david cash masccc 2013

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1 Massachusetts Sustainable Communities & Campuses Conference April 24, 2013 David Cash, Commissioner Department of Public Utilities Why Plan for the Grid of the Future Today?

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Page 1: 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?

Page 2: David Cash masccc 2013

• 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

2

Drivers of Change

Page 3: David Cash masccc 2013

Greater Reliability

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Source: DOE/EIA

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

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New England is at the End of the Energy Pipeline

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New England is at the End of the Energy Pipeline

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Greater Energy Independence

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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

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Wind Potential

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Source: DOE:

http://www.windpoweringamerica.

gov/newengland/building_resourc

e.asp

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Distributed Generation Increasing

11 Source: MA DPU

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2006 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

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The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

2007

Source: MA EEA

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2008 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

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2009 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

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2010 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

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2011 The Massachusetts Clean Energy Revolution

o Solar

o Wind

o Other Renewables

Source: MA EEA

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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

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Electric Vehicles vs. Petroleum:

Cheaper, Less Volatility

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Cleaner Environment/

Address Climate Change

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Page 24: David Cash masccc 2013

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

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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

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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

Page 30: David Cash masccc 2013

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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Page 31: David Cash masccc 2013

Thank you

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