Successful Renewable EnergyDevelopmentin a CompetitiveElectricity Market: TexasJayZarnikauand The University of TexasAustin, TexasRenewableenergyconferenceDecember3,2010Hong Kong EnergyStudies CentreHongKongBaptistUniversityDecember2010
Successful Renewable Energy Development in a Competitive Electricity Market: Texas Jay Zarnikau and The University of Texas Austin, Texas Renewable energy conference December 3, 2010 Hong Kong Energy Studies Centre Hong Kong Baptist University December 2010
ThemesThe development of renewable energy in markets with a highdegree of competitionat wholesale and retail levels posessomechallengesthatmay notbepresent inareas servedbyvertically-integratedutilities.The intermittent nature of some renewable energyresourcescan impacttheentire wholesalemarketby affectingthereliability,operations,andmarketprices.+Meetingrenewable energy goals requires coordinationamongmanymarketplayers.+These challengesmaybesuccessfully overcomebyimposinggoals,tradingmechanism,and operationalchanges oncompetitivemarkets
Themes ❖ The development of renewable energy in markets with a high degree of competition at wholesale and retail levels poses some challenges that may not be present in areas served by vertically-integrated utilities. ❖ The intermittent nature of some renewable energy resources can impact the entire wholesale market by affecting the reliability, operations, and market prices. ❖ Meeting renewable energy goals requires coordination among many market players. ❖ These challenges may be successfully overcome by imposing goals, trading mechanism, and operational changes on competitive markets
The Green State of.. .. Texas? Texas is home to most of America's major oil companies*Manyofthestate'sleadersdenyanylinkbetweenglobalwarmingand humanactivities.Texas consumes 12% of all energy resources used in the U.S.The leading state in electricity consumption and production.The leading state in CO2 emissions, with 10% of the nation'stotal.Amongthemost competitiveelectricitymarkets intheworldBut....Texasleadsthenationin wind power!Why?
The Green State of . . . . Texas? ❖ Texas is home to most of America’s major oil companies. ❖ Many of the state’s leaders deny any link between global warming and human activities. ❖ Texas consumes 12% of all energy resources used in the U.S. ❖ The leading state in electricity consumption and production. ❖ The leading state in CO2 emissions, with 10% of the nation’s total. ❖ Among the most competitive electricity markets in the world. But. . . . Texas leads the nation in wind power! Why?
Texas became a Net Importer of Energy(If Btus are used as a metric)(Scale:TrillionBtu)20,00018,00016,00014,000TotalConsumption12,00010,000TotalProduction8,0006,000RenewablePortionof4,000Production2,000
Texas became a Net Importer of Energy (If Btus are used as a metric) (Scale: Trillion Btu)
Further Texas has the greatest non-hydro renewable energyresource potential in the U.SRenewablesRenewable Energy PotentialSolar(Total solarradietionof6.0ormorekilowatthoursper meter squared per day)Wind (min.powerclass4)Geothermal(min.surfaceheat of 80 miliwatts permeter squared)Electric Power Plants(Values shownareU.S.totals)Hydro (183)Geo(4)XWind (36)染Solar(2)老Wbod(8)
Further ❖ Texas has the greatest non-hydro renewable energy resource potential in the U.S