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2016 NASEO Energy Policy Outlook Conference
11 February, 2016
The Fairmont, Washington, DC
Lola Infante
Director Generation Fuels and Market Analysis
Outlook on Renewable
Energy
The Edison Electric Institute (EEI) is the association
that represents all U.S. investor-owned electric companies.
Our members provide electricity for 220 million Americans,
operate in all 50 states and the District of Columbia, and
directly employ more than 500,000 workers.
With $100 billion in annual capital expenditures, the electric
power industry is responsible for millions of additional jobs.
Reliable, affordable, and sustainable electricity powers the
economy and enhances the lives of all Americans.
EEI has 70 international electric companies as Affiliate
Members, and 270 industry suppliers and related
organizations as Associate Members.
Organized in 1933, EEI provides public policy leadership,
strategic business intelligence, and essential conferences
and forums.
For more information, visit our Web site at www.eei.org.
3
Overview
Drivers of renewable energy deployment
The critical role of IOUs
Renewable energy trends and evolution
New technologies, new challenges
5
A Century of Innovation
September 1882: Edison used a steam engine to drive his dynamo to generate direct current electric power for a central power generating station on Pearl Street in New York City. It had 85 customers and 400 lamps.
January 2013: GE unveiled a new wind turbine design, billed as “the world’s most efficient high output brilliant wind turbine”. The turbine features an integrated energy storage system. It comes with a data-driven system designed to boost efficiency and improve power output and is the first to use the Industrial Internet to help manage the variability of wind providing smooth predictable power.
6
Industry Capital Expenditures
103.3
95.8
90.6
108.6
101.2
92.2
48.4
59.9
74.1
82.877.7
74.378.6
90.3 90.3
98.1
30
40
50
60
70
80
90
100
110
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
($ Billions)
Actuals
Projections (July 2014)
Projections (Sept. 2015)
Source: EEI Finance Department, company reports, SNL Financial (September 2015).
Notes: Total company spending of U.S. Investor-Owned Electric Utilities, consolidated at the parent or appropriate holding company.Projections based on publicly available information and extrapolated for companies reporting fewer than three projected years (11% and 12% of industry for 2016 and 2017).
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Transformation Drivers
Environmental regulations
Financial incentives
Low natural gas prices
DiversificationDeclining technology costs
Customer demand
Public policies New technologies,
models and uses
8
Our National Fuel Mix Is Changing
Source: Department of Energy, Energy Information Administration
2005 National Fuel Mix 2015 National Fuel Mix(estimate)
9
The Use of Renewable Energy
Is Growing Nationwide
Source: Velocity Suite, ABB Enterprise Software; GTM/SEIA Solar Market InsightSolar includes PV and CS
10
Renewables Deployment
Installed non-hydro renewable capacity
Source: Velocity Suite, ABB Enterprise Software; June 17, 2014. Includes plants operating and under construction.
11
Utilities: Partners of Change
Financing renewables
Integration of variable renewable resources
Promotion of new technologies
Maintaining reliability and affordability
12
Leading the Growth of Solar Power
Large-Scale Utility Solar Projects Amount to About 60 Percent of All Installed Solar CapacitySolar Energy is Growing Everywhere
Source: Velocity Suite, ABB Enterprise Software; GTM/SEIA Solar Market Insighte = Estimated. Solar includes PV and CSP
13
Utilities Lead the Way
On Solar Power
14
New Rate Design, Compensation
and Incentive Mechanisms
Under NEM, Distributed Generators Do Not Pay Their Full Share of Grid Costs
Current Rate Designs Work Poorly for Distributed Generation
Rooftop Solar Provides the Same Benefits Than Central Station Solar
Rooftop Solar Power Is the Most Expensive Resource
15
Solar Compared
16
Community Solar
Programs are active in 25 States
Symbols:
Utility-Administered
Third-party Administered+
State Shading:
Community Solar Legislation Enacted
Source: SEPA
Community solar is a voluntary, solar ownership alternative for
groups of participants accessible to all.
17
Energy Storage
Transmission DistributionGeneration End User
Front of the Meter (FTM) Behind the Meter (BTM)
C&I
Residential
Source: Navigant
Energy storage can be deployed in all parts of the grid, has applications in all parts of the value chain.
FERC Regulated Matters State Regulated T&D End user
Source: Adapted from DOE/EPRI Handbook
Investing in grid transformation
Connecting with customers
Partnering with technology companies
Providing safe, reliable, affordable and clean electricity for all customers
