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North Carolina Clean Energy Plan Transitioning to a 21St Century Electricity System

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North Carolina Clean Energy Plan Transitioning to a 21St Century Electricity System North Carolina Clean Energy Plan Transitioning to a 21st Century Electricity System Supporting Document PART 1 Energy Sector Profile & Landscape October 2019 State Energy Office 2 Preface The Clean Energy Plan was written by the Department of Environmental Quality as directed by Executive 1 Order No. 80.0F DEQ was tasked with the creation of a CEP to encourage the use of clean energy resources and technologies and to foster the development of a modern and resilient electricity system. The purpose of the CEP is to outline policy and action recommendations that will accomplish these goals. The CEP is made up of the main document titled Policy and Action Recommendations and six supporting documents. Part 1: Energy Sector Profile and Landscape Part 2: North Carolina’s Energy Resources Part 3: Electricity Rates and Energy Burden Part 4: Stakeholder Engagement Process and Comments Part 5: Energy and Emissions Modeling Part 6: Clean Energy Jobs and Economic Outlook The purpose of this supporting report (Part 1: Energy Landscape) is to help the public build an understanding of how North Carolina uses energy and electricity today and how technical breakthroughs, market forces, customer choice, environmental considerations, and policy may drive the future generation and use of energy and electricity. The goals of this section include; 1) Present historical energy and electricity data for North Carolina, 2) Discuss important trends, changes, and issues with the economic use of energy and electricity, 3) Present data on periods of high energy and electricity use in North Carolina, 4) Provide more detailed information on the electricity sector including, providers, generators, transmission, and consumers, and rates, with a focus on recent trends and changes driven by technology, regulatory and market forces. 1 https://files.nc.gov/ncdeq/climate-change/EO80--NC-s-Commitment-to-Address-Climate-Change---Transition-to- a-Clean-Energy-Economy.pdf 3 4 NC CLEAN ENERGY PLAN Table of Contents List of Tables ................................................................................................................................................ 7 List of Figures ............................................................................................................................................... 8 List of Abbreviations .................................................................................................................................... 9 1. North Carolina’s Energy Landscape ....................................................................................................... 11 1.1 Energy Demand in All Sectors ......................................................................................................... 11 1.2 Energy Sources Used by All Sectors ................................................................................................ 13 1.2.1 Fossil Fuel Sources .................................................................................................................... 14 1.2.2 Natural Gas Use ......................................................................................................................... 15 1.2.3 Other Energy Sources ................................................................................................................ 17 1.3 Energy Use Per Capita and Gross State Product .............................................................................. 18 1.4 North Carolina Energy Flow ............................................................................................................ 19 1.5 Energy Use for Direct Use, Electricity and Transportation .............................................................. 21 1.5.1 Direct Use of Energy in Residential, Commercial and Industrial Sectors ................................. 21 1.5.2 Transportation ............................................................................................................................ 23 1.5.3 Electricity Use ............................................................................................................................ 27 2. Deeper Dive: North Carolina’s Electric Power Landscape ..................................................................... 29 2.1 Electricity Suppliers ......................................................................................................................... 29 2.2 Electricity Generators ....................................................................................................................... 30 2.3 Capacity by Resource Type .............................................................................................................. 32 2.4 Generation ........................................................................................................................................ 35 2.5 Electricity Imports ............................................................................................................................ 38 2.6 Fossil Fuel Use ................................................................................................................................. 39 2.7 Generation During Peak Demand ..................................................................................................... 40 2.8 Regional Electricity Grid and Plant Dispatch ................................................................................... 43 2.9 Grid Modernization in North Carolina ............................................................................................. 44 2.10 Customer Electricity Consumption ................................................................................................. 44 2.11 Costs for New Electricity Resources .............................................................................................. 47 3. Energy Policy Landscape ........................................................................................................................ 52 3.1 North Carolina Utilities Commission ............................................................................................... 52 3.1.1 Rate Setting, Rate Design and Customer Billing ....................................................................... 53 3.1.2 Grid Hardening and Resiliency .................................................................................................. 53 3.1.3 Microgrids .................................................................................................................................. 53 3.1.4 Utility Customer RECS Purchase Program................................................................................ 53 3.1.5 Stakeholder Processes and Technical Conferences .................................................................... 53 3.2 North Carolina Transmission Planning Collaborative ...................................................................... 54 3.3 Public Utility Regulatory Policies Act ............................................................................................. 54 3.4 Clean Smokestacks Act and Amendments ....................................................................................... 55 3.5 NC GreenPower ................................................................................................................................ 56 3.6 North Carolina Renewable Energy Portfolio Standard ..................................................................... 57 October 2019 5 SUPPORTING DOCUMENT PART 1: ENERGY PROFILE AND LANDSCAPE NC CLEAN ENERGY PLAN 3.6.1 Interconnection .......................................................................................................................... 59 3.7 Renewable Energy Tax Credits ........................................................................................................ 60 3.8 House Bill 589 .................................................................................................................................. 60 3.9 Executive Order No. 11 .................................................................................................................... 61 3.10 HB 329 ............................................................................................................................................ 62 3.11 Utilities Savings Initiative .............................................................................................................. 62 3.12 Proposed - Senate Bill 559 Storm Securitization/Alt. Rates .......................................................... 62 3.13 Policy and Programs Related to Electric Vehicles ......................................................................... 62 3.13.1 Volkswagen Settlement Program ............................................................................................. 62 3.13.2 Mobile Source Emission Reduction Grant Program ................................................................ 63 October 2019 6 SUPPORTING DOCUMENT PART 1: ENERGY PROFILE AND LANDSCAPE NC CLEAN ENERGY PLAN List of Tables Table 1-1: Quantity of Fossil Fuel Consumed in North Carolina ............................................................... 14 Table 1-2: Vehicle and Equipment Types included in Transportation Sector ............................................ 24 Table 1-3: Increase in Total Vehicle Miles Traveled and Percent Annual Increase (million miles) .......... 26 Table 2-1: Electricity Generation from Distributed Energy Resources (thousand MWh) .........................
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