Building Washington’sNew Energy Economy

Washington Economic Development Association

Summer ConferenceLake Chelan, June 4-5, 2009

David Kaplan Clean Energy Systems Advisor

State of Washington, Dept of Commerce

Outline

• Thinking about our energy future– Setting goals– Forecasting the energy mix – a thought experiment– Some observations

• Evolving Clean Energy

• ARRA (Stimulus) Funding Opportunities

• Local Considerations

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Setting Goals

• Exceed our “per capita responsibility” for:– Reducing CO2 emissions– Reducing oil imports

• Grow clean technology business sector

• Maintain competitive energy prices

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Forecasting Washington’s Energy Mix

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Non-grid Energy

Grid Energy

Conservation(Energy Savings)

Grid Energy

Non-grid Energy

Take-aways

• Observations– WA CO2 is almost all non-grid– Carbon-free grid sources (hydro, nuclear) unlikely to expand

• Recommendations (preliminary)– Displace fuels with grid wherever possible – EVs are key– Expand conservation to reduce demand– Expand renewables (wind, solar, geothermal, wave/tidal) to

increase supply– Expand storage to offset intermittent renewables– Expand bio-fuels (trucking, marine, aviation) to offset non-

displaceable fuel use

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Take-aways (cont.)• PNW grid and institutions (BPA, NW Council, IOUs, publics) have

served us well, but need to ask even more of them in coming years

• Need to build analytical and deployment assets of similar caliber targeted at total energy sector (not just grid)

• Unless we can squeeze more from our hydro system (unlikely) or want to build new nukes (unwise), need to realistically assess how to massively scale conservation, wind and solar PV, by when.

• In transportation sector, need to realistically assess what it will take to massively scale EV deployments, by when.

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Evolving Clean Energy

• Whole system approach to energy– Evolve tomorrow’s grid from today’s– Displace CO2-intensive fuels with clean electricity

• Wind (now) and solar PV (coming years) are best bets for massive clean energy scale-up– Major barriers are first cost and balancing

• While not the major problem, grid must be core of the solution

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Today’s Grid – Limitations• Consumers lack information• Utilities lack mechanisms to influence

consumer behavior • Limited clean power• Limited energy storage

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Essential elements of a smart grid• Deep energy efficiency• Demand mgmt• Grid intelligence• Clean power• Electric vehicles• Energy storage

Deep Energy Efficiency• Cost-effective first steps• Building envelopes• High energy-use loads (HVAC, etc.)

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Demand-Side Management

• Communications (wireless, BPL, etc.)• “Instrument” curtailable loads (A/C, W/H)• Smart meters (AMI)• Aggregation intelligence (software)

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Grid Intelligence• Monitoring and control• SCADA integration• Synchro-phasors (PMUs)• Automated substations

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Clean Power• Carbon-free• Utility-scale: wind, PV• All-scale: PV• Intermittent – requires “firming”

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Electric Vehicles• Reduce oil consumption• “Instrument” EVs, charge points• Smart charging required• Complement intermittent clean power

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Energy Storage• Grid shock absorber• Firm intermittent power (wind, PV)• EVs are partial storage-equivalent

Essential elements of a smart grid• Deep energy efficiency• Demand mgmt• Grid intelligence• Clean power• Electric vehicles• Energy storage

Funding SourcesSmart Grid Demos & Deployment

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Opportunity Amount Status

Smart Grid Demonstrations

DE-FOA-036 $0.6B Comments due May 6FOA expected late May

PNW Smart GridTest Bed

BPA RFI (aimed at DE-FOA-036 funding)

$0.1B Seeking utility partnersComments due May 18

Smart Grid Investment Grant

DE-FOA-058A $3.4B Notice of Intent issuedFOA planned June 17

BPA Borrowing Authority

ARRA – Div A, Title IV, Sec 401

$3.2B Authorized

Funding SourcesElectric Vehicles & Charging Infrastructure

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Opportunity Amount Status

Transportation Electrification

DE-FOA-028 $0.4B Proposals due May 13

Battery / Component Mfg

DE-FOA-026 $2.0B Proposals due May 19

Clean Cities DE-PS26 $0.3B Proposals due May 29Some EV/infrastructure $

Scope of Smart Grid & EVFunding Opportunities

• Smart Grid– “… Smart grid modernization encompasses the electric transmission and distribution

infrastructure that interconnects large generation at one end and consumers’ electric loads as the other end, as well as all components and systems in between, including distributed energy resources.”

• Transportation Electrification (EVs and Charging)– “… Accelerate the development and production of various electric drive vehicle

systems to substantially reduce petroleum consumption.”– Support the President’s goal to Get One Million Plug-In Hybrid Cars (PHEVs) on the

Road by 2015.

• Who can participate?– Utilities, system operators, power marketers– Vehicle mfrs, charging equipment mfrs, other technology suppliers – National labs may only subcontract

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Goals of Smart Grid &EV Funding Opportunities

• Public benefits DOE is aiming for:– Jobs, jobs, jobs– Reduced emissions– Reduced oil consumption– Enhanced cost-effectiveness– Improved demand-side management– Renewable and distributed energy resources– Improved reliability

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PNW Smart Grid Opportunity• Goals

– Lead the nation in developing a clean, robust grid– Grow smart grid technology companies in Washington state

• Bonneville Power Administration– Smart Grid Test Bed RFI– Broad participation by utilities and technology companies

• Opportunity: Integrate all smart grid pieces– DSM, wind, storage, EVs, etc.– Open standards and protocols– Regulatory mechanisms (tariffs, rate recovery, etc.)

• Migrate quickly from demo to deployment

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Local Considerations

• Energy Efficiency Community Block Grants (EECBG)– Cities under 35,000, counties under 200,000 via CTED

• Siting for clean renewables– Wind, Solar, Geothermal, Ocean (wave, tidal)– Transmission build-outs

• Clean tech startups

• Communicate, coordinate– CTED Recovery Act info– http://www.cted.wa.gov/site/1164/default.aspx

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