“New England’s Energy Landscape: Changes and Challenges”
9
New England’s Changing Energy Landscape NOVEMBER 10, 2016 MARC D. MONTALVO, PRESIDENT
-
Upload
daymark-energy-advisors -
Category
Education
-
view
85 -
download
2
Transcript of “New England’s Energy Landscape: Changes and Challenges”
New England’s Changing Energy Landscape
NOVEMBER 10, 2016
MARC D. MONTALVO, PRESIDENT
Daymark Energy Advisors is a leading provider of economic, policy, and strategic analysis and advisory services to the North American electricity and natural gas industries.
Our firm has proudly served governments, regulators, utilities, investors, and consumers for 36 years.
About Daymark Energy Advisors
2
New England’s reliance on natural gas to generate electricity is over 40% and increasing Pipeline infrastructure has not kept pace with
increased electricity generation and space heating demands Economic pressures and environmental
policies recommend investments in gas-fired and wind generation, requiring additional pipeline and transmission
Regional Background
3
The Economic Impacts of Failing to Build Energy Infrastructure in New EnglandDaymark Energy Advisors and Economic Development Research Group, August 2015
The study looked at impacts of underinvestment in infrastructure over the period 2016 to 2020 in terms of: (1) the cost of electricity and natural gas, (2) the region’s employment, and (3) disposable income
Study looked at two boundary cases:- No new investments are made to expand infrastructure
beyond today’s levels
- Investments are made in new and expanded natural gas and electricity infrastructure at levels sufficient to mitigate or avoid higher prices and related impacts
2015 Study of Regional Infrastructure Investment
4
Lack of new energy infrastructure will cost the region $5.4 billion in higher energy costs
Higher energy costs will lead to the loss of 52,000 private-sector jobs
Lack of energy infrastructure will reduce household spending by $12.5 billion
$9 billion in foregone construction activity results in a loss of 115,600 jobs
Impact of Underinvestment in Energy Infrastructure
5
NET ANNUAL ENERGY COST INCREASES BY SECTORCONSTRAINED INFRASTRUCTURE
New England Energy Landscape UpdateDaymark Energy Advisors, October 2016
This report surveys the major issues and developments in the energy landscape impacting the New England region since August 2015
Policy choices have direct bearing on cost of energy to consumers and regional competitiveness
Energy landscape is in flux; there is a high degree of uncertainty regarding outcomes over the next three to five years and beyond
Observations fall into three broad categories:
- State policies on electricity supply mix
- Electricity market drivers
- Natural gas infrastructure
2016 Update of New England Energy Landscape
6
State policies influencing the future electricity supply mix will impact the broader competitive wholesale markets going forward
Transformation in the electricity market is likely to impact the timing of investment decisions that can affect price volatility and reliability
Pipeline delays and cancellations may expose the New England region to continued seasonal price volatility and intermittent price spikes
Impacts of Major Developments
7
Developments over the past year in New England and adjacent regions have introduced additional uncertainty to the timing and composition of infrastructure additions to the regions over the next five years
Uncoordinated policy and market actions may lead to greater electricity and natural gas price volatility in the near term and suboptimal investment decisions in the longer term
The potential outcome is adverse jobs and disposable income impacts for New England consumers and businesses in the 2019-2020 period and years immediately following
Findings & Recommendations
8
