clean energy strategies in the impending era of ng restructuring roundtable june 15, 2012

Clean Energy Strategies in the Impending Era of NG

Restructuring Roundtable June 15, 2012

N. Jonathan Peressnjperess@clf.org

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Irrational Exuberance – No Barrel Left Behind

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Niche Fuel – Not a Bridge FuelNear term: Replace the Coal

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WINDCOALSOLAR

Longer Term, Support Variable RenewablesEuropean Climate Foundation Roadmap 2050

http://roadmap2050.eu/ (Mike Hogan)

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Lower Gas Costs Create System and Policy Challenges

• Electricity Market Refinements – to support balancing– Wind Dispatch – FCM – Support market entry by flexible resources– Hourly offers into DAM

• Gas Markets – New transportation/pipeline capacity; new products and services to support flexible resources

• New gas demand creates reliability challenges

• Alters cost effectiveness test for EE and renewables

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If gas saved by 30% residential efficiency used in power plants Dec – Feb it would raise gas use in those plants up to levels usually seen in July.

Back of the envelope confirmation that gas efficiency can “free up” gas that might be needed to meet peak winter electric demand.

In a world where gas is electricity - gas efficiency is electric reliability

Renewable Policy Refinements• Long Term Contracting

– Optimize to RPS Requirements– Bundling and blending

• Regional Procurement– RFP’s based on RPS

• Optimize FCM to Policy Objectives (njp)

• Infrastructure/Pipeline Expansion Dialog/Proceedings

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