Energy Efficiency, Renewable Energy and Distributed Generation: Clean

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Energy Efficiency, Renewable Energy and
Distributed GenerationClean Profitable Ways
to Reduce Emissions

• Anna Garcia
• Air Innovations Conference
• August 2004

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Overview

• Energy efficiency is fastest, most cost effective
  remedy to satisfy both power needs and
  environmental quality concerns
• Renewable energy and clean distributed generation
  provide cleaner energy that reduce stresses on
  the electricity grid.
• States, cities and businesses are using these
  technologies to save money and improve the
  environment and their local economies through
  innovative partnerships and strategies

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Why EE and RE Makes Sense

• Improves the Environment
• Reduces multiple emissions (NOx, SO2, CO2, Pb,
  Hg) by up to 100 for displaced generation at
  lower cost
• Boosts the Local Economy
• Saves money, lowers compliance costs, creates
  jobs and raises productivity
• Efficiency turns over an average 7X in local
  economy
• Enhances Electricity Reliability
• Lowers electricity demand and relieves
  transmission load in constrained markets

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EE Offers Critical Environmental Benefits

• Energy Innovations, 1997 Innovations Path
  reduces energy consumption by over 40, and by
  2010 reduces the following pollutants
• NOx to 24 below 1990 levels
• SO2 to 64 below 1990 levels
• CO2 to 10 below 1990 levels
• Clean Energy Futures, 2000 Efficiency programs
  reduce demand growth by 20 to 47
• avoid need for 250 - 600 big 300 MW power plants
  and their associated emissions

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EE Reduces Emissions Cost-Effectively
Source Analyzing Electric Power Generation Under
the Clean Air Act, US EPA, March 1998
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Source STAPPA/ALAPCO, 1999.
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Source The Center for Applied Research, 1997.
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GHG Emissions Increasing 60 Percent by 2025
Projected U.S. carbon emissions by sector and
fuel, 1990-2025 (million metric tons)
Energy Information Administration, Annual Energy
Outlook 2004 with Projections to 2025, January
2004
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Energy Efficiency Helps Economic Development

• Conventional power supply 4 - 10 cents/kWh
• Energy Efficiency lt1.5 - 2 cents/kWh
• Energy efficiency can reduce base loads and peak
  demands, enhancing system security
• Energy efficiency increases reliability and
  supply
• If we help our businesses reduce the cost of
  operation, our products can be more competitive,
  and we can create more jobs
• If we install energy improvements and renewable
  energy applications we create good new jobs

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Economic Benefits of EE

• Savings for facility owners, consumers
• One NJ program 200M to ratepayers over 5 years
• Increased local employment
• Construction, engineering and maintenance
• Full-time, long-lasting jobs
• Avoided cost of additional TD, upgrades
• Avoided cost of power or generation, and
  elimination of line losses

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Reliability Benefits of EE

• Deliver new resources faster than generation,
  transmission, pipelines, wells
• Support weak points on grid
• Capacity
• Energy
• CA re-targeting EE programs to reduce peak
• 14 of peak is residential use
• another 14 is commercial use

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Electricity reliability transmission
Electricity Generation by Fuel, 1970-2025
(billion kwh)
Energy Information Administration, Annual Energy
Outlook 2004 with Projections to 2025, January
2004
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By 2011, generating capacity anticipated to
increase 30...
compared to a 5 increase in transmission
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• Aspects of air quality planning processes that
  are disincentives to energy efficiency
• Input-based limits and budgets rather than
  output-based
• Focus on end-of-pipe, single pollutant fixes
• No economic value attributed to prevention of
  multiple pollutant emissions achieved through
  efficiency

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Why It Makes Sense

• Improves Air Quality
• Reduces air pollution more effectively than many
  end-of-pipe controls
• Prevents emissions of NOx, SO2, PM, CO2, and Hg
• Accelerated adoption of EE/RE technologies can
  improve a state/local areas air quality
• Emissions reductions are cost-effective

• Improves the Economy
• Saves money by reducing energy use and bills, and
  lowering compliance costs
• Creates jobs and increases productivity,
  resulting in higher Gross State Product
• Greater economic growth more in states
  budget
• Increases comfort productivity

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Whats going on in the states?

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Regional GHG Initiative (RGGI) not including MD
and Regional GHG Registry (RGGR)




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Climate Action Plans


Net Metering


Public Benefit Funds
Renewable Energy Mandates
West Coast Governors Initiative
Completed GHG inventory
Mandatory Reporting or Voluntary Registries for
GHG
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GHG inventory in progress
Note Data from Pew Center, www.pewclimate.org/wh
at_s_being_done/in_the_states