Opportunity in the Old Dominion: What the Virginia Clean Economy Act - - PowerPoint PPT Presentation
Opportunity in the Old Dominion: What the Virginia Clean Economy Act Means for Business An Advanced Energy Economy Webinar [May 19, 2020] 0 Opportunity in the Old Dominion: What the Virginia Clean Economy Act Means for Business Panelists:
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Demand Side Prioritization (EERS) Clean Energy Standard (RPS) + Storage Unshackling Distributed Generation Pathway to Zero Emissions
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1.25% 2.50% 3.75% 5% 0.50% 1% 1.50% 2% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2022 2023 2024 2025
Total Annual Savings (% Retail Sales)
EE Targets 2022-25
Dominion Appalachian
Demand Side Prioritization (EERS)
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– 25% of carve-out directed to low-income projects as available
– 1% Reserved for NEM projects service low-income communities – SCC Revisits NEM tariff at 3% or by date certain (2024 / 25)
– Dominion: 1,000 MW (500 jurisdictional / 500 non jurisdictional) – Appalachian: 40 MW
Unshackling Distributed Generation
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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 3 3 1 3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9 2 4 4 1 4 2 4 3 4 4 2 4 5 4 6 4 7 4 8 4 9 2 5
Renewables (as % of total electric energy)
Dominion Appalachian Power
Clean Energy Standard (RPS)
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Year (Petition to SCC) Onshore RE (Dominion) Onshore RE (Appalachian) 2023 N/A 200 MW 2024 3,000 MW N/A 2027 3,000 MW 200 MW 2030 4,000 MW 200 MW 2035 6,100 MW N/A Year (Petition to SCC) Storage (Dominion) Storage (Appalachian) 2035 2,700 MW 400 MW Year (In Service) Offshore Wind (Dominion) 2028 2,500 – 3,000 MW 2034 2,100 – 2,600 MW
Clean Energy + Storage Deployment
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– Effectively picks up where RGGI stops (RGGI enacted separately) – No emissions permits may be issued post-2049
– 2024: All coal-fired generation (except for VCHEC & Clover) – 2028: All biomass-fired generation – 2045: All generation that emits carbon
– SCC must consider social cost of carbon when evaluating applications for new generating facilities
Pathway to Zero Emissions
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– Applies to buyers with an aggregate load >25MW – Accelerated Buyers may be exempt from utility RPS costs equal to the portion of their load covered by eligible RE resources / contracts
– Percentage of Income Payment Program (PIPP) – Sets policy of Commonwealth to prioritize LI & HD Communities in RE development job training, energy programs, etc. – Triennial DMME & EJ Council Report re: VCEA’s impact to LI & HD communities
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* Repeats on annual basis ** Repeats on a triennial basis
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– Energy Savings – Convenience!!
– Energy Efficiency – Demand Response – Peak Load Management (TOU) – Customer Satisfaction
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Offshore Markets & Bioenergy
§ Global market leader in offshore wind § Develops, constructs, owns and operates offshore wind farms § Provides 100% wind backed Corporate PPA’s & merchant products to large business customers § Renewable hydrogen projects in electrolysis and Power2X technologies § 6.8 GW operational capacity § 3.1 GW build-out plan towards 2022 § Ambition of 15 GW installed offshore wind capacity by 2025 § Heat and power plants converted from coal and gas to biomass and waste-to-energy § #1 in Danish heat and power generation with 25% of market § Energy supply solutions for B2B customers § Provides route-to-market for own and customers’ generation portfolio § Market trading operations to optimize hedging contracts
Major Shareholders (voting share %)
50%
7.8%
§ Develops, constructs, owns and operate onshore wind, solar and energy storage projects § 1 GW onshore operational capacity § 1.1 GW under construction and pipeline to reach 5GW by 2025 § Energy storage solutions with a first 20MW battery storage project in operation § Permian Energy Center which consists of 420MW Solar PV and 40MW storage facility
Ørsted develops energy systems that are green, independent and economically viable
Ørsted Offshore, March 2020
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Policy: up to 16MW “in the public interest” Developer opportunity: minimal Industry participation: minimal Economic benefits to Virginia: minimal Policy: up to 5,200MW by 2034 mandate – 2.6GW to 3GW by 2028 in VWEA Developer opportunity: Potentially significant – EPC or similar Industry participation: Significant – Cluster potential Economic benefits to Virginia: Jobs, capital investment, cluster potential Policy: up to 5,200MW by 2034 mandate – 2.2GW – 2.6GW through 2034 Developer opportunity: Potentially significant – EPC, Build/sell, other Industry participation: Significant – Cluster potential Economic benefits to Virginia: Jobs, capital investment, cluster potential (mandated)
materialize given lack of policy directive and small-scale of CVOW
significant with cluster opportunity -- supply chain opportunity to centralize
pipeline
projects to participate, but long-term potential for other lease areas to participate
Ørsted activities:
CVOW – Lynnhaven inlet construction base, PMT lease Long-term – Options to expand activities at PMT to serve multiple projects, potential involvement in Virginia Wind Energy Area, late 2020’s project potential COVID impacts in Virginia – minimal in getting to project completion; has limited personnel relocation
Landscape
9Industry Outlook
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Virginia On-Site Public Sector Market Share
Founded in Virginia, work throughout the Mid-Atlantic
Team Lifetime Experience; 70 Employees
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2000 4000 6000 8000 10000 12000 14000 16000 18000 2014 2015 2016 2017 2018 2019 Start 2020 VCEA (2035)
VA Solar and Onshore Wind Targets – Recent Historical Perspective
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…national/local collaboration …innovation + engagement
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Devin Welch – CEO devin.welch@suntribesolar.com
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Free for AEE members Non-members: $129 per session, or $299 for all three sessions
(AEE members, academic institutions, government, or registering for all three sessions: email webinars@aee.net for discount codes)
First session: “Raising the Bar: Utility Commissioners on Offshore Wind, Electric Vehicles and Meeting Ambitious Energy Goals” Thursday, May 21, 2-3:30pm ET Register at advancedenergynow.org/east-2020
26 aee.net powersuite.aee.net @aeenet / Washington DC San Francisco Boston