Connecting the Dots: Major New England Energy Initiatives Katie - PowerPoint PPT Presentation

Connecting the Dots: Major New England Energy Initiatives Katie Dykes Deputy Commissioner for Energy Raab Roundtable September 30, 2016 Connecticut Department of Energy and Environmental Protection 1

A Few of the Dots… • RGGI 2016 Program Review • 3 State Clean Energy RFP • CT Comprehensive Energy Strategy • CT Governor’s Council on Climate Change • IMAPP Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection

RGGI 2016 Program Review • Commitment to program review in 2016 • Key topics: – Program successes, areas for improvement – Opportunities for further reductions post-2020 – Other program elements – Compliance with Clean Power Plan Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection 3

Modeled RGGI CO 2 Caps 100 90 80 70 Million Tons CO2 60 50 40 30 20 RGGI Cap (CPP Ref) 2.5% Cap Decline 2024 10 2.5% Cap Decline 5% Cap Decline 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 4

Projected RGGI Allowance Prices 35 CPP N+E CPP E 30 CPP N+E 2.5% CPP N+E 2.5% 2024 CPP E 2.5% 2024 25 CPP N+E 5% CPP 5% CCR 2012$/Ton 20 15 10 5 0 2016 2018 2020 2022 2024 2026 2028 2030 2032 5

Projected RGGI Firm Power Prices 60 50 40 2012$/MWh 30 20 CPP N+E CPP E CPP E 2.5% 2024 10 CPP N+E 2.5% 2024 CPP N+E 2.5% CPP N+E 5% CPP 5% CCR 0 2016 2018 2020 2022 2024 2026 2028 2030 2032 6

3 State Clean Energy RFP “The 3 State Clean Energy RFP remains a high priority effort for the Commonwealth of Massachusetts and the states of Connecticut and Rhode Island. The Clean Energy RFP evaluation team is providing this update to provide bidders and stakeholders with the latest information available on the status of the RFP. The evaluation process is still underway, and bidders will be contacted directly by the Clean Energy RFP evaluation team regarding their proposals, which were solicited to be valid until October 24, 2016 per the RFP. Final results of the RFP will be announced to the public when executed contracts are filed for regulatory review. This website –www.cleanenergyrfp.com – will be updated periodically on the evaluation progress.” Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection 7

Governor’s Council on Climate Change Connecticut Greenhouse Gas Emissions 1990-2013 60 Generation Based-Accounting 50 2010 Target 2020 Target Millions of Metric Tons of Carbon Dioxide Equivalent 40 9% reduction achieved to date (1990 baseline) 30 20 2050 Target 10 0 1990 1995 2000 2005 2010 Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection 8

Governor’s Council on Climate Change Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection 9

Governor’s Council on Climate Change Reference case assumptions of nuclear retirements: Millstone 2 in 2035; • Millstone 3 in 2045; Seabrook granted 20-year license renewal in 2030. Assumes clean generation resources begin to replace natural gas after 2025. • By 2050, natural gas produces 5% of MWh, renewables/hydro 75% Examples of thermal and transportation measure penetrations: • Measure 2015 2030 - 35% 2030 - 45% 2030 - 55% 2050 Passenger 2,902 (.1% 462,149 875,650 1,532,388 2,184,529 EV sales of fleet) (20%) (38%) (67%) (79%) Residential 2,934 (.3% 11,400/yr 25,100/yr 38,656/yr 847,294 ASHP/GSHP therm load) (18%) (39%) (60%) (87%) Commerc’l 111,981 ft 2 3.6m ft 2 13.8m ft 2 19.4m ft 2 28.0m ft 2 ASHP/GSHP (0.3%) (10%) (39%) (60%) (69%) Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection 10

CT Comp Energy Strategy, IMAPP How to secure more clean • energy (hydro, renewables) at least cost & greatest benefit to CT ratepayers, within restructured market? • How to ensure continued retention of existing nuclear, if nuclear retirement becomes imminent? • How to maintain affordable electricity prices for economic competitiveness, and to facilitate fuel- switching in transportation and buildings? Connecticut Department of Energy and Environmental Protection Connecticut Department of Energy and Environmental Protection 11