Virginia Energy Patterns and Trends (VEPT) and Opportunities Under the

Carbon Management Initiative

Michael Karmis, Director

Virginia Center for Coal and Energy Research, Virginia Tech

Joint Meeting, Commission on Electric Utility Restructuring and the Virginia Coal and Energy Commission, Richmond, Virginia, September 8, 2004

Outline

• Virginia Energy Patterns and Trends: Process and Progress.

• Energy and Electricity Projections: Sources and Updates.

• Carbon Management: Status and Opportunities.

Virginia Energy Patterns and Trends (VEPT)

• A comprehensive database of the energy industries of the Commonwealth.

• On-going project of the Virginia Center for Coal and Energy Research (VCCER), sponsored by the Virginia Department of Mines Minerals and Energy (DMME) and the U.S. Department of Energy.

VEPT Goals

• Serve as an authoritative reference source for data and information on energy production, distribution/transportation, consumption and use in Virginia.

• Serve as an information and learning resource to the legislature and the general public on the energy economy of the commonwealth.

• Provide information that can assist and support choices by energy companies, government entities, consumers and the general public.

VEPT Look and Functionality

• Over 400 Data Tables, Charts, Maps and Figures.

• Links, Links, Links!• Pages are generated

using dynamic code reading from a central database, i.e.– Flexible– Simple to update

VEPT Use

• VEPT is a unique state resource, offering a single access point to comprehensive energy data.

• Over 200,000 hits (550 per day) in FY01. Most were from Virginia agencies (i.e. DMME and VT)

• In FY03, almost 700,000 hits (1,900 per day)• AOL and RoadRunner users are now the most

frequent visitors, indicating high public use.• The Coal, Gas and Electric sections of VEPT have

always been the most popular hits.

VEPT Data Sources

• Major Sources:– Energy Information Administration (EIA), US DoE

– Virginia Department of Mines Minerals and Energy (DMME)

• Division of Mines

• Division of Gas and Oil

• Division of Mineral Mining

• Other Sources:– State Corporation Commission (SCC)

– Virginia Employment Commission (VEC)

– Virginia Department of Environmental Quality (DEQ)

VEPT Data Format

• Data presented in interrelated categories:– Energy Overview, Coal, Electricity, Natural Gas,

Petroleum, Renewable Energy, Energy Education and Carbon Management

• Data analysis:– Data grouping– Accuracy checks– Comparison between sources– Reformatting– General narratives

Carbon Management

• Narrative

• Fuel Cells

• Carbon Emissions

• Categorized Links

Education Section• Quick source of

energy information for Virginia teachers and students

VEPT Current Initiatives

• Printer friendly options

• Downloadable data in CSV format

• Complete XML-based architecture

• Multimedia videos in energy education

• Continued evaluation and update, as data sources become available

VEPT Contact Information

• Steve Schafrik, Research Associate(540) 231-2007miningrocks@vt.edu

• Margaret Radcliffe, Project Manager(540) 231-7440mrad@vt.edu

• Virginia Center for Coal and Energy Research (0411), Virginia Tech, Blacksburg, VA 24061

EIA/DOE Energy Projections

U. S. Electricity Generation by Fuel (billion kilowatt-hours)

Virginia Electricity Generation by Fuel (2002)

Electricity Market Module Regions (EMM)

Projected Electricity Generation for EMM Regions (2001-2025)

0

200

400

600

800

1000

1200

1400

East Central - 01

Texas - 02

Mid-Atlantic - 03

Mid-America - 04

Mid-Continent - 05

Northeast/New York - 06

Northeast/New England - 07

Florida - 08

Southeastern - 09

Southwest - 10

Western - 11

Western - 12

Western - 13

US Total

Projected Electricity Generation for the USA and EMM Regions (2001-2025)

0

1000

2000

3000

4000

5000

6000

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

2023

2025

East Central - 01

Texas - 02

Mid-Atlantic - 03

Mid-America - 04

Mid-Continent - 05

Northeast/New York - 06

Northeast/New England - 07

Florida - 08

Southeastern - 09

Southwest - 10

Western - 11

Western - 12

Western - 13

US Total

Virginia and the “PJM” Regional Transmission Organization (RTO)

• Greater access to a broader area of power generation• Power optimally dispatched over a much larger region

with associated increases in efficiency• Reduction in the price of generation capacity• Greater load diversity• Improved reserve sharing across the region• The net effect is that Virginia companies will not need

to build or contract with as much capacity under PJM

Carbon Sequestration and the Global Climate Change Initiative

• The goal of the Global Climate Change Initiative (GCCI) is to reduce greenhouse gas intensity by 18% to 2012.

• Capturing and permanently storing gases that contribute to global climate change (Carbon Sequestration) is a key component of GCCI.

• Geographical differences in fossil fuel and sequestration sinks across the US dictates that regional approaches will be required to address sequestration of CO2.

The Seven Carbon Sequestration Regional Partnerships

The partnerships include more than 140 organizations spanning 33 states, three Indian nations and two Canadian provinces. They include participants from industry, organizations, state agencies, universities and associations

The Southeast Regional Carbon Sequestration Partnership (SECARB)

• The SECARB is led by the Southern States Energy Board.

• The SECARB will pinpoint CO2 sources and sinks as well as transport requirements for eleven states, and enter these data into a geographic information system database.

The Southeast Regional Carbon Sequestration Partnership Partners

Southern States Energy BoardTennessee Valley Authority (TVA) Public Power Institute (PPI)Massachusetts Institute of TechnologyMississippi State University (MSU) Diagnostic Instrumentation Analysis Laboratory (DIAL)Winrock InternationalElectric Power Research InstituteGeologic Survey of AlabamaAdvanced Resources InternationalApplied Geo TechnologiesAugusta Systems Inc.RMS Research

Susan Rice and AssociatesThe Phillips GroupRMS ResearchInterstate Oil and Gas Compact

CommissionSouthern CompanyDuke PowerTampa Electric CompanyProgress EnergySCANACenter for Energy and Economic DevelopmentNorth American Coal Corp.Clean Energy Systems, Inc.

VCCER, Virginia TechMarshall Miller and Associates

Industrial Partners

Southeast Regional Carbon Sequestration Partnership/Virginia

• VCCER is providing project coordination and management.

• VCCER and Marshall Miller and Associates (MMA) are working together to analyze the potential for carbon sequestration within the Commonwealth of Virginia (technical and socio-economic issues).

• A team form the Colleges of Agriculture and Life Sciences and Natural Resources, at Virginia Tech, is addressing terrestrial sequestration models.

• Industrial partners have contributed cost-sharing funds and include major coal, utility and land holding companies.

• Industrial sponsorship satisfies the cost-sharing commitment to DOE, under this proposal.

Legislation Issues for Voluntary Carbon Management

• Throughout the United States, state legislators have taken the lead in drafting and advancing legislation to assist in facilitating voluntary GHG and carbon management activities in their states. – Development of studies and creation of advisory bodies on

carbon management (e.g., Idaho and South Dakota)

– Adoption of voluntary GHG and carbon emissions registries (e.g., California, Georgia, and New Hampshire)

– Passage of legislation to encourage terrestrial sequestration activities (e.g., Oklahoma).

Example from the State of Georgia

• Georgia's Carbon Sequestration Registry Act, Senate Bill 356 was passed during the 2004 legislative session. The Act:– Establishes a statewide Carbon Sequestration Registry on

CO2 terrestrial storage in agriculture and forestry.

– This storage, or sequestration, offsets greenhouse gas emissions that arise from sources such as factories and automobiles.

– The registry can promote the development of a carbon credit market.

– Georgia has the potential of becoming an attractive market for carbon transactions.

Global Climate Change Initiative (GCCI)DoE Carbon Sequestration-PHASE II

• Project Guidelines Soon

• Some Demonstration Sites

• Creation of New Partnerships

• Significant Cost-sharing

Virginia Opportunity: New Coal-Fired Power Plant as a CO2 Demonstration Site

Finding effective means of sequestering carbon can help

coal remain a major component in meeting our energy needs!