national energy & transportation infrastructure design · 2013. 7. 21. · plant natural gas...

31
National Energy & Transportation Infrastructure Design http://www.ece.iastate.edu/research/netscore-21/ A project funded by the US NSF via the 2008 Solicitation for Emerging Frontiers in Research & Innovation - Resilient and Sustainable Infrastructures (EFRI-RESIN) 1 James McCalley Harpole Professor of Electrical & Computer Engineering Iowa State University Presented at the Workshop on Energy, Transportation & Water Infrastructures: Policy & Social Perspectives Iowa State University July 18, 2013

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Page 1: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

National Energy amp Transportation Infrastructure Design

httpwwweceiastateeduresearchnetscore-21

A project funded by the US NSF via the 2008 Solicitation for Emerging Frontiers in

Research amp Innovation - Resilient and Sustainable Infrastructures (EFRI-RESIN)

1

James McCalley Harpole Professor of

Electrical amp Computer Engineering

Iowa State University

Presented at the Workshop on Energy

Transportation amp Water Infrastructures

Policy amp Social Perspectives

Iowa State University

July 18 2013

2

Robert Brown ME

Jim McCalley EE

Dionysios Aliprantis EE

Nadia Gkritza CE

Lizhi Wang IE

Arun Somani CpE

NETSCORE21 Faculty amp Students

PhD graduated E Ibanez EE D Wu EE Y Gu EE D Mejia EE J Ding CpE

PhD ongoing Y Li EE S Lemos EE V Pyrialakou CE

MS graduated J Gifford ME L Gonzales EE J Villarrel EE Q Quihui EE

Z Duan IE Y Zhou IE S Lavrenz CE J Von Brown CE

C Rentziou CE

MS ongoing J Slegers EE M Kieffer ME

Post-docs ongoing V Krishnan EE

and 7 Senior design teams

and Iowa Lakes Community College

1 Orientation of work

2 Modeling approach

3 Design results a High-speed rail

b Generation

c Flex-fuel polygeneration

d Natural gas amp light-duty vehicles

e Interregional transmission

4 Two questions bull Addressing uncertainty

bull Policy and awareness

Overview

3

OBJECTIVE OF THIS PRESENTATION

Describe several infrastructure enhancements for energy

and transportation illustrate the power of computational

models for exploring the future and characterize the

different policy approaches for moving these forward

Orientation Multi-sector (fuel electric transportation) national long-term planning

4

bull Probes future infrastructure designs via computation

bull Separates ldquogoodrdquo from ldquobadrdquo choices amp informs societal

dialogue and political debate

bull 100-year infrastructure designs a sustainability practice

sustainable resources

depletable resources

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2050

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2100

ENERGY SYSTEM

TRANSPORTATION SYSTEM

PETROLEUM PETROLEUM

ELECTRIC NAT

GAS

BIO-

FUELS

ELECTRIC

BIO-

FUELS

NAT

GAS

PETROLEUM

ELECTRIC

BIO-

FUELS

NAT

GAS

TODAY

5

Orientation Multi-sector (fuel electric transportation) national long-term planning

Modeling NETPLAN multi-objective optimization

NSGA-II

Search amp

selection

Evaluation

(fitness

functions)

6

Evolutionary algorithm Selects new solution population in terms

of cost environmental resiliency amp flexibility metrics

Investment biases minimum invest-ments subsidies emission limits

Environmental metrics

Resilience metrics

LP-Cost Minimization Selects investments time location over 40 years for

nationrsquos energy amp transportation systems to minimize NPW of investment+operational cost Cost

Flexibility metrics

Every transportation mode produces demand in energy networks

Transportation system loading on energy

GWHR = GWHRTrnsprtAmt times TrnsprtAmt

7

Electric vehicle Electric rail

Hybrid vehicle Petrol vehicle

Petrol rail Airplane

Nat gas vehicle

Natural gas network

Petroleum network

Electric network

Transportation network

8

Modeling energy system

24 states comprise coal resources

Demand is all power by state

Coal resources connected to all states

Coal network uses yearly step sizes

COAL Nat GAS GulfTxCanadian resources amp storage modeled

Demand nonpower (1 grwth) power by state

Gas pipelines modeled between adjacent states

Gas network uses monthly step sizes

ELECTRIC

Each node models 15 gen types

Existing trans modeled between nodes

Electric network uses monthly step sizes

PETROLEUM

Petroleum

source Diesel

Gasoline

Jet fuel

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 2: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

2

Robert Brown ME

Jim McCalley EE

Dionysios Aliprantis EE

Nadia Gkritza CE

Lizhi Wang IE

Arun Somani CpE

NETSCORE21 Faculty amp Students

PhD graduated E Ibanez EE D Wu EE Y Gu EE D Mejia EE J Ding CpE

PhD ongoing Y Li EE S Lemos EE V Pyrialakou CE

MS graduated J Gifford ME L Gonzales EE J Villarrel EE Q Quihui EE

Z Duan IE Y Zhou IE S Lavrenz CE J Von Brown CE

C Rentziou CE

MS ongoing J Slegers EE M Kieffer ME

Post-docs ongoing V Krishnan EE

and 7 Senior design teams

and Iowa Lakes Community College

1 Orientation of work

2 Modeling approach

3 Design results a High-speed rail

b Generation

c Flex-fuel polygeneration

d Natural gas amp light-duty vehicles

e Interregional transmission

4 Two questions bull Addressing uncertainty

bull Policy and awareness

Overview

3

OBJECTIVE OF THIS PRESENTATION

Describe several infrastructure enhancements for energy

and transportation illustrate the power of computational

models for exploring the future and characterize the

different policy approaches for moving these forward

Orientation Multi-sector (fuel electric transportation) national long-term planning

4

bull Probes future infrastructure designs via computation

bull Separates ldquogoodrdquo from ldquobadrdquo choices amp informs societal

dialogue and political debate

bull 100-year infrastructure designs a sustainability practice

sustainable resources

depletable resources

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2050

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2100

ENERGY SYSTEM

TRANSPORTATION SYSTEM

PETROLEUM PETROLEUM

ELECTRIC NAT

GAS

BIO-

FUELS

ELECTRIC

BIO-

FUELS

NAT

GAS

PETROLEUM

ELECTRIC

BIO-

FUELS

NAT

GAS

TODAY

5

Orientation Multi-sector (fuel electric transportation) national long-term planning

Modeling NETPLAN multi-objective optimization

NSGA-II

Search amp

selection

Evaluation

(fitness

functions)

6

Evolutionary algorithm Selects new solution population in terms

of cost environmental resiliency amp flexibility metrics

Investment biases minimum invest-ments subsidies emission limits

Environmental metrics

Resilience metrics

LP-Cost Minimization Selects investments time location over 40 years for

nationrsquos energy amp transportation systems to minimize NPW of investment+operational cost Cost

Flexibility metrics

Every transportation mode produces demand in energy networks

Transportation system loading on energy

GWHR = GWHRTrnsprtAmt times TrnsprtAmt

7

Electric vehicle Electric rail

Hybrid vehicle Petrol vehicle

Petrol rail Airplane

Nat gas vehicle

Natural gas network

Petroleum network

Electric network

Transportation network

8

Modeling energy system

24 states comprise coal resources

Demand is all power by state

Coal resources connected to all states

Coal network uses yearly step sizes

COAL Nat GAS GulfTxCanadian resources amp storage modeled

Demand nonpower (1 grwth) power by state

Gas pipelines modeled between adjacent states

Gas network uses monthly step sizes

ELECTRIC

Each node models 15 gen types

Existing trans modeled between nodes

Electric network uses monthly step sizes

PETROLEUM

Petroleum

source Diesel

Gasoline

Jet fuel

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 3: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

1 Orientation of work

2 Modeling approach

3 Design results a High-speed rail

b Generation

c Flex-fuel polygeneration

d Natural gas amp light-duty vehicles

e Interregional transmission

4 Two questions bull Addressing uncertainty

bull Policy and awareness

Overview

3

OBJECTIVE OF THIS PRESENTATION

Describe several infrastructure enhancements for energy

and transportation illustrate the power of computational

models for exploring the future and characterize the

different policy approaches for moving these forward

Orientation Multi-sector (fuel electric transportation) national long-term planning

4

bull Probes future infrastructure designs via computation

bull Separates ldquogoodrdquo from ldquobadrdquo choices amp informs societal

dialogue and political debate

bull 100-year infrastructure designs a sustainability practice

sustainable resources

depletable resources

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2050

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2100

ENERGY SYSTEM

TRANSPORTATION SYSTEM

PETROLEUM PETROLEUM

ELECTRIC NAT

GAS

BIO-

FUELS

ELECTRIC

BIO-

FUELS

NAT

GAS

PETROLEUM

ELECTRIC

BIO-

FUELS

NAT

GAS

TODAY

5

Orientation Multi-sector (fuel electric transportation) national long-term planning

Modeling NETPLAN multi-objective optimization

NSGA-II

Search amp

selection

Evaluation

(fitness

functions)

6

Evolutionary algorithm Selects new solution population in terms

of cost environmental resiliency amp flexibility metrics

Investment biases minimum invest-ments subsidies emission limits

Environmental metrics

Resilience metrics

LP-Cost Minimization Selects investments time location over 40 years for

nationrsquos energy amp transportation systems to minimize NPW of investment+operational cost Cost

Flexibility metrics

Every transportation mode produces demand in energy networks

Transportation system loading on energy

GWHR = GWHRTrnsprtAmt times TrnsprtAmt

7

Electric vehicle Electric rail

Hybrid vehicle Petrol vehicle

Petrol rail Airplane

Nat gas vehicle

Natural gas network

Petroleum network

Electric network

Transportation network

8

Modeling energy system

24 states comprise coal resources

Demand is all power by state

Coal resources connected to all states

Coal network uses yearly step sizes

COAL Nat GAS GulfTxCanadian resources amp storage modeled

Demand nonpower (1 grwth) power by state

Gas pipelines modeled between adjacent states

Gas network uses monthly step sizes

ELECTRIC

Each node models 15 gen types

Existing trans modeled between nodes

Electric network uses monthly step sizes

PETROLEUM

Petroleum

source Diesel

Gasoline

Jet fuel

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 4: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Orientation Multi-sector (fuel electric transportation) national long-term planning

4

bull Probes future infrastructure designs via computation

bull Separates ldquogoodrdquo from ldquobadrdquo choices amp informs societal

dialogue and political debate

bull 100-year infrastructure designs a sustainability practice

sustainable resources

depletable resources

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2050

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2100

ENERGY SYSTEM

TRANSPORTATION SYSTEM

PETROLEUM PETROLEUM

ELECTRIC NAT

GAS

BIO-

FUELS

ELECTRIC

BIO-

FUELS

NAT

GAS

PETROLEUM

ELECTRIC

BIO-

FUELS

NAT

GAS

TODAY

5

Orientation Multi-sector (fuel electric transportation) national long-term planning

Modeling NETPLAN multi-objective optimization

NSGA-II

Search amp

selection

Evaluation

(fitness

functions)

6

Evolutionary algorithm Selects new solution population in terms

of cost environmental resiliency amp flexibility metrics

Investment biases minimum invest-ments subsidies emission limits

Environmental metrics

Resilience metrics

LP-Cost Minimization Selects investments time location over 40 years for

nationrsquos energy amp transportation systems to minimize NPW of investment+operational cost Cost

Flexibility metrics

Every transportation mode produces demand in energy networks

Transportation system loading on energy

GWHR = GWHRTrnsprtAmt times TrnsprtAmt

7

Electric vehicle Electric rail

Hybrid vehicle Petrol vehicle

Petrol rail Airplane

Nat gas vehicle

Natural gas network

Petroleum network

Electric network

Transportation network

8

Modeling energy system

24 states comprise coal resources

Demand is all power by state

Coal resources connected to all states

Coal network uses yearly step sizes

COAL Nat GAS GulfTxCanadian resources amp storage modeled

Demand nonpower (1 grwth) power by state

Gas pipelines modeled between adjacent states

Gas network uses monthly step sizes

ELECTRIC

Each node models 15 gen types

Existing trans modeled between nodes

Electric network uses monthly step sizes

PETROLEUM

Petroleum

source Diesel

Gasoline

Jet fuel

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 5: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

bull Probes future infrastructure designs via computation

bull Separates ldquogoodrdquo from ldquobadrdquo choices amp informs societal

dialogue and political debate

bull 100-year infrastructure designs a sustainability practice

sustainable resources

depletable resources

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2050

ENERGY SYSTEM

TRANSPORTATION SYSTEM

2100

ENERGY SYSTEM

TRANSPORTATION SYSTEM

PETROLEUM PETROLEUM

ELECTRIC NAT

GAS

BIO-

FUELS

ELECTRIC

BIO-

FUELS

NAT

GAS

PETROLEUM

ELECTRIC

BIO-

FUELS

NAT

GAS

TODAY

5

Orientation Multi-sector (fuel electric transportation) national long-term planning

Modeling NETPLAN multi-objective optimization

NSGA-II

Search amp

selection

Evaluation

(fitness

functions)

6

Evolutionary algorithm Selects new solution population in terms

of cost environmental resiliency amp flexibility metrics

Investment biases minimum invest-ments subsidies emission limits

Environmental metrics

Resilience metrics

LP-Cost Minimization Selects investments time location over 40 years for

nationrsquos energy amp transportation systems to minimize NPW of investment+operational cost Cost

Flexibility metrics

Every transportation mode produces demand in energy networks

Transportation system loading on energy

GWHR = GWHRTrnsprtAmt times TrnsprtAmt

7

Electric vehicle Electric rail

Hybrid vehicle Petrol vehicle

Petrol rail Airplane

Nat gas vehicle

Natural gas network

Petroleum network

Electric network

Transportation network

8

Modeling energy system

24 states comprise coal resources

Demand is all power by state

Coal resources connected to all states

Coal network uses yearly step sizes

COAL Nat GAS GulfTxCanadian resources amp storage modeled

Demand nonpower (1 grwth) power by state

Gas pipelines modeled between adjacent states

Gas network uses monthly step sizes

ELECTRIC

Each node models 15 gen types

Existing trans modeled between nodes

Electric network uses monthly step sizes

PETROLEUM

Petroleum

source Diesel

Gasoline

Jet fuel

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 6: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Modeling NETPLAN multi-objective optimization

NSGA-II

Search amp

selection

Evaluation

(fitness

functions)

6

Evolutionary algorithm Selects new solution population in terms

of cost environmental resiliency amp flexibility metrics

Investment biases minimum invest-ments subsidies emission limits

Environmental metrics

Resilience metrics

LP-Cost Minimization Selects investments time location over 40 years for

nationrsquos energy amp transportation systems to minimize NPW of investment+operational cost Cost

Flexibility metrics

Every transportation mode produces demand in energy networks

Transportation system loading on energy

GWHR = GWHRTrnsprtAmt times TrnsprtAmt

7

Electric vehicle Electric rail

Hybrid vehicle Petrol vehicle

Petrol rail Airplane

Nat gas vehicle

Natural gas network

Petroleum network

Electric network

Transportation network

8

Modeling energy system

24 states comprise coal resources

Demand is all power by state

Coal resources connected to all states

Coal network uses yearly step sizes

COAL Nat GAS GulfTxCanadian resources amp storage modeled

Demand nonpower (1 grwth) power by state

Gas pipelines modeled between adjacent states

Gas network uses monthly step sizes

ELECTRIC

Each node models 15 gen types

Existing trans modeled between nodes

Electric network uses monthly step sizes

PETROLEUM

Petroleum

source Diesel

Gasoline

Jet fuel

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 7: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Every transportation mode produces demand in energy networks

Transportation system loading on energy

GWHR = GWHRTrnsprtAmt times TrnsprtAmt

7

Electric vehicle Electric rail

Hybrid vehicle Petrol vehicle

Petrol rail Airplane

Nat gas vehicle

Natural gas network

Petroleum network

Electric network

Transportation network

8

Modeling energy system

24 states comprise coal resources

Demand is all power by state

Coal resources connected to all states

Coal network uses yearly step sizes

COAL Nat GAS GulfTxCanadian resources amp storage modeled

Demand nonpower (1 grwth) power by state

Gas pipelines modeled between adjacent states

Gas network uses monthly step sizes

ELECTRIC

Each node models 15 gen types

Existing trans modeled between nodes

Electric network uses monthly step sizes

PETROLEUM

Petroleum

source Diesel

Gasoline

Jet fuel

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 8: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

8

Modeling energy system

24 states comprise coal resources

Demand is all power by state

Coal resources connected to all states

Coal network uses yearly step sizes

COAL Nat GAS GulfTxCanadian resources amp storage modeled

Demand nonpower (1 grwth) power by state

Gas pipelines modeled between adjacent states

Gas network uses monthly step sizes

ELECTRIC

Each node models 15 gen types

Existing trans modeled between nodes

Electric network uses monthly step sizes

PETROLEUM

Petroleum

source Diesel

Gasoline

Jet fuel

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 9: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Modeling transportation

9

Transportation demand is specified node-to-node except for energy commodities

Freight

network

Passenger

network

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 10: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design High-speed rail (HSR) bull Long-distance travel only 95 state-state +

140 additional heavily-traveled routes

bull Possible modes are highway air HSR

bull Travel time penalized 24$hr for all modes

bull Cost includes investment + operational

cost of energy amp transportation

bull Fixed transport infrstrctre modeled with

infin capacityinvestment only in fleets

bull Trnsprt demand grows 3year

Attribute No HSR With HSR

HSR penetration () 0 305

Total Cost (T$) 1161 1115

Emissions (e10 short tons) 259 251 (-31)

Gasoline (E+3 MGallon) 2984 1992 (-332)

Jet Fuel (E+3 MGallon) 32055 21125 (-341)

Electric Energy (E+6 TWh) 19423 19824 (+206)

Cost Savings (B$) Reference 460

Passenger

network

10

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 11: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design High-speed rail (HSR)

Results are similar to the high-speed rail corridors designated by DOT

Netplan Results DOT Designations

11

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 12: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Resilience

12

Resilience Ability to minimize amp recover

from event consequences of extreme events

Experiment For a 40 year investment strategy simulate total failure of each of

14 generation technologies at year 25

Resilience metric Averaged the 1 year operational cost increase across 14

events with respect to the no-event case

Western

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Southwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Northeast

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Central

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

Midwest

0

2

4

6

8

10

12

14

Jan

Feb Mar

AprM

ay Jun

Jul

Aug Sep Oct

Nov

Dec

($M

Mcf)

EXAMPLE KATRINARITA

FINDINGS RESILIENCE IMPROVES WITH

bull INTERCONNECTEDNESS

bull DIVERSIFICATION

Other Conceived Extreme Events

bull 6 mnth loss of rail access to Powder River Basin coal

bull 1 yr interruption of 90 of Middle East oil

bull Permanent loss of US nuclear supply

bull 6 mnth interruption of Canadian gas supply

bull 1 yr loss of US hydro due to extreme drought

bull Sustained flooding in Midwest destroying crops

reducing biofuels interrupting E-W rail system

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 13: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design Flex Fuel Poly-generation

Flex Fuel Poly-generation

Plant

Natural gas Coal

Biomass

BioFuels Electricity

Heat

Multiple input Multiple output creates nodes with multiple connections increases network density and thus system resilience

13

A methane

refinery

Energy

converters

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 14: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design natural gas (NG) amp light-duty vehicles (LDV)

14

Lifetime Infrastructure investments live for 40-60 years

not easy to ldquoturnrdquo once developed

Depletability RP ratios 10-90 yrs how volatile will price

be as exports grow amp as gas depletes

Fracking Will public resistance grow

CO2 emissions Can coal-to-gas shift reduce enough

Diversification How will resilience for all energy sectors

change For each energy sector

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 15: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design natural gas (NG) amp light-duty vehicles (LDV)

15

A resilience criterion Balance portfolio

in all sectorsrsquo amp within each sector

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 16: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design natural gas (NG) amp light-duty vehicles (LDV)

16

Electric generation (million$GW)

Coal 2844

IGCC 3221

NGCC 1003

Gas Turbine 665

Nuclear 5339

Onshore Wind 2438

Offshore Wind 5975

Oil 1655

IPCC 3311

Solar PV 4755

Solar Thermal 4692

Geothermal 4141

Tidal Power 18286

Oceanic Thermal 6163

Passenger Vehicles

Year 1 Year 20

Gasoline $24000 $24000

Conventional Hybrid $28000 $26000

Plugin Hybrid (20-mile) $35000 $31000

Plugin Hybrid (40-mile) $41000 $34000

Plugin Hybrid (60-mile) $50000 $36000

Battery Electric (100-mile) $45000 $35000

Compressed Natural Gas $27000 $27000

Gasoline $380Gallon

Natural gas $3MMBTU

Both increase 125year

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 17: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design natural gas (NG) amp light-duty vehicles (LDV)

17

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case No NGV

Year

Mill

ions o

f V

ehic

les

0 5 10 15 20 25 30 35 40 0

5

10

15

20

25

30 Transportation Capacity

Clean Case 50 NGV

Year M

illio

ns o

f V

ehic

les

CNG

PHEV60

PHEV20

PHEV60

PHEV20

0 5 10 15 20 25 30 35 40 0

500

1000

1500

2000

2500 Nameplate Capacity

Clean Case 50 NGV

Year

GW

Coal Inland Wind

Hydro IPCC

SolarPV Offshore Wind

SolarThermal

Total 40 year cost is 8 less for the 50 CNG case

Total 40 year CO2 emissions is slightly less for the CNG case

We obtain desirable diversification while improving cost amp emissions

Petroleum-

electric

future Petroleum-

electric

NG

future

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 18: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design interregional transmission

18

High-capacity interregional transmission is motivated by high-renewable penetration becausehellip bull Location dependence bull Renewable energy can be moved

only by electric transmission bull Transmission costs comprise a

relatively small percent of long-term power system cost

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 19: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design interregional transmission

19

Ref (High inland wind)

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 20: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Design interregional transmission

20

BLUE EXPANDED TRANSMISSION

RED FIXED TRANSMISSION

For a high-renewable generation portfolio

interregional transmission investment lowers

cost and lowers emissions

COST EMISSIONS

Other benefits

bull resilience of energy

prices to large-scale

events

bull energy system

flexibility

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 21: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Major Renewable Investments

21

Ref (High inland wind) High offshore wind

High Solar High Geothermal

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 22: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

22

Ref (high inland wind)

High Solar High Geothermal

High Offshore Wind

Designs selected to minimize

40yr investment+operational

costs accounting for existing

transmission terrain population

density forest areas elevation

wind ice-loading right-of-way

Design interregional transmission

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 23: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

23

Two Questions

1 Uncertainty Given that the future is uncertain but we

have to decide before we know the future which

transmission system do we actually build

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 24: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

24

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to scenario i

Identifies an investment that is ldquocorerdquo in that the total ldquoCoreCostrdquo plus

the cost of adapting it to the set of envisioned futures is minimum

Designing under global uncertainties

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 25: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Minimize

CoreCosts(xf)+β[ Σi AdaptationCost(Δxi)]

Subject to

Constraints for scenario i=1hellipN gi(xf+Δxi)lebi

25

xf Core investments to be used by all scenarios i

Δxi Additional investments needed to adapt to

scenario i

Designing under global uncertainties

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 26: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

26

Two Questions

2 Balkanized authority With so many decision-makers

many with conflicting preferences what are possible

paths forward to build such geographically expansive

infrastructure

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 27: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

27

Possible paths forward

D Hybrid

approach

A Market-driven

investment

C Multiregional

coordination

B Federal

initiative

1 Market (merchant)-driven investment

no rate-base recovery costs recovered

through ldquonegotiated ratesrdquo

2 Size of the groups to form for overlay

projects may need to be very large and

difficult to developmanage

1 Similar to interstate highway system Feds paid

90 via gasoline tax states 10 States managed

program for location design ROW acquisition

construction OampM

2 Not clear that the interstate highway system had a

ldquopass-throughrdquo feature like an overlay may have

1 Establish permanent multiregional

stakeholder group consisting of industry

state governments advocacy groups to

address

2 States need to see benefit for taking

multiregional view

3 The above is evolving

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 28: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

28

Possible paths forward

D Hybrid approach 1 Design it using multiregional collaborative stakeholder

group of industry states advocacy DOE supported by

Governors Associations Impasses addressed by

federally-appointed arbiters

2 Incentivize merchant transmission developers to build

consistent with design

3 Federalize what merchant developers will not or cannot

build but with careful Fed-State coordination and

cooperation

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 29: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Public Education and Policy

29

2008 survey

Which costs more today

electricity from wind

turbines or electricity

from coal-fired plants

82 got it wrong

T Curry et al ldquoA survey of public attitudes towards climate change and climate change mitigation technologies in the United

States Analyses of 2006 Resultsrdquo Publication LFEE 2007-01-WP MIT Laboratory for Energy and the Environment

M DEstries ldquoSurvey Women fail on energy knowledgerdquo July 3 2009 report on a survey commissioned by Women

Impacting Public Policy and Womenrsquos Council on Energy and the Environment

H Klick and E Smith ldquoPublic understanding of and support for wind power in the United StatesrdquoRenewable Energy Vol

35 July 2010 pp 1585-1591

S Ansolabehere ldquoPublic attitudes toward Americarsquos energy optionsrdquo MIT-NES-TR-008 June 2007

2009 survey (women) 67 identify coal power plants as a

big cause or somewhat of a cause of

global warming 54 think the

same about nuclear energy

43 donrsquot know that coal is the

largest source of US electricity

2003 2007 survey

2006 survey

80 got it wrong

What is the impact of

nuclear power plants on

CO2 emissions

For both survey years ldquoPeople see

alternative fuels (hydro solar

wind) as cheap and conventional

fuels as expensiverdquo

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 30: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Developing and communicating sustainable infrastructure pathways

30

Visualization

Intent is that this system will be

publicly available via internet

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe

Page 31: National Energy & Transportation Infrastructure Design · 2013. 7. 21. · Plant Natural gas Coal Biomass BioFuels ... Solar Thermal 4692 Geothermal 4141 Tidal Power 18286 Oceanic

Concluding comment

31

There is need to centrally design at the national level

interdependent infrastructure systems This need is

driven by two attributes of these infrastructure systems

bull Economies of scale motivate centralized designs to

avoid inefficient infrastructure investment

bull Infrastructure lives for 50 years or more and climate

impacts take decades to turn

free markets appear too short-term to adequately

respond to these issues and the consequences of

getting it wrong are potentially severe