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Robert Marcial, PG&E Pacific Energy Center BioForum – Adapting to Climate Change April 17, 2010. California: A Leader in Energy Efficiency. World and Energy Statistics. Which countries have highest percentage of population? China (20%) India (18%) United States (5%) Indonesia (3%)

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California a leader in energy efficiency

Robert Marcial, PG&E Pacific Energy Center

BioForum – Adapting to Climate Change

April 17, 2010

California: A Leader in Energy Efficiency


World and energy statistics
World and Energy Statistics

  • Which countries have highest percentage of population?

    • China (20%)

    • India (18%)

    • United States (5%)

    • Indonesia (3%)

    • Brazil (3%)


World and energy statistics1
World and Energy Statistics

  • Which countries have highest primary fuel consumption?

    • United States (22%)

    • China (14%)

    • Russia (7%)

    • Japan (5%)

    • India (4%)


World and energy statistics2
World and Energy Statistics

  • Which are the leading energy sources by type consumed in U.S. for all end uses?

    • Petroleum (39%)

    • Natural Gas (24%)

    • Coal (23%)

    • Nuclear (8%)

    • Biofuels (4%)

    • Hydroelectric (2%)


World and energy statistics3
World and Energy Statistics

  • Which are the top end uses for primary fuel energy in U.S. buildings (Comm & Res)?

    • Space Heating (25%)

    • Lighting (14%)

    • Water Heating (12%)

    • Space Cooling (11%)

    • Refrigeration (6%)

    • Electronics (5%)


World and energy statistics4
World and Energy Statistics

  • How is energy used in the U.S. by sectors?

    • Industry

    • Transportation

    • Residential

    • Commercial

(35%)

(27%)

(21%)

(17%)


Buildings and people
Buildings and People

17%

35%

21%

27%

48%

25%

27%



California energy leadership
California Energy Leadership

  • Legacy of energy innovation

    • Decoupling

    • Loading order

    • Energy efficiency

    • Demand response

  • Progressive state energy policy

    • California Long Term Strategic Plan

    • Go Solar California

    • Renewable Portfolio Standard (RPS)



California energy leadership2
California Energy Leadership

  • An 18 cubic foot refrigerator consumed approximately 2,000 kWh/yr in 1970. How much does a high-quality refrigerator of similar size consume today?

    • ~1,000 kWh/yr

    • ~ 500 kWh/yr

    • ~ 400 kWh/yr

    • ~ 250 kWh/yr


California energy leadership3
California Energy Leadership

2,000 kWh

18 ft3 (0.51 m3) frost-free refrigerator

Energy Usage per year

700 kWh

490 kWh

390 kWh

2009

1970

1993

2001


14,000

12,000

10,000

8,000

KWh

6,000

4,000

2,000

-

2000

1995

1960

1965

1970

1975

1980

1985

1990

US

CA

Western Europe

30+ Years of Energy Efficiency Success

Courtesy Art Rosenfeld, California Energy CommissionNote: 2005 – 2008 are forecast data.


Energy efficiency first resource in our energy mix
Energy EfficiencyFirst resource in our energy mix


About pg e and our business
About PG&E and Our Business

  • What we do:

  • Deliver safe, reliable, and environmentally responsible gas and electricity to approximately 15 million Californians



1,329

U.S. Average (1)

California’s Average 724

PG&E (2)

2008 641

2007 636

2006 456

2005 489

2004 566

2003 620

Greenhouse Gas Emissions (pounds of CO2 per MWh)

  • (1) Source: U.S. EPA eGRID 2007 Version 1.1 (updated Dec. 2008 and based on 2005 data).

  • (2) PG&E’s emissions rates for delivered electricity were independently verified and registered with the California Climate Action Registry. Given that a portion of the electricity that PG&E delivers comes from unspecified generation sources, the company’s total emissions, and associated emissions rates, may vary from registered figures.


Energy efficiency first to reduce co 2 emissions
Energy EfficiencyFirst to reduce CO2 emissions

CO2 in electricity:

1.32 lb/kWh (USA)

0.88 lb/kWh (Cal)

Consumption:

12.7 MWh/cap. (USA)

7.7 MWh/cap. (Cal)

Source: EPA, Inventory of U.S. Green House Gas Emissions and Sinks 1990-2006 February, 2008

CARB, Climate Change Proposed Scoping Plan, a framework for change October, 2008


McKinsey Potential Study

  • U.S. can reduce energy demand by 23% by 2020

  • U.S. can save $1.2 Trillion

  • $520 Million investment

  • 1.1 GTons CO2 reduction per year

  • Re-think how we legislate

  • Re-think how we do business





Decoupling in ca
Decoupling in CA

  • Gas in 1978, electric in 1982

  • Revenues and earnings are independent of sales.

  • California’s IOUs collect the revenues authorized to run the business and provide a return to investors.

  • If sales rise above forecast levels, extra revenues go back to customers.

  • If sales fall below forecast levels, utilities are assured they can recover the shortfall.

  • Decoupling offers the benefits of more consistent revenues, and it helps promote broad, long-term environmental goals.



Ca energy action plan loading order
CA Energy Action Plan Loading Order

  • Energy Efficiency & Conservation

  • Demand Response

  • Renewable Resources

  • Distributed Generation

  • Traditional Generation


Why do utilities support demand side management
Why Do Utilities Support Demand-Side Management?

  • California customers want it

  • Helps mitigate the impact of demand growth on infrastructure

  • Less expensive than new generation

  • Allows allocation of capital to other needed infrastructure projects

  • It decreases CO2 emissions and impact on the environment


Energy efficiency numbers
Energy Efficiency Numbers

  • Since mid 70’s, California’s energy efficiency programs have:

    • Saved customers over $56 billion

    • 30% reduction in per capita CO2 emissions

    • California avoided building 24 power plants

    • What if California had not acted?


California invests in energy efficiency

CFLs use up to 75% less energy and last up to 10 times longer than traditional incandescent lamps.

California Invests in Energy Efficiency

  • California is investing $3.13 billion in energy efficiency programs between 2010-2012:

  • Savings Goals:

    • 6,965 GWh (House: 0.006 GWh/yr)

    • 1,537 MW

    • 150.3 MMTherms (House: 500 Therms/yr)

    • 3.07 MMTons of CO2


How it works
How it works longer than traditional incandescent lamps.

  • Funded explicitly from our customers’ bill (Public Goods Charge for Public Purpose Programs)

  • De-coupling in place

  • Share-holder incentive to generate profit from energy efficiency success

  • Goals and budgets are defined for a 3 year period (program cycle)


Cpuc long term plan
CPUC Long Term Plan longer than traditional incandescent lamps.

  • All new residential construction in California will be zero net energy by 2020

  • All new commercial construction in California will be zero net energy by 2030

  • HVAC will be transformed to ensure that its energy performance is optimal for California’s climate

  • 100% Low income participation

  • Major emphasis on workforce education and training

  • www.californiaenergyefficiency.com


Go solar california
Go Solar California longer than traditional incandescent lamps.

  • 10 year program (2007 – 2016)

  • 3,000 MW, $3.3B

  • California Solar Initiative (940 MW, $2.17B)

  • New Solar Homes Partnership (360 MW, $0.4B)

  • Other (700 MW, $0.78B)

  • Customers must perform energy efficiency audit to be eligible for CSI incentives

  • www.gosolarcalifornia.org


California’s Electricity Need longer than traditional incandescent lamps.

2008 System Load (CAISO / PG&E)

MW

Electric demand is highly variable, with peaks that require higher capacity during short periods.

32


California’s Electricity Need longer than traditional incandescent lamps.

System Load Duration Curve

California uses 5% of capacity for less than 50 hours per year!

Capacity used to support peak demand is expensive, inefficient and environmentally unfriendly.

Last 25% of capacity needed less than 10% of the time

MW

33

% Time per Year

Source: California Independent System Operator Corporation


Demand response benefits
Demand Response longer than traditional incandescent lamps.Benefits

  • Reduces electrical demand during “critical peak” periods

  • Rewards customers contributing to demand reduction

  • Enables:

    • Reduced need for excess generation capacity to serve peak loads: DR is a “virtual peaking plant”

    • Enhanced electric grid reliability

    • Lower average electric procurement costs

    • Lower environmental impact


Dr for home air conditioning
DR for Home Air Conditioning longer than traditional incandescent lamps.

  • Professionally installed and maintained at zero cost

  • Web-programmable thermostat & switch

  • 15 / 15 minute compressor on/off cycles during power emergencies

  • Opt out any time – owner is in control

  • May 1 – October 31

  • Benefits: reduced outages, lower utility bills, environmental benefits, sustained comfort


California s renewable portfolio standard rps
California’s Renewable Portfolio Standard (RPS) longer than traditional incandescent lamps.

California’s mandate of 20% renewable energy by 2010 is the most aggressive renewable energy goal in the U.S.

California’s Governor recently signed an Executive Order calling for 33% by 2020.

Implementers are pursuing a diverse portfolio that includes both traditional and emerging renewable technologies.


California leads the way in RPS policy longer than traditional incandescent lamps.

29 states & DC have an RPS; 6 additional states have goals

WA: 15% by 2020*

ME: 30% by 2000

New RE: 10% by 2017

VT: (1) RE meets any increase in retail sales by 2012; (2) 20% RE & CHP by 2017

MN: 25% by 2025

(Xcel: 30% by 2020)

MT: 15% by 2015

  • NH: 23.8% by 2025

ND: 10% by 2015

MI: 10% + 1,100 MW by 2015*

  • MA: 15% by 2020+1% annual increase(Class I Renewables)

  • OR: 25% by 2025(large utilities)*

    5% - 10% by 2025 (smaller utilities)

SD: 10% by 2015

WI: Varies by utility; 10% by 2015 goal

  • NY: 24% by 2013

RI: 16% by 2020

CT: 23% by 2020

  • NV: 25% by 2025*

IA: 105 MW

  • OH: 25% by 2025†

  • CO: 20% by 2020(IOUs)

    10% by 2020 (co-ops & large munis)*

  • PA: 18% by 2020†

WV: 25% by 2025*†

  • IL: 25% by 2025

  • NJ: 22.5% by 2021

CA: 20% by 2010

UT: 20% by 2025*

KS: 20% by 2020

VA: 15% by 2025*

  • MD: 20% by 2022

  • MO: 15% by 2021

  • AZ: 15% by 2025

  • DE: 20% by 2019*

33% by 2020 proposed

  • NC: 12.5% by 2021(IOUs)

    10% by 2018 (co-ops & munis)

  • DC: 20% by 2020

  • NM: 20% by 2020(IOUs)

  • 10% by 2020 (co-ops)

TX: 5,880 MW by 2015

HI: 40% by 2030

Minimum solar or customer-sited requirement

*

State renewable portfolio standard

Extra credit for solar or customer-sited renewables

State renewable portfolio goal

Includes non-renewable alternative resources

Solar water heating eligible

Source: www.dsireusa.org/ September 2009


Solar thermal technologies under contract
Solar Thermal Technologies longer than traditional incandescent lamps.Under Contract

  • Parabolic Trough

  • Power Tower

  • Compact Linear Fresnel Reflector

  • Dish Engine (SCE/SDG&E)

  • Power Tower (SCE)

  • Trough/Biomass Hybrid


Solar pv technologies under contract
Solar PV Technologies longer than traditional incandescent lamps.Under Contract

  • Fixed Thin Film (a-Si)

  • Tracking Crystalline Silicon

  • Fixed Thin Film (Cd Tel) (SCE)

  • Unspecified CPV (illustrative)

  • Concentrating PV


Other renewable technologies under contract
Other Renewable Technologies longer than traditional incandescent lamps.Under Contract

Biomass Energy

Wind Energy

Geothermal Energy

Small Hydropower (<30MW)

BioGas

Ocean Power


Humboldt waveconnect pilot
Humboldt WaveConnect Pilot longer than traditional incandescent lamps.

  • Ocean wave energy (up to 5MW) pilot study to be conducted off the coast of Humboldt County, Calif.

  • Wave energy converter (WEC) manufacturers can test their devices on a common site and facilitate the development of wave energy technology

  • Power from the WECs for coastal community for the limited time of the pilot license.

  • Most effective WEC technologies will be useed for future projects


Building a sustainable electric system

  • Distributed Storage

  • Rooftop Solar

  • Plug-in Electric Vehicles

  • Wind Farms

  • Solar Farms / Power Plants

Building A Sustainable Electric System

Electric Grid

Customers

Power Plants

  • Nuclear Power Plants

  • Natural Gas Generators

  • Transmission Lines

Smart Grid functionality restores the balance

  • Distribution Substations

  • Hydro Power Plants


Largest ami deployment in north america
Largest AMI Deployment in longer than traditional incandescent lamps.North America

  • Automated meter reading for all customers

    • 10 million meter upgrades by mid-2012

    • A communications network

    • IT systems

  • Frequent meter reads - daily for gas, hourly or 15 minute interval for electric

  • Enhanced customer benefits over time

  • Over 3 million meters deployed to date

    • Installing an average of 13,000 per day


Overlay with intelligence and automation longer than traditional incandescent lamps.

Sense

Communicate

Compute

Control

A Smart Grid

PowerPlants

Transmission

Networks

Substations

Distribution

Networks

Consumers


Integrated demand side resources
Integrated Demand-Side Resources longer than traditional incandescent lamps.

  • Automated management of energy use:

  • Automated demand response

  • Voluntary load control

  • Dynamic pricing

On-site generation and storage

Smart charging for electric vehicles


Climatesmart tm
ClimateSmart longer than traditional incandescent lamps.TM


Climatesmart how it works
ClimateSmart™ longer than traditional incandescent lamps.How It Works

  • Allows PG&E customers to voluntarily make their electricity and natural gas use “carbon neutral”

  • Around $5 per month for average residential customer

  • Customer payments are tax-deductible and will be invested in a range of innovative greenhouse gas emission reduction projects, such as conserving and restoring California’s forests

  • All projects are new with independently verified emission reductions


Climate smart projects

Big River and Salmon Creek Forests longer than traditional incandescent lamps.

  • The Conservation Fund

  • 600,000 metric tons

  • Arcata Community Forest

  • City of Arcata

  • 40,000 metric tons

  • Methane Capture from Dairy

  • California Bioenergy

  • 75,000 metric tons

Methane Capture from Landfills

  • Recology

  • 90,750 metric tons

Climate Smart Projects

  • Lompico Headwaters Forest

  • Sempervirens Fund

  • 14,000 metric tons

Photo Courtesy Sempervirens Fund

  • Garcia River Forest

  • The Conservation Fund

  • 200,000 metric tons

Photo credit: Douglas Steakley 


Pacific energy center
Pacific Energy Center longer than traditional incandescent lamps.

  • One of three PG&E “centers” (7 in CA) funded by public goods charge offering:

    • Energy efficiency classes

    • Tool Lending Library

    • Technical advice and research assistance

    • More than 500,000 people trained since 1979 by PG&E training centers

      www.pge.com/pec


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