the economics of zero emissions resources — renewable ... · the economics of zero emissions...
TRANSCRIPT
![Page 1: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/1.jpg)
The Economics of Zero Emissions Resources — Renewable Energy
Generation Options, Costs, Benefits, and Challenges
Tom Peterson Center for Climate Strategies
National Council of State Legislators
November 11, 2015
![Page 2: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/2.jpg)
11/11/15 www.climatestrategies.us
About UsBetter Safer World Action Plans, Capacities
US -- States and LocalitiesAlaska, Arizona, Arkansas, Colorado, Connecticut*, Florida, Kentucky, Iowa, Maine*, Maryland, Michigan, Minnesota, Montana, Oregon, Pennsylvania, New Mexico, North Carolina, New York, South Carolina, Southern California, Vermont, WashingtonGlobal – Nations, States, ProvincesChina, DR Congo, European Union Guatemala, Mexico, Philippines, Ukraine
![Page 3: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/3.jpg)
11/11/15 www.climatestrategies.us
Renewable Energy
On Grid and Off Grid
Solar, Wind, Biomass, Bio Gas, Hydro
![Page 4: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/4.jpg)
11/11/15 www.climatestrategies.us
Impacts
Benefits?Energy Diversity, Security,
Access
Economic Growth, Income, and Jobs
Health and Environmental Improvement
Fairness, Equity, and New Opportunities
Costs?Higher Prices
Reduced Access to Competitively Priced Power
Reduced Economic Growth, Jobs, Income
Energy Reliability and Stability
![Page 5: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/5.jpg)
11/11/15 www.climatestrategies.us
Challenges
Market Availability
Technology
Investment
Costs
![Page 6: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/6.jpg)
11/11/15 www.climatestrategies.us
Responses
• Regulation, Pricing, Taxes, Procurement, Siting
Policy Mechanisms
• Debt, Equity, Grants, Guarantees, Partnerships
Investment and Financing
• R&D, Commercialization, Scale Up
Technology Strategies
• Exchange, Assistance, Capacity
Collaboration
![Page 7: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/7.jpg)
11/11/15 www.climatestrategies.us
Context
• Clean Power Plan• National Climate Change Goals• International Commitments• State and Local Goals• Corporate Goals (e.g. green supply chains)
New US Goals
• Market, Economic, Investment, Policy, Technology, Energy, Public and Institutional Preferences
Macro Shifts
![Page 8: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/8.jpg)
11/11/15 www.climatestrategies.us
Clean Power Plan ImplicationsEnergy Information Administration, 2015
![Page 9: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/9.jpg)
11/11/15 www.climatestrategies.us
Clean Power Plan ImplicationsEnergy Information Administration, 2015
![Page 10: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/10.jpg)
10 | 9/16/2011 www.climatestrategies.us
National RPS Job Impacts, US2009 -- 58,660 net job loss 2012 -- 12,523 net job gain
![Page 11: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/11.jpg)
11/11/15 www.climatestrategies.us
Macroeconomic Design
Cost effective approaches increase economic efficiency
and expansion
Energy savings cut energy costs,
stimulate labor investment
Shifts to indigenous vs. imported
resources cut job outflows
Actions supported by local supply chains
cut job outflows
New investment from outside sources stimulates labor
investment at home
Labor intensive activities create more jobs, even if at higher
cost (up to a point)
Center for Climate Strategies, 2012
![Page 12: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/12.jpg)
11/11/15 www.climatestrategies.us
Linked Economic Effects
• Policy types• Policy option design• Mechanisms choice • Financial flows
Micro
• Jobs• Income• Growth• Prices• Productivity
Macro
![Page 13: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/13.jpg)
11/11/15 www.climatestrategies.us
Return On InvestmentCenter for Climate Strategies, 2012
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
$0
$50
$100
$150
$200
$250
Heat and Power Residential, Commercial,Industrial
Transportation and Land Use Agriculture, Forestry andWaste
All Sector Impact
New
Jobs
(202
0)
New
Inve
stm
ent
(bill
ion
2007
$; 2
012-
2020
)
Security Investment and Jobs in 2020
*job = employee-year over the period
$2,585/job*
$4,215/job*
$29,240/job*
$7,670/job*
$10,994/job*
![Page 14: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/14.jpg)
11/11/15 www.climatestrategies.us
Market Transition
Barrier Removal
Demonstration
Scale Up
Secondary & Tertiary Production
Expansion and Export
![Page 15: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/15.jpg)
11/11/15 www.climatestrategies.us
Cost Structure ExampleUS DOE Sun Shot Initiative, Soft Cost Solar Deployment, 2012
![Page 16: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/16.jpg)
11/11/15 www.climatestrategies.us
Cost Status, USLevelized cost of energy in the US, 2014 (Lazards)
![Page 17: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/17.jpg)
11/11/15 www.climatestrategies.us
Cost Status, USLevelized cost of energy in the US, 2014 (Lazards)
![Page 18: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/18.jpg)
11/11/15 www.climatestrategies.us
Virginia Power Prices
Coal with Capture and
Storage
$144 MWh
Conventional Coal
$95 MWh
Gas
$73 MWh
Wind
$73 MWh
Appalachian Power, 10/27/15
![Page 19: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/19.jpg)
11/11/15 www.climatestrategies.us
Cost Status, GlobalLevelized cost of wind energy, 2015
![Page 20: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/20.jpg)
11/11/15 www.climatestrategies.us
Cost Status, GlobalLevelized cost of installed Photovoltaic, 2015
![Page 21: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/21.jpg)
11/11/15 www.climatestrategies.us
Power Price Trends, USEnergy Information Administration, AEO 2015
![Page 22: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/22.jpg)
11/11/15 www.climatestrategies.us
Solar PV Price Trends, GlobalInternational Renewable Energy Agency, 2014
![Page 23: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/23.jpg)
11/11/15 www.climatestrategies.us
Cost Trends, USLevelized Cost of Energy, September 2014 (Lazard)
![Page 24: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/24.jpg)
11/11/15 www.climatestrategies.us
Cost ComparisonsRocky Mountain Institute, 2013
![Page 25: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/25.jpg)
25 | 9/16/2011 www.climatestrategies.us
Electricity Price VariationEuropean Union United States
![Page 26: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/26.jpg)
11/11/15 www.climatestrategies.us
Cost Reduction Strategies
•Improved financing access•Installation cost management software•Streamlined and standardized contracts•Etc.
Soft Cost
•Domestic supply chain diversification•Targeted government R&D investments•Bulk purchasing and community acquisition•Support for domestic manufacturers to reduce costs•Etc.
Hard Cost
![Page 27: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/27.jpg)
11/11/15 www.climatestrategies.us
Cooperative Strategy
Global Competition
Bilateral Cooperation
Domestic Interests
Local Benefit
![Page 28: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/28.jpg)
11/11/15 www.climatestrategies.us
Counterpart Exchange
Tools• Technical Assistance• Information Sharing• Thought Leadership• Peer Learning
Outcomes• Reduce Uncertainty• Expand Strategies• Leverage Quickly• Reduce Barriers
![Page 29: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/29.jpg)
11/11/15 www.climatestrategies.us
Updated Approach
Existing•National• Periodic• Closed• Slow
New• Subnational/Private• Live/Virtual•Open• Fast
![Page 30: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/30.jpg)
11/11/15 www.climatestrategies.us
Next Steps
Review and feedback on report
Recommendations to policy makers
Governmental response
![Page 31: The Economics of Zero Emissions Resources — Renewable ... · The Economics of Zero Emissions Resources — Renewable Energy Generation Options, Costs, Benefits, and Challenges](https://reader036.vdocuments.us/reader036/viewer/2022062603/5f31810d2aaa491e3d088afe/html5/thumbnails/31.jpg)
11/11/15 www.climatestrategies.us
Thank you for your time and attention!
QUESTIONS ?
Center for Climate Strategies1800 K Street NW, Suite 714
Washington, DC 20006www.climatestrategies.us
Thomas D. Peterson