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CALIFORNIA ENERGY COMMISSION dn Partnerships for Clean Energy Development USDOE/Office of Weatherization and International Programs (OWIP) Project Opportunities Workshop Terry Surles California Energy Commission September 9, 2003

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CALIFORNIA ENERGY COMMISSIONdn

Partnerships for Clean Energy DevelopmentUSDOE/Office of Weatherization and

International Programs (OWIP) Project Opportunities Workshop

Terry Surles

California Energy Commission

September 9, 2003

CALIFORNIA ENERGY COMMISSIONdn

California in Context

Size of the economy Gross state product in 2000 was about $1.35

trillion Population

Population grew from about 30 million in 1990 to about 34.5 million in 2002

History of encouraging economic growth, while maintaining an aggressive record for environmental protection

CALIFORNIA ENERGY COMMISSIONdn

GDP (2000)

0 1,000 2,000 3,000 4,000 5,000

U.S.

Japan

Germany

U.K.

CALIFORNIA

France

China

Italy

Canada

Mexico

Spain

GDP (2001) [billions of current U.S. dollars]

0010,100

GDP (2001)

CALIFORNIA ENERGY COMMISSIONdn

California has Established a $62M/yr Public Interest Energy Research Program

(PIER)

Economy:AffordableSolutions

Quality:Reliable and

AvailableEnvironment:Protect and

Enhance

California’s Energy Future

CALIFORNIA ENERGY COMMISSIONdn

California Must be Prepared to Face the Same Issues as Others Must

Economics Resource Competition New technology market

penetration Lifecycle analysis State/Federal laws

Environment Impact of new technologies Climate change Sustainable practices

Security Peak demand/demand response Infrastructure interdependencies

Energy Costs Fundamentally Affect our Overall Economy

CALIFORNIA ENERGY COMMISSIONdn

PIER Must Address Future Market Scenarios: A Goal is to Provide Greater

End-User choiceRegulated

De-regulated

De-centralizedCentralized

Status Quo • New energy systems

• Same players

Supermarket of Choices

• Same energy systems

• New players

CALIFORNIA ENERGY COMMISSIONdn

Policy and RD&D Must Be Linked in Order to

Provide Benefits to the State

Benefits to State and Citizens

California Issues

Related State Activities Collaborations

CALIFORNIA ENERGY COMMISSIONdn

Our Success is Coupled to the Successes of our Technology Partnerships

Universities – UCOP, standard contract Industries – funding, obtaining co-funding,

pushing deployment Federal – Departments of Energy, Commerce,

Agriculture National Laboratories – LBNL, NREL, LLNL,

ORNL, NETL, SNL, ANL State – ARB, CDF, DWR, DOGGR, CFA, CPA,

CPUC, DGS

CALIFORNIA ENERGY COMMISSIONdn

RD&D Activities Should Connect with Synergistic State Regulatory, Incentive,

and Subsidy Programs

Buildings – Titles 20 and 24 Renewables – Renewable portfolio standard (RPS) Environmentally-Preferred Advanced Generation –

2007 ARB rules on distributed generation emissions Energy Systems Integration – CPUC/CEC initiatives

in demand response/dynamic pricing, distributed energy resources, and transmission and distribution systems

Environmental – Impacts/opportunities related to RPS, state initiatives (AB 1493) in climate change

CALIFORNIA ENERGY COMMISSIONdn

$ External Funding Into State (in $ Millions)

$112.7

$22.7$6.5$15.6$2.1

$11.3

$42.5

$12

020406080

100120

CALIFORNIA ENERGY COMMISSIONdn

Electricity Efficiency and Renewables: Goals of California Energy Action Plan 2003

California kWh per capita is already flat compared to US climbing 2%/yr

New California goal is to reduce kWh per capita by 1% per year

Renewable Portfolio Standard: add 1% renewables per year

Additional peak reduction of 1% per year by Demand Response when power is inexpensive or reliability is a problem

In total, goals aim to reduce electricity growth, increase renewables, and grow demand response.

CALIFORNIA ENERGY COMMISSIONdn

20

30

40

50

60

70

80

90

100

110

1972 1976 1980 1984 1988 1992 1996 2000

Year

Ind

ex (

1972

= 1

00)

Effective Dates of National Standards

=

Effective Dates of State Standards

=

Refrigerators

Central A/C

Gas Furnaces

Impact of Standards on Efficiency of Three Appliances

75%

60%

25%

Source: S. Nadel, ACEEE, in ECEEE 2003 Summer Study, www.eceee.org

CALIFORNIA ENERGY COMMISSIONdn

(Sources: EIA and California Department of Finance)

-7.0%

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

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19

94

19

95

19

96

19

97

19

98

19

99

20

00

Average = -1.0% -4.5% -3.9%

Annual Rate of Change in Energy/Gross State Product for California

CALIFORNIA ENERGY COMMISSIONdn

IEA (Energy/Purchasing Power Parity) and EIA (Energy/Market Exchange Rate)

-10%

-8%

-6%

-4%

-2%

0%

2%

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

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19

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19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

IEA data EIA data

- 4.8% Average = - 5.0% - 5.3%

Annual Rate of Change in Energy/GDP for China

CALIFORNIA ENERGY COMMISSIONdn

Annual Rate of Change in Energy/GDP for the World

IEA (Energy/Purchasing Power Parity) and EIA (Energy/Market Exchange Rate)

-4%

-3%

-2%

-1%

0%

1%

2%

19

81

19

82

19

83

19

84

19

85

19

86

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19

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19

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19

96

19

97

19

98

19

99

20

00

20

01

IEA data EIA data

note: Russia not included until 1992 in IEA data and 1993 in EIA data

- 1.3% - 1.3%Average = - 0.7%

CALIFORNIA ENERGY COMMISSIONdn

PIER Buildings Program HighlightsBerkeley Lamp

Model partnership between CEC/DOE/California utilities PIER funded Phase 1 to develop

task/ambient lamp concept DOE funded Phase 2 to develop specific

lamp configuration PIER was instrumental in moving

technology into the marketplace via coordination with utility Emerging Technology Coordinating Council

Project is both a technical success and a customer success

CALIFORNIA ENERGY COMMISSIONdn

Total Electricity Use, per capita, 1960 - 2001

0

2,000

4,000

6,000

8,000

10,000

12,000

14,0001

96

0

19

62

19

64

19

66

19

68

19

70

19

72

19

74

19

76

19

78

19

80

19

82

19

84

19

86

19

88

19

90

19

92

19

94

19

96

19

98

20

00

KW

h

12,000

8,000

7,000

California

U.S.

kWh

CALIFORNIA ENERGY COMMISSIONdn

PowerLight’s PowerGuard

PowerLight’s insulated 30 year roof system reduces building air

conditioning loads while it’s PV surface generates electricity during hot and

expensive peak summer hours

While California is known for its hot dry summers, that same solar resource provides a clean, safe and reliable way

to generate electricity

CALIFORNIA ENERGY COMMISSIONdn

The Yolo County Success

Accomplishments Is opening the way for landfill gas

electricity systems to be more widely used in California

• Accelerates gas production from over 30 years to less than 10 years, making landfill electricity more competitive

• Reduces volume of landfill which can extend landfill life by 20 percent

• Significantly reduces the chance for groundwater pollution from leachate release

Has become the leading bioreactor project within EPA’s XL Program and will strongly influence landfill regulations across the country

CEC’s Role Through the CEC’s R&D programs,

we’re bringing bioreactor technology from concept to reality

Control cell without bioreactor

Enhanced bioreactor cell

CALIFORNIA ENERGY COMMISSIONdn

Xonon Cool Combustion System - Catalytica Energy Systems, Inc.

Description: Gas turbine combustion system

that controls combustion temperature to prevent the formation of NOX

Benefits: Lower NOX emissions without

SCR Allows deployment of smaller

turbines for DG Expandable to large, central

station turbines Use with Kawasaki turbine

CALIFORNIA ENERGY COMMISSIONdn

President’s Commission on Critical Infrastructure Protection Highlights Vulnerabilities and Interdependencies

Electricity

TransportationWaterNatural Gas

CALIFORNIA ENERGY COMMISSIONdn

CEC/PIER is Already Providing a Stream of Products Consistent with

the California Energy Action Plan (CEAP)

Optimize efficiency,Reduce demand

Ensure power supply meet RPS

Upgrade T&D structure

Promote DG

Ensure reliablesupply of NG

CEAP Goal PIER Issue

Reduce per capitaenergy use

MEET RPS

T&D System must be reliable and congestion-free

Peak demand reduction Low emissions DGReliable, affordable DG

Meet marketplace needs

Products

CALIFORNIA ENERGY COMMISSIONdn

Successful Relationships Are Critical to Enhancement of Our Activities

Success in connecting with peers in DOE and other agencies Collaborative funding Enhanced CEC visibility: Making a difference on a national

level Maintaining ties with successful private sector firms

Stream of products to market Markets must include other states and countries

Tying our programs to other state activities and regulations Political strength of programs, i.e. ARB, ADF, DWR, SVMB Linkage of R&D to implementation: i.e. CEC Efficiency, CEC

Renewables, CEC energy Export Program

CALIFORNIA ENERGY COMMISSIONdn

Driving to a Sustainable Future:The “E”s are Linked

Environment Energy Economics Equity Education