CPET 581 Smart Grid and Energy Management

Lecture

2013/8/29

 

Planned Topics of Discussion

·         Electric Power Generation  & Quick Overview of Markets

·         Federal Energy Acts & Bills

o   The Energy Policy Act of 2005 (EPAct 2005)

o   The Energy Independence and Security Act of 2007 (EISA), Executive Order (E.O) 13424

o   S. 1401 Domestic Energy and Jobs Act

o   Energy Independence & Security Act, Section 432 (EISA 432

o   H.R. 1394 Planning for American Energy Act of 2013

·         Federal Energy Policies

·         U.S. EPA, DOE, and Homeland Security Agencies

·         House Hearing on American Energy Security and Innovation: The Role of a Diverse Electricity Generation Portfolio

·         Energy and Power Subcommittee Chairman Ed Whitfield, The Committee on Energy & Commerce – 113 Congress, House Hearing, Tuesday March 5, 2013

·         An Energy Generation Resource Management Exercise

o   Portfolio Planning

o   Risks

§  Environmental

§  Stability

§  Sustainability

§  Politics

§  Other Public Interest & Check/Balance

o   New, Innovative , and Sustainable Technologies

§  Economic Cost, Affordability

§  Efficiency

§  Diversifying portfolio

§  Security

§  Safety

o   Benchmarking

o   Implementation

o   Operations & Maintenance

·         Electric Power Market/Business

 

Electric Power Generation  & Quick Overview of Markets

The Electric Power from Generation to End Consumer: Whole Sale to Retail, recreated based on http://www.nyiso.com/public/about_nyiso/understanding_the_markets/wholesale_retail/index.jsp

·         Wholesale

o   Power generating stations

§  Coal-fired

§  Gas

§  Nuclear

§  Hydropower

§  Renewable (solar, wind, geothermal, biomass, etc)

o   Step-up transformer

o   Transmission

·         Retail

o   Step-down transformer

o   Sub-transmission customer (distribution)

o   Customers

 

 

Power vs. Energy Units and Recording Equipment or Devices

·         Power

o   DC Power  = V x I = voltage x current = volt x ampere = watts

o   Single Phase AC Power (120V, 220V) = V x I x Cosθ

o   Three Phase AC Power (balance 3 phase) = 3 V x I x Cosθ

o   Watt, kilo Watts (KW), Mega Watts (MW), Giga Watts (GW)

o   kW = k Joules/sec

o   Recorded with Watt, kW meter

·         Electrical Energy

o   Energy = ∫ Power x dt

o   kWh = kW x Hour

o   1 kWh = 1 kJ-hr/sec = 1k J 3600 sec/sec = 3600 kJ

o   Recorded with kWh meter

 

Wholesale Electricity

·         Minimum quantity one (1) Megawatt – 1000 kW, which can power between 600 to 1000 homes

Retail Electricity

·         Power purchased by consumers or businesses, and delivered through a low-voltage local distribution system

 

 

US Energy Acts & Bills

·         Congress Energy & Commerce Committee, http://energycommerce.house.gov/

o   Congress Track Committee, http://www.govtrack.us/

o   S. 1401 Domestic Energy and Jobs Act, Introduced: Jul 31, 2013, Sponsor: Sen. John Hoeven [R-ND], http://www.govtrack.us/congress/bills/113/s1401

o   H.R. 1394 Planning for American Energy Act of 2013, Introduced Mar. 21, 2013, Sponsor: Rep. Scott Tipton [R-CO3], http://www.govtrack.us/congress/bills/113/hr1394

o   Videos

§  Re. Cassidy Urges Support for Energy Consumers Relief Act, http://www.youtube.com/watch?v=6Wi-EkiMgdw

§  Oversight of DOE Strategy for the Management and Disposal of Used Nuclear Fuel and High-Level Radioactive Waste, http://www.youtube.com/watch?v=KSlqeQUCavA

·         U.S.  Senate Committee on Energy & Natural Resources, http://www.energy.senate.gov/public/index.cfm/

o   US Energy Acts & Bills (SENS, Wyden, Murkowski)

o   Seek Clarity on DOE Authority

o   Applaud passage of two Hydropower Bills

o   Introduce legislation to encourage marine hydropower

o   Bipartisan Nuclear Waste Bill move forward in Committee on Energy & Natural Resources

o   Public Lands, Energy Measures

 

The Energy Policy Act of 2005 (EPAct 2005), Public Law 109-58, 551 pages – Established a number of energy management fleets, http://www1.eere.energy.gov/femp/regulations/epact2005.html

·         Metering and Reporting

·         Energy-Efficient Product Procurement

·         Energy Savings Performance Contracts

·         Building Performance Standards

·         Renewable Energy Requirement

·         Alternative Fuel Use

The Energy Independence and Security Act of 2007 (EISA), http://www1.eere.energy.gov/femp/regulations/eisa.html 

o   Energy Reduction Goals for Federal Buildings

·         Facility Management/Benchmarking

·         Performance and Standards for New Building and Major Renovations

·         High-Performance Buildings

·         Energy Saving Performance Contracts

·         Metering

·         Energy-Efficient Product Procurement

·         Office of Management and Budget (OMB) Reporting

·         Reducing Petroleum/Increasing Alternative Fuel Use

and Executive Order (E.O) 13424, http://www1.eere.energy.gov/femp/regulations/eo13221.html, Aug. 2, 2001, by The President of U.S.,  have been issued subsequently to the passage of EPAct 2005.

o   Requirements for Energy Efficiency and Standby Power

 

Energy Independence & Security Act, Section 432 (EISA 432): Use of  Energy and Water Efficiency Measures in Federal Buildings;  Compliance Tracking System, http://www1.eere.energy.gov/femp/regulations/facility_cts.html

 

U.S. Energy Policy, http://energy.gov/public-services/energy-economy/energy-policy

·         Building an American Economy to Last: American Competitiveness in Manufacturing, Aug. 16, 2012, http://energy.gov/articles/building-american-economy-last-american-competiveness-manufacturing

·         Wind Energy in America: Supporting our Manufacturers, Aug. 16, 2012, http://energy.gov/articles/wind-energy-america-supporting-our-manufacturers

·         Seizing a Clean Energy Opportunity, Aug. 10, 2012, http://energy.gov/articles/seizing-clean-energy-opportunity

·         International Cooperation

o   CERC: U.S. – China Clean Energy Research Center, http://www.us-china-cerc.org/

§  Building Energy Efficiency, http://www.us-china-cerc.org/Building_Energy_Efficiency.html

·         Lead by Lawrence Energy Lab – Environmental Energy Technologies Division, http://eetd.lbl.gov/

§  Intellectual Property, http://www.us-china-cerc.org/Intellectual_Property.html

§  Technology Management Plan

o   Clean Energy Ministerial (Global Forum), http://www.cleanenergyministerial.org/

o   Energy and Climate Partnership of the Americas

·         U.S. Energy Independence

 

 

Federal Government Agencies

U.S. Department of Energy (DOE), http://energy.gov/

Federal Energy Regulatory Commission (FERC), www.ferc.gov

Nuclear Regulatory Commission (NRC)

Energy Efficiency & Renewable Energy - Federal Energy Management Program (FEMP), http://www1.eere.energy.gov/femp/

U.S. Energy Information Administration, www.eis.gov

·         Statistics on Electric Power Plants, Capacity, Generation, Fuel Consumption, Sales, Prices and Customers -U.S. Energy Information Administration, http://www.eia.gov/electricity/

o   Overview

o   Data

o   Analysis & Projections

EPA (Environmental Protection Agencies)

EPA Regulatory Actions: Final Mercury and Air Toxics Standards, 2013/3/28, http://www.epa.gov/mats/actions.html

·         Carbon Pollution Standards for the Power Sector, http://epa.gov/carbonpollutionstandard/

·         EPA Emission Limits

·         Report: EPA rules to shut down more than 280 coal-fired units, The Daily Caller, http://dailycaller.com/2013/05/03/report-epa-rules-to-shut-down-more-than-280-coal-fired-units/

·         Coal Plants affected by EPA Regulations, http://www.governing.com/gov-data/energy-environment/coal-plants-to-shut-down-from-EPA-regulations.html

·         Impact of EPA’s Regulatory Assault on Power Plants: New Regulation to Take 34GW of Electricity Generation Offline and the Plant Closing Announcement Coming, June 12, 2012, http://www.instituteforenergyresearch.org/epa-powerplant-closures/

 

Other Not For Profit Organizations

Energy Laws Research Guide, Georgetown Law, http://www.law.georgetown.edu/library/research/guides/energylaw.cfm

 

Center for Climate and Energy Solutions, http://www.c2es.org/federal/congress/111/acesa

·         White House, EPA & Other Agencies

·         Congress

·         Publication Library

o   The American Clean Energy and Security Act (Waxman-Markey Bill), http://www.c2es.org/federal/congress/111/acesa

o   Summary of Energy Saving and Industrial Competitiveness Act of 2013 (S.761), May 2013

o   Carbon Pricing Proposals of the 113th Congress, April 2013

o   Domestic Policies to Reduce the Near-term Risks of Climate Change, March 2013

o   Options and Considerations for a Federal Carbon Tax, Feb. 2014

o   Summary of the Climate Protection Act of 2013 (S. 232), Feb. 2013

 

The Future of Electricity Generation, Electric Power Supply Association (EPSA), http://www.epsa.org/documents/industry/EPSA_Power_On_brochure_FINAL.pdf

The recreated table shows: % U.S. electricity generated from Competitive Suppliers based on the report listed above.

Power Generation Type

% of U.S. Electricity Generated from Competitive Suppliers (power generators + power marketers) – 40% of installed generating capacity in the U.S.

% of U.S. Electricity Provided

Coal-fired generation

35% (35%* 0.4 = 14%)

49%

Natural gas generation

32% (32% * 0.4 = 12.8%)

20%

Nuclear power (zero carbon emission)

25% (25% * 0.4 = 10%)

19%

Renewable Solar, Wind, Geothermal, Biomass

4% (4% * 0.4 = 1.6%)

2%

Hydropower

2% (2% * 0.4 = 0.8%)

7%

Total

98% (39.2%)

97%

 

 

American Energy Security and Innovation: The Role of a Diverse Electricity Generation Portfolio

·         Energy and Power Subcommittee Chairman Ed Whitfield, The Committee on Energy & Commerce – 113 Congress, House Hearing, Tuesday March 5, 2013

o   Memo of Hearing, http://docs.house.gov/meetings/IF/IF03/20130305/100392/HHRG-113-IF03-20130305-SD002.pdf

o   American Energy Security and Innovation: The Role of a Diverse Electricity Generation Portfolio,  http://energycommerce.house.gov/hearing/AESI-role-diverse-electricity-generation-portfolio

o   Hearing Contents (68 pages), http://www.hsdl.org/?view&did=733360

 

Entergy Wholesale Commodities (EWC), headquartered in White Plains, New York, President Bill Mohl, http://www.govtrack.us/congress/bills/113/hr1394

·         Testimony on the Role of a Diverse Electricity Generation Portfolio, by Bill Mohl, Nuclear Energy Institute (NEI), http://www.nei.org/Issues-Policy/Policy-Resources/Testimony/Testimony-on-the-Role-of-a-Diverse-Electricty-Gene

o   Introduction

o   Baseload nuclear generators provide vital reliability, economic, and environmental benefits

o   Nuclear power plant operators are focused on safety

o   Nuclear power is an essential component of a diverse energy portfolio

o   Challenges to Merchant nuclear generators

o   Conclusion

·         EWC Generation Capability (MW)

o   Nuclear 5,011 MW

o   Natural Gas/Fuel Oil 1,340 MW

o   Coal 181 MW

o   Wind 80

·         EWC Facilities

o   Nuclear Generating Facilities/Assets (Plant, Unit, Maximum Dependable Capacity, Ownership, Reactor Type, Reactor, Turbine Generator, Architect Engineer, Commercial Operation Date, License Expiration Date, Location), http://www.entergy.com/content/operations_information/EWC_Nuclear_Portfolio.pdf

§  Indian Point Energy Center (5 Units, Max Dependable Capacity: 2,022 MW), Buchnan, N.Y.

§  James A. FitzPatrick (1 unit: Max Dependable Capacity 838 MW), Scriba, N.Y.

§  Palisades (1 unit: Max Dependable Capacity 811 MW), Covert Township, Michigan

§  Pilgrim (1 unit: Max Dependable Capacity 688 MW), Plymouth, Mass

§  Vermont Yankee Nuclear Power Station (1 unit: Max Dependable Capacity 605 MW), Vermon, VT

o   Fossil and Renewable Generating Facilities Assets, http://www.entergy.com/content/operations_information/EWC_Fossil_and_Renewable_Portfolio.pdf

 

 

Nuclear Power  Plants

·         Plant’s Closure is Tied to Cheap Gas, by Rebecca Smith, The Wall Street Journal, Aug. 28, 2013, http://online.wsj.com/article/SB10001424127887323407104579038682331577924.html

·         U.S. Nuclear Plant Sales Summary, www.nei.org

·         Japan Studies Plan to Contain Radioactive Water, by Phred Dvorak, http://online.wsj.com/article/SB10001424127887324324404579040520540137690.html?mod=WSJ_article_MoreIn_World

·         Video

 

The Business Pressures-Responses-Support Model

Vermont Yankee Nuclear Power Station – Entergy Wholesale Commodities, http://www.govtrack.us/congress/bills/113/hr1394

·         Power Business Environmental Factors

o   Disaster lesson learned (safety concerns)

§  Vermont Yankee Nuclear Power plant features a boiling-water reactor (similar to the Fukushima Daiichi plant in Japan)

§  Safety concerns

o   Government Regulations

§  Federal government: U.S. Nuclear Regulations

·         Approve a 20-year license renewal in March 2011

§  State government law makers

·         The company was seeking a certificate from Vermont to keep plant running, after the state passes laws in 2003 and 2006 giving itself greater regulatory authority over the plant

o   Opposition from antinuclear activists

§  Citizen Awareness Network -1986 demonstration at the facility

o   Customer Demand

o   Cost/Revenue

§  Maintenance cost rise 15% to 20% over the period

§  Does not include Fukushima (Tokyo Power Co)-related costs – upgrades required by U.S. nuclear regulation

§  Only was expected to break even in 2013

o   Alternative Fuels

§  Cheap natural gas from the shale boom

§  Gas is putting coal and nuclear out of business

o   Market conditions

§  In the deregulated market

§  Whole sale power price per MegaWatts:  $90-100 (2008’s price) =>Drop => $40-50 (2013’s price)

·         Organization Responses

o   Strategy

o   Collaboration

o   Cost

o   New fuel sources

o   New business model

o   Detail financial assessment of each power plant that sell electricity on the open market

·         Decision 

o   Decommission, shut down Vermont Yankee Nuclear Power plant  by the end of 2014

o   Two other single-reactor plants with similarities to the Fukushima unit

§  FitzPatrick plant in New York

§  Pilgrim plant in Massachusetts

 

References

[ 1 ] Plant’s Closure is Tied to Cheap Gas, by Rebecca Smith, The Wall Street Journal, Aug. 28, 2013, http://online.wsj.com/article/SB10001424127887323407104579038682331577924.html

[ 2 ] U.S. Nuclear Plant Sales Summary, www.nei.org

[ 3 ] Japan Studies Plan to Contain Radioactive Water, by Phred Dvorak,  Aug. 29, 2013, http://online.wsj.com/article/SB10001424127887324324404579040520540137690.html?mod=WSJ_article_MoreIn_World