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HAMPTON ROADS ENERGY
OPTIONS PART 2-
ENERGY IN HAMPTON ROADS
11.15.2012
James Clary: HRPDC Economist
Three Goals of Regional Energy Policy
1. High Energy Surety
2. Low Energy Costs
3. Increasing Energy Jobs
Energy Security is also a priority in
Hampton Roads
2
Electricity Prices by State, July 2012
Virginia 11.52
0
5
10
15
20
25
30
35
40
Cen
ts P
er
Kilow
att H
ou
r
Source: Energy Information Administration
3
Electricity Use vs Generation in H.R.
-
20,000
40,000
60,000
80,000
100,000
120,000
Virginia Hampton Roads
Th
ou
sands
of
MW
hs
Produce
Consume
Source: Energy Information Administration, eGrid 2012, HRPDC
Import
4.3M MWh
(18.2%)
Import
40M MWh
(35.9%)
4
Current Capacity and Outlook in H.R.
Coal, 114.8
0
1,000
2,000
3,000
4,000
5,000
6,000
2009 2016 2022
Megaw
atts
of
Net Sum
mer
Gen
era
ting
Capaci
ty
Coal Wind
Biomass Oil
Natural Gas Nuclear
Source: Energy Information Administration eGrid 2012, Dominion Resources, HRPDC
Potential
Offshore Wind
Capacity
5
Net Generation in Hampton Roads, 2009
Nuclear 67%
Coal 28%
Oil 2%
Gas 1%
Biomass 2%
Source: Energy Information Administration eGrid 2012, HRPDC
6
Potential Energy Technologies in
Hampton Roads
Biomass and
Biofuels
Coal
Onshore Wind
Offshore Wind
Offshore Oil &
Gas
Natural Gas
Nuclear
Solar
7
Levelized Cost of New Electricty Generation
Capacity Installed in Virginia and Carolina’s in 2017
0
50
100
150
200
250
300
350
AdvancedCombined
CycleNatural
Gas
Wind AdvanceNuclear
AdvancedCoal
Biomass Solar PV OffshoreWind
20
10
$'s
Per
Megaw
att-H
our
of
Ele
ctri
city
Energy Technology
Source: Energy Information Administration
8
Coal
Source: The Virginian-Pilot
9
Coal
US 28%
Russia 18%
China 13%
Australia 9%
India 7%
Rest of World 25%
Coal Reserves
Source: BP Statistical Review of World Energy 2012
Years of Reserves at
Current Rate Production
US 239
Russian Federation 471
China 33
Australia 184
India 103
10
Offshore Natural Gas and Oil
BOEM Lease Sale 220
Estimated
130 barrels of oil
1.14 trillion cubic feet of gas
Citi estimates mid-Atlantic offshore development could not be online until 2022
Many unknowns
11
Source: Bureau of Ocean
Energy Management
Offshore Wind- Manufacturing Potential
No first mover
advantage
Cape Wind
Deepwater (Rhode
Island)
All mid-Atlantic sites
proceeding at the
same pace
12
Source: Bureau of Ocean
Energy Management
Offshore Wind
Atlantic Wind
Connection 2021
Dominion would not
use Atlantic Wind
Connection
Probably no
turbine construction
prior to 2018 at
the earliest.
Turbines are still
very expensive-
levelized cost of
~$340/MWh
13
Source: Bureau of Ocean
Energy Management
Offshore Wind
Potential Virginia Employment Impact from a 2000
Megawatt Offshore Wind Farm
Phase Per MW Total
Turbine Components 1 2,000
Wind Farm Installation 11 22,000
Total from Construction 24,000
Yearly Operation and Maintenance 0.7 1,400
14
Source: South Carolina Wind Energy Supply Chain Survey and Offshore
Wind Economic Impact Study, HRPDC
Nuclear
15
Surry Power Station
Source: Dominion Resources
Gas Prices in Hampton Roads
$0
$1
$1
$2
$2
$3
$3
$4
$4
$5
$'s
Per
Gallon
of
Regula
r
Source: AAA Fuel Gauge, HRTPO
16
Policy Recomendations
Avoid the temptation to pick winners
Energy efficiency is the most cost effective way to
meet energy needs
Maintain simple permitting processes for distributed
energy technologies
Recognize that some questions are policy questions
and not economic or energy questions
Support the Hampton Roads Energy Corridor
Multi-tiered rate structure
17
Energy Options
Approval of “Hampton Roads Energy Options”
is Consent Agenda Item 9F
Comments
18
