SUSTAINABLE ENERGY IN AMERICA

Transcription

1 216 SUSTAINABLE ENERGY IN AMERICA Factbook GET THE FACTS No portion of this document may be reproduced, scanned into an electronic system, distributed, publicly displayed or used as the basis of derivative works without attributing Bloomberg Finance L.P. and the Business Council for Sustainable Energy. For more information on terms of use, please contact Copyright and Disclaimer notice on the last page applies throughout. Developed in partnership with the Business Council for Sustainable Energy.

2 About the Factbook (1 of 2): What is it and what s new Aims to augment existing, reputable sources of information on US energy Focuses on renewables, efficiency, natural gas Fills important data gaps in certain areas (eg, investment flows by sector, contribution of distributed energy) Contains data through the end of 215 wherever possible Employs Bloomberg New Energy Finance data in most cases, augmented by EIA, FERC, ACEEE, ICF International, LBNL, and other sources where necessary Contains the very latest information on new energy technology costs Has been graciously underwritten by the Business Council for Sustainable Energy Is in its fourth edition (first published in January 213) What is it? What s new? Format: This year s edition of the Factbook (this document) consists of Powerpoint slides showing updated charts. For those looking for more context on any sector, the 214 edition (1) can continue to serve as a reference. The emphasis of this 216 edition is to capture new developments that occurred in the past year. Updated analysis: Most charts have been extended by one year to capture the latest data. 215 developments: The text in the slides highlights major changes that occurred over the past year. New coverage: This report contains data shown for the first time in the Factbook, including analyses of US levelized costs of electricity, corporate renewables procurement, US transmission build, small-scale CHP generation and additional energy efficiency data. (1) The 214 Factbook can be found here: 1

3 OTHER CLEAN ENERGY (not covered in this report) SUSTAINABLE ENERGY (as defined in this report) About the Factbook (2 of 2): Understanding terminology for this report FOSSIL- FIRED / NUCLEAR POWER RENEWABLE ENERGY DISTRIBUTED POWER, STORAGE, EFFICIENCY TRANSPORT Natural gas CCS Solar Wind Geothermal Small-scale renewables CHP and WHP Fuel cells Electric vehicles (including hybrids) Natural gas vehicles Hydro Storage Biomass Smart grid / demand response Biogas Building efficiency Waste-to-energy Industrial efficiency (aluminum) Direct use applications for natural gas Nuclear Wave / tidal Lighting Biofuels Industrial efficiency (other industries) 2

4 Roadmap 215: A YEAR OF MILESTONES US ENERGY IN TRANSITION AN ERA OF LOW ENERGY PRICES OUTLOOK WRAP-UP 3

5 215: A YEAR OF MILESTONES

6 US energy overview: Economy s energy productivity GDP and primary energy consumption (indexed to 199 levels) GDP (indexed) Primary energy consumption (indexed) US GDP expanded 83% over the last 25 years; energy consumption only ticked up 17%. Source: US Energy Information Administration (EIA), Bureau of Economic Analysis, Bloomberg Terminal Notes: Values for 215 energy consumption are projected, accounting for seasonality, based on latest monthly values from EIA (data available through September 215). GDP is real and chained (29 dollars); annual growth rate for GDP for 215 is based on consensus of economic forecasts gathered on the Bloomberg Terminal as of January

7 Financing: US utility energy efficiency spending and budgets ($bn) budget budget 6.2 budget Natural gas Electric From 26 to 211, US utility expenditure for energy efficiency grew 25% per year. The budgeted amount for 214 would represent a 25% growth between 213 and 214. Source: CEE, ACEEE, Bloomberg New Energy Finance 6

8 Deployment: US natural gas production and gas-directed rig count (Bcfd, rigs) Production (Bcfd) Number of rigs 1,8 1,6 1,4 1,2 1, Shale Other lower 48 Rigs Natural gas production in 215 was up 7% from 214 levels, 26% from 27 levels. Technological improvements and drilling in sweet spots has improved productivity. Source: Bloomberg New Energy Finance, EIA, Baker Hughes. Data up through the latest comprehensive numbers available (September 215). 7

9 Policy: US coal power plant retirements completed and announced by year (GW) EIA retired EIA announced 11GW going coal-fired plants retired through October 215, with another 3GW of retirements scheduled through end of year. Source: Bloomberg New Energy Finance Notes: Retirements does not include conversions from coal to natural gas or biomass; retirement numbers through end-october

10 Deployment: US solar PV build US utility-scale photovoltaic build (GW) US small-scale photovoltaic build (GW) Incremental Cumulative Incremental Cumulative Cumulative capacity 4.4 Cumulative capacity (right-axis) (right-axis) Residential Commercial The US set records in 215 in utility-scale, residential and commercial build in solar PV. Source: Bloomberg New Energy Finance 9

11 US ENERGY IN TRANSITION

12 US energy overview: Renewable energy capacity build by technology (GW) Hydro Geothermal Biomass, biogas, wasteto-energy Solar Wind Source: Bloomberg New Energy Finance, EIA Notes: Numbers include utility-scale (>1MW) projects of all types, rooftop solar, and small- and medium-sized wind. 11

13 US energy overview: Renewable energy generation by technology US renewable generation by technology (including hydropower) (TWh) US non-hydropower renewable generation by technology (TWh) Other renewables Hydropower Geothermal Biomass, biogas, waste-to-energy Solar Wind Source: Bloomberg New Energy Finance, EIA Notes: Values for 215 are projected, accounting for seasonality, based on latest monthly values from EIA (data available through October 215). Includes net energy consumption by pumped hydropower storage facilities. Totals may not sum due to rounding. Beginning in 214, numbers include estimated generation from distributed solar; generation from other distributed resources are not included. 12

14 US energy overview: US electricity generation by fuel type (%) 1% 8% 6% 8% 9% 11% 1% 13% 12% 13% 13% 13% 22% 22% 24% 24% 25% 31% 28% 28% 32% 4% 19% 2% 2% 2% 19% Renewables (including hydro) Natural gas 2% 1% 1% 1% 1% 19% 19% 19% 19% 1% 1% 1% 1% Nuclear 2% 49% 48% 44% 45% 42% 37% 39% 39% 34% Oil % Coal Source: EIA Notes: Values for 215 are projected, accounting for seasonality, based on latest monthly values from EIA (data available through October 215). In chart at left, contribution from Other is not shown; the amount is minimal and consists of miscellan technologies including hydrogen and non-renewable waste. The hydropower portion of Renewables includes negative generation from pumped storage. 13

15 US energy overview: Greenhouse gas emissions from the power sector (MtCO2e) 3, 2,5 GHG emissions from power sector, e 2, 1995 levels 1,5 1, CPP target, 23 5 Power-sector emissions are 18% below 25 levels and the lowest since Source: Bloomberg New Energy Finance, EIA, EPA Notes: Values for 215 are projected, accounting for seasonality, based on latest monthly values from EIA (data available through September 215). 14

16 Global context: US-related causes and implications of falling oil prices US gasoline consumption (bn gallons per year) US average fuel-economy rating (weighted by sales) of purchased new vehicles (MPG) Oct 7 Oct 8 Oct 9 Oct 1 Oct 11 Oct 12 Oct 13 Oct 14 Oct 15 Gasoline consumption increased 4% in 215 but is still 4.6% below the 25 peak Fuel-economy of new vehicles is 22% above 28 levels Source: EIA Notes: Analysis is based on daily averages of total gasoline all sales / deliveries by prime supplier. Values for 215 are projected, accounting for seasonality, based on latest monthly values from EIA (data available through October 215). Source: UMTRI, Bloomberg New Energy Finance Notes: Relies on combined city/highway EPA fuel economy ratings. 15

17 Deployment: US hybrid electric vehicle sales 1, units Share (%) 15 5% 12 4% 9 3% 6 2% 3 1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q % PHEV HEV share in new sales HEV PHEV share in new sales PHEV sales collapsed 24%, and HEV sales declined 16% in 215 Source: Bloomberg New Energy Finance Note: PHEV is plug in hybrid electric vehicle, HEV is hybrid electric vehicle 16

18 Deployment: US battery electric vehicle sales 1, units Share (%) 25 5% 2 4% 15 3% 1 2% 5 1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q BEV BEV share in new sales % BEV sales were resilient, climbing 16% in 215 Source: Bloomberg New Energy Finance Note: BEV is battery electric vehicle 17

19 AN ERA OF LOW PRICES

20 Jan 25 Jul 25 Jan 26 Jul 26 Jan 27 Jul 27 Jan 28 Jul 28 Jan 29 Jul 29 Jan 21 Jul 21 Jan 211 Jul 211 Jan 212 Jul 212 Jan 213 Jul 213 Jan 214 Jul 214 Jan 215 Jul 215 Economics: Cost of generating electricity in the US from natural gas vs coal ($/MWh) Gas (CCGT) Coal (CAPP) Source: Bloomberg New Energy Finance Notes: Assumes heat rates of 7,41Btu/kWh for CCGT and 1,36Btu/kWh for coal (both are fleet-wide generation-weighted medians); variable O&M of $3.15/MWh for CCGT and $4.25/MWh for coal. Gas price used is Henry Hub. CCGT stands for a combined-cycle gas turbine. CAPP represents Appalachian coal prices. 19

21 Economics: US utility-scale solar PPA prices by signing date, 28-H1 215 ($/MWh) 2 ERCOT Southwest California Northwest MISO SPP Southeast 3MW 15 1MW Prices for long-term contracts for utility-scale PV continue to decline, reaching $4-6/MWh range Source: Bloomberg New Energy Finance, FERC EQR, public disclosures and analyst estimates Notes: Does not include PPAs under 5MW. PPA price is calculated as the average offtake price over the period of project operation. 2

22 Economics: US onshore wind PPA prices by signing date, relative to wholesale power prices, ($/MWh) MISO SPP Prices for long-term contracts for wind are also falling, and are below wholesale power prices in some regions of the country Source: Bloomberg New Energy Finance, FERC EQR, public disclosures and analyst estimates Notes: Does not include PPAs under 5MW. PPA price is calculated as the average offtake price over the period of project operation. 21

23 US energy overview: Retail and wholesale power prices Wholesale power prices ($/MWh) Average retail power prices ($/MWh) NYISO ISONE CAISO PJM MISO ERCOT Northwest New York New England California PJM MISO ERCOT Northwest Florida Southwest Southeast Retail power prices in most regions remain well below the peak prices seen in In 215, retail electricity rates fell by 1.3% on average nationwide. Source: Bloomberg New Energy Finance, EIA, Bloomberg Terminal Notes: Data through end-november 215. Wholesale prices taken from proxy power hubs in each ISO. Prices are in real 214 dollars. 22

24 OUTLOOK

25 Global context: Total new investment in clean energy by country or region ($bn) Other EMEA Other APAC Other AMER Europe Brazil India China United States Total Clean energy investment climbed 8% in the US in 215. The US currently makes up 17% of global investment in clean energy. Source: Bloomberg New Energy Finance Notes: For definition of clean energy, see slide in Section 2.2 of this report titled Finance: US clean energy investment (1 of 2) total new investment, all asset classes ($bn). AMER is Americas; APAC is Asia-Pacific; EMEA is Europe, Middle East, and Africa. 24

26 Policy: Federal support of clean energy At the end of 215, Congress enacted major subsidy extensions for clean energy projects. The Production Tax Credit (PTC) for wind projects was extended through the end of 219. The credit is $23/MWh for projects beginning construction in 215 and 216, then steps down through 219. The Investment Tax Credit (ITC) for solar projects was extended and now applies to projects beginning construction before 222. The credit begins at 3% for projects breaking ground before 22, then steps down gradually to 1%. Extensions were also granted for the production of second-generation biofuels and energy from geothermal, biomass and landfill gas, hydroelectric projects and ocean energy; however, the majority of these technologies received extensions of only two years, compared to five year for wind and solar. Deductions and credits were extended for energy efficiency building improvements and the construction of efficient homes. 25

27 Policy: EPA Clean Power Plan Emissions reductions required by the Clean Power Plan between 212 and 23, under HI mass-based compliance AK -3% CA -1% OR -3% WA -13% NV -26.4% US +4% ID -26% UT -41% MT -37% WY -31% CO -38% ND -31% SD -33% NE -37% KS -35% MN -34% IA -29% MO -25% AZ -23% -28% OK -3% NM AR -25% TX -2% LA -34% WI -35% IL -8% MS -32% MI -31% IN -32% TN -25% AL -28% OH -32% KY -26% GA -29% WV -16% FL -25% PA -28% SC -23% VA -24% NC -1% NY VT +% ME -14% NH -8% MA -6% RI +4% CT -14% NJ -15% DE -29% MD DC EPA finalized AL AZ CAthe CT DE Clean GA IDPower IN KSPlan LA MD(CPP) MI MSin MTAugust NV NJ NY 215 ND OK PA SC TN UT VA WV WY The Plan could cut power-sector emissions 32% from 25 levels by 23. Source: Bloomberg New Energy Finance, based on analysis of EPA Clean Power Plan Notes: Darker colors indicate deeper emissions cuts. Yellow states may actually increase their overall emissions, while remaining in compliance with the EPA s Clean Power Plan. Data is not available for Alaska and Hawaii; Vermont and DC are not covered by the EPA s regulations. Data is based on EPA modelling and EPA historical emissions inventories. 26

28 Policy: State policy barriers to net energy metering erected in 215 NV: Regulators approved monthly charges and payment cuts on NEM customers. MN: State policy now allows publicly owned utilities to charge new NEM customers a "reasonable and appropriate" fee. WI: Regulators approved monthly demand-charge on NEM with intermittent generation. VT: State law changed default owner of RECs from generator to utility. MA: NEM generation cap reached. CA: Regulators proposed fees and monthly charges on new NEM customers. RI: State law requires regulators to consider net metering s impact on cost allocation in future rates. AZ: Regulators approved monthly charges on NEM customers. WV: State law prohibits intra-class crosssubsidies. TX: El Paso Electric proposed a monthly demand charge for NEM customers. OK: Regulators considering utility proposal for a demand charge on NEM customers. New or higher monthly charges Pending barriers Cap on qualifying generation Reduced REC value Multiple barriers 27

29 Policy: US emissions pledge in Paris 7, 25 emissions 6, 5, 4, 3, 2, 1, 225 emissions target (26% below 25) Net emissions (Scenario 1) Net emissions (Scenario 2) The US pledge in Paris was to reduce emissions to 26-28% below 25 levels by emissions were 1% below 25 levels. Source: Bloomberg New Energy Finance, EIA, EPA, US Department of State Notes: Net GHG emissions include total emissions less sequestration. Full data only available through 213. Scenarios 1 and 2 show two trajectories for US emissions growth, based on a combination of Bloomberg New Energy Finance (BNEF) forecasts and EPA, EIA and US Department of State analyses. Both scenarios use BNEF s forecast for US power-sector emissions, assuming full compliance with the EPA Clean Power Plan. Both scenarios assume transportation growth as per the EIA s AEO215 reference case and assuming existing CAFE standards. Scenario 1 assumes residential, commercial and industrial sectors energy growth as per the EIA AEO215 reference case; and agricultural, waste and forestry and land use sectors growth as per the 214 US Climate Action report. Scenario 2 assumes the historical decline rate for the residential and commercial sectors; assumes the industrial, agricultural and waste sectors emissions level remain constant from 213; and assumes forestry and land use emissions follow the high sequestration case in the 214 US Climate Action report. 28

30 4 November 214 WRAP-UP

31 Wrap-up 215 was a watershed year for sustainable energy in the US: GDP grew 2.4%, while energy consumption grew only.1% Record natural gas production and consumption Record coal retirements (14GW+) Record solar PV build (7.3GW) These changes are signs of a permanent shift: Natural gas has been displacing coal within the power sector Renewables (excluding hydro) provided 7.4% of power, up from 2.2% in 25 Power sector emissions 18% below 25 levels Hybrid vehicle sales fell and gasoline consumption rose, but long-term trend still positive Meanwhile, energy prices remain low: Natural gas prices hit lowest levels since 1999, allowing gas to outcompete coal Solar, wind costs continue to decline Retail power prices 6% below 28 peak And the outlook is strong: US remains key destination for clean energy investment Critical policy developments (Paris, Clean Power Plan, tax credit extensions) 3

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