Pacific Gas & Electric Co. · NYSE:PCG
Pacific Gas & Electric — PG&E — Non-Deal Roadshow (March 2009)
24 slides from Pacific Gas & Electric's roadshow 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 • Renewable
Slide 4: 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. Source: California Energy Commission History of Energy Efficiency Key to California Success - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 US CA
Slide 5: Savings from Efficiency Programs and Standards
Savings from Efficiency Programs and Standards 2,000 4,000 6,000 8,000 14,000 Appliance Standards Building Standards Utility Efficiency Programs at a cost of ~1% of electric bill Utility Programs and State Standards Utility tests technologies that deliver above-code savings California Energy Commiss
Slide 6: Demand Response: SmartAC Example
Demand Response: SmartAC Example
Slide 7: California Has the Most Aggressive Renewable Portfolio Standard
California Has the Most Aggressive Renewable Portfolio Standard State Goal ☼ PA: 18%** by 2020 ☼ NJ: 22.5% by 2021 CT: 23% by 2020 WI : requirement varies by utility; 10% by 2015 goal IA: MW MN: 25% by 2025 (Xcel: 30% by 2020) TX: 5,880 MW by 2015 ☼ AZ: 15% by 2025 CA: 20% by 2010 ☼ * NV: 20% by 201
Slide 8: Aggressive Contracting for Diverse Renewable Resources
3 6 8 12 25 30 40 Annual Cumulative # of Contracts Aggressive Contracting for Diverse Renewable Resources MW Geothermal Wind Bioenergy Solar Thermal 1,230 3,515 Solar PV % MW % MWh Solar/Biomass Small Hydro <1 <1
Slide 9: Advancing Renewable Energy Technologies
Advancing Renewable Energy Technologies Biomass Wind Geothermal BioGas Small Hydro Wave Power Concentrating Solar Thermal Traditional Emerging Concentrating Photovoltaic
Slide 10: Distributed vs. Utility Scale Solar
Distributed vs. Utility Scale Solar Pros: • Speed to market • Not transmission dependent • Not dependent on water Cons: • Higher deployment costs • Slower scale penetration Utility Scale Pros: • Economies of scale • Efficiencies • Compatible with emerging storage technologies Cons: • Transmission de
Slide 11: Annual PG&E Solar Interconnections
Annual PG&E Solar Interconnections 28,500 PG&E customer solar installations ( >290 MW)
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 500-MW Power Tower 550-MW Cd Te PV 210-MW c-Si Tracking PV 250-MW Dispersed PV (1-20 MW ea) (PPA) Illustrative 553-MW Parabolic Trough 250-MW Dispersed PV (1-20 MW ea) (owned) Illustrative
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
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: Levelized Cost of Energy Has Decreased
Levelized Cost of Energy 1 Has Decreased Solar Energy Cost Trends Source: NREL Energy Analysis Office (www.nrel.gov/analysis/docs/cost_curves_2005.ppt) 1 These graphs are reflections of historical cost trends NOT precise annual historical data. ? ? - - - - - - - - - - Photovoltaics
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 c
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
Slide 19: Wind Generation Varies Widely
Wind Generation Varies Widely The average is smooth, but day-to-day variability is great Hour MW Average Each Day is a different color. - Day - Day - Day - Day Source: CAISO Source: CAISO
Slide 20: Renewable Resource Integration Today: CCGT Power Plant
CCGT Power Plant Renewable Resource Integration Today: • Clean, flexible, natural gas-fueled resources are currently necessary to back up intermittent resources • Significantly improved air emissions profile compared to retiring plants, but still fossil-fueled
Slide 21: Renewable Resource Integration Tomorrow
Renewable Resource Integration Local Storage Rooftop PV Centralized Storage Tomorrow: • Utility scale distributed storage to back up intermittent resources and timeshift resource availability to be coincident with demand • Distributed generation and distributed storage to apply similar principles at
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 gene
Slide 23: Electric Vehicles and the Home Area Network
Electric Vehicles and the Home Area Network Home Area Network AMI/SmartGrid Time-shifting Electricity
Slide 24: Enabling Technology - SmartGrid
Enabling Technology - SmartGrid