david cash masccc 2013

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Massachusetts Sustainable

Communities & Campuses

Conference

April 24, 2013

David Cash, Commissioner

Department of Public Utilities

Why Plan for the Grid

of the Future Today?

• We want greater reliability at a reasonable

cost

• We want greater energy independence

• We want to reduce costs imposed by

market failures

• We want a cleaner environment and to

address climate change

• We want to seize economic opportunities

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Drivers of Change

Greater Reliability

Source: DOE/EIA

http://nca2009.globalchange.gov/energy-supply-and-use

New England is at the End of the Energy Pipeline

New England is at the End of the Energy Pipeline

Greater Energy Independence

Energy Dollars Flow Out of MA We spend $22B per year on energy; 80% leaves MA -- $18B

Oil & Natural Gas

- Canada

Oil - Venezuela

Oil & Natural Gas

- Middle East

Coal – Colombia

MA Energy Imports 2008

$B

Fuel Oil (heating, diesel) $5.0

Gasoline $9.2

Jet Fuel $1.4

Other Petroleum $0.9

Natural Gas $5.2

Coal $0.3

Total $22 B

Per Household Average ~ $4,600 Natural Gas

- Caribbean

Natural Gas

- U.S. Gulf Coast

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Natural Gas

- PA,NY

Source: MA EEA from Energy Price and Expenditure Estimates by Source,

Selected Years, 1970-2008, Massachusetts, EIA.www.eia.doe.gov/states/sep_prices/total/pdf/pr_ma.pdf

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Solar Potential

Wind Potential

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Source: DOE:

http://www.windpoweringamerica.

gov/newengland/building_resourc

e.asp

Distributed Generation Increasing

11 Source: MA DPU

2006 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

2007

Source: MA EEA

2008 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

2009 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

2010 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

2011 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

Reduce Costs

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19 Source: ISO-New England

New Generation is Driven by Peak Demand

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Allowing Demand Response to Play in the Market

Results in Peak Shaving – And Cost Savings

Source: ISO-New England

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$4.17

$5.10

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Total EE Businesses

Program Costs Benefits Program

Investments

Allowing Demand Response and EE to Play in the Market Results in Lower

Energy and Transmission Costs

Electric Vehicles vs. Petroleum:

Cheaper, Less Volatility

Cleaner Environment/

Address Climate Change

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Massachusetts Global Warming Solutions Act of 2008

Requires Steep Reductions

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Required Emissions Reductions

Source: MA EEA; http://www.mass.gov/eea/docs/eea/energy/2020-clean-energy-plan.pdf

EVs Reduce GHG Emissions

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EVs Reduce Local Air Pollution

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Seize Economic Opportunities

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Source: Electric Drive Transportation Association http://electricdrive.org/index.php?ht=d/sp/i/20952/pid/20952 28

Clean Energy Sector Growth

2012 Massachusetts Clean Energy Industry Report

http://www.masscec.com/index.cfm/page/2012-Massachusetts-Clean-Energy-

Industry-Report/cdid/13909/pid/11170 29

Whenever I run into a problem I can’t

solve, I always make it bigger. I can

never solve it by trying to make it

smaller, but if I make it big enough I

can begin to see the outlines of a

solution.

– Dwight D. Eisenhower

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Thank you

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