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A
REPORT ON ENERGY SCENARIO
IN USA
SUBMITTED BY:
RAJDIPSINH ZALA(50)
CHIRANJ MAKADIA(15)
VANDAN VYAS(07)
MEET MARADIYA(18)
PRASHANT GOSAI(34)
RAVI SAVASANI(30)
SUBMITTED TO:
Mr Karan Motwani
INTRODUCATION:
Across the United States, people from all walks of life are attending „Mid-
Century‟ parties. Residents of mega-urban cities like New York, Atlanta, and
Minneapolis are enjoying elaborate, colourful, and amusing parades of
holographic images that swiftly move through avenues and quiet residential
streets alike. The images portray scenes from their deep past, the heady
present, and their almost unimaginable future. Laser shows intermingle with
traditional fireworks to light up the evening skies. Those who live in the low
density, self-sufficient eco-communities are also celebrating, albeit in less
ostentatious ways.
The majority of this energy is derived from fossil fuels: in 2010, data showed
25% of the nation's energy came from petroleum, 22% from coal, and 22%
from natural gas. Nuclear power supplied 8.4% and renewable energy supplied
8%, which was mainly from hydroelectric dams and biomass but also included
other renewable sources such as wind power, geothermal and solar
energy.[5]
Energy consumption has increased at a faster rate than domestic
energy production over the last fifty years in the U.S. (when they were roughly
equal). This difference is now largely met through imports.
America in the year 2050 is scarcely recognizable to those who were alive forty
years earlier. The population of the United States has increased to 430 million.
The population is much older. Now, over 21% of the population is 65 years old
or older, up from 12% in the year 2000. The population is much more diverse.
In 1900, 88% of the American population was Caucasian. It took one hundred
years for this percentage to drop to 81%. In 2050, the percentage of the
population reporting race as white has dropped to 46%. Conversely, the
Hispanic population has increased to 30% in this world.
Major energy sources and percent share of total U.S. electricity
generation in 2014:
 Coal = 39%
 Natural gas = 27%
 Nuclear = 19%
 Hydropower = 6%
 Other renewables = 7%
 Biomass = 1.7%
 Geothermal = 0.4%
 Solar = 0.4%
 Wind = 4.4%
 Petroleum = 1%
 Other gases < 1%
CONSUMPTION:
PRODUCATION:
Key points of Renewable Sources:
● Renewable energy share in TFEC of the US stood at 7.5% in 2010 (the base
year of RE map 2030 analysis). This included 2.4% renewable power, 1.6%
liquid biofuels and the remainder (3.4%) largely solid biomass in industry and
building heating.
● The share renewable energy in power generation is rising in the US, from
11% in 2010 to 14% in 2013.
● Hydro accounts for more than half of renewable power generation in the US,
but wind power is growing significantly. In 2013, the US had 78 gigawatt-electric
(GWe) hydro, 61 GWe wind, 22 GWe bioenergy, around 12 GWe solar PV
(including distributed generation) and 0.9 GW concentrated solar power (CSP)
capacity installed.
● In terms of non-hydro renewable power generation the US is a leader in wind
and in biomass power deployment. In contrast the US is lagging in solar PV
however recent trends show an acceleration of deployment.
● The US is the largest biofuel producer in the world, accounting for 57% of
world ethanol production in 2013.
● Use of solar water heaters and geothermal heat is low, in total around 100 PJ
or less than 1% of total fuel demand for heating.
● There are important regional differences. Wind generation is concentrated in
the Midwest. Hydro is strong in Northwest and Northeast. Biofuel production is in
the Midwest. The distribution is related to varying resource endowment.
This section discusses the current energy situation of the US at the level of
sector and energy carriers. It also provides a brief overview of the latest
renewable energy development and capacity additions.
Recent trends for renewable energy
Power sector
Figure 2 shows the cumulative renewable energy power plant capacities as a
function of the initial year the plant started operation (as of 2013). The largest
renewable power generation capacity belongs to hydro plants with a total
installed capacity of 79 GWe (dark blue line). Most growth in hydro capacity took
place in a period between the 1950s and the 1980s. Only few plants have been
installed since the beginning of 2000s. Planned hydro capacity for next several
years is between 12.1 GWe and 16.8 GWe (Hydropower & Dams, 2013)4.
With significant growth in the past decade wind capacity is catching up. As of
2013, installed wind capacity has reached more than 60 GWe. By the end of
2013 this had increased to 61 GWe across 39 states. It represents 4% of all
electricity demand (US EIA, 2013b). The weighted average age of wind plants is
4 years, lowest among all power plant technologies (US EIA, 2013b).
Besides wind, capacity for solar thermal, PV and biomass power generation
technologies have also increased in the past decade (see Figure 2). By 2013,
bioenergy (excluding wood) reached 5.2 GWe and solar thermal (CSP) and PV
reached 12.8 GWe. In 2013 total installed capacity of solar PV had reached 12
GWe, an 8 GWe increase in just two years (US EIA, 2013a; SEIA, 2014). Solar
PV is used across the US, even in states with limited solar resource (e.g., the
Northeast). However, it is an especially cost-effective opportunity in the
Southwest (Spross, 2013). Biogas is also gaining importance. There are about
240 anaerobic digesters in farms across the country powering about 70,000
homes. There is also a potential to raise this number by another 11,000 systems
which can generate sufficient power for 3 million homes. US Environmental
Protection Agency (EPA) and the US Department of Agriculture now teamed up
to develop a “Biogas Opportunities Roadmap” to realise this biogas potential
(Cleantechnica, 2014a).
The US has a long history of experience in CSP plants. The first plants were
installed in California between 1984 and 1991. Between then and the end of
2010, CSP investments were limited. In 2010, the Solana and Ivanpah plants
were added to the power system with total installed capacity of 280 megawatt-
electric (MWe) and 392 MWe, respectively (CSP Today USA, 2014). These two
plants were followed by three others (receiving conditional loan guarantees),
namely Mojave, Crescent Dunes and Genesis plants. As of early 2014 installed
CSP capacity in US is about 392 MWe, however during the course of the year
that number should reach more than 1 GWe is expected to be commissioned by
the end of the year (SEIA, 2014). This capacity is expected to more than double
again to reach 2 GWe in the future with the start-up of commissioned and under
construction CSP plants. However, some of these projects are changing to solar
PV projects as the economics of solar PV have improved.
Barriers to accelerated renewable energy growth
If renewable energy is to grow rapidly as envisioned in this report, a number of
challenges need to be overcome.
Transmission: The cost of investing in transmission tends to be higher for
renewable power because of distances between resource-rich areas and centres
of population, the relatively smaller size of generation facilities, and the
intermittent nature of some renewable sources. Building a grid for transmission
and distribution that is suitable for high shares of renewable energy will take
time, meaning it needs to begin now. Numerous institutional barriers stand in
the way, including a lack of enforceable energy system planning, and lengthy
permitting processes.
The biomass challenge: REmap 2030 envisages an increase in demand for
biomass in all sectors, with demand coming close to the total available biomass
supply of the US. Meeting this supply can be done sustainably; however,
investments are needed to improve recovery operations and supply-chain
logistics. REmap also explores an alternative case – called REmap-E – that
assumes significantly lower biomass growth, and instead relies on the greater
use of electricity in end-use sectors. This would include more EVs, instead of
cars running on biofuels, and heat pumps.
Inertia: Transition to higher shares of renewable energy will depend on the
capital stock turnover rate which varies substantially from sector to sector, from
about a decade for passenger cars to more than a few decades in the
manufacturing industry. Conventional energy plants in the US are reaching the
end of their lifes which creates the opportunity to invest in new renewable
energy capacity, but capital stock turnover relies on the relative generation
costs, reliability constraints and the age profile which may result in lifetime to be
extended beyond the technical limit. Stranded costs should be avoided in the
transition process.
Policy needs The making and implementing of energy policy in the US takes
place at several levels: federal, state and local. This means that realising
dramatic change by overcoming regulatory and economic inertia will require a
concerted focus on what can be done nationwide at all government levels. The
full report goes into detail about the US policy landscape and includes specific
policy recommendations. In this summary these recommendations are
categorised into five core areas where action can be taking to realise higher
renewable energy shares.
Planning transition pathways – setting plans and developing long-term
strategies to support renewable energy growth based on credible and attainable
targets.
Creating an enabling business environment – in uncertain policy
environments, risks related to investments increase, and hence technology
costs. Policy frameworks should create appropriate conditions for investment
and increase investors confidence. Additionally fossil fuel externalities should be
accounted for in these policy frameworks.
Integrating renewable energy into the system – enhance the effectiveness
of the electricity grid system with enabling technologies including responsive
load, energy storage, hydrogen fuel cell, waste heat and smart grid
technologies. Expanding transmission capacity is essential to deliver the
renewable resources from remote areas to densely populated demand centers,
to ensure the integration of variable energy sources and increase the transfer
capacity of interconnections.
Creating and managing knowledge – the US has extensive renewable energy
knowledge. However programmes to increase awareness for renewable energy
and its benefits among user, installer and manufacturers should be expanded.
Unleashing innovation – A global leader in innovation, the US should continue
to support innovation in new and existing technologies as well as in finance
schemes to develop and deploy cost-effective and efficient renewable energy
technologies. This will also ensure that high levels of renewable energy
deployment will also continue after 2030 through the development and
commercialization of new and breakthrough technologies
Future Budget for R & D in energy sector:

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Energy scanario of usa

  • 1. A REPORT ON ENERGY SCENARIO IN USA SUBMITTED BY: RAJDIPSINH ZALA(50) CHIRANJ MAKADIA(15) VANDAN VYAS(07) MEET MARADIYA(18) PRASHANT GOSAI(34) RAVI SAVASANI(30) SUBMITTED TO: Mr Karan Motwani
  • 2. INTRODUCATION: Across the United States, people from all walks of life are attending „Mid- Century‟ parties. Residents of mega-urban cities like New York, Atlanta, and Minneapolis are enjoying elaborate, colourful, and amusing parades of holographic images that swiftly move through avenues and quiet residential streets alike. The images portray scenes from their deep past, the heady present, and their almost unimaginable future. Laser shows intermingle with traditional fireworks to light up the evening skies. Those who live in the low density, self-sufficient eco-communities are also celebrating, albeit in less ostentatious ways. The majority of this energy is derived from fossil fuels: in 2010, data showed 25% of the nation's energy came from petroleum, 22% from coal, and 22% from natural gas. Nuclear power supplied 8.4% and renewable energy supplied 8%, which was mainly from hydroelectric dams and biomass but also included other renewable sources such as wind power, geothermal and solar energy.[5] Energy consumption has increased at a faster rate than domestic energy production over the last fifty years in the U.S. (when they were roughly equal). This difference is now largely met through imports. America in the year 2050 is scarcely recognizable to those who were alive forty years earlier. The population of the United States has increased to 430 million. The population is much older. Now, over 21% of the population is 65 years old or older, up from 12% in the year 2000. The population is much more diverse. In 1900, 88% of the American population was Caucasian. It took one hundred years for this percentage to drop to 81%. In 2050, the percentage of the population reporting race as white has dropped to 46%. Conversely, the Hispanic population has increased to 30% in this world. Major energy sources and percent share of total U.S. electricity generation in 2014:  Coal = 39%  Natural gas = 27%  Nuclear = 19%  Hydropower = 6%  Other renewables = 7%  Biomass = 1.7%  Geothermal = 0.4%  Solar = 0.4%  Wind = 4.4%  Petroleum = 1%  Other gases < 1%
  • 4. PRODUCATION: Key points of Renewable Sources: ● Renewable energy share in TFEC of the US stood at 7.5% in 2010 (the base year of RE map 2030 analysis). This included 2.4% renewable power, 1.6% liquid biofuels and the remainder (3.4%) largely solid biomass in industry and building heating. ● The share renewable energy in power generation is rising in the US, from 11% in 2010 to 14% in 2013. ● Hydro accounts for more than half of renewable power generation in the US, but wind power is growing significantly. In 2013, the US had 78 gigawatt-electric (GWe) hydro, 61 GWe wind, 22 GWe bioenergy, around 12 GWe solar PV (including distributed generation) and 0.9 GW concentrated solar power (CSP) capacity installed. ● In terms of non-hydro renewable power generation the US is a leader in wind and in biomass power deployment. In contrast the US is lagging in solar PV however recent trends show an acceleration of deployment. ● The US is the largest biofuel producer in the world, accounting for 57% of world ethanol production in 2013. ● Use of solar water heaters and geothermal heat is low, in total around 100 PJ or less than 1% of total fuel demand for heating.
  • 5. ● There are important regional differences. Wind generation is concentrated in the Midwest. Hydro is strong in Northwest and Northeast. Biofuel production is in the Midwest. The distribution is related to varying resource endowment. This section discusses the current energy situation of the US at the level of sector and energy carriers. It also provides a brief overview of the latest renewable energy development and capacity additions. Recent trends for renewable energy Power sector Figure 2 shows the cumulative renewable energy power plant capacities as a function of the initial year the plant started operation (as of 2013). The largest renewable power generation capacity belongs to hydro plants with a total installed capacity of 79 GWe (dark blue line). Most growth in hydro capacity took place in a period between the 1950s and the 1980s. Only few plants have been installed since the beginning of 2000s. Planned hydro capacity for next several years is between 12.1 GWe and 16.8 GWe (Hydropower & Dams, 2013)4. With significant growth in the past decade wind capacity is catching up. As of 2013, installed wind capacity has reached more than 60 GWe. By the end of 2013 this had increased to 61 GWe across 39 states. It represents 4% of all electricity demand (US EIA, 2013b). The weighted average age of wind plants is 4 years, lowest among all power plant technologies (US EIA, 2013b). Besides wind, capacity for solar thermal, PV and biomass power generation technologies have also increased in the past decade (see Figure 2). By 2013, bioenergy (excluding wood) reached 5.2 GWe and solar thermal (CSP) and PV reached 12.8 GWe. In 2013 total installed capacity of solar PV had reached 12 GWe, an 8 GWe increase in just two years (US EIA, 2013a; SEIA, 2014). Solar PV is used across the US, even in states with limited solar resource (e.g., the Northeast). However, it is an especially cost-effective opportunity in the Southwest (Spross, 2013). Biogas is also gaining importance. There are about 240 anaerobic digesters in farms across the country powering about 70,000 homes. There is also a potential to raise this number by another 11,000 systems which can generate sufficient power for 3 million homes. US Environmental Protection Agency (EPA) and the US Department of Agriculture now teamed up to develop a “Biogas Opportunities Roadmap” to realise this biogas potential (Cleantechnica, 2014a). The US has a long history of experience in CSP plants. The first plants were installed in California between 1984 and 1991. Between then and the end of 2010, CSP investments were limited. In 2010, the Solana and Ivanpah plants were added to the power system with total installed capacity of 280 megawatt- electric (MWe) and 392 MWe, respectively (CSP Today USA, 2014). These two plants were followed by three others (receiving conditional loan guarantees), namely Mojave, Crescent Dunes and Genesis plants. As of early 2014 installed CSP capacity in US is about 392 MWe, however during the course of the year that number should reach more than 1 GWe is expected to be commissioned by the end of the year (SEIA, 2014). This capacity is expected to more than double
  • 6. again to reach 2 GWe in the future with the start-up of commissioned and under construction CSP plants. However, some of these projects are changing to solar PV projects as the economics of solar PV have improved.
  • 7. Barriers to accelerated renewable energy growth If renewable energy is to grow rapidly as envisioned in this report, a number of challenges need to be overcome. Transmission: The cost of investing in transmission tends to be higher for renewable power because of distances between resource-rich areas and centres of population, the relatively smaller size of generation facilities, and the intermittent nature of some renewable sources. Building a grid for transmission and distribution that is suitable for high shares of renewable energy will take time, meaning it needs to begin now. Numerous institutional barriers stand in the way, including a lack of enforceable energy system planning, and lengthy permitting processes. The biomass challenge: REmap 2030 envisages an increase in demand for biomass in all sectors, with demand coming close to the total available biomass supply of the US. Meeting this supply can be done sustainably; however, investments are needed to improve recovery operations and supply-chain logistics. REmap also explores an alternative case – called REmap-E – that assumes significantly lower biomass growth, and instead relies on the greater use of electricity in end-use sectors. This would include more EVs, instead of cars running on biofuels, and heat pumps. Inertia: Transition to higher shares of renewable energy will depend on the capital stock turnover rate which varies substantially from sector to sector, from about a decade for passenger cars to more than a few decades in the manufacturing industry. Conventional energy plants in the US are reaching the end of their lifes which creates the opportunity to invest in new renewable energy capacity, but capital stock turnover relies on the relative generation costs, reliability constraints and the age profile which may result in lifetime to be extended beyond the technical limit. Stranded costs should be avoided in the transition process. Policy needs The making and implementing of energy policy in the US takes place at several levels: federal, state and local. This means that realising dramatic change by overcoming regulatory and economic inertia will require a concerted focus on what can be done nationwide at all government levels. The full report goes into detail about the US policy landscape and includes specific policy recommendations. In this summary these recommendations are categorised into five core areas where action can be taking to realise higher renewable energy shares. Planning transition pathways – setting plans and developing long-term strategies to support renewable energy growth based on credible and attainable targets. Creating an enabling business environment – in uncertain policy environments, risks related to investments increase, and hence technology costs. Policy frameworks should create appropriate conditions for investment and increase investors confidence. Additionally fossil fuel externalities should be accounted for in these policy frameworks.
  • 8. Integrating renewable energy into the system – enhance the effectiveness of the electricity grid system with enabling technologies including responsive load, energy storage, hydrogen fuel cell, waste heat and smart grid technologies. Expanding transmission capacity is essential to deliver the renewable resources from remote areas to densely populated demand centers, to ensure the integration of variable energy sources and increase the transfer capacity of interconnections. Creating and managing knowledge – the US has extensive renewable energy knowledge. However programmes to increase awareness for renewable energy and its benefits among user, installer and manufacturers should be expanded. Unleashing innovation – A global leader in innovation, the US should continue to support innovation in new and existing technologies as well as in finance schemes to develop and deploy cost-effective and efficient renewable energy technologies. This will also ensure that high levels of renewable energy deployment will also continue after 2030 through the development and commercialization of new and breakthrough technologies
  • 9. Future Budget for R & D in energy sector: