Electrification v The Concept Electrify Everything Decarbonize Electricity

Electrification v The Concept: Electrify Everything, Decarbonize Electricity, DISTRIBUTE v The Challenges: Resiliency, Security, Equity v The Opportunities v Transportation v Buildings v Peripherals

Electrification: Concept v Decarbonization = phase out fossil fuels v Viable, affordable clean electricity is greater reality than other non-fossil options, so … v Clean Up Electricity v Electrify everything

Electrification v NREL 2017 v Key tech incl v Light and heavy duty vehicles and buses v Air source heat pumps v Heat pump water heaters

Electrification

Electrification: Challenges v Supply and Demand trajectories v Resiliency v Security v Equity v Transmission before storage

Electrification: Distributed v If one were to design the grid today … v Distributed systems are more resilient v They are potentially much more secure v They can contribute to greater equity v Ownership matters for ALL the above v Plus universal economic development v Enough load growth to go round

Electrification: take-aways (NREL) v Multiple pathways, but don’t have to have all answers NOW (80% rule) v Electrification = doubling of electrical generation, but 2. 6% growth rate slightly LESS than 1980 -2000 growth rate v Renewables, NGCC, transmission, storage … “Despite the large growth in total electricity consumption and the associated increase in peak load, flexibility in incremental load (and opportunities for load shifting) serves to drive down the peak-to-average load ratio. In other words, the hourly load shape becomes smoother or less “peaky, ” and as a result, new generation resources are built largely for serving energy as opposed to meeting peak load requirements, increasing the overall efficiency of power system operation. ”

Transportation: US’s Largest Greenhouse Gas Sector

EVs: A win-win v Good for the Environment v Good for Customer’s pocketbook v Good for Utilities

Cleaner over Time v As Electricity becomes cleaner, so does your car

Save on Fuel Costs

Save on Maintenance

Eventually, Save on Upfront Costs

EVs: Good for the Utilities v Load Growth v Proper incentives and market signals can ensure charging happens outside of grid peak v Timing of charging is very important to avoid need for additional buildout of grid

Time Your Charging

Set Rates to Encourage EV Adoption and Off-Peak Charging

Local Options v Alliant Energy – Time of Day Pricing v 50% Discount on energy cost during offpeak v 40% Premium on energy cost during peak v Peak is 7 am to 8 pm v Mi. Energy – EV Charging Rate v Separate Submeter

Local Options

Possible Decarbonization Strategy

Does it Pay? v Study focused on 4 areas: Oakland CA, Houston TX, Providence RI and Chicago IL v In each case, all-electric homes were cheaper on a 15 -year basis – For NEW homes

Does it Pay? v Home Power Magazine example: v 1600 sf home in Maine – colder than Decorah v All-electric v Net-Zero v Minisplit Heat Pump v 6. 8 k. W solar

Does it Pay? v Remodel/Retrofit was usually cost effective if a Heat-Pump replaced an A/C unit at the end of its useful life v Not typically cost effective to replace an exiting, working AC unit

Does it Pay? v Remodel/Retrofit was cost effective for Propane and Fuel Oil Customers v Conversion to electric does work best for energy-efficient homes. Tight, wellinsulated homes need less energy to heat.

Load Flexibility and Monitoring v You can monitor all your electric use. v Water heating especially can be timed to coincide with low prices, or on-site solar consumption