Transcript BC Electricity Policy and Emissions

Climate Change and Planning to Respond
to Demand for Energy Services
FortisBC Electric Resource Planning
Advisory Group
Paul Wieringa
Electricity and Alternative Energy Division
B C Ministry of Energy and Mines
July 28, 2015
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NERC Regions
2
Utilities: Paying
Attention to Demand
• For the past 10 years:
– Supply: Increasingly, environmental concerns pushing
clean/renewable resources
– Demand: Energy efficiency
• Future:
– Demand: Increasingly, environmental concerns
pulling electrification; productivity
– Technology
– Supply: continued focus on clean/renewable
resources
3
Plans
2002: BC Energy Plan: Incremental Supply
from IPPs for BC Hydro, strengthen BCUC,
energy efficiency
2007: BC Energy Plan: energy
efficiency 50% of incremental supply
for BC Hydro, 93% clean resources
province-wide
2008: Climate Action Plan:
revenue neutral carbon tax, GHG
targets, renewable and low
carbon fuels
4
2010 Clean Energy Act
• GHG reduction targets
– S.18 Prescribed undertakings
• Energy efficiency 67% of incremental supply
• 93% clean or renewable resources
• Exempted projects and procurements from BCUC
approval, expanded scope for BCUC on
environmental and social issues.
• Export market growth potential: surplus and
insurance
• Builds on revenue neutral Carbon Tax: $10/MT--$30/MT
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Importance of Energy
Efficiency
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1. Accelerating Energy
Efficiency
• Utilities Commission Act - DSM Regulation
–
–
–
–
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Expand utility investment in DSM programs
Incentives, education, and technical support
Low income programs
Portfolio approach
Developing Codes and Standards
• LiveSmart BC: Efficiency Incentive Program
– Incentives and support for residential energy efficiency upgrades
• LiveSmart BC: Small Business Program
– Advice and support for small businesses to save energy
• On-bill utility financing
– Utility-based loan program tied to the meter
– Can transfer to new owner or tenant when occupancy changes
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DSM Regulation
• Address greenhouse gas emissions
o Value emissions in cost-effectiveness tests
o Places natural gas energy savings on more equal footing with
clean electricity supply as an emission-reduction strategy
• BCUC must compare electricity DSM against cost of
clean long-term BC electricity supply—zero emission
clean energy alternative (ZEEA)
o Not export or spot market
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2. Focus on Customers’
Bills
10 Year Rates Plan for BC Hydro
• Keep rates predictable
• $2.4 billion/year investments in aging and new
infrastructure
Government Approved BC Hydro IRP
• Focus on conservation first, managing IPP resources,
continued development of Site C and support for LNG
• Burrard Thermal shutdown
• Clean Energy Strategy to promote smaller clean energy
opportunities and First Nations participation
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Site C
Third Dam on Peace River
1,100 MW of capacity; 5,100 GWh/yr of energy
Lowest Cost
 Keeps rates low
 Provides Capacity
 Flexibility
 Lowest GHG emissions
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3. Areas of Demand
Growth
• LNG; 8 new mines and 9 upgrades or expansions targeted under
BC Jobs Plan
• Electrifying the upstream oil and gas sector
– Transmission expansions
• Electrification (vehicles, heat pumps, etc.)
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Transportation Fuel
Volumes
Fuel Reported
Gasoline
Ethanol
Diesel
Biodiesel
HDRD
LNG
Electricity
Hydrogen
CNG
Propane
Units
(millions)
litres
litres
litres
litres
litres
Kg
KWh
Kg
m3
litres
2010
4,459
235
2,977
61
31
0
167
0.18
4.35
*
Quantity
2011
4,311
263
3,411
96
59
0.16
169
0.26
4.82
133
2012**
4,089
252
3,389
89
69
2.4
178
0.28
0.64
0.65
* Propane was under-reported in 2010.
** The 2012 quantities are 2/3 of 2012/13 quantities for Part 3
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Clean Energy Vehicle
(CEV) Program
$10.6 million over the next three years from Innovative
Clean Energy (ICE) fund
• $7.5 million for point-of-sale incentives, and dealer
and sales staff incentives for electric and hydrogen
fuel cell vehicles;
• $1.59 million for investments in charging
infrastructure and hydrogen fuelling infrastructure;
• $1 million to assist fleets in adopting CEVs ; and
• $500,000 for research, training, technology
development and public outreach to help grow a
local clean transportation technology sector
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Clean Energy Vehicle
(CEV) Program
Eligible vehicles and the maximum point-of-sale incentive amounts :
• Battery Electric Vehicle: $5,000
• Hydrogen Fuel Cell Vehicle: $5,000 plus $1,000 fuelling incentive
• Plug-In Hybrid Electric Vehicle /Extended Range Electric Vehicle with
a minimum battery capacity greater than 15 kilowatt hours (kWh):
$5,000
• Plug-In Hybrid Electric Vehicle/Extended Range Electric Vehicle with
a minimum batter capacity less than 15kWh but greater than 4kWh:
$2,500
Eligible vehicle list and information at www.cevforbc.ca
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CEV: Outcomes in BC
• More than 2000 EVs on the road
• 692 public Level 2 charging stations
• 30 DC fast charging stations (17 installed)
• 306 residential Level 2 charging stations
• Student training, research and development in electric
vehicles and charging infrastructure
• The development of guides and tools for planning and
installing infrastructure in public spaces and in strataowned buildings
• Public outreach strategy and campaign (Emotive)
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Climate Leadership Plan
Live
• Reduce consumption; energy efficiency
• Fuel switching, district energy, net zero
buildings
• Community design
Travel
• Efficient movement of people and goods
• VKT
• Transit
• Clean transportation fuels
Work
• Competitiveness
• R&D, Technology
• Efficiency
Value
• Pricing
• Adaptation
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CLP Process
• Survey and submissions until August 17, 2015.
• Draft Plan for comment December 2015
• Final Plan March 2016.
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Integrated Resource
Planning
• An integrated resource plan is a utility plan for
meeting forecasted annual peak and energy
demand, plus some established reserve margin,
through a combination of supply-side and demandside resources over a specified future period.
(Regulatory Assistant Project/Synapse, 2013)
• Increasingly, more difficult to understand demand
and demand-side resources, than supply-side
resources.
• Climate change mitigation measures change end-use
consumption.
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Final Thoughts
• Demand for Electricity Services
– Energy efficiency reduces demand
– Electrification increases demand
• Transportation
• Space and Water Heating
• New electrification metrics
– Technology
– Market Transformation
– Incentives
– Role of utilities
– End use focus, downstream of the meter
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