Natural Gas Power Generation State of the Industry. October 2018

Transcription

1 Natural Gas Power Generation State of the Industry October 2018

2 Overview The Market Understanding how the market has changed. The Technology An overview of how a combined cycle natural gas plant works and how the grid is designed to work with other energy sources. The Future of Power Generation The Appalachian Basin s natural gas future. 2

3 The PJM Market: Reliable, Sustainable, Competitive Market Solutions 3

4 Understanding the Market PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity Source: 4

5 Regional Transmission Operators 5

6 PJM Electric Grid Established in 1997 Ohio deregulated in 1999 Organized, wholesale, competitive market Serves 65 million people in 13 States, Ohio is one of them 6

7 13 State Region 2017 PJM Energy by Resource Source: PJM 7

8 Natural Gas Power Generation Is Here Natural gas use for electric power generation in Ohio has increased markedly in the past decade and was more than eight times greater in 2017 than in Energy Information Administration Source: Energy Information Administration, Electric Power Monthly 8

9 Objective: Shale Has Changed Everything The United States is now the largest producer of natural gas and the Appalachian Basin (or the Shale Crescent USA) has the lowest price of natural gas in the developed World. Source: U.S. Energy Information Administration, Form EIA-23L, Annual Report of Domestic Oil and Gas Reserves 9

10 Energy Consumption Trends Source: Energy Information Administration 10

11 Consumption of Natural Gas in the U.S. Click to add footer 11

12 U.S. Power Generation Source: Energy Information Administration 12

13 The Technology: Clean Air, Affordable, Reliable Energy 1 3

14 Video 14

15 Flexibility of Natural Gas The future of the grid requires a flexible fuel source to meet consumer demand. Natural gas is both efficient and flexible. Source: 15

16 The Nation s Carbon-Reducing Powerhouse Clean-burning natural gas contributes to reductions in GHG emissions. Ohio now leads the country in carbon emission reductions. Imagine what Ohio s air quality improvements will look like with more clean natural gas power plants in operation. Ohio saw an impressive 37.7 percent drop in its power sector s carbon emissions from 2005 to The Buckeye State, in fact, has become the nation s carbon-reducing powerhouse: In absolute terms, Ohio slashed its carbon pollution by 50 million metric tons (MMT) during that decade far more than any other state. 16

17 U.S. Power Plant Emissions Source: Energy Information Administration 17

18 Competitive Markets Work Electricity Deregulation Has Saved Ohioans Billions It took nearly a decade of sorting out regulatory problems, but in 2011 deregulation of electricity in Ohio began to work exactly how economic theory projected it would. Since 2011, a robust retail market for electricity has developed in Ohio. As a result, deregulation of electricity has saved consumers an average of $3 billion per year, for a total of $15 billion over five years. Moreover, it is projected to continue to save consumers nearly that amount for the next five years, through 2020, totaling another $15 billion in savings. Further, the Midwestern deregulated states (Ohio, Pennsylvania and Illinois) have, over time, outperformed their regulated Midwestern neighbors (Michigan, Indiana and Wisconsin) in terms of constraining electricity costs for consumers. 18

19 Reliable Power Generation Do we have enough natural gas? Is natural gas reliable for our energy needs? The U.S. Energy Information Administration estimates that as of January 1, 2016, there were about 2,462 trillion cubic feet (Tcf) of technically recoverable resources of dry natural gas in the United States. At the rate of U.S. natural gas consumption in 2016 of about 27.5 Tcf per year, the United States has enough natural gas to last about 90 years. The actual number of years will depend on the amount of natural gas consumed each year, natural gas imports and exports, and additions to natural gas reserves. Source: Energy Information Administration

20 The Future of Power Generation: Clean, Affordable, Reliable Natural Gas 20

21 New Power Plant Investments in Ohio Source: Bricker & Eckler 21

22 Ohio Projects 22

23 Appalachian Basin Projects 23

24 Natural Gas Lifecycle: By the Numbers Source: energyindepth.org 24

25 Ohio s Future is Bright! 25

26 THANK YOU Jackie Stewart