Download Power Partners SM

Climate Vision, Power PartnersSM,
& GHG Activities for Public Power
Daniel E. Klein
Twenty-First Strategies, LLC
McLean, VA 22101
[email protected]
March 2005
What we’ll cover today
Background on U.S. GHG efforts
Climate Vision
Power PartnersSM
Company actions
GHG accounting & Upcoming activities
What’s a Power PartnerSM to do?
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21st Strategies
Technological Carbon Management Options
Carbon emissions = $GDP X
Btu/$GDP X carbon/Btu – sequestration
Improve
Efficiency
Demand Side
Supply Side
Reduce Carbon
Intensity
Renewables
Nuclear
Fuel Switching
Sequester
Carbon
Capture & Store
Enhance Natural
Sinks
All options needed to:
 Maintain economic growth
 Affordably meet energy demand
 Address environmental objectives
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Improving GHG intensity is a key
component of the U.S. strategy
Over time, improving
GHG intensity will:
2.
3.
GHG growth
Stabilize GHG
emissions
Reduce absolute
emissions
emissions
1. Slow the rate of



time
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Addressing Climate and Energy Security
in the Global Climate Change Initiative
 On February 14, 2002, President Bush set a goal to
reduce U.S. GHG emissions intensity by 2012
 “My administration is committed to cutting our
nation’s greenhouse gas intensity ... by 18 percent
over the next 10 years.”
 GHG “intensity” will be measured in terms of GHG
per unit of GDP
 This goal is equivalent to ~500 million metric tons of
cumulative carbon equivalent reductions from 2002 2012
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Administration Launched Several Initiatives
Multi-sector voluntary programs
Transformational technology RD&D
efforts on renewables, clean energy
Expansion of global outreach and
partnerships
Support for green trading
Exploration of innovative policy
instruments
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Advancing R&D via partnerships
Power and petroleum: participating in FutureGen, an
emissions-free coal-fired powerplant
Power and petroleum: participating in carbon
sequestration R&D projects
Forest & paper industry: working with DOE on biomass
gasification; industry initiating pilot projects
Auto and petroleum: participating in FreedomCAR and
Hydrogen Fuel Initiative
Iron & steel: issued R&D solicitation and selected 7
“post-Kyoto” R&D concepts (total value: $2.5 million).
AISI member companies will cost share
Chemicals: initiated Vision2020 Innovative Energy
Systems Challenge; partnering with DOE
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Climate Vision Program Launch
 Climate VISION – Voluntary
Innovative Sector Initiatives:
Opportunities Now
 A part of GCCI, launched
February 12, 2003
 Part of a continuum of shortmid-, and long-term
approaches to address
climate change
 Nature of problem requires
development and use of
transformational
technologies
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Climate VISION Private-Sector Partners
Alliance of Automobile
Manufacturers
The Business
Roundtable
Aluminum Association
International Magnesium
Association
American Chemistry Council
National Mining
Association
American Forest & Paper
Association
American Iron & Steel Institute
American Petroleum Institute
Association of American
Railroads
Portland Cement
Association
Power Partners
Semiconductor Industry
Association
Each partner has committed to contribute
to President’s GHG intensity goal.
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Elements of Voluntary Programs
Commitments: Industries make meaningful
commitments toward 18% intensity reduction goal
and to report emissions in §1605(b)
Inventory: Partners develop and use tools to
calculate, inventory, and report GHG emission
reductions, avoidance, & sequestration
Solutions: Partners (industry, government) identify
cost-effective GHG reductions for implementation
Technology: Companies develop strategies to speed
R&D and commercial adoption of advanced
technologies
Recognition: Government recognizes voluntary
mitigation actions
Further reductions: Partners develop strategies across
the economy to further reduce GHG emissions
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Climate VISION Website
 Announced during
COP-9 in December
2003 & received
very positive
reception
 Provides resource
for partners and an
avenue to
communicate with
public on progress
 Averaging 10,000+
“hits” per month
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www.climatevision.gov
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So … how is the U.S. doing so far?
Goal: 18% reduction in GHG intensity, 2002-12
 18% implies average annual rate of ~1.7%/year
 But BAU forecasts show ~14% improvement (~1.3%/year)
 From 1990-2003, GHG intensity fell ~1.9%/year
First year: 2003 relative to 2002 (EIA data)
 GHG emissions increased 0.7 percent
 But $GDP grew 3.0 percent
 So, GHG intensity fell 2.3 percent
Second year: 2004 relative to 2003 (very prel.)
 GHG emissions increased ~1.4 percent
 But $GDP grew ~4.4 percent
 So, GHG intensity fell ~3.0 percent
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Power PartnersSM: Meeting the Challenge
U.S. electric power sector recognized early
on as a world leader in voluntary
approaches for reducing, avoiding or
sequestering GHG emissions
Power industry came together in the 1990s
Successfully undertook voluntary climate initiatives
through the Climate Challenge program
First major industry to do so
281 MMT CO2 of reported reductions in 2002.
 But … does this reputation for “early action”
still hold?
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Power PartnersSM: Meeting the Challenge
In 2002, electric power sector created
Power PartnersSM
Voluntary partnership with Federal government
Address the President’s voluntary climate initiative
Designed to deliver results in short, medium and
long term
Participating in Climate VISION & Climate
Leaders
Industries/companies commit to reduce GHG
intensity
Power sector: Equivalent of 3-5% reduction in
emissions intensity (CO2/MWh) by 2012
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Power PartnersSM Participants
American Public Power Association
(APPA)
Edison Electric Institute (EEI)
Electric Power Supply Association (EPSA)
Large Public Power Council (LPPC)
National Rural Electric Cooperative
Association (NRECA)
Nuclear Energy Institute (NEI)
Tennessee Valley Authority (TVA)
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Power Sector Goal
Achieve equivalent of 3-5% reduction in GHG
intensity by 2012 through credible, verifiable
reductions in GHG emissions or offsets
Collaborative, industry-wide initiatives
Individual actions that best suit company capabilities,
resources and business strategies
Cross-sector programs and outreach
Signed Umbrella MOU with DOE
December 13, 2004
Highlights roles of partners in achieving voluntary
reductions
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Power Industry Initiatives - Update
PowerTree Carbon Co. – New reforestation
effort
Sponsored by 25 U.S. power generators
Committed over $3 million for up to six projects – will
remove and store over 1.5 million tons of CO2
Program formally announced last year
C2P2 – Coal Combustion Products
Partnership
Increase CCP use from approx. 14 million tons to 20
million tons of CO2 annually by 2010
Increase utilization rate from current 32% to 45% by
2008
40 utilities have become C2P2 “Champions”
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Power Industry Initiatives - Update
IPP – International Power Partnerships
program
Work with DOE and State Dept. to identify GHG
reduction opportunities overseas
Promote use of renewable energy and clean coal
technologies
Other Efforts
Pilot-Scale Test Centers for Engineering, Economic
and Environmental Evaluation of CO2 Capture and
Containment
Coal Fleet for Tomorrow
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Cross-Sector Programs & Outreach
Clean Coal Technologies
IGCC – AEP, Cinergy, Southern, TECO,
FirstEnergy
Clean Coal Technologies Conference
FutureGen
Geologic Carbon Sequestration:
Regional Partnerships
Companies teaming up with federal government
Determine most suitable technologies,
infrastructure needs
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Cross-Sector Programs & Outreach
Utility Hybrid Truck Initiative
Initiative for New Homes
Publish articles on ways to reduce energy
use, improve energy efficiency
Wise Use Website - help customers reduce
energy use
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So … how’s the Electric Power Sector
doing so far?
Annual Intensity 1980 - 2025
Year by Year Changes in Electric Power CO2 Intensity
0.68
0.66
mmtCO2e/Bkwh
0.64
0.62
Model
Actual
0.60
0.58
0.56
2024
2022
2020
2018
2016
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
0.54
Note: 1981 through 2002 data from EGG 2003, 2003 data from Electric Power Annual 2003, 2004 to 2025 data from AEO 2005
Data compiled by EOP Group.
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So … how’s the Electric Power Sector
doing so far?
 Goal: 3-5% reduction in GHG intensity, 2002-2012
 First year: 2003 relative to 2002 (EIA data)
 CO2 emissions increased ~1.0 percent
 But generation grew only 0.6 percent
 So, CO2 intensity increased (worsened) ~0.4 percent
 But are EIA’s 2003 estimates off?
 CO2 emissions increased ~1.8 percent, based on fuel
consumption
 So if generation grew only 0.6 percent
 Then GHG intensity increased (worsened) ~1.2 percent
 How does 2004 look? (very preliminary)
 CO2 emissions increased ~1.0 percent, based on fuel
consumption
 Generation grew ~1.9 percent
 Then CO2 intensity declined (improved) ~0.9 percent
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Types of Actions for Electric Power Companies
Company-specific GHG Reduction
Commitments
Renewable Energy & Green Power
Programs
Sequestration Efforts
Other Efforts and Programs
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Company Actions - Update
GHG Reduction Commitments
 AEP
Entergy
 Cinergy
Xcel Energy
 FPL Group
Austin Energy
 PSEG
SMUD
 TECO
Seattle City Light
 Green Mt. Power
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Company Actions - Update
Renewable Energy & Green Power Programs
Solar
Arizona Public Service, Pugent Sound
Wind
FPL, Mid-American, Xcel Energy, Exelon
Biomass
AEP, Cinergy, Southern
Green Power/Pricing Programs
PacifiCorp
Public Power and Green Mountain Energy
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Company Actions - Update
Sequestration Efforts
APPA TREE POWER Program
Southern Longleaf Legacy Program
Entergy’s Lower Mississippi River Valley
Sequestration Project
PacifiCorp
AEP’s Geologic Sequestration Initiative with DOE
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Company Actions - Update
Other Efforts & Programs
Energy efficiency programs
SF6 Programs
Chicago Climate Exchange
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Upcoming Activities
Release of Revised §1605(b) Reporting
Guidelines
May have impact on voluntary efforts
Complete Power PartnersSM Resource Guide
Help companies identify actions to reduce emissions
Continue and Expand GHG Reduction Efforts
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Release of Revised §1605(b)
GHG Reporting Guidelines
Status of §1605(b) revisions
 Feb. 2002: GCCI to “Substantially Improve the Emission
Reduction Registry”
 November 26, 2003, DOE released proposed revised
General Guidelines
 Jan. 2004: DOE Public Workshop
 “Early 2005”: (1) further revision of the General Guidelines
and (2) proposed Technical Guidelines
Will §1605(b) help or hinder its purposes?
 Feb. 2002: “These improvements will enhance
measurement accuracy, reliability and verifiability, working
with and taking into account emerging domestic and
international approaches.”
 But is the WRI/WBCSD GHG Protocol becoming the new
standard?
st
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Strategies
Complete the Power PartnersSM Resource Guide
http://carbonsequestration.us/PPRG/
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Continue and Expand Power Company
GHG Reduction Efforts
Understand your GHG footprint and risks
Identify GHG reductions already under way
Assess options for further GHG reductions
 Costs
 Effectiveness
 Ancillary impacts
Set a GHG target?
 Absolute level of emissions?
 GHG emissions intensity?
Develop capabilities for GHG reporting
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Questions?
Dan Klein
Twenty-First Strategies, LLC
6595 Terri Knoll Ct.
McLean, VA 22101
703-893-8333
[email protected]
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