New York State Energy Resources

Marcus Doyle

David Marye

Mike Marziani

Jimmy Perez

New York State

Uses of Energy Sources of Energy Environmental Issues / Externalities Energy Mix Future Projections

Uses of Energy

N.Y. vs Rest of the U.S.

Residential Use

Natural Gas47%

Wood10%

Electricity17%

Petroleum26%

New York Residential Energy Usage, 2000

Industrial Use

Coal 26%

Natural Gas31%

Petroleum21%

Wood7%

Electricity8%

Hydro5%

New York Industrial Energy Usage, 2000

Sources of Energy

Overall Energy Use Electricity Only

http://www.nyserda.org/sepsection1-1.pdf (page 5) http://www.eia.doe.gov/emeu/states/sep_use/eu/use_eu_ny.html

Natural Gas

Natural gas is primary source of electricity generation New York is the fourth largest consumer of natural gas in

the United States New York has 315 billion cubic feet of natural gas

reserves, 5,913 producing gas wells and 27,787 million cubic feet (mcf) of production in 2001. This production level is far less than the total natural gas consumption of 1,171,158 mcf in 2001

All new planned generation (15,000 MW) is gas fired

Nuclear Energy Accounts for 28% of

electricity production Second only to natural

gas Most plants built in the

early 1970’s No imminent license

expirations Indian Point facility is

one of the most controversial plants in the U.S.

Coal

New York does not have any coal mining operations or

any known reserves State has 16 coal electricity plants and 4000 MW of

generating power 8,955 thousand tons of coal were imported to New York

in 2002 Total usage represents only 1% of the coal used in the

U.S. each year Use in electricity generation relatively stable, all other

uses declining

Petroleum 4th Largest Petroleum

consumer in the U.S. Single largest source of energy

used in the state Ranks 28 of 31 of oil producing

states Decreasing reliance over time

in all but transportation Last major oil find was 1981 Latest oil production #’s were

452 bpd

http://www.nyserda.org/sepsection3-6.pdf (page 11)

Renewable Energy

Renewable EnergyHydroelectric

New York has 4440 MW of hydroelectric generating power

Uses nearly twice as much hydroelectric power than the average U.S. state

Largest user in the Northeast 75% capacity comes from two large projects

2160 MW Niagara Power Project 912 MW St. Lawrence -Franklin D. Roosevelt

Power Project

Coal Regulation

• State and Federal Regulation• NY Acid Deposition and Control Act aimed at reducing SO2

emissions• Title IV of the federal Clean Air Act (CAA) Amendments of 1990 • Resulted in 50% reduction in SO2 from 1980 levels• Limits summer NOx emissions for coal plants - reductions of up

to 75% from 1990 levels required for 2003• Governor’s Acid Deposition Reduction (ADR) Program should

result in regs requiring electricity generation plants to reduce SO2 emissions to 50% of that required by the federal CAA Amendments of 1990

2002 New York State Energy Plan

• Implemented and administered by the NY State Energy Research and Development Authority (NYSERDA)

• Goals include:• Reducing primary energy use per unit of Gross State Product

(GSP) 25% below the 1990 level by 2010• Increasing renewable energy use as a percentage of primary

energy use 50% by 2020 (from 10% to 15%) • Reducing greenhouse gas emissions 5% below 1990 levels by

2010 (10% below by 2020)• Increasing energy resource diversity in electricity generation

Promotion of Renewables   Executive Order 111 – Issued by Gov. Pataki to increase purchase of

energy generated from specific renewable technologies Goal of 10% of their energy requirements by 2005, and 20% by 2010

Net Metering Law - Allows residential elect. customers to offset electricity use with power from renewable energy. Provides 25% tax credit for purchase and installation cost of a qualifying

renewable system

New York Environmental Disclosure Program - PSC requires electricity providers to include "environmental disclosure labeling” Provides information about the percentage mix of fuels used to generate

electricity sold to a given customer

Other Regulations “Cap and trade” programs - patterned after existing programs

Regional strategy to reduce CO2 emissions from power plant Based on commitment of 10 NE states

Set-Aside Program – Funds set aside to provide financial incentives/awards for:

End-use electric energy efficiency measures Renewable energy projects Installation of control devices on fossil fuel-fired electricity generation sources

Greenhouse Gas (GHG) Task Force Comprised of business, community, and government leaders. Advise the Gov. on actions and policies to achieve GHG reductions across all sectors

of the economy Position NY as a national leader on these issues

Energy Mix

http://www.nyserda.org/trends2003.pdf

Energy Mix

Disproportionately high nuclear, hydroelectric and natural gas

Moved from dependency on coal and oil to natural gas

Reduced petroleum as a share of primary energy from 52% in 1988 to 39% in 2002

Only 11% of total energy requirements are met by resources produced within the State

Energy Mix Influences

Scarcity of coal New natural gas generation facilities Transportation price Environmental concerns with hydrocarbon-

based energy and clean energy incentives Retirement of some coal and oil plants 85% of its petroleum imports from foreign

sources.

Energy Mix Effectiveness

4% of the nation’s total primary energy consumption; 7% of the nation’s population.

Sulfur Dioxide (3,000 tons/sq. mile), Nitrogen Oxide (3,000 tons/sq. mile), and Carbon Dioxide (1.4 million tons/sq. mile) emissions rank 24th, 27th and 21st amongst states, respectively

Lack of coal – blessing in disguise?

Future

2002 New York State Energy Plan Natural gas growth of 1.5% annual through 2020 Reduction in the use of coal (-1.0%) and

petroleum (-.07%) Increasing renewable energy use as a percentage

of primary energy use 50%, from 10% of primary energy use currently, to 15% by 2020