PSE&G’s Renewables and Energy Efficiency Initiatives

13
FDU – Reinventing Energy in the 21 st Century Alfredo Z. Matos Vice President Renewables & Energy Solutions November 21, 2008 PSE&G’s Renewables PSE&G’s Renewables and Energy Efficiency and Energy Efficiency Initiatives Initiatives

description

PSE&G’s Renewables and Energy Efficiency Initiatives. FDU – Reinventing Energy in the 21 st Century Alfredo Z. Matos Vice President Renewables & Energy Solutions November 21, 2008. PSE&G’s Commitment. San Rafael Glacier, southern Chile. - PowerPoint PPT Presentation

Transcript of PSE&G’s Renewables and Energy Efficiency Initiatives

Page 1: PSE&G’s Renewables  and Energy Efficiency Initiatives

FDU – Reinventing Energy in the 21st Century

Alfredo Z. MatosVice President Renewables & Energy SolutionsNovember 21, 2008

PSE&G’s Renewables PSE&G’s Renewables and Energy Efficiency Initiativesand Energy Efficiency Initiatives

Page 2: PSE&G’s Renewables  and Energy Efficiency Initiatives

2

PSE&G is committed to providing energy efficiency services and renewable energy. We believe that society must begin to decarbonize the electric system and, as it continuously cleans up energy, it should

electrify the transportation sector. We believe that global climate change represents a real environmental threat and significant business challenge, as well as the opportunity for visionary companies.

San Rafael Glacier, southern Chile

PSE&G’s Commitment

Page 3: PSE&G’s Renewables  and Energy Efficiency Initiatives

3

NJ Energy Master Plan and RGGI Law Meaningful Opportunities for Green Value

Page 4: PSE&G’s Renewables  and Energy Efficiency Initiatives

4

Energy Efficiency Renewables

20% reduction in energy consumption by 2020

By 2020 30% of energy supply will come from renewable

sources

Demand Response

Reduce Peak demand by 5,700 MW by 2020

To achieve success we must move from pilots to aggressive initiatives and invest in facilities and systems in ways that

demonstrate our commitment to a sustainable future. It will take a paradigm shift!

State: 20,000 Gwhr by 2020PSE&G: 12,000 Gwhr by 2020

State: 1,040 million therms by 2020PSE&G: 676 million therms by 2020

State: 5,700 MW by 2020PSE&G: 3,420 MW by 2020

State: 5,900 MW by 2020PSE&G Load: 3,175 MW by 2020

Solar Carve Out:State: 1,800 MW (2120Gwh)PSE&G: 950 MW

NJ Energy Master Plan and RGGI Law Meaningful Opportunities for Green Value

Page 5: PSE&G’s Renewables  and Energy Efficiency Initiatives

5

PSE&G’s Carbon Abatement Filing ($46MM)

• Residential customers in Urban Enterprise Zones

– Tune-Up Program in targeted neighborhoods: Energy audit, thermostat, weather stripping, CFLs Attic insulation, duct sealing and/or insulation

– Install programmable thermostats and provide CFLs as part of routine utility-related gas service calls

• Small business customers in UEZs – audit and direct installation of energy efficiency measures

• Large Customer Technology Demonstration• Hospital Efficiency – audit and financial incentives• Expected lifetime energy saving: 76.4M Therms & 458M kWh

Targets underserved urban areas

Energy Efficiency

20% reduction in energy consumption by 2020

Page 6: PSE&G’s Renewables  and Energy Efficiency Initiatives

6

PSE&G’s Demand Response Filing ($93MM)• Residential Customers

– Central Air Conditioner Cycling• Replace existing equipment• Increase program enrollment

– Pool Pump Load Control• Small Commercial A/C Cycling• C&I Curtailment Services – investments in installation of

infrastructure to enable demand response• Load Shifting Demonstrations• Expected demand saving by 2014 is 392MW

Reduces peak demand

Demand Response

Reduce Peak demand by 5,700 MW by 2020

Page 7: PSE&G’s Renewables  and Energy Efficiency Initiatives

7

• Two-year pilot program limited to 30MW• PSE&G will provide ~ $105MM in secured

loans to qualified borrowers

Program provides universal access to capital to invest in solar systems

Pilot Solar Loan Program

• PSE&G provides 40-60% of total capital for system

• Borrower can pay back in SRECs with secured SREC pricing

• Call option price is 75% of then current market value of SRECs if loan is prepaid

• Since mid-April, received applications totaling 45% of available non-residential solar capacity (24MW)

• Program opened to residential applications - July (6MW)

Renewables

By 2020 30% of energy supply will come from renewable

sources

Page 8: PSE&G’s Renewables  and Energy Efficiency Initiatives

8

Renewables

By 2020 20% of energy supply will come from renewable

sources

An aggressive schedule of solar build out is required

NJ Solar RPS: 1800 MW

Total PV Capacity Identified in PSE&G Total PV Capacity Identified in PSE&G Service Area to Meet 1800MW State GoalService Area to Meet 1800MW State Goal

Actual Solar capacity installed = 29MW in PSE&G area, 59.6MW in NJ.

Page 9: PSE&G’s Renewables  and Energy Efficiency Initiatives

9

The structure and incentives provides a basis for making a solar installation, thus creating jobs and reducing carbon generating capacity

I&C Example:Pilot Solar Loan Program

Solar Installation Assumptions:• 20KW system• $6.50/watt installed cost• 13% Capacity Factor• 13 cents/kWh electricity savings escalating at 3% per year• $475 per SREC floor price• 11.11% interest rate on loan—15 Year termFinancial Results:• $130,000 total investment by solar owner• $75,393 total loan (58% of total investment)

– Repaid over 15-years by SRECs generated• $54,607 of C&I customer’s equity capital required

– Payback in less than 2 years– Payback is via:

• 30% ITC ($39,000)• Tax Savings driven by accelerated tax depreciation ($16,705 in

the first 2 years alone)• Operating cost savings from reduced electricity off-set by O&M on

system ($4,626 in the first 2 years alone)

Renewables

By 2020 20% of energy supply will come from renewable

sources

Page 10: PSE&G’s Renewables  and Energy Efficiency Initiatives

10

PSE&G’s Growing Hybrid Fleet

• Replacing 1,300 cars and trucks

• Reduction of 8,500 tons of CO2 and 850,000 gallons of gasoline over the next 10 years

• Installing 450 hybrid aerial lifts

• Reduction of and 73,000 tons of CO2 and 6.5 million gallons of fuel over the next 10 years

Page 11: PSE&G’s Renewables  and Energy Efficiency Initiatives

11

Investing in Green Requires Timely Action

• $290MM Carbon Abatement Phase II– Complements OCE & provides for NJ Economic Stimulus and jobs

• Solar Loan Program Phase II– Expand existing program

• Solar Infrastructure Investment– Pole-attached solar generation– Centralized solar generation– Distributed solar generation on government roofs & brownfields

Longer Term• Urban wind turbines• Biomass• AMI enabled PHEV• Fuel cells

Initiatives PSE&G is investigating:

Page 12: PSE&G’s Renewables  and Energy Efficiency Initiatives

12

Clean energy policies will generate a significant number of new green jobs.

Efficiency upgrades on 3.7 million existing buildings

- 1,800 MW solar (~60,000 installations)

- 3000 MW offshore wind

- 200 MW onshore wind- 900 MW Biomass

- ~2,500 construction jobs

- ~500 operations jobs

Energy Efficiency New NuclearRenewables New Nuclear

Investing in Green Drives Demand For Skilled Workers in NJ

Page 13: PSE&G’s Renewables  and Energy Efficiency Initiatives

Innovative Energy SolutionsInnovative Energy Solutions

www.pseg.com/solarloanwww.pseg.com/solarloan