1. SPEAKERS
MIT
ENERGY
CONFERENCE
2014
|
NUCLEAR-­‐RENEWABLES
PARTNERSHIP
A
commitment
to
clean
energy
has
encouraged
federal
and
state
governments
to
embrace
policies
for
promoPng
renewable
energy
sources
via
instruments
such
as
tax
credits,
porTolio
standards,
and
feed-­‐in
tariffs.
While
renewable
energy
has
seen
a
significant
increase
in
installed
capacity,
it
challenges
another
low-­‐
carbon
but
dispatchable
and
base-­‐load
form
of
electricity:
nuclear
power.
Renewable-­‐first
dispatch
rules
and
the
negaPve
electricity
prices
that
can
occur
during
low
demand
hours
present
operaPonal
challenges
to
base-­‐load
power
sources.
Simultaneously,
increased
compePPon
from
wind
and
cheap
gas
has
forced
some
reactors
to
shut
down
for
economic
reasons,
resulPng
in
a
net
loss
of
low-­‐carbon
generaPon
capacity.
A
Nuclear-­‐Renewables
Partnership?
HOW
TO
INTEGRATE
NUCLEAR
AND
INTERMITTENT
RENEWABLES
IMPLICATIONS
Given
the
market
distorPon
evidenced
by
the
negaPve
prices,
are
the
policies
promoPng
renewable
energy
in
fact
achieving
the
intended
results
of
cleaner
air
and
energy
security?
This
panel
will
try
to
idenPfy
current
and
short
term
operaPonal
challenges
facing
base-­‐load
units,
including
nuclear,
due
to
large
scale
penetraPon
of
renewables.
Further,
how
to
address
these
challenges
without
compromising
energy
security
and
de-­‐carbonizaPon
goals
of
energy
systems
by
integraPng
clean
base-­‐load
and
intermi]ent
sources
of
energy
will
also
be
discussed.
What
market-­‐based,
policy-­‐driven,
or
technological
soluPons
can
be
adopted?
Ralph
Izzo
President,
CEO
PSEG
Ralph
Izzo
was
elected
chairman
and
chief
execuPve
officer
of
Public
Service
Enterprise
Group
Incorporated
(PSEG)
in
April
2007.
He
was
named
as
the
company’s
president
and
chief
operaPng
officer
and
a
member
of
the
board
of
directors
of
PSEG
in
October
2006.
Previously,
Mr.
Izzo
was
president
and
chief
operaPng
officer
of
Public
Service
Electric
and
Gas
Company
(PSE&G).
Since
joining
PSE&G
in
1992
Mr.
Izzo
was
elected
to
several
execuPve
posiPons
within
PSEG’s
family
of
companies,
including
PSE&G
senior
vice
president
–
uPlity
operaPons,
PSE&G
vice
president
–
appliance
service,
PSEG
vice
president
-­‐
corporate
planning,
and
PSE&G
vice
president
-­‐
electric
ventures.
In
these
capaciPes
he
broadened
his
experience
in
the
areas
of
general
management,
strategic
planning
and
finance.
Mr.
Izzo
is
a
well-­‐known
leader
within
the
uPlity
industry,
as
well
as
the
public
policy
arena.
He
is
frequently
asked
to
tesPfy
before
Congress
and
speak
to
organizaPons
on
ma]ers
pertaining
to
naPonal
energy
policy.
Phil
Giudice
CEO
Ambri
Phil
Giudice
has
more
than
30
years'
experience
in
the
energy
industry
as
a
geologist,
consultant,
execuPve,
and
state
official.
Mr.
Giudice
was
appointed
by
US
DOE
Secretary
Steven
Chu
to
US
DOE's
Energy
Efficiency
and
Renewables
Advisory
Commi]ee
as
well
as
its
State
Energy
Advisory
Board.
In
addiPon,
he
is
a
board
member
for
the
energy
business
leadership
trade
group
Advanced
Energy
Economy
as
well
as
the
efficiency
start
up
FirstFuel.
Most
recently
Mr.
Giudice
served
the
Commonwealth
of
Massachuse]s
as
Undersecretary
of
Energy
and
as
Commissioner
of
the
Department
of
Energy
Resources,
the
state
agency
with
primary
responsibility
for
fulfilling
Governor
Deval
Patrick’s
vision
for
a
clean
energy
future.
Prior
to
his
service
in
the
Patrick-­‐Murray
AdministraPon,
Mr.
Giudice
was
senior
vice
president
and
board
member
at
EnerNOC,
a
start-­‐up
providing
electricity
demand-­‐management
services
to
businesses,
insPtuPons,
uPliPes,
and
grid
operators
that
became
a
public
company
in
2007.
He
was
previously
a
senior
partner
and
leader
of
Mercer
Management
ConsulPng's
global
energy
uPliPes
pracPce
for
20
years.
Charles
Forsberg
Professor
Nuclear
Science
&
Engineering
Department
MIT
Dr.
Charles
Forsberg
is
the
ExecuPve
Director
for
the
MIT
Nuclear
Fuel
Cycle
Study,
Director
and
principle
invesPgator
for
the
MIT
Fluoride
Salt-­‐Cooled
High-­‐Temperature
Reactor
Project,
and
the
Idaho
NaPonal
Laboratory
University
Lead
for
Hybrid
Energy
Systems.
Before
joining
MIT
he
was
a
Corporate
Fellow
at
Oak
Ridge
NaPonal
Laboratory
(ORNL).
He
is
a
Fellow
of
the
American
Nuclear
Society
and
the
American
AssociaPon
for
the
Advancement
of
Science.
Dr.
Forsberg
received
the
2002
American
Nuclear
Society
Special
Award
for
InnovaPve
Nuclear
Reactors
(Fluoride-­‐salt-­‐cooled
high-­‐temperature
reactors),
and
in
2005
the
American
InsPtute
of
Chemical
Engineers
Robert
E.
Wilson
Award
in
recogniPon
of
chemical
engineering
contribuPons
to
nuclear
energy,
including
his
work
on
reprocessing,
waste
management,
repositories,
and
producPon
of
liquid
fuels
using
nuclear
energy.
He
holds
11
patents
and
has
published
more
than
250
papers.
He
is
a
licensed
professional
engineer.
Ignacio
J.
Pérez-­‐
Arriaga
Professor
Engineering
Systems
Division
MIT
Ignacio
J.
Pérez-­‐Arriaga
is
Professor
of
Electrical
Engineering
at
UPC,
and
founded
its
InsPtute
for
Research
in
Technology,
which
he
served
as
Director
for
11
years.
He
has
also
been
Vice
Rector
for
Research
at
UPC,
and
currently
holds
the
BP
Chair
on
Sustainable
Development.
Dr.
Pérez-­‐Arriaga
served
for
5
years
as
Commissioner
at
the
Spanish
Electricity
Regulatory
Commission,
and
since
November
2007
he
has
been
an
Independent
Member
of
the
Single
Electricity
Market
Commi]ee
of
Ireland.
Member
of
the
Board
of
Appeal
of
the
Agency
for
the
CoordinaPon
of
Energy
Regulators
(ACER)
in
the
EU.
He
is
also
Director
of
Energy
Training
at
the
Florence
School
of
RegulaPon,
European
University
InsPtute,
Florence,
Italy.
He
has
worked
in
power
system
dynamic
analysis,
monitoring
and
diagnosis
of
power
system
devices
and
systems,
intelligent
computer
design
of
industrial
systems,
planning
and
operaPon
of
electric
generaPon
and
networks,
regulaPon
and
restructuring
of
the
power
industry,
and
sustainability
of
naPonal
and
global
energy
models.
He
has
been
a
consultant
for
governmental
agencies
or
electric
uPliPes
in
more
than
30
countries.
Ray
Rothrock
(moderator)
Partner
Emeritus
Venrock
Ray
Rothrock
joined
Venrock
in
1988
in
New
York
City.
A
successful
venture
capitalist
for
25
years,
he
enjoyed
a
career
earning
him
lisPngs
on
the
Forbes
Midas
Lists
and
ulPmately
chairing
the
industry
associaPon,
NaPonal
Venture
Capital
AssociaPon.
He
conPnues
seeking
investment
opportuniPes
and
is
considered
an
expert
on
venture
capital
and
startup
innovaPon.
Mr.
Rothrock
began
his
career
as
a
nuclear
engineer.
He
made
53
direct
investments
while
at
Venrock
and
parPcipated
in
over
350
company
financings
since
1988.
Seven
of
Mr.
Rothrock’s
company’s
IPO’d,
and
he
was
ranked
#63
on
the
Forbes
Midas
List
for
2013.
Today
he
serves
on
the
boards
of
five
Venrock
privately
held
companies
and
one
public
company:
Check
Point
Soqware
Technologies.
The
private
companies
are
Appthority,
CTERA
Networks,
CloudFlare,
Red
Seal
Systems,
and
Tri
Alpha
Energy.
He
also
serves
on
the
board
of
TransAtomic
Power,
Colabo
and
PaPents
withPower
and
is
a
private
investor
in
Mark43,
Planet
Labs,
NEST
Labs,
ThreatMatrix
and
Qwilt.
2006-11 alongside the growth in national installed wind capacity over the same period.
This figure demonstrates the clear linkage between wind generation and negative
prices.
Figure 1: Negative Prices are Increasing in Frequency as Wind Generation Expands
Source: Ventyx Velocity Suite; U.S. Energy Information Administration
Wind producers can readily turn wind turbines on and off, but have no incentive to do
so because they still receive positive margins during negative price hours due to the PTC
subsidy they earn when they generate. They have no incentive to curtail their output –
which, absent the PTC, would be in their economic interest. The failure of wind
generators to curtail output when wholesale prices approach zero has both short term
and long term negative consequences. In the short term, the failure of wind producers
to curtail output makes it more difficult for system operators to maintain reliability, and
also makes it more costly for them to operate the regional electric grid.
In the long run, the PTC destabilizes the market for conventional electricity as
0
10
20
30
40
50
60
0%
2%
4%
6%
8%
10%
12%
14%
2006 2007 2008 2009 2010 2011
WindCapacity(Gigawatts)
%ofHoursWithNegativePrices
MISO Iowa Zone
PJM Northern
Illinois Hub
ERCOT West Zone
National Installed
Wind Capacity
(Right Axis)
al installed wind capacity over the same period.
ge between wind generation and negative
equency as Wind Generation Expands
istration
rbines on and off, but have no incentive to do
rgins during negative price hours due to the PTC
They have no incentive to curtail their output –
economic interest. The failure of wind
esale prices approach zero has both short term
n the short term, the failure of wind producers
for system operators to maintain reliability, and
erate the regional electric grid.
market for conventional electricity as
TC are significantly harmed by negative prices,
onal decisions, as well as long-term decisions to
subsidy therefore will invariably deter
generation needed to maintain a reliable electric
cal to reliability because wind generation often
f peak electricity demand, while producing at
when demand is low. In recent years, about
ated during the peak hours on the highest
0
10
20
30
40
50
60
010 2011
WindCapacity(Gigawatts)
MISO Iowa Zone
PJM Northern
Illinois Hub
ERCOT West Zone
National Installed
Wind Capacity
(Right Axis)
NEGATIVE ELECTRICITY PRICES
Over
the
past
several
years,
negaPve
electricity
prices
have
become
an
increasingly
significant
issue
for
some
ISOs.
As
seen
in
the
figure
at
leq,
yearly
share
of
negaPve
price
periods
in
various
electricity
markets
has
conPnued
to
rise.
This
increase
has
moved
in
tandem
with
the
expansion
of
installed
wind
capacity
[1].
As
a
result
of
these
condiPons,
some
nuclear
generators
are
having
to
reduce
output,
resulPng
in
loss
of
one
source
of
carbon-­‐free
electricity.
SOURCES
[1] Negative Electricity Prices and the Production Tax Credit, The NorthBridge Group, September 2012.
Figure Courtesy of U.S. EIA.
Image Courtesy of Dirk Ingo Franke, August 2010.