Charlie Wilson – Water Energy Nexus

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Water Energy Nexus
Charley Wilson
Urban Water Institute
February 21, 2013
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Overview
 What is the Water Energy Nexus?
 Why is it important to system reliability.
 What you can do to assure system reliability.
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Water-Energy Nexus
 The interdependencies among water and energy resources and
infrastructure. At a policy level, California considers the scope of its waterenergy nexus to include climate-related impacts, including greenhouse gas
emissions.
 Since the California Energy Commission (CEC) issued its landmark finding
in 2005.
 The Water-Energy Team of the Climate Action Team (WET-CAT) adopted and is
implementing a multi-agency water-energy strategic plan.
 The CEC has increased requirements for water and energy efficiency in buildings
through revisions to the California Building Standards Code.2
 California Department of Water Resources now requires consideration of the
water-energy nexus in competition for Integrated Regional Water Management
Planning grants, and has also included elements of the state’s water-energyclimate nexus in the California Water Plan.
 The CPUC directed the state’s energy investor-owned utilities (IOUs) to include
the water-energy nexus in their 2013-2014 Energy Efficiency portfolios.
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The Water And Power Partnership
• Water represents nearly 20% of the
electricity consumed in the state
• Energy costs are a significant portion of
most water agency budgets
• AB 32 impacts
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Annual Water-Related Electric Consumption by
Segment of the Water Use Cycle
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Energy Consuming Segments of California’s Water-Use Cycle
“Refining Estimates of Water‐Related Energy Use in California”, Navigant Consulting for the California; Energy Commission Public Interest Energy Research division (PIER),
CEC‐500‐2006‐118, 2006.
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Parallel Concerns
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Cost of Service is Increasing Faster Than Energy Sales
Resulting in Higher Customer Rates
Cost of Service
Public policy is driving up the
cost of energy; additional
investments are needed for grid
reliability
Energy Sales
Energy efficiency and distributed
generation offer customers
options to better manage usage
and avoid escalating rates
Rates =
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SCE Public Policy Objectives

System
Reliability
Price
Stability
Balance objectives
through CPUC/CEC’s
“loading order”:
– Energy Efficiency;
Demand Response
– Renewable Resources;
Distributed Generation
Environmental
Considerations
– Clean and Efficient
Fossil-Fired Generation
Integration of Renewables Must Consider and Satisfy These Objectives
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SCE Delivers More Renewable Power Than Any
Other Utility in The Country
SCE has contracts in place to reach the 20% RPS
goal in 2010, and is working toward the 33% RPS
goal by 2020.
Small Hydro 5%
2010 Renewable Resources
(14.5 billion kWh)
28.3
Billion kWh
89%
Increase
15.0
Billion kWh
Solar 6%
33%
RPS
Biomass 7%
Geothermal
53%
20%
RPS
Wind 29%
2010
SCE 2010 Renewable Resource % of Total Delivered Portfolio:
2020
19.4%
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The LA Basin: Challenges And Potential Solutions
 Recent studies show need for
2400-3600 MW of “West LA
Basin” to replace OTC plants
 Local transmission grid
(220kV) runs from the coast to
serve load
 Re-powering at beach sites
may face stiff opposition
 LA Basin is a non-attainment
area and AQMD rule 1304 is
one of the few sources of
emissions offsets for new
generation
Mandalay
Ormond Beach
El Segundo
Redondo Beach
Alamitos
Huntington Beach
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Forces Influencing Southern California Infrastructure
Development
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The Role of Nuclear Energy in California
 San Onofre provides “baseload” generation – 24 hours a day, 7 days a
week, regardless of weather conditions, unlike wind and solar.
 Nuclear energy provides voltage support, which keeps the electrons moving
through the grid across the region.
 Nuclear energy is by far the largest source of carbon-free generation and in
2011, provided 24 percent of SCE’s electricity generation mix.
 37 percent of the state’s emission-free power generation is supplied by
nuclear energy facilities that can produce large amounts of electricity day
and night, and without constraints.
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Water Sector Opportunities
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HHH
Investing in Efficiency
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Using Water Over And Over Again:
Recycling
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How SCE Can Help
 Technical assistance to identify and evaluate projects
 Free energy audits, pump efficiency testing, and engineering
evaluations
 Free training classes/workshops
 Incentive funding for qualifying projects
 Energy Efficiency: both new construction and replacement
 Demand Response: both new construction and replacement
 Self Generation: solar, wind, biogas, and now in-conduit hydro
 Contact your SCE Account Manager/Executive early in
the planning process.
 Engage in Regulatory and Legislative process
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Summary
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