State of the Energy Sector: National Perspective David K. Owens E2Tech Expo November 17, 2016 Portland, ME
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Trends Reshaping the Utility Industry Slow economic recovery Aging infrastructure Low natural gas prices New competitors Emerging technologies Changing customer preferences and behaviors Regulatory issues Cyber and Physical Security 3
I. The Electric Distribution System in Transition 4
State Initiatives New York: Reforming the Energy Vision (REV) California: Distributed Resource Plans Minnesota: e21 Initiative Massachusetts: Grid Modernization Plan Hawaii: Power Supply Improvement Plan Illinois: Energy Infrastructure Modernization Act 5
Grid Evolution Requires Increasing Investment Grid Technologies Digitization Data Analytics Controls Systems Battery Storage: What are the benefits? For Homes Storing solar and wind power could increase time off grid by 2-4 hours. For Businesses Control of power costs reduces downtime and production losses. For The Grid Improved efficiencies in demand-side management, generation, and transmission. 6
II. Individualized Customer Services PRESENT PAST Source: The Edison Foundation Institute for Electric Innovation, Thought Leaders Speak Out: Key Trends Driving Change in the Electric Power Industry, December 2015 7
Distributed Energy Resources (DERs) are Growing Historical and projected solar PV capacity Annual capacity additions Source: GTM/ SEIA, Solar Market Insight, 2014 8
Examples of Corporations with Publicly Announced Renewable Energy Goals 9
There Is Growing Electrification Momentum Transit EV Buses Are in Service in 15+ Cities Airports Seattle Sea-Tac Saves $2.8 Million in Fuel per Year Seaports Long Beach Terminal Electrification Is Equal to 5,000 Homes Fleet In 2016, electric companies plan to invest more than $128 million 10
III. Transformation Drivers Clean Energy Environmental regulations Low natural gas prices Declining technology costs Diversification Public policies Financial incentives Customer demand New technologies, models and uses 11
Our National Fuel Mix is Changing 2005 National Fuel Mix 2015 National Fuel Mix Source: Department of Energy, Energy Information Administration 12
And Is Getting Even Cleaner 1/3 of U.S. Power Generation Comes From Zero-Emissions Sources (Nuclear and Renewables) 13
U.S. Power Sector CO 2 Emissions Declining As of 2014, industry CO 2 emissions were 15 percent below 2005 levels Nearly 1/3 of U.S. power generation came from zero-emissions sources Source: Developed from U.S. Energy Information Administration, Monthly Energy Review March 2016 14
IV. Grid Security Cyber and Physical Securing and protecting our nation s critical electric grid assets are top industry priorities. Security of the electric industry is regulated critical electric grid assets are subject to mandatory, enforceable cyber and physical security standards. Industry and government collaboration is essential. Exercises are taking place nationally and regionally to prepare for extraordinary scenarios. Electricity Subsector Coordinating Council (ESCC) The industry is making significant investments to protect the most critical assets. 15
Approach to Grid Security Standards Industry-Government Partnership Incident Response Physical Electricity Subsector Coordinating Council (ESCC) Grid Resiliency Cyber Electricity Information Sharing & Analysis Center (E-ISAC) Mutual Assistance Partnerships with federal, state, & local governments Spare Equipment Programs 16
Industry Goal Strike a Balance Among Reliability, Sustainability, and Affordability Attain Customers Desired Level of Electric Reliability...... And Society s Clean Energy Policy Goals..... At as Low a Cost to Electricity Customers as Possible. Reliability Sustainability Affordability 17
Jason Smith jsmith@eei.org 202-508-5710