clean energy project exchange - aceee · 2020. 2. 5. · 1 roger duncan general manager austin...

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1 1 Roger Duncan Roger Duncan General Manager General Manager Austin Energy Austin Energy 721 Barton Springs Rd. 721 Barton Springs Rd. - - Rm. 573 Rm. 573 Austin, TX 78704 Austin, TX 78704 - - 1186 1186 [email protected] (512) 322-6157 Clean Energy Project Clean Energy Project Exchange Exchange 2008 ACEEE/CEE Market Transformation Symposium

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Page 1: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Roger Duncan Roger Duncan General Manager General Manager Austin EnergyAustin Energy721 Barton Springs Rd. 721 Barton Springs Rd. -- Rm. 573Rm. 573Austin, TX 78704Austin, TX [email protected](512) 322-6157

Clean Energy Project Clean Energy Project ExchangeExchange

2008 ACEEE/CEE Market Transformation Symposium

Page 2: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Austin Energy: Austin Energy: Reducing the Carbon FootprintReducing the Carbon Footprint

Energy ConservationEnergy Conservation

RenewablesRenewables

Green Buildings and Updating Building Green Buildings and Updating Building CodesCodes

Austin Climate Protection PlanAustin Climate Protection Plan

Roger Duncan 3/13/08Roger Duncan 3/13/08

Page 3: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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What energy projects will provide the largest reduction in CO2 emissions in

the shortest time at the least cost?

Page 4: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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This project exchange This project exchange will assist utilities, will assist utilities,

businesses, and policybusinesses, and policy--makers in choosing makers in choosing energy projects thatenergy projects that

will reduce carbon will reduce carbon quickly at the quickly at the lowest cost.lowest cost.

Page 5: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Utilities, Businesses, and Utilities, Businesses, and Governments Must Governments Must

Make Energy Project ChoicesMake Energy Project Choices

Should a utility build a wind farm, a nuclear Should a utility build a wind farm, a nuclear power plant, or invest in DSM programs?power plant, or invest in DSM programs?Should a corporate board of directors Should a corporate board of directors allocate resources to green power allocate resources to green power programs, onprograms, on--site renewable energy, or site renewable energy, or energy efficiency? And what kind of energy energy efficiency? And what kind of energy efficiency program is best suited?efficiency program is best suited?Should a local government provide Should a local government provide incentives for building codes or energy incentives for building codes or energy efficient transportation?efficient transportation?

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Page 6: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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The difference between good and optimal in The difference between good and optimal in prioritizing energy projects could mean the prioritizing energy projects could mean the difference in tens or even hundreds of difference in tens or even hundreds of billions of dollarsbillions of dollarsChoosing the most effective projects early Choosing the most effective projects early will mean the difference between saving or will mean the difference between saving or losing decades in stabilizing carbon losing decades in stabilizing carbon concentrations in the atmosphereconcentrations in the atmosphereMust balance several constraints including Must balance several constraints including costs, deliverability, and rapid changes in costs, deliverability, and rapid changes in technologytechnology

Prioritizing is CrucialPrioritizing is Crucial

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Page 7: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Primary Primary TechnologiesTechnologies

DSMDSM

OilOil

Natural GasNatural Gas

CoalCoal

NuclearNuclear

SolarSolar

WindWind

GeothermalGeothermal

BiomassBiomass

OceanOcean

Page 8: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Allocating Energy Allocating Energy Reducing MeasuresReducing Measures

CFLsCFLs

Conventional Hybrid AutosConventional Hybrid Autos

PlugPlug--in Hybrid Vehiclesin Hybrid Vehicles

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Page 9: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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SeattleSeattle

andand

ClevelandCleveland

Example Target Example Target MarketsMarkets

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Page 10: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Option 1:Option 1:Split measures evenly between Split measures evenly between

marketsmarketsMeasuresMeasures

CFLsCFLs

HybridsHybrids

PHEVsPHEVs

Target MarketsTarget Markets

SeattleSeattle

ClevelandCleveland

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Page 11: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Option 2: Option 2: Split measures to curb the most Split measures to curb the most carbon emissions in each marketcarbon emissions in each market

MeasuresMeasures

CFLsCFLs

HybridsHybrids

PHEVsPHEVs

Target MarketsTarget Markets

SeattleSeattle

ClevelandCleveland

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Page 12: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Clean Energy Priorities Clean Energy Priorities May Vary Due to:May Vary Due to:

Fuel MixFuel MixRenewable Inventory of RegionRenewable Inventory of RegionSupply AvailabilitySupply AvailabilityPublic ConsensusPublic ConsensusWater ResourcesWater ResourcesTime ConstraintsTime Constraints

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Page 13: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Prioritizing your Energy: Prioritizing your Energy: Criteria for ComparisonCriteria for ComparisonIf a central purpose is to reduce If a central purpose is to reduce carbon, then a key calculation is the carbon, then a key calculation is the carbon return on investment (CROI)carbon return on investment (CROI)CROI CROI –– how much carbon is removed how much carbon is removed from (or not placed in) the from (or not placed in) the atmosphere for each dollar spentatmosphere for each dollar spent

Page 14: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Simple Version of CROISimple Version of CROI

X X –– YYKK

X = current amount of carbon produced X = current amount of carbon produced from a certain fuel/technologyfrom a certain fuel/technologyY = carbon expected to be produced from Y = carbon expected to be produced from the cleaner fuel/technologythe cleaner fuel/technologyK = cost of the energy projectK = cost of the energy project

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Page 15: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Clean Energy Priority Tool: Clean Energy Priority Tool: Energy matrix lists costs used for comparison Energy matrix lists costs used for comparison

and generating technologiesand generating technologies

Generating Generating TechnologyTechnology

CROIICROII $/ $/ kWkW

Fuel CostFuel Cost LCOELCOE Capacity Capacity FactorFactor

CoalCoal

Natural Natural GasGas

NuclearNuclear

WindWind

SolarSolar

Levelized Cost Of ElectricityLevelized Cost Of Electricity –– amount invested to cover amount invested to cover operating costs plus annualized capital costs of operating a operating costs plus annualized capital costs of operating a generating facilitygenerating facility

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Page 16: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Further examples of criteria Further examples of criteria for comparisonfor comparison

Generating Generating TechnologyTechnology

Time to Time to ConstructConstruct

DeliverDeliver--abilityability

Water Water UsageUsage

Environ. Environ. ImpactsImpacts

Reg./Tax Reg./Tax IncentivesIncentives

CoalCoal

Natural GasNatural Gas

NuclearNuclear

WindWind

SolarSolar

CoalCoal-- Pulverized CoalPulverized Coal-- Integrated Gasification Integrated Gasification Combined CycleCombined Cycle

-- IGCC w Carbon Capture IGCC w Carbon Capture and Sequestrationand SequestrationSolarSolar

-- Concentrated Solar Concentrated Solar PowerPower

-- PhotovoltaicPhotovoltaic* Thin film* Thin film* Silicon* Silicon Roger Duncan 3/13/08Roger Duncan 3/13/08

Page 17: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Data is updatable and Data is updatable and transparenttransparent

Generating Generating TechnologyTechnology

CROIICROII $/kW$/kW Fuel CostFuel Cost LCOELCOE Capacity Capacity FactorFactor

PC CoalPC Coal 1.54/MMBtu1.54/MMBtu11

NuclearNuclear 1,8491,8492 2

toto1,5101,51033

WindWind 29%29%44 to to 44% 44%

(2010)(2010)55

Conc. SolarConc. Solar

Natural Natural GasGas

6.39¢/k6.39¢/kWhWh66

1 1 EIA, “Coal Production in the U.S.EIA, “Coal Production in the U.S.--An Historical OverviewAn Historical OverviewOctober 2006”October 2006”

33Steve Specker, EPRI, “Generation Technologies in a Steve Specker, EPRI, “Generation Technologies in a CarbonCarbon--Constrained World”Constrained World”

5 5 EIA, EIA, Assumptions for the Annual Energy OutlookAssumptions for the Annual Energy Outlook 2006, March 2006, p.135.2006, March 2006, p.135.

6 6 Gas Turbine World, JanuaryGas Turbine World, January--February 2007, P. 54February 2007, P. 54Roger Duncan 3/13/08Roger Duncan 3/13/08

Page 18: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Prioritizing the CriteriaPrioritizing the Criteria

Generating Generating TechnologyTechnology

CROIICROII $/kW$/kW Fuel Fuel CostCost

LCOELCOE Capacity Capacity FactorFactor

WindWind 29% 29% -- 44% 44% (by 2010)(by 2010)

NuclearNuclear 1,849 to 1,849 to 1,5101,510--1,840 1,840

Conc. SolarConc. Solar

Natural Natural GasGas

PC CoalPC Coal 1.54/1.54/MMBtuMMBtu

11

22

33

6.39¢/6.39¢/kWhkWh5.99¢5.99¢/kWh/kWh

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Page 19: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Similar Working ProjectsSimilar Working Projects

Power Across TexasPower Across Texas–– University of Texas at Austin, Center for International Energy aUniversity of Texas at Austin, Center for International Energy and nd

Environmental PolicyEnvironmental PolicyMichael Webber, Ph.D. Michael Webber, Ph.D. -- Associate Director, Program DevelopmentAssociate Director, Program Development

–– Texas Online Energy ToolTexas Online Energy Tool

The Millennium Institute The Millennium Institute –– T21 USA ModelT21 USA Model–– Collaboration with Association for the Study of Peak Oil and GasCollaboration with Association for the Study of Peak Oil and Gas--USA and USA and

State University of New York’s College of Environmental Science State University of New York’s College of Environmental Science and and ForestryForestry

A quantitative tool for comprehensive policy planning A quantitative tool for comprehensive policy planning -- understand energy understand energy issues and to show how those issues relate to society, economy aissues and to show how those issues relate to society, economy and the nd the environmentenvironment

The Carbon Buster’s Home Energy HandbookThe Carbon Buster’s Home Energy Handbook, Godo Stoyke, Godo Stoyke–– Carbon BustersCarbon Busters

Personal strategy for slowing climate change and saving money Personal strategy for slowing climate change and saving money

Roger Duncan 3/13/08Roger Duncan 3/13/08

Page 20: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Versions AvailableVersions Available

Version 1Version 1–– Data BaseData Base

Version 2 Version 2 –– InteractiveInteractive

Version 3 Version 3 –– Scenario AnalysisScenario Analysis

Version 4 Version 4 –– Clean Energy Project ExchangeClean Energy Project Exchange

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Page 21: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Allow utility to quickly prioritize energy Allow utility to quickly prioritize energy choices based on specific criteria and choices based on specific criteria and actual bidsactual bidsRank generating technologies by CROI Rank generating technologies by CROI or other preferred criteriaor other preferred criteriaCommunicate actual data, new Communicate actual data, new technology investments and carbon technology investments and carbon reduction achievedreduction achieved

Utility ToolUtility Tool

Roger Duncan 3/13/08Roger Duncan 3/13/08

Page 22: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Provide a cost/benefit tool to assist in Provide a cost/benefit tool to assist in energy efficiency measures and energy efficiency measures and carbon reducing solutionscarbon reducing solutionsCompare feasibility of different Compare feasibility of different solutions for energy needssolutions for energy needsProvide current legislation affecting Provide current legislation affecting businesses and relevant carbon businesses and relevant carbon regulationsregulations

Business ToolBusiness Tool

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Page 23: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Provide upProvide up--toto--date information on energy date information on energy regulations and legislation with special regulations and legislation with special attention on carbonattention on carbonIdentify financial incentives and limitations Identify financial incentives and limitations for different technologiesfor different technologiesHighlight market barriers to technologies Highlight market barriers to technologies and carbon reducing potentialand carbon reducing potentialProvide a framework to enhance energy Provide a framework to enhance energy related policy decisionrelated policy decision--makingmaking

Government ToolGovernment Tool

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Page 24: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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Next StepsNext Steps

Austin Energy is currently working Austin Energy is currently working to establish Version 1.0 and the to establish Version 1.0 and the subsequent versions will evolve subsequent versions will evolve accordinglyaccordingly

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Page 25: Clean Energy Project Exchange - ACEEE · 2020. 2. 5. · 1 Roger Duncan General Manager Austin Energy 721 Barton Springs Rd. - Rm. 573 Austin, TX 78704-1186 Roger.Duncan@austinenergy.com

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DiscussionDiscussion