The Tipping Point
macro forces are converging to
create a revolutionary “Tipping
Point” within 5 years
change will be fast – and
disruptive to the existing order
enormous societal wealth will be
created
Site Controls will be a key
player in the revolution – and one
of the primary beneficiaries of the
wealth created.
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Converging Forces
Market Changes
Technologies
public price
signals
energy
management
interfaces
low – cost,
intelligent,
networked
controls
capacity
markets
consumption
transparency
demand
response
monetization
options
energy storage
technologies
low – cost,
two – way
comms
social
responsibility
Constraints
carbon
constraints
renewable
(but intermittent)
energy sources
grid T&D
congestion
increasing
coincidental
peaks
price
transparency
demand
management
& generation
parity
power
generation
gap
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The Electric Industry Dilemma:
Supply Cannot Keep Pace with Demand
Generation Gap
Amount
Increase in U.S. Electricity Generation Required during the next 10 years(1)
19%
Increase in U.S. Electricity Generation Scheduled during the next 10 years(1)
6%
Transmission & Distribution Gap
Amount
Increase in U.S. Electricity T&D Required during the next 10 years(1)
20%
Increase in U.S. Electricity T&D Scheduled during the next 10 years(1)
5%
Projected Infrastructure Implications
U.S. & Canadian Infrastructure $$$ Required from 2003 and 2030(1)
U.S. & Canadian Capacity Required from 2003 and 2030(1)
Demand Response Implications
U.S. Demand Response Market (Annual)(3)
U.S. & Canadian Capacity required to serve less than 80 hours per year(2)
Amount
$1.6 trillion
758,000 MW
Amount
$4.2 billion
10%
Sources: (1) International Energy Agency, (2) The Center for Smart Energy, (3) Electric Power Research Institute
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Market Impact of Power Shortages
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CO2 concentrations increasingly significantly
and …
Power generation
currently creates
approximately 38% of
the CO2 generated by
the United States.
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Carbon situation gets darker still
Virtually all of
the generation
capacity
additions are
projected to be
coal plants.
Power
generation is
projected to
account for
approximately
42% of the CO2
generated by the
United States in
2030.
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Where do we go from here?
It’s time to change the world!
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Q&A
Chris Hickman
President, Energy Services
[email protected]
512-636-1382
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