Transcript Center PowerPoint Template

U.S. Electricity Infrastructure:
State Initiatives for Advancing Security,
Technology and Market Transformation
Sue Gander
Director
Environment, Energy and Natural Resources Division
National Governors Association
Center for Best Practices
202-624-7740
[email protected]
www.nga.org/center/eenr
Overview
• Electricity infrastructure challenges
• State leadership to address these through
transmission, technology and markets
– Transmission
– Planning, cost allocation, environment
– Smart Grid
– Pilots and road maps
– Energy efficiency as a resource
– Best practices and opportunities
• ARRA (Recovery Act) support
The National Governors Association
Providing Governors Ideas that Work
Federal Relations
• Builds consensus on federal
issues
• Committee structure
• Gives governors a collective
voice on Capitol Hill
Center for Best Practices
• Comparative policy shop
• Provides governors and
staff timely technical
assistance
• Securing a Clean Energy
Future (2007-2008)
• Strengthening our
Infrastructure for a
Sustainable Future (20082009)
Transmission Benefits - If We Get it Right
Economic
Environment
Security
DOE study on 20%
potential wind penetration
creates $450 billion in
economic gain and
500,000 jobs
Allows states to develop
Protects consumers and
DG and off-grid renewable industry from blackouts,
energy sources
data theft, etc
Avoids transmission
congestion -- costs
homeowners and
businesses $22 billion/yr
Increases energy
efficiency opportunities,
notably DR
Allows for better data
collection, backup
mechanisms, and analysis
of benefits
Source: Energy Future Coalition and NGA Center
Transmission faces “old” challenges…
• Growing demand for electric services
– Growing population/reliance on digital technology/PHEVs
• Aging infrastructure
– Grid is similar to one envisioned by Thomas Edison
– 70% transmission lines at least 25 years old
– 70% power transformers at least 25 years old – average age is 40 years
– 60% of all circuit breakers at least 30 years old
– By 2030, the electric utility industry will need to invest up to $2.0
trillion to maintain today’s level of service ($300 B in transmission)
• Concerns with reliability
– Three major blackouts in last 9 years
– Impacts quality of life, safety, bottom-lines
Transmission Faces New Challenges…
• Concerns about global climate change
– Electricity use is 40 percent of U.S. CO2 emissions
• Greening of power supply
– 20 states have CO2 reduction targets
– 33 states have Renewable Portfolio Standard (RPS) or similar goal for
electricity
– Nearly 20 states with Energy Efficiency Resource Standards (EERS)
The Transmission Planning Process
FERC
Grid
Operators
PUCs
Interconnection
Entities
Federal
Agencies
Utilities
Environ.
Agencies
Governors
Source: Energy Future Coalition
State Leadership on Transmission Needs
Three areas of focus:
• Doing more -- Addressing planning, cost
allocation
• Doing it smarter -- Improving the grid
• Doing it better -- Reducing demand for
transmission (deferring investments)
Improved Transmission Planning -- CA
• Renewable Energy Transmission Initiatives (RETI
– Statewide collaborative process between CPUC, CEC,
CAISO, other utilities, land managers, and enviros
– RETI process will identify, plan and permit the “best”
transmission lines to meet CA’s 33% RPS
– Includes significant investment by PG&E
Improved Planning -- MT, CO, UT
• Montana Alberta Tie Ltd. transmission line
– 230 kilovolt, 214 mile-line that will connect state
energy to markets in Alberta, Canada
• completed the permitting process in 2008
• expected to attract nearly $1 billion in wind development
• Colorado study to propose ways to achieve 1
GW of new RE capacity
• Utah statewide REZ study – Phase I completed
Improved Planning -- Regional Efforts
• Western Governors Association - WREZ
– GIS based study on potential for large scale
development of renewable resources – June 15 phase I
– Partner with utilities to evaluate needs to move power
from preferred REZs – 30,000 MW by 2015
• Upper Midwest Transmission Development
– MGA Governors of IA, MN, ND, SD, and WI
– Identify cost-effective wind resources and transmission
infrastructure projects
– Cost allocation and planning working groups
ARRA Support for Transmission
• DOE provided $6.5 billion for transmission
activities
– Western Area Power Administration and
Bonneville Power Authority each given $3.25
billion in spending authority
• To construct transmission only for delivery of RE
power
• Projects must repay the U.S. Treasury with interest
• Additional ARRA planning provisions
• Regional Planning Entity must be established for 3
interconnections (Western, Eastern, Texas)
Smart Grid - The Potential
Source: http://www.urbanecoist.com/wp-content/uploads/2009/03/smartgrid_454570a-6.jpg
Smart Grid -- The Barriers
• New technology risk
• Lack of standards
– Security and interoperability
• Cost recovery risk
– Who pays, who benefits?
• Need a strategy
– Statewide vision, plan or roadmap
Selected Smart Grid Pilots
State
Southern CA
IL
PA
Boulder, CO
Miami, FL
Portland, OR
Ohio
Charlottesville,
VA
Meters
Cost
2-way interface for
household devices to
communicate w/meter
141,000 two-way smart
meters under proposed
pilot
$1.63 billion ($9 million
and $304 million in
benefits)
Com Ed plans to apply for
stimulus funds
1.3 million AMIs with
fixed power line carriers
25,000 planned smart
meters
Over 1 million wireless
meters to every house in
Miami-Dade County
850,000 AMIs
$163 million
Three-year pilot (20092011) with AMI for
110,000 meters
14,700 meters
$109 million over 3 years
via $33.3 million rider for
2009
TBD
TBD
Technical Details

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Programmable thermostats
near real-time energy usage information

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6-month review of pricing and
technology options to best benefit
consumers
established Statewide Smart Grid
Collaborative to manage planning and
develop vision


•
hourly interval data for all customers
available on-line within two days
First fully integrated “Smart Grid City”




new outage management,
energy usage and tools on Internet
better consumer bill information
Distribution automation for real-time
control
Monitoring of electrical equipment
Microgrid: Interconnected network that
can function connected to or separate
from grid
TBD
$132 million


ARRA Support for Smart Grid
• The Smart Grid Investment program $3.4 billion available starting in the
summer and DOE anticipates over 1,500
applications
• The Smart Grid Demonstration
program has $615 million available
through matching grants
EE as a Resource - New England
• ISO New England and Forward Capacity Market
– Electricity resources compete for capacity payments
– Accepts DR (e.g. EE, DG, load management, etc)
– All resources that clear auction paid market clearing price &
receive up to 5-yr usage commitment
– Offers price response and reliability response
• 2,029 MW of DR as of 12/2008
• Played key role in July/Aug 2008 heat wave
– NYISO saved 948MW in peak demand
– CT saved 217 MW
EE as a Resource - Mid-Atlantic
• Demand Response in PJM
• Planning Auction for 2012/2013 held in May
• 10,464 MW of incrementally new capacity available
– Auction resulted in 5,682 of DR, 400% over last year’s auction
– Wind resources accounted for 323 MW
– Combined results of six PJM capacity auctions = 27,640 MW
EE Barriers
• Upfront costs
• Measurement & verification
• Scale
ARRA Support for EE
• $3.1 billion to state energy offices
• $3.2 billion in energy efficiency
conservation block grants
• Additional support for weatherization, green
schools, bonding authority, tax incentives
etc.
Conclusions
• States need combination of transmission, smart grid
activities along with creative market mechanisms to
ensure delivery of clean, affordable and reliable
energy
– Do more, Do it smarter, Do it better
• ARRA presents opportunities for states and regions
to move ahead
Resources
• DOE/Office of Electricity
• EPA/National Action Plan on Energy Efficiency
• EPRI
• Edison Electric Institute
• National Council on Electricity Policy
• Regulatory Assistance Project
• Center for American Progress
• American Council for an Energy Efficient Economy