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California’s Carbon Challenge: Scenarios for Achieving 80% emissions reduction in 2050 Max Wei Lawrence Berkeley National Lab Aug. 1, 2011 The Road to a 100% Renewable Energy System workshop Center for Sustainable Energy and Power Systems, UC-Santa Cruz

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Page 1: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

California’s Carbon Challenge: Scenarios for Achieving 80% emissions reduction

in 2050Max Wei

Lawrence Berkeley National LabAug. 1, 2011

The Road to a 100% Renewable Energy System workshopCenter for Sustainable Energy and Power Systems, UC-Santa Cruz

Page 2: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

California Energy Future Report

• Sponsored by California Council of Science and Technology and California Energy Commission– Released May 2011

• Closely related but distinct from this work, which has not been published yet.

Page 3: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Outline

• Context

• California 2050 Modeling and Results

• Follow up areas for research

Page 4: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Context

• Global warming/Climate change

• Mitigation/ Adaptation

– GhG reduction (AB32 for California)

• Transitioning to “new energy economy”

Page 5: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Global Warming/ Climate Change

Page 6: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

California Long Term GhG Target

• Reduce emissions to 1990 level by 2020 (AB32)

• Reduce emissions to 20% of 1990 by 2050 (Executive order)

• Detailed plans and progress for 2020 target

• How do we meet the 2050 target?

Page 7: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Strategy

Energy Efficiency Electrification Cleaner fuels and Clean Electricity

Emissions = Energy * ( Emissions/ Energy)= Energy * GHG Intensity

Why Electrification? ... We know how to make clean electricity but making clean fuels more difficult…

Page 8: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Scenarios

Base Case

• Aggressive EE (at technical potential levels)

• Clean or Low Carbon Electricity

• Electrification of vehicles and heat

• Low carbon biofuels

Base Case Variants

• Biofuel supply in-state and out of state

• Electricity supply sector variants

– e.g. high/low CCS cost

• Electricity sector emissions (set by carbon cap)

• Electrification penetration

• Behavior change

Page 9: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Model Framework

INPUTS• Bottom up demand

aggregation

– Building energy efficiency data (Itron)

– Industry EE data (LBNL)

– Transportation model (UC-Davis)

• Electrification / biofuel / behavior scenarios

• Study focuses on energy emissions

Overall electricity and fuel demands

OUTPUTS

• Overall GhG emissions

• Electricity system costs

• Electricity system technologies and transmission build out

SWITCHModel

for Electricity

LEAP Model for Fuels

SWITCH is a cost optimization model for the electricity system

Page 10: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Building Efficiency and Fuel switching to 2050

Residential End use in 2050 California

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Frozen EE Max EE Max EE + Electrification

Tota

l An

nu

al R

esi

de

nti

al E

lect

ic E

ne

rgy

Co

nsu

mp

tio

n, 2

050

(GW

h)

Room AC

Central AC

Fan for Gas Furnace

Space Heating

Lighting

Hot Tub Heating

Hot Tub Pump

Swimming Pool Pump

Freezer

Refrigerator

Cooking

Other

Clothes Dryer

Clothes Washer

Dishwasher

Water Heating

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Ele

ctri

c S

atu

rati

on

(%

)

Res Water Heating

Res Space Heating

Com Water Heating

Com Space Heating

Fuel Switching rates assumed

Space and water heating are electrified.

Page 11: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Transportation Fuel Efficiency and Electrification to 2050

45% of passenger vehicle miles are electrified.

Passenger vehicle adoption curves and fleet MPG (dotted)

Remaining Liquid Fuel

Page 12: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Electricity Projections

• California demand with technical potential efficiency and electrification of vehicles and heat (green curve) about 7% higher than frozen efficiency demand.

12

Page 13: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

SWITCH = a loose acronym forSolar, Wind, Hydro, and Conventional

generators and Transmission

• Objective: calculate the lowest total system cost, given a carbon cost or energy policy• WECC region• Carbon CAP set at 80% lower than 1990 emissions

• Meets projected hourly electricity loads– Projected loads / load profiles based on base case and variants.– Maintains 15% reserve margin for reliability

• Mixed integer linear optimization model that chooses over the course of 39 years – Generator and transmission investments every 4 years– Generator and transmission dispatch hourly

• Peak and median day of historical months from 2004 and 2005 and winter peaking days in base case.

Page 14: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

SWITCH Output

• Fairly tight band of power cost projected for various electricity supply mix scenarios

Page 15: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Biofuels in 2050• Biomass supply directed to biofuel since many technologies for clean electricity

– 35 M dry tons in state near term estimate (2.8 billion gallons gasoline equivalent)

– 95M dry tons “technical potential” (7.5 Bgge)

• Imports limited to 25% of California total per Executive order S-06-06 (2006)

14.6

0.9

2.8

14.6 2.5

7.5

Base Case Demand[Bgge]

Biofuel Supply[Bgge]

Base Case Demand[Bgge]

Biofuel Supply[Bgge]

ImportedIn-State

ImportedIn-State

Insufficient biofuel supply to replace Base case liquid fuel demand (15 Bgge)

Low in-state biofuels High in-state biofuels

Page 16: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Behavior Change

• Transportation (Vehicle Mile) reduction is the largest lever.

• Recycling/reduced MSW and food/diet also contribute

0

10

20

30

40

2010 2015 2020 2025 2030 2035 2040 2045 2050

mill

ion

met

ric

ton

s C

O2

sav

ed

Home energy conservation

Waste less food

Healthier diets

Telecommute to work

Reduce air travel

Take public transit

Ecodriving (including trucks)

Driving less (carpool, walking, biking, reduced distances...)

Reduce Municipal Solid Waste (total materials)

Increase Recycling

0

10

20

30

40

2010 2015 2020 2025 2030 2035 2040 2045 2050m

illio

n m

etri

c to

ns

CO

2 s

aved

Home energy conservation

Waste less food

Healthier diets

Telecommute to work

Reduce air travel

Take public transit

Ecodriving (including trucks)

Driving less (carpool, walking, biking, reduced distances...)

Reduce Municipal Solid Waste (total materials)

Increase Recycling

Nominal adoption : 7% GHG savings High adoption: 18% GHG savings

Page 17: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Putting it together:

Onepathwayto meet

2050 target

0

1000

2000

3000

4000

5000

6000

7000

8000

2050 BAU With Energy Efficiency

Add Electrification

Add Biofuels (Base Case)

Add High in-state Biofuels

Add High Behavior Savings

Ene

rgy

[TB

TU]

Fuel

Electricity

500

267 267

132112

79 64

171

115

11 18 18 18 17

0

100

200

300

400

500

600

2050 BAU With Energy Efficiency

Add Clean Electricity

Add Electrification

Add Biofuels (Base Case)

Add High in-state Biofuels

Add High Behavior Savings

Gh

G E

mis

sio

ns

[MM

t C

O2

-eq

] Fuel

Electricity

-43% -27% -46% -35% -18%

Page 18: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Other scenarios meeting target

High in-state biofuels are probably needed.

0

20

40

60

80

100

120

140

Base Case High In-state Biofuels

High Electrification + High Adoption

Behavior

High In-state biofuels + High

Adoption behavior

High In-state biofuels + High Biofuel Imports

High In-state Biofuels + High

Electrication

Gh

G E

mis

sio

ns

[MM

tCO

2-e

q

target

Page 19: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Affordable Energy Efficiency is a Renewable Resource

Page 20: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Conclusions

• The 2050 GhG target for California appears achievable, but requires significant changes in the way we use energy and in energy production.– Sustained technology development needed across sectors (electric

vehicles, energy efficiency measures, biomass and biofuel production, renewable electricity, electric storage, …)

• Clean electricity and the development of a high in-state low-carbon biofuel supply are vital to the scenarios presented here.

• Clean electricity enables large scale electrification as a path to reduce emissions.

• From a policy standpoint, California can build upon its policy portfolio to support the long term GHG target – e.g. Building codes and appliance standards, EV support, RPS, utility EE

programs)– Electrification of heat is a policy gap

Page 21: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Follow up work

• Integrated economic study/ optimization

• Electrification pathways for building/industry heat, electrification policy

• Power sector load balancing / demand shifting

• Optimal use of biomass resource

• Behavior change policies/ pilots

• Non-energy/High GWP sectors

Page 22: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Clean Energy Economy Job Studies

• M. Wei, D. Kammen. “Putting Renewables to Work” Energy Policy paper (2010) Extend to state and regional impacts

Other work:• Center for American Progress – The Economic

Benefits of Investing in Clean Energy (2009)• Lawrence Berkeley Laboratory, Charles Goldman -

Energy Efficiency Service Sector Employment Report (2010)

Page 23: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Acknowledgements

California Energy Commission, Guido Franco

Research team:

• Jeff Greenblatt, James McMahon (LBNL)

• Jimmy Nelson, Ana Mileva, Josiah Johnston, Dan Kammen (UC-Berkeley)

• Mike Ting (Itron)

• Chris Yang (UC-Davis)

Page 24: California’s Carbon Challenge: Scenarios...Clean Energy Economy Job Studies •M. Wei, D. Kammen. Putting Renewables to Work Energy Policy paper (2010) Extend to state and regional

Thank you for your attention.

Questions?

Max Wei

[email protected]