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1 NEW YORK CITY’S ROADMAP TO 80 X 50 July 18, 2017

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1

NEW YORK CITY’SROADMAP TO 80 X 50

July 18, 2017

2

Sources and Magnitude of NYC’s GHG Emissions Sources and Magnitude of NYC’s GHG Emissions in 2015

Inventory of New York City Greenhouse Gas Emissions in 2015, April 2017

3

Co-BenefitsOur Growing, Thriving City

Our Just and Equitable City

Our Sustainable City

Our Resilient City

Air Quality

Job Development

Quality of Life

Access

Equity

Health and Well Being

Affordability

Resiliency

Innovation

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Achieving 80 x 50 requires a transition to a cleaner electric grid

30% of citywide GHG emissions come from power plants that generate electricity within and outside the city

24 in-city plants serve NYC and are capable of meeting 80% of the city’s peak demand

On an annual basis the in-city plants provide ~50% of the electricity consumed in the city

NYC Electric Grid Fuel Mix

New York City’s Roadmap to 80x50, September 2016

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Model Structure

Operating capacity

Commission/retire dates

Operating costs – VOM/FOM

Availability factors

Range of fuel types

Regional demand forecasts

Regional load shapes

Reserve margins

Wheeling costs

Transmission Characteristics

Emissions characteristics

GHG and emission caps

RPS policies

Environmental Policies

Capital cost (for new entries)

Regional flow limits

Fuel price forecasts

Demand

Fuel Supply

Generation Characteristics

Least cost dispatch and

planning

Generation additions by year

Generation retirements by year

Wholesale electricity prices

Reserve margins

Reserve margins

Transmission Characteristics

Emissions

Emission prices

Environmental Policies

Regional flows

Generation by fuel type by year

Demand

Fuel Supply

Generation Characteristics

Renewable Energy Generation

Inputs OutputsXpand

66

We modeled New York and surrounding regions to capture changes in generation capacities, imports, regional policies and emission profiles from City and imports. These regions include: New York, New England, PJM, Ontario and Quebec

Modeled Geography

77

We modeled New York as four regions: Zones A-F, G-I, J and K.

Modeled Geography

88

Model uses a “pipes and bubbles” constraint to limit transfer between regions▪ All model runs include 1000 MW capacity AC Transmission project between NYISO A-F

and G-I (not shown, 2019 in-service date)

▪ Assumptions for increased transmission in Alternate Reference Cases: ▪ Additional capacity b/w Hydro Quebec and NYISO A-F▪ Additional capacity b/w NYISO G-I and J

Transfer Limits

NYISOA‐F

NYISOG‐I

NYISO J NYISO K

Hydro Quebec

PJMW

PJM E

NEISO

IESO 1,000

1,7901,600

1,850800800

5,075

3,599

1,450

1,050

600

800

4,450

1,999

2,000

1,000

290 235

500

1,975

0

660

758

7581,290

530PJM East to G‐K Constraint: 3,075

NEISO  to NY and NY to NEISO Constraint: 1,600

NY to PJM Constraint: 2,225PJM  to NY Constraint: 3,350

Zone K imports: 1,700

G‐I to J‐K imports: 5,050

99

Under business as usual, GHG reductions driven by changes to the makeup of the electric grid

NYC Electric Grid Mix (Business as Usual)

Renewables become more economic with time

Natural gas replaces nuclear

Natural gas plants become more efficient

New York City’s Roadmap to 80x50, September 2016

1010

Electricity alternate reference cases

BAUCloser to 80 X 50

Further from 80 X 50

ReferenceHigh Carbon Intensity Grid

Low Carbon Intensity Grid

Strong EE Adoption

Early Nuclear Retirement

Generation CapacityAt Risk Nuclear RetirementWind Capital CostPV Capital Cost

Fuel PricesNatural Gas Prices

Demand ForecastEnergy GrowthPeak Growth

Regional Transmission CapacityNew Import TransmissionIn-State Transmission

Environmental PoliciesRGGIREV

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Other sectors will rely on a low-carbon grid to achieve 80 x 50

Future Carbon Intensity of the Electric Grid 2050 Electric Grid Fuel Mix by Scenario

Low carbon intensity grid

Key Low Carbon Intensity Grid Assumptions▪ New renewables are more economic than natural gas generation▪ Increased transmission within NYCA and between NYISO A-F and Canada▪ Indian Point remains active through 2050OSW was available but was not selected in any of the Alternate Reference Case runs

New York City’s Roadmap to 80x50, September 2016

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80 x 50 will require aggressive action across sectors

80x50 Path▪ Modified Low-Carbon Intensity Grid + 1000 MW hydro by 2020 + 1700 MW OSW by 2050 +

Deep Energy Retrofits (40-60% reductions) + 50-60% electrification of heating/hot water systems + 7 GW in-city solar PV

▪ 80x50 path relies upon a grid with >70% renewable content

▪ Requires significant increase in transmission capacity to Zone J

▪ Urgency driven by age of in-city generators and the lead-times associated with transmission projects

▪ Helps achieve GHG goals but also improves local air quality and public health as well as reliability/resiliency of power supply

New York City’s Roadmap to 80x50, September 2016

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Anthony J. FioreDeputy Commissioner, Energy MgmtNYC Dept. of Citywide Administrative [email protected]

Benjamin MandelRenewable Energy Policy AdvisorNYC Mayor’s Office of [email protected]

Ke WeiSenior Policy Advisor for EnergyNYC Mayor’s Office of Recovery and [email protected]