Financing the Smart Grid: Costs, Rates, and Public Policy. Richard Cowart IEA ENARD – Madrid September 28, 2010. RAP Regulatory Assistance Project.
IEA ENARD – Madrid
September 28, 2010
RAP is a non-profit NGO providing technical and policy assistance to government officials on energy and environmental issues. RAP is funded globally by several foundations and government agencies.
Over two decades, RAP has assisted more than 24 nations and 50 states and provinces, and now works closely with the European Climate Foundation in Brussels.
Richard Cowart is the Director of European Programmes for RAP, and Chair of the Electricity Advisory Committee of the US Dept of Energy.
Formerly Chair of the Vermont PSB (utilities regulator) & Chair of the US Regulators’ Committee on Energy & Environment.
Recent assignments include work with the UK Department of Energy and Climate Change, Ireland’s SEAI, the US Congress, the Regional Greenhouse Gas Initiative (RGGI), the California PUC, China’s national energy and environmental agencies, the NARUC Climate Policy Task Force, and the US Department of Energy.
EARLIER VIEW : “Expensive distraction”
EMERGING : “Essential Component of Low-Carbon Grid”
BUT – We’re not anywhere close yet!
Efficiency flattens demand growth, ‘fuel shift’ drives it back up to the same level as ‘BAU’ –With much lower emissions, less energy-intensive
Electricity demand 2005
Extrapo- lated power demand 2050
Power genera-tion before fuel shift
EVs in transport1
Net power demand 2050
EU-27 power demand, TWh per year
1 Assumption: electrification of 100% LDVs and MDVs (partially plug-in hybrids); HDVs remain emitting ~10% while switching largely to biofuel or hydrogen fuel cells
2 Assumption: 90% of remaining primary energy demand converted to electricity usage in buildings for heating/cooling from heat pumps; assumed to be 4 times as efficient as primary fuel usage
3 Assumption: 10% fuel switch of remaining combustion primary energy demand converted to electricity in industry for heating from heat pumps; assumed to be 2.5 times as efficient as primary fuel usage
SOURCE: European Climate Foundation Roadmap 2050 April 2010
Overview of yearly energy balance, 80% RES pathway, TWh per week
Overall system peak demand in winter
Higher wind in winter
Higher solar in summer
1 Storage included in the model relates to the existing hydro storage available across the regions
SOURCE: Team analysis
Back-up and balancing
Transmission & additional generation requirements by 2050 (GW)
Funding (millions $)
Source: Ahmad Faruqui, Dynamic Pricing and Customer Behavior, The Brattle Group March 2010
Richard Cowart, Regulatory Assistance Project
Email questions to [email protected]
From the Regulatory Assistance Project:
Posted at www.raponline.org
From the European Climate Foundation:
Roadmap 2050: A Practical Guide to a Prosperous, Low-Carbon Europe (Volume 1 Report, and Volume 2 Policy Agenda)
Posted at: www.roadmap2050.eu