Powering California Forward - CPUC Thought Leaders Series Fong Wan Senior Vice President, Energy Procurement Pacific Gas and Electric Company ...
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1 Powering California Forward CPUC Thought Leaders Series Fong Wan Senior Vice President, Energy Procurement Pacific Gas and Electric Company
Source of Presentation 2
California, Outlier or Leader?
Name of Presentation
Renewables Standard • Highest in US, 33% by 2020
Greenhouse Gas Cap • 1990 levels by 2020
Electric Car Mandate • 15% of sales by 2025
Energy Efficiency • Gets first priority in resource planning
Decoupling • Utility profits not tied to sales volume
Smart Grid • One of the earliest & largest adopters of AMI
Solar Rooftops • Goal set for 1 million by 2016
Nuclear • New plants prohibited by state law
Source of Presentation 3
PG&E: Delivering Clean Energy
Name of Presentation
CO2 Emissions for Delivered Electricity
1,400
1,216
1,200
Pounds of CO2 per MWh
1,000
800
659
600
445
400
200
0
U.S. Average CA Average PG&E
Source: U.S. and CA averages, U.S. Source: The Climate Registry, a third party
Environmental Protection Agency. verification of greenhouse gas emissions data.
Energy Efficiency: 4 Ingrained in the PG&E Culture • Legislation enacted in 1974 to “reduce wasteful, inefficient … consumption of energy.” • Decoupling of natural gas sales in 1978; electric sales in 1982 • Shareholder incentive adopted in 1993 • Significant growth in funding for energy efficiency programs
5
PG&E Smart Grid Investments
Engaged Consumers Smart Markets Smart Utility
Online Information
Customer Energy Management Outage and Load Management
Substation B
Substation A 6
1 2
3 5
Outage
4
Home Energy Reports Automated Demand Response Advanced Automation
PG&E is using Smart Grid technologies to provide
customers with benefits today
PG&E is a Leader in Retail 6
Solar PV
One-fourth of customer solar installations
in the U.S. are in PG&E's service territory
PG&E
All Other U.S.
Utilities Combined
Source: Annual survey by the Solar Electric Power Association
for 2012 (2013 results available June 2014).
Customer PV has Grown 7 Significantly
California Utility Scale Renewables
Source of Presentation
Name of Presentation
8
Increasing Dramatically
, CPUC RPS report to the legislature, Q4 2013
11. Figure is not risk-adjusted and forecast does not assume re-contracting of contracts whose terms expire prior to 2020.
12. Data Source: 2003-2010 data from the Provisional 20% RPS Closing Report (1/13/14); 2011-2020 data from the 2012 RPS Compliance Reports (8/1/13).
California is Rich in Renewable
Source of Presentation
Name of Presentation
9
Resources
Solar Wind Biomass Geothermal
Source:
Renewable generation is no 10 longer a technical challenge, but an economic and operational challenge
PG&E’s Portfolio Costs are Rising
11
$/MMbtu
$ 000’s Citygate Gas Price
Energy Crisis Costs (DWR) $10
$5,500
Procurement Costs (ERRA)
$5,000 $9
$4,500 $8
$4,000 $7
$3,500 $6
$3,000
$5
$2,500
$4
$2,000
$3
$1,500
$1,000 $2
$500 $1
$0 $0
($500)12
PG&E’s Electric Rate History
60
Tier 5 (> 301% of Baseline)
Tier 4 (201 - 300% of Baseline)
Rate Revolt 49.8
50
Tier 3 (131 - 200% of Baseline) in Kern County
Summer Rate
Relief
Tier 2 (101 - 130% of Baseline) GRC Ph. 2 rates
42.5 implemented
40 Baseline (Tier 1) 6/20/2011
36.0
Average Residential Rate
(¢/kWh)
Energy 32.0
30 Crisis
28.6
22.3¢
Average
Residential
20
Rate 16.7
15.5
13.5
13.6
10 11.9
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Data as of May 1, 2014Beyond 33% RPS, Integration is 13
Increasingly Challenging and Costly
Example Day in April under 33%, 40%
and 50% RPS
PG&E and other large California utilities
studied challenges and solutions to
implementing a higher RPS
Over-generation emerges as a problem
above 33%
• Grid cannot absorb all energy generated
• Over-generation is very high on some days
• Flexible fossil generation helps mitigate daily
swings
Without additional solutions, grid
operator must curtail solar to maintain
reliability
Source: Energy + Environmental Economics14
What Does the Future Hold?
More More demand
renewables? response?
More More
storage? EVs?
More energy Will electricity replace
efficiency? natural gas usage?15
Achieving CA’s 2050 GHG Goal
Source: Energy + Environmental EconomicsIntegration Solutions Will Be 16
Critical to Success
Increased regional coordination
• Make best use of latent flexibility in current system
Renewable resource diversity
• Reduces over-generation and need for flexible
resources
Flexible loads
• Shifting loads from one time period to
another, sometimes on short notice
Flexible generation
• Need generation that is fast ramping, starts quickly,
and has minimum generation flexibility
Energy storage
• Deep-draw (diurnal) storage is importantYou can also read
