© 2015 electric power research institute, inc. all rights reserved. anda ray vp, environment and...

26
© 2015 Electric Power Research Institute, Inc. All rights res Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges and Opportunities for Electric Industries in the 21 st Century

Upload: annabella-johnson

Post on 30-Dec-2015

217 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

© 2015 Electric Power Research Institute, Inc. All rights reserved.

Anda Ray

VP, Environment and Chief Sustainability Officer

September 9, 2015

Challenges and Opportunities for

Electric Industries in the 21st Century

Page 2: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

2© 2015 Electric Power Research Institute, Inc. All rights reserved.

EPRI - Born in a Blackout

Founded in 1972 as an independent, non-profit center for public interest energy and environmental research

New York City, The Northeast Blackout, 1965

Page 3: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

3© 2015 Electric Power Research Institute, Inc. All rights reserved.

EPRI’s Science and Technology Portfolio Spans the Entire Electricity Sector

Environment

Transmission & Grid Operations

NuclearGeneration

Distribution & End Use

Page 4: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

4© 2015 Electric Power Research Institute, Inc. All rights reserved.

A Look Back

Page 5: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

5© 2015 Electric Power Research Institute, Inc. All rights reserved.

Yesterday’s Power System

Residential

Commercial

Industrial

Bulk PowerSystem

DistributionSystem

One Way Power Flow

Page 6: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

6© 2015 Electric Power Research Institute, Inc. All rights reserved.

Consumers Become Energy Producers

T & D Becomes More Controllable and Resilient

Generation Becomes More Flexible

Loads Become More Interactive and Dynamic

Today and Tomorrow - The Integrated Grid

Two-way Flow

Page 7: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

7© 2015 Electric Power Research Institute, Inc. All rights reserved.

A Look Ahead

Page 8: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

8© 2015 Electric Power Research Institute, Inc. All rights reserved.

21st Century - The Transforming Power System

More Choice and Control with Increased Convenience and Comfort

Page 9: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

9© 2015 Electric Power Research Institute, Inc. All rights reserved.

Apple Entering Home Energy Management

Emergence of Services Enabled by the “Internet of Things”

Home Depot’s Home Automation

Application

Tesla Power WallGoogle Buys NEST for $3.2B,

Page 10: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

10© 2015 Electric Power Research Institute, Inc. All rights reserved.

Perspectives on Disruptive Technology Drivers of the Change: Decarbonization Decentralization Digitization

Consumer Protection & Privacy Energy Efficiency – Affordable to all?

UtilitiesReliable, affordable,

environmentally responsible and safe

Tech ProvidersChoice,

convenience, control and comfort

“Home is a special place – you (a company) needs an invitation to be there” -- nest

Page 11: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

11© 2015 Electric Power Research Institute, Inc. All rights reserved.

A Look Ahead: Energy and Capacity

24 by 7 Electricity

Startup Power

Grid SuppliedPower

Voltage Quality

Supply and Demand

Page 12: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

12© 2015 Electric Power Research Institute, Inc. All rights reserved.

Cost of Capacity and Energy – Grid Connected Services

Variable T&D

Fixed T&D Capacity

$110

$14

$56

$37

$70

$10

$30

Avg. Customer Monthly Charge

Capacity-based Costs

Energy-based Costs

Transmission

Distribution

Generation

Generation Capacity & Services

Energy

$51 $59

$3

Generation (Energy/Fixed Cost) breakdown based on PJM market analysis (2011)

T&D (Fixed/Variable) cost breakdown based on current SCE Implied Cost Estimates (source: E3)

Page 13: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

13© 2015 Electric Power Research Institute, Inc. All rights reserved.

Zero Energy Home = Zero Capacity Home

Mon Tue Wed Thu Fri Sat Sun

5

4

3

2

1

0

-1

-2

-3

Site

Dem

and

(kW

)

Capacity – Grid Supplied

Capacity –Onsite

Page 14: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

14© 2015 Electric Power Research Institute, Inc. All rights reserved.

A Look Ahead: End-Use Energy Efficiency

Residential Commercial

Consumer Electronics

1990s

27” CRT

125 W

2005

55” Plasma

500 W

2010

56” LED

175 W

Plasma Organic LED (OLED)LEDCathode Ray Tube

2012

56” LED

100 W

2013

55” Organic LED

<30 W

Page 15: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

15© 2015 Electric Power Research Institute, Inc. All rights reserved.

Is Energy

Storage A Solution?

Page 16: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

16© 2015 Electric Power Research Institute, Inc. All rights reserved.

A Look Ahead - Energy Storage Applications

Transmission Operator Distribution

Operator

Load Serving Entity Industrial

Customer

Commercial Customer

Multi-Dwelling Unit

Residential Customer

Microgrid/Sustainable Communities

Other Substations

SubstationEnergy Storage

Distributed Resources

Substation

Microgrid

Residential

Appliance/ Device

Large-Scale Renewables

Commercial & Industrial

Page 17: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

17© 2015 Electric Power Research Institute, Inc. All rights reserved.

RCRA/ TSCA(Metals,

groundwater, CCP

disposal/use, spills)

Effluent Guidelines

Fish Protection

CWA 316 (a) (b)

Looking Ahead: Environmental Rules

(Se, Hg, As, other metals, nutrients, B,

TMDLs, WQC)

NAAQS

CSAPR, MATS, Regional Haze

(NOx, SO2

Hg, PM,

Ozone)

111(b), 111(d)

(CH4, CO2

N2O, SF6)

Water

Air Quality

Carbon Control

Solid Waste

Water Consumption

Natural Resources

T&E Species

Land Use

Wetlands MitigationMulti-MediaHolistically – Air, Land and

Water

Page 18: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

18© 2015 Electric Power Research Institute, Inc. All rights reserved.

NY 61%

PA 13%NJ 123%

OR 104%

WA 240%

AZ 54%

NV 33%

UT 6% CO 7%

NM 8%

ID 189%

WY -24%

MT -20%

CA 23%

ND -30%

SD 100%

NE -9%

KS -17%

MN 42%

IA -12%

MO -10%

TX 27%

OK 19% AR 37%

LA 20%

WI 0%MI -1%

IL 3%IN -6%

OH -3%

WV -12%

KY -18%

TN 13%

MS 40%AL 3%

GA 33%

FL 40%

SC 49%

NC 26%

VA 32%

DE 44%MD 12%

RI 9%

ME 42%

NH 60%

MA 48%

CT 48%

VT

≤ 10%

≤ -20%

Change in 2030 Mass Cap in Final CPP (Affected Units Only)

0% ‒ 10%0% ‒ -20%

Clean Power Plan

KY-18%

2030

2022

2016

TODAY

Sept 6, 2016

Turn in State Plan

Sept 8, 2018

Final State Plans Due

2020-2021

Opportunity for Emissions Reduction Credit

2029

2018

2021

2020

2022 - 2029

Three Multi-year Step Downs

Compliance

Page 19: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

19© 2015 Electric Power Research Institute, Inc. All rights reserved.

Source: US-REGEN data; Energy Modeling Forum 24

U.S. Greenhouse Gas Reduction Targets – 80% by 2050

0

1

2

3

4

5

6

7

8

2010 2015 2020 2025 2030 2035 2040 2045 2050

Billi

on to

ns C

O2

eq.

Source: US-REGEN data; Energy Modeling Forum 24

ELECTRIC SECTOR CO2

Non-ELECTRIC SECTOR CO2

CH4, N20, and F-gases Net GHG (incl sinks)

Clean Power Plan 32% target

Economy

80% target

Economy 28% target

Electric Sector 80% target

Page 20: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

20© 2015 Electric Power Research Institute, Inc. All rights reserved.

Source: US-REGEN data; Energy Modeling Forum 24

U.S. Greenhouse Gas Reduction Targets – Electric Sector Cannot Do It Alone

0

1

2

3

4

5

6

7

8

2010 2015 2020 2025 2030 2035 2040 2045 2050

Billi

on to

ns C

O2

eq.

Source: US-REGEN data; Energy Modeling Forum 24

ELECTRIC SECTOR CO2

Non-ELECTRIC SECTOR CO2

CH4, N20, and F-gases Net GHG (incl sinks)

Economy

80% target

Economy 28% target

Clean Power Plan 32% target

Electric Sector 80% target

OTHER SECTORS OF THE ECONOMY MUST

REDUCE

Page 21: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

21© 2015 Electric Power Research Institute, Inc. All rights reserved.

NaturalGas

Coal

Renewables

Nuclear

ElectricityGeneration

Transportation

Industrial

26.3 EJ

9.4 EJ

5.0 EJ

7.4 EJ

7.8 EJ

2.2 BT

1.3 BT

Midstream

Commercial

U.S. Energy and Emissions in 2050

Residential

0.3 BT

0.3 BT

0.4 BT

0.3 BT

0.0 BT

0.2 BT

0.4 BT

Petroleum

40.7 EJ

5.6 EJ

0.0 BT

• Baseline scenario

• AEO fuel prices

• Current RPS levels

Energy Emissions

Other Energy

U.S. Energy – Emissions Transformation: 2050 Reference

Other Energy

Electricity Generation

Page 22: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

22© 2015 Electric Power Research Institute, Inc. All rights reserved.

NaturalGas

Coal

Renewables

Nuclear ElectricityGeneration

Transportation

Industrial

10.0 EJ

18.0 EJ

5.0 EJ

40.0 EJ

40.0 EJ

0.4 BT

0.3 BT

Midstream

Commercial

U.S. Energy and Emissions in 2050

Residential0.0 BT

0.1 BT

0.2 BT

0.1 BT

0.0 BT

0.0 BT

0.0 BT

Petroleum

8.8 EJ

0.5 EJ

0.0 BT

• 80% reduction in economy-wide CO2 emissions (from 2005)

• Illustrative results

Other Energy

U.S. Energy – Emissions Transformation: 2050 80% Target

Low- & No- Emission

Technologies

Energy Emissions

Electricity Generation

Page 23: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

23© 2015 Electric Power Research Institute, Inc. All rights reserved.

EPRI-NRDC Environmental Assessment of Electric Transportation Report

Electric Transportation: Medium and Light Duty Vehicles Limited Number of Off-Road

Impact on: Greenhouse Gas Air Quality (Ozone, PM)

September 19, 2015

Page 24: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

24© 2015 Electric Power Research Institute, Inc. All rights reserved.

A Look Ahead: Load Growth

Plug-in Electric Vehicles

Electrification

Advances in electric process heating, separations, and heat pump technologies for emissions reduction and productivity improvement

PEV sales growing faster than hybrids a decade earlier

200,000+ PEVs sold in U.S.

Projected to exceed 5% of new vehicle sales by 2020

Data CentersU.S. data center energy consumption doubling every 5 years

Siting of large datacenters – big wild card

Shale Gas – Industrial Load

Exploration and Refining related Load Growth

Re-industrialization with gas as feedstock (gas to plastics)

Page 25: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

25© 2015 Electric Power Research Institute, Inc. All rights reserved.

A Look Ahead: 21st Century Opportunities

Cleaner EnergyStorage – Bulk to Micro

Electrification Data Server LoadMicrogrids

Energy Efficiency & Automation

An Increase In the Value of...

24x7 Quality & Capacity

Resilient Systems

…To Provide: Comfort, Convenience, Choice and Control

Page 26: © 2015 Electric Power Research Institute, Inc. All rights reserved. Anda Ray VP, Environment and Chief Sustainability Officer September 9, 2015 Challenges

26© 2015 Electric Power Research Institute, Inc. All rights reserved.

Together…Shaping the Future of Electricity