Plans Georgia Power IRP – 2007 results Expand Vogtle Nuclear Plant Build natural gas CCs and CTs as necessary Coal options still being pursued Continue to meet environmental emissions requirements – existing coal units 4. Southeastern Update Georgia

36. Current Alternative Energy Strategies Implement SES results Focus on energy efficiency (EE) Focus on biomass/biofuels Governor initiates Conserve Georgia – 2008 State government emphasis – economic development Expand renewable energy efforts voluntarily Focus on EE, DSM, DR, and RE No RPS 4. Southeastern Update Georgia

37. Contingency Plans Continue to consider coal options Build nuclear plants Measure/verify alternative energy activities Assess biomass – electric versus biofuels Build natural gas options – CCs and CTs as necessary 4. Southeastern Update Georgia

38. Similarities Emphasis on EE, DSM, DR and RE Need to measure/verify alternative energy program results Must meet environmental emissions requirements Nuclear plants being pursued Natural gas options – contingency/backup plans Differences RPS in NC and FL Climate change emphasis in NC and FL Interconnection/net metering expanded – NC and FL Coal options – GA 4. Southeastern Update Comparisons

39. Federal Government emphasis on alternative energy US DOE – grants, loans, programs USDA – grants, loans, programs, Farm Bill US EPA – LMOP, Green Power Partners Program, CHP Program, emissions requirements resolutions – Clean Air Act, CAIR mercury FutureGen project dropped Government facility requirements – lead by example Production Tax Credits recently extended PURPA Standards – review and consideration Smart grid/demand response (DR) emphasis New administration Focus on carbon constraints efforts Potential national RPS 4. Southeastern Update Federal Government Impacts

40. 5. Key Contingency Planning Issues/Conclusions General Concerns: Utilities must evaluate/plan/implement alternative energy options EE, DSM, DR, RE Measure/verify results Learn what works from others ASAP Market penetration levels – customer responses Focus on how to price/operate/integrate into utility systems Estimate/project environmental impacts/ constraints

41. General Concerns: Evaluate load forecasts under multiple scenarios/ models, including potential economic and environmental impacts Assure reliability Measure/verify results Mandates – DSM programs/building codes/appliance standards Utility programs versus customer options Costs Impacts to customers Initial program costs Operational costs Incentives – customers/utilities 5. Key Contingency Planning Issues/Conclusions

42. General Concerns: Contingency Planning Government support/funding of critical research/technologies Energy storage Carbon sequestration Coal gasification/liquification options Others What if alternative energy options do not meet expectations? When will utilities move forward with plans/ implementation of more traditional sources? 5. Key Contingency Planning Issues/Conclusions

43. Electric Utility Basic Mission: Provide reliable, affordable electric services to meet customers’ needs and community requirements Where/how do alternative energy initiatives fit into the mix?

44. The electric industry – now Volatile Fuel Costs Increasing Construction Costs Alternative Energy Emphasis Additional issues Technology Advancements Global Market Impacts Climate Change Key issues Reliability Costs/affordability Technologies/research Key Change – utilities must help improve management of loads –alternative energy options – EE/DSM/DR/RE 5. Key Contingency Planning Issues/Conclusions

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