Plug-in Hybrids and the Future Electric Grid

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1 Sustainable Communities Training Conference Plug-in Hybrids and the Future Electric Grid The Electric Utility of the Future - Sustainability through Service 10 March Fred Blood Sustainability Officer

2 Primary Concepts: Theodore Roosevelt, 1910 I recognize the right and duty of this generation to develop and use the natural resources of our land; but I do not recognize the right to waste them, or to rob, by wasteful use, the generations that come after us

3 Primary Concepts: Brundtland Commission, 1983 "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

4 The Natural Step A sustainable society won't be subject to systematically increasing: Concentrations of substances extracted from earth's crust; Concentrations of substances produced by society; Degradation by physical means; And, human needs are met worldwide.

5 Ecological Footprint Sustainability requires living within the regenerative capacity of the biosphere Growing crops Grazing animals Harvesting timber Fishing Infrastructure Fossil fuel

6 Three Clients: End User Stock holder (Taxpayer) Grandchildren Same Goal

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9 Peak Oil Projections for the Peak in World Oil Production

10 Where We Are Today Consumption for Average Residential Customer Waste Waste Waste Generation and distribution Inefficient gas appliances Inefficient electric appliances Fuel for electricity Natural gas Power, light, and usable heat Source: A Micro-Grid with PV, Fuel Cells, and Energy Efficiency, Tom Hoff, Clean Power Research.com

11 Homeland Security Vulnerability of the Electrical Grid to Natural Disasters High-voltage power line cut by fallen tree limb near Oregon/California border - August 10, 1996 Before After Affected a 9-state region Lasted up to 3 weeks in some areas Almost 16 million people affected in California alone Source: W. Becker, U.S. DOE Source: W. Becker, U.S. DOE

12 Vulnerability of Our Economy to Power Outages It is not the cost of electricity that drives our decision-making process, rather it is the cost of NOT having electricity. Jeff Byron, Energy Director, Oracle Corporation High-Value Situations: Reliability, Power Quality Stock Brokerage = $5M - $7M/hr Credit Card Srvcs = $2M - $3M/hr Phone 800 # Srvcs = $150K - $225K/hr Nationwide = $35 B to $70 B in losses per year Source: DOE Strategic Plan for Distributed Energy Resources, September 2000

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14 800,000 Louisiana outages Katrina Aug 29, ,000 Mississippi outages Katrina Storm Surge approaches Michoud plant, photo by Entergy Michoud plant manager Don McCroskey

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16 Linear Energy Flow

17 Austin, Texas 2003 Population: 681, th Largest City in United States 2003 MSA Population: 1,377, % change: City owned Electric Utility 360,000 customers 10 th Largest Municipal Live Music Capital Forbes Top 10 for Business (May 24, 2004) EAC Only I&M program in Nation in always attainment area (no CMAQ funds)

18 Albert Einstein The world is a dangerous place to live, not because of the people who are evil, but because of the people who don't do anything about it. Bertrand Russell The point of philosophy is to start with something so simple as not to seem worth stating, and to end with something so paradoxical that no one will believe it.

19 Vision For Clean, Affordable and Reliable Energy Energy Efficiency is at the top of the list Technology advances will make solar and wind both the dominant and the most affordable way to make electricity through both centralized and decentralized generation. Major technological targets should be zero energy buildings and ultracapacitors (cont d)

20 Vision For Clean, Affordable and Reliable Energy Transfer almost all our transportation sector fueling to biofuels and the electric grid through mass production of flexible fuel plug-in hybrids. Eventually unify the transportation and electric sectors into one electric system running off multiple fuels. All new coal facilities should be integrated gasification combined cycle units with carbon capture and sequestration. Any new nuclear should be required to achieve a waste reduction both in volume and radioactivity of current nuclear wastes.

21 Climate Protection Plan Municipal Plan Utility Plan Homes and Buildings Plan Community Plan Go Neutral Plan

22 Energy Use Modification Peak Clipping Energy Efficiency Load Shifting

23 Capital Cost New Generation Power Plant Cost/kW Natural Gas Combined Cycle $750 Pulverized Coal $1,549 Nuclear $3,000 Source National Energy Technology Lab (NETL)

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25 21 st Century Utility Premise #1: Buildings last for ~50 years and constitute a lasting legacy. What energy and electricity services will energy providers offer for buildings? Premise #2: Customers do not purchase electrons or therms; they buy heat, cooling, lighting, etc. How will energy providers meet the need for services?

26 Services Not Electrons Two District Cooling Plants Provides chilled water for Air Conditioning, uses thermal storage for off-peak savings. Domain Crossing Provides chilled water, electricity and hot water. Uses a 4.3 MW gas fired combustion turbine, 2500 ton absorption chiller. Mueller Energy Center Dell Children s Hospital (LEED Platinum) Steam, electricity, chilled water, de-ionized water.

27 THE SUN S ENERGY Each hour enough sunlight strikes the Earth to meet the world s energy needs for an entire year.

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29 Technology Change Combined Cycle Gas Plant Gas Microturbine Fuel Cell

30 Technology Change

31 Why Do We Need the Smart Grid? Current Partial Control Not Integrated Not Optimized Not Interactive No Self-Healing Utility Focus Future More Secure Total Control Integrated Optimized Interactive Self-Healing Customer Focus

32 Plug-in Partners Campaign Purpose: Demonstrate a national market for flexible-fuel plug-in hybrid electric vehicles Coalition: Local and state governments, utilities, businesses and non-profit organizations Actions: Soft fleet orders, endorsements, rebates and incentives, petitions and letters Kickoff: January 24, 2006 National Press Club Washington, DC

33 Plugin Hybrids Take Hold

34 EPRI and NRDC Studies GHG emissions are reduced significantly across each of the nine scenario combinations. Annual GHG emissions reductions were significant in every scenario of the study, reaching a maximum of 612 million metric tons in 2050 (High PHEV fleet penetration, Low electric sector CO2 intensity case). Cumulative GHG emissions reductions from 2010 to 2050 can range from 3.4 to 10.3 billion metric tons. Each region of the country will yield reductions in GHG emissions.

35 Plug-in Hybrid Electric Vehicle Being Fueled by Solar Electricity

36 Multiple Fuel, Multi-Directional Zero Energy Home PHEV/BEV Distributed Utility Fossil Fuels Nuclear Solar Wind

37 Needs - Grid Fueling and Energy Storage Efficient Building Design/ Technologies Internet Renewables Wind/ Solar Utility Operations Advanced Metering Consumer Control Interface Data Management DG & Energy Storage Batteries/ Hydrogen Smart End-Use Devices

38 Current and Emerging PHEV Issues Potentially increasing conversion market. Vehicle to Grid (V2G) issues. Energy Storage development (battery, capacitor).