Progress in Air Quality: Sustainable Improvements. NCSL Advisory Council on Energy June 18, 2007

Transcription

1 Progress in Air Quality: Sustainable Improvements NCSL Advisory Council on Energy June 18, 2007

2 Improving Regional Air Quality Investment/ Construction Economic Development Public Participation Operations Cooperative Research 2

3 EPA s 2006 Emission Trend Report For the Nation Source: 3

4 Area of Interest Greater Tennessee Region MO IL IN KY WV VA AR TN NC SC MS AL GA 4

5 Comparison of Growth Areas and Emission Trends in the TVA Region 300% 250% 200% Actual Forecast Gross Regional Product % Change 150% 100% 50% Per Capita Income TVA Generation 0% -50% NOx SO2 TVA Emissions -100%

6 Particulate Matter Levels PM10 and PM2.5 Concentration, (Micrograms per Cubic Meter) Greater TVA Region 60 Annual PM 10 Standard PM 10 Concentration PM 2.5 Concentration Annual PM 2.5 Standard 10 0 IN WV MO IL KY VA AR TN NC SC MS AL GA

7 Ozone Levels 1 Hour and 8 Hour Greater TVA Region MO IL IN KY WV VA 130 AR TN NC Concentration, (Parts per Billion) Hour Standard 1-Hour Concentration 8-Hour Standard 8-Hour Concentration SC MS AL GA

8 2006 Design Value Maxima - Ozone Existing 8-Hour Metric Range of Proposed 8-Hour Metrics GSMNP Knoxville Tri-Cities Chattanooga Nashville Memphis Clarksville NOTE: Design values for 2006 are preliminary but are not expected to change. 8

9 Achieving Ozone Attainment Tennessee Nitrogen Oxide Emissions (2,022 tons per day) 2007 Projected (1,439 tons per day) 5.2% 8.1% 14.0% 39.6% 19.8% 36.8% 15.6% Mobile Utility Off Road Industial Other 24.2% 11.1% 25.6% Source: Dr. Wayne Davis, University of Tennessee (Presented at the Knoxville Clean Air Action Summit) 9

10 TVA s Generation Mix Nuclear 27% Nuclear 29% Other 1% Hydro Fossil 8% (Coal, Gas, Oil) 61% 64% Hydro Fossil (Coal, Gas, Oil) 9% 10

11 TVA and Air Quality TVA has one of the most aggressive emission reduction programs in the nation We lead the region in the installation and operation of emission control equipment TVA now has 8 scrubbers and 21 Selective Catalytic Reduction systems in operation We have spent over $4.6 billion since 1977 on emission control equipment and will spend another $1.2 billion through 2010 on on-going and announced projects Compliance with future regulations could cost $3.0 to $3.5 billion dollars on top of these investments 11

12 Scrubbers and Advanced NOx Controls on TVA s Coal-fired Units Shawnee * 10 Units 1750 MW Kentucky Paradise 3 Units 2558 MW Virginia John Sevier Bull Run 4 John Units Sevier 800 MW 1 Unit 950 MW 4 Units 800 MW Cumberland 2 Units 2600 MW Gallatin 4 Units 1255 MW Johnsonville 10 Units 1485 MW Tennessee Kingston 9 Units 1700 MW North Carolina Allen 3 Units 990 MW Mississippi Colbert 5 Units 1350 MW Widows Creek 8 Units 1969 MW Georgia Existing Scrubbers Announced Scrubbers Existing SCRs SNCR Demonstration Alabama Announced SCRs or other NO x Technology Currently Burning Low Sulfur Coal Planned Switch to Low Sulfur Coal * Shawnee Unit 10 is an Atmospheric Fluidized Bed Combustion (AFBC) boiler which lowers SO 2 and NOx emissions without the use of external controls.

13 TVA Emissions of Sulfur Dioxide (SO 2 ) 1,200 SO 2 Emissions, (ktons/year) 1, Actuals Projected

14 Change in Annual Coal-fired Utility SO 2 Emissions in the Southeast from Change in Emissions, (Tons) 200, , ,000 50, , , , , , ,000 NC GA SC TVA TN TVA KY TVA AL Source: EPA s Clean Air Market Database; 14

15 2006 Utility SO 2 Comparisons SO 2 Emissions (Tons per Year) SO 2 Emission Rates (Tons per Total Generation) 1,200,000 6 SO 2 Emissions, (Tons/Year) 1,000, , , , ,000 0 Southern Company American Electric Power TVA Duke Energy, Carolina Progress Energy, Carolina SO 2 Emission Rate, (Tons/GWH) Southern Company American Electric Power Duke Energy, Carolina Progress Energy, Carolina TVA Source: Emissions: EPA s Clean Air Market Database; Generation: EIA 906; 15

16 40% 35% 2006 Percent of Coal Plant Capacity with Scrubbers 37% 30% 25% 20% 15% 19% 10% 5% 0% TVA American Electric Power 8% Progress Energy, Carolina 6% Southern Company 0% Duke Energy, Carolina Source: Data from Argus Scrubber Report (Sept 2006) 16

17 Cumberland Fossil Plant Scrubber Installation Cumberland Scrubber Original Plant New Scrubber Addition with Limestone Receiving and New Chimneys 17

18 Paradise Unit 3 Scrubber 18

19 Bull Run Scrubber Absorber 19

20 Kingston Scrubber Construction 20

21 TVA Emissions of Nitrogen Oxide 600 (NO x ) NOx Emissions, (ktons/year) Annual Ozone Season Actuals Projected

22 Change in Annual Coal-fired Utility NOx Emissions in the Southeast from TVA Change in Emissions, (Tons) 0-50, , , , ,000 TVA SC GA AL TVA NC TVA KY TN Source: Emissions: EPA s Clean Air Market Database; 22

23 2006 Utility NOx Comparisons NOx Emissions (Tons per Year) NOx Emission Rates (Tons per Total Generation) 350, NOx Emissions, (Tons/Year) 300, , , , ,000 50,000 0 American Electric Power Southern Company TVA Duke Energy, Carolina Progress Energy, Carolina NOx Emission Rate, (Tons/GWH) American Electric Power TVA Southern Company Progress Energy, Carolina Duke Energy, Carolina Source: Emissions: EPA s Clean Air Market Database; Generation: EIA 906; 23

24 70% 2006 Percent of Coal Plant Capacity with SCRs 60% 50% 67% 60% 40% 41% 41% 30% 34% 20% 10% 0% Progress Energy, Carolina TVA American Electric Power Southern Company Duke Energy, Carolina Source: SCR Data from Argus NOx-SCR Report (Sept 2006) 24

25 Paradise SCR 25

26 26

27 CO 2 and Global Climate Change

28 2004 CO 2 Emissions Millions of Tons of CO 2 emitted from all generating facilities AEP Southern TVA Xcel Ameren Cinergy Dominion Edison International Progress TXU FPL Scottish Power Duke E.ON First Energy Allegheny Energy AES DTE Energy Texas Genco LLC Calpine Entergy Reliant Mirant PPL PSEG Constellation Exelon East KY Power Coop Data Source: CERES Report; 28

29 2004 CO 2 Emission Rates Pounds of CO 2 emitted per MWh of electricity produced from all generating facilities E.ON Allegheny Energy East KY Power Scottish Power Cinergy AES Ameren Mirant DTE Energy AEP Xcel Reliant Texas Genco LLC TXU Southern Edison International TVA First Energy Progress Dominion PPL Duke Calpine FPL PSEG Constellation Entergy Exelon ,000 1,500 2,000 Data Source: CERES Report; 29

30 Carbon Emission Rate Tons per MWh Actuals Projections Emission Rate (Tons/MWh) CY00 CY02 CY04 CY06 CY08 CY10 CY12

31 TVA Supports the President s CLIMATE VISION Program National goal to reduce greenhouse gas intensity of U.S. economy by 18% by 2012 TVA participating with others in the electric sector in POWER PARTNERS SM to help meet the President s goal Since 1995 TVA has reduced, avoided or sequestered over 305 million tons of CO 2 In % of TVA generation was non- CO 2 emitting (nuclear, hydro, renewables) 31

32 TVA Voluntary Greenhouse Gas Mitigation Actions Restarting Browns Ferry Unit 1 Up-rating Browns Ferry Units 2 and 3 Expanded wind generation at Buffalo Mt. Increasing generation at hydro units Co-firing waste water treatment digester gas and wood waste with coal Sequestering Carbon through Utilitree and PowerTree, and Southeastern Regional Carbon Sequestration Partnership Minimize energy consumption in TVA buildings Working with EPRI and others on CO 2 Capture and Storage Test Centers 32

33 Backup

34 TVA Green Power Switch Program Renewable energy initiative that offers consumers in the Tennessee Valley a choice in the type of power they buy. Sold to residential consumers in 150-kilowatt-hour blocks costing $4 each per month. Sources of generation 18 wind turbines at Buffalo Mt. Tennessee - 29 MW Co-firing methane gas at Allen Steam Plant - 4 MW 16 solar photo-voltaic sites - 4 to 50Kw More than 50% of distributors participate March-May ,261,832 kwh generated 34

35 Wind Resources Are Limited in the Southeast Percent of U.S. Land Area Estimated to Have Class 3 or Higher Wind Power 35

36 Solar Resources Are Also Limited 36

37 Biomass Offers Some Potential 392 million acres of land is potentially available and suitable for energy crops 37

38 CO 2 Value Impacts Market Price and Generator Net Revenue for Each Hour of Dispatch $60 $50 $0 Market Price Sets Price $60 $50 $20 Market Price Net Revenue Sets Price CO2 Cost Dispatch Price $40 $30 $20 Net Revenue Net Revenue $50 Dispatch Price $40 $30 $20 Net Revenue CO2 Cost $50 $10 $25 $10 $25 $0 $5 Nuclear Coal Natural Gas $0 $5 Nuclear Coal Natural Gas Generation Generation 38

39 Putting a Value on CO 2 Increases Both Marginal Cost and Market Price Marginal Cost ($/MWh) $200 $150 $100 $50 Supply Stack $30($/ton) & $8.24($/MMBtu) Nuc-Hydro Gen Coal Nat Gas Oil Gen Other New Price Original Price Load $0 0 20,000 40,000 60,000 80, , , , , ,000 Generation Stack Position 39