Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — Jefferies 7th Annual Clean Tech Conference (March 2009)
24 slides from Pacific Gas & Electric's conference presentation, Mar 17, 2009
Slide 1: The Utility's Role in Implementing Clean Technology
The Utility’s Role in Implementing Clean Technology Fong Wan Senior Vice President, Energy Procurement Pacific Gas and Electric Company March 17, 2009 This presentation is not complete without the accompanying oral statements made on March 17, 2009. A replay is available at www.pgecorp.com. For more
Slide 2: Agenda
Agenda • California’s Clean Energy History • The Importance of Demand-Side Emerging Technologies • Renewable Energy Requirements • Benefits and Challenges of Utility-scale vs. Distributed Solar • PG&E's Portfolio Approach • Comparison of PV vs. Concentrating Solar Thermal • PG&E’s Proposed New Photo
Slide 3: What Makes California Different?
What Makes California Different? • Long-standing State policies lower carbon footprint. • 30+ years of energy efficiency programs facilitated by “decoupling” of rates. • California Energy Action Plan preferred loading order: • Customer Energy Efficiency • Demand Response/Dynamic Pricing • Renewables
Slide 4: History of Energy Efficiency Key to California Success
History of Energy Efficiency Key to California Success Over the past 30 years, California per capita electricity use has remained relatively flat compared to the 50% increase in U.S. per capita electricity use. 14,000 12,000 10,000 8,000 kWh 6,000 4,000 2,000 - 1960 1965 1970 1975 1980 1985 1990 199
Slide 5: Utility Programs and State Standards
Utility Programs and State Standards Savings from Efficiency Programs and Standards 14,000 12,000 California Energy Commission raises Utility tests building and 10,000 technologies that appliance codes deliver above-code and standards savings 8,000 MW/year Utility Efficiency Programs at a cost of 6,
Slide 6: Demand Response: SmartAC Example
Demand Response: SmartAC Example • Remote activation of SmartAC switch lowers peak energy demand • Goal: 305 MW by Summer 2011 (~400k devices) • Pilot: 100 MW • Offsets need for two average-sized peaker power plants • 93% of customers surveyed didn’t notice the system had been activated 5
Slide 7: California Has the Most Aggressive Renewable Portfolio Standard
California Has the Most Aggressive Renewable Portfolio Standard VT: (1) RE meets any increase ME: 30% by 2000 MN: 25% by 2025 10% by 2017 - new RE in retail sales by 2012; (Xcel: 30% by 2020) *WA: 15% by 2020 (2) 20% RE & CHP by 2017 ☼ NH: 23.8% in 2025 ND: 10% by 2015 WI: requirement varies by ☼ MA
Slide 8: Aggressive Contracting for Diverse Renewable Resources
Aggressive Contracting for Diverse Renewable Resources 4000 % % MW MWh Annual Cumulative 3500 MW Geothermal 493 14 25 Wind 778 22 18 3000 Bioenergy 129 4 7 <1 <1 Small Hydro 1 2500 Solar Thermal 1,230 35 30 Solar/Biomass 107 35 30 40 Solar PV 777 22 14 MW 2000 3,515 1500 30 1000 25 10 5 500 # of Con
Slide 9: Advancing Renewable Energy Technologies
Advancing Renewable Energy Technologies Traditional Biomass Small Hydro Geothermal Wind Emerging BioGas Concentrating Concentrating Wave Power Solar Thermal Photovoltaic 8
Slide 10: Distributed vs. Utility Scale Solar
Distributed vs. Utility Scale Solar Distributed Utility Scale Pros: Pros: • Speed to market • Economies of scale • Not transmission dependent • Efficiencies • Not dependent on water • Compatible with emerging storage technologies Cons: • Higher deployment costs Cons: • Slower scale penetration • Tra
Slide 11: Annual PG&E Solar Interconnections
Annual PG&E Solar Interconnections 28,500 PG&E customer solar installations ( >290 MW) 300,000 30,000 Cumulative kW Cumulative Customers 250,000 25,000 200,000 20,000 kW Customers 150,000 15,000 100,000 10,000 50,000 5,000 0 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 10
Slide 12: A Portfolio of Diverse Central-Station and Dispersed Utility-Scale Solar Technologies
A Portfolio of Diverse Central-Station and Dispersed Utility-Scale Solar Technologies 553-MW Parabolic Trough 500-MW Power Tower 550-MW Cd Te PV Illustrative Illustrative 250-MW Dispersed PV 250-MW Dispersed PV 210-MW c-Si Tracking PV (1-20 MW ea) (PPA) (1-20 MW ea) (owned) 11
Slide 13: Why Utility Ownership?
Why Utility Ownership? • Credit-related cancellations or delays of independent contractors’ projects • Balance sheet strength produces lower cost of money • Utilities can utilize the PTC and ITC • Reduces development risk 12
Slide 14: Why the Trend to Photovoltaics?
Why the Trend to Photovoltaics? • Proven, commercially ready technology • Costs are decreasing • Many Northern California locations suitable for PV deployment • Modular / rapid deployment capabilities • Project size facilitates expedited interconnection • Project size avoids transmission upgrades •
Slide 15: Solar Energy Cost Trends
Solar Energy Cost Trends Levelized Cost of Energy1 Has Decreased 125 - Concentrating Solar Power Photovoltaics 100 - 75 - 50 - 25 - ? ? Source: NREL Energy Analysis Office (www.nrel.gov/analysis/docs/cost_curves_2005.ppt) 1These graphs are reflections of historical cost trends NOT precise annual his
Slide 16: PG&E's Proposed New Hybrid PV Program
PG&E’s Proposed New “Hybrid” PV Program • Requested California Public Utilities Commission (CPUC) approval in February 2009 • 5-Year Program targeted to begin in January 2010 • 500 MW(AC): 1 to 20 MW installations composed of • 250 MW (305 MW(DC)) utility-owned generation (UOG) at an estimated capit
Slide 17: PG&E's Proposed New Hybrid PV Program
PG&E’s Proposed New “Hybrid” PV Program • PG&E would seek to finance projects as any rate- base investment • The terms and pricing of the PPAs would be subject to pre-approval by the CPUC • Proposed 2 MW pilot UOG PV project targeted to start in 2009, to speed deployment of the larger PV Program if
Slide 18: Integrating Intermittent Renewables
Integrating Intermittent Renewables • Solar and wind are both intermittent resources • Very few renewable resources are dispatchable • Today, integrating renewable resources requires more fast-response natural gas power plants • New technologies will provide other options in the future 17
Slide 19: Wind Generation Varies Widely
Wind Generation Varies Widely The average is smooth, but day-to-day variability is great MW 700 Each Day is a different color. 600 −Day 29 500 −Day 9 400 −Day 5 −Day 26 300 Average 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour Source: CAISO 18
Slide 20: Renewable Resource Integration
Renewable Resource Integration Today: • Clean, flexible, natural gas-fueled resources are currently necessary to Renewable Resource Generation back up intermittent resources • Significantly improved air emissions profile compared to retiring plants, but still fossil-fueled CCGT Power Plant 19
Slide 21: Renewable Resource Integration: Tomorrow
Renewable Resource Integration Renewable Resource Generation Rooftop PV Centralized Storage Tomorrow: Local Storage • Utility scale distributed storage to back up intermittent resources and timeshift resource availability to be coincident with demand • Distributed generation and distributed storage
Slide 22: California's State Flower
California’s State Flower • The commute to the average office building in CA uses 57% more energy than the building uses. • Transportation will be the next big use of clean electricity. • The SmartGrid will enable the electrification of transportation without requiring additional fossil-fueled gener
Slide 23: Electric Vehicles and the Home Area Network
Electric Vehicles and the Home Area Network Time-shifting Electricity Home Area Network AMI/SmartGrid 22
Slide 24: Enabling Technology - SmartGrid
Enabling Technology - SmartGrid 2 Comprehensive communications capability Transmission Distribution Load Serving Operator Operator Entity Industrial Customer 3 Distributed Distributed computing Resources Commercial Customer 4 Advanced Energy Substation applications Storage 1 Increased capacity and f
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