Energy 101

Energy Technology and Policy

Dr. Michael E. Webber The University of Texas at Austin

Module 18: Electricity I -- Overview

Webber Energy Group

1

As a Reminder, Electricity is a Form of Secondary Energy

Primary energy:
! petroleum ! natural gas ! coal ! biomass

original/unconverted fuel sources

Secondary energy:
! electricity ! hydrogen ! pumped hydroelectric

converted/stored energy

! hydroelectric, wind, solar,

Webber Energy Group

2

Need to Keep Track of Units

By convention
! BTU for fuels and thermal energy ! kWh for electrical energy

Power is important for electricity

! Rate of demand, load, generation... ! Watts (W), kiloWatts (kW), megaWatts (MW), gigaWatts (GW),... ! Horsepower (hp)

Webber Energy Group

3

Electricity Is A Valuable Fuel

Electricity Enables Multiple End Use Functions:

! Motion: The vast preponderance of all electricity is for electric motors ! Heat: Electric resistance heaters have >99% efficiency ! Information: Electricity enabled the digital age

Societies electrify over time

! For cost, quality, convenience, and cleanliness ! Affluent people/societies prefer electricity

Webber Energy Group

4

Is Electricity Expensive or Affordable?

Petroleum:
! $100/bbl ! 5.8 MMBTU/bbl ! $16/MMBTU

Electricity:
! $25/MWh ! $0.025/kWh (wholesale) ! $0.10/kWh (retail) ! 1 kWh = 3412 BTU ! $7.35/MMBTU (wholesale) ! $29.30/MMBTU (retail)

Natural Gas:
! $2.50/MMBTU

While electricity is expensive per BTU, the relatively high efficiency of electrical devices usually compensates for the cost
Source: Bloomberg, 2/14/2012

Webber Energy Group

5

Electricity Prices Vary By Sector and Customer Class

2011 U.S. Average Retail Price of Electricity by Sector
Source: U.S. Energy Information Administration / Annual Energy Review 2011 Graphic: Michael E. Webber, The University of Texas at Austin

12 Electricity Price [/kWh (Nominal)]

Michael E. Webber

Residential

Transportation

Commercial

Industrial

Webber Energy Group

6

Net Generation Is Approximately 4,100 TWh

2011 U.S. Net Use Generation to End Use Flow [Billion kWh]
Source: U.S. Energy Information Administration / Annual Energy Review 2011 Graphic: Michael E. Webber, The University of Texas at Austin

Commercial & Industrial 151

Imports 52

Residential 1,424

Electric Power Sector 3,955

Total Net Generation 4,106

Total End Use 3,856

Retail Sales 3,726

Commercial 1,319

Industrial 976
Michael E. Webber

Transportation 8 Losses & Unaccounted 287 Exports 15 Direct Use 130

Webber Energy Group

Consumption Has Leveled For Industry, But Has Been Growing For Residential/Commercial
19512011 U.S. Electricity Sales by Sector
Source: U.S. Energy Information Administration / Annual Energy Review 2011 Graphic: Michael E. Webber, The University of Texas at Austin

1.5 Annual Electricity [Trillion kWh]

Michael E. Webber

Residential Commercial

1.0

Industrial

0.5

0 1951

1955

1959

1963

1967

1971

1975

1979

1983

1987

1991

1995

1999

2003

2007

Transportation 2011

Year
Webber Energy Group
8

Residential Use is 39% of Overall Consumption

2010 U.S. Residential Electricity Consumption by End-Use
Source: U.S. Energy Information Administration / Annual Energy Review 2011 Graphic: Michael E. Webber, The University of Texas at Austin

Electricity End Use [3,886 billion kWh]

Space Cooling Lighting Water Heating Refrigeration TVs

Residential End Use [1,451 billion kWh]

Residential 39%

Space Heating Clothes Drying PCs Fans & Pumps

Freezers Clothes Washers Other Uses 0 100 200 Billion Kilowatthours 300

Michael E. Webber

400

Webber Energy Group

Michael E. Webber

Commercial, Industrial & Transportation 61%

Cooking Dishwashers

Demand for Electricity has Diurnal and Seasonal Variation: Factor of 3 Overall

Load is another word

for instantaneous demand
! Load [MW], Demand [MWh]

Air conditioning drives

peak demand
! Less efficient at high temperatures

Electric Reliability Council of Texas

Webber Energy Group

10

A Typical Energy Supply Curve Uses Coal and Nuclear for Baseload and Natural Gas for Peak

Webber Energy Group

Electric Reliability Council of Texas

11

Electricity Generating Units (EGUs) are Dispatched by Availability and Performance

High capacity factor sources that are harder to turn on and

off are used for baseload
! Steam cycle systems: coal, nuclear, geothermal, biomass,...

Sources that are easy to turn on/off are used for peaking
! Hydroelectric, natural gas combustion turbines

Other sources (wind, solar) must be squeezed in with the rest

! Wind power in Texas has an average capacity factor of ~20-35%

Webber Energy Group

12

Total Installed Capacity is ~1,000 GW; Peak Load is 600700 GW

19862011 U.S. Electricity Capacity and Seasonal Peak Loads
Source: U.S. Energy Information Administration / Annual Energy Review 2011 Graphic: Michael E. Webber, The University of Texas at Austin

1,100

Summer Capacity

Electricity Capacity [GW]

825

Summer Peak Load Winter Peak Load

550

275

0 1986

Michael E. Webber

1991

1996 Year

2001

2006

2011

Webber Energy Group

13

Natural Gas Power Plants Comprise the Majority of U.S. Peak Capacity
2011 U.S. Electric Summer Capacity by Source
Source: U.S. Energy Information Administration / Annual Energy Review 2011 Graphic: Michael E. Webber, The University of Texas at Austin

500

Michael E. Webber

400 Million Kilowatts

300

200

100

Natural Gas

Coal

Nuclear Hydroelectric Petroleum

Wind

Biomass

Geothermal

Solar

Webber Energy Group

14

There are Different Strategies for Managing the Peak

Peak-shaving: Reducing peak demand

! Remote-controlled ACs, hot water heaters, pool pumps, etc. ! Higher/real-time prices,

Peak-shifting: Move demand to another time of day

! Thermal storage: making ice or chilled water at night ! Potential energy storage: Pumped hydroelectric ! Electricity storage: Batteries, capacitors, ywheels ! Actually increases electricity consumption...

Webber Energy Group

15

Dr. Michael E. Webber

Webber Energy Group

16