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1. Potential Impacts of anAdvanced Energy Portfolio Standard in Pennsylvania Ryan Pletka, P.E.
Black & Veatch
November 9, 2004
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3. - 3 Study Objective Identify most cost effective mix of resources built in response to AEPS
Identify economic benefits or costs
4. - 4 Current Status of Renewable and Advanced Energy In Pennsylvania Current installations:
730 MW Hydro
430 MW Biomass (Including municipal solid waste)
130 MW Wind
1,922 MW Waste Coal
Policy
System Benefit Funds have stimulated renewables
Current “RPS” Policy Ineffective
State Received a “D” from UCS
Over 200 Companies in the Renewable Energy Industry
American Hydro
Ebara Solar
Sea Solar Power
GE and Gamesa
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7. - 7 AEPS Eligible Resources Tier I
Wind
Low-impact hydro
Biogas and coal mine methane
Biomass
Solar photovoltaics
“Energy conservation” – demand side, ie, consumers
“Energy efficiency” – supply side, ie, power plants
Solar thermal
Ocean and lake energy
Solid waste (non combustion)
Fuel cells fueled by Tier I resources Tier II Resources
Waste Coal
New facilities
Air pollution controls at existing facilities
Integrated gasification combined cycle
Fuel cells fueled by non-Tier I resources
Greenhouse gas (GHG) reductions
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9. - 9 Biomass Cofiring Assessment Pennsylvania has good biomass resources and lots of coal plants
Focused on cofiring at 38 existing coal units
Capital cost: $100-$700/kW
Biomass resources
Only sustainable and clean resources identified
Assessment based on ORNL database
Biomass collected from 75 mile radius around plants
10. - 10 Biomass Resources and Coal Plants
11. - 11 Biogas (Landfill and Digester Gas) Assessment Reasonably good potential from biogas resources
Internal combustion engines are proven technology
Landfill gas based on EPA LMOP database
Capital cost: $1,300-$2,350/kW
Digester gas examined dairy and swine farms
Capital cost: $2,500-$3,750/kW
12. - 12 Hydro Assessment Relatively Modest Hydro Opportunities
Analysis Based on INEEL Assessment
New Sites
Upgrades at Existing Plants
Generation Additions to Dams Without Power
42 Projects Identified, 5 at Undeveloped Sites
13. - 13 Energy Conservation / Efficiency Assessment Good opportunity for energy conservation/efficiency in PA
Analysis Based on B&V, ACEEE assessments
Residential measures
Commercial & Industrial measures
Over 16,000 GWh of potential identified over 20 years
About 10% of PA consumption
Wide range of costs and payback potential
Consumers won’t necessarily implement measures even if economical
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15. - 15 Properly Characterizing Resource Cost One of the largest modeling differences between renewables and fossil fuels is that costs vary tremendously based on renewable resource quality
There are a limited number of very good renewable / advanced project sites
Costs rise as “low-hanging” projects are developed
Supply curves capture these effects
16. - 16 Simple Supply Curve Example
17. - 17 Biogas Supply Curve 2006Premium over Avoided Costs
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19. - 19 Aggregate Tier II Supply Curve 2010
20. - 20 Tier I Cost Premium Supply Curves
21. - 21 Tier II Cost Premium Supply Curves
22. - 22 Optimum Mix of Resources to Meet the AEPS Requirements
23. - 23 Tier I Least Cost Mix Wind, biomass cofiring, and energy conservation comprise about 80 percent of mix
Some solar (4 MW) assumed to be built, even though not economical
24. - 24 Tier II Least Cost Mix Waste coal combustion is projected to make up all of Tier II
25. - 25 Projected Build-out Schedule (6,470 MW) This Portfolio Used to Calculate Economic Impacts
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28. - 28 Pennsylvania Employment Impacts, “Job-years” per MW
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30. - 30 Conclusions and Acknowledgements Acknowledgements
Community Foundation for the Alleghenies – Mike Kane
Heinz Endowments
PA DEP
REPP
Industry