Item 5- Briefing: Resource Generation Plan — original pdf

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Resource, Generation and Climate Protection Plan to 2035 Lisa Martin Deputy General Manager and Chief Operating Officer November 2024 © Austin Energy Building a Bridge to Our Energy Future 2 Mission for the 2035 Plan We must meet Austin’s rising energy needs while enabling an equitable clean energy transition reflecting our community’s values of reliability, affordability and environmental sustainability. 3 33 What is a Resource Plan? • Documented effort to guide a utility’s resource decisions • Historically, the primary objectives are to have enough generation to reliably meet needs at lowest possible cost • Approved by a regulatory body and updated every three to five years 4 Global Trends Driving Resource Plan Changes Rapid Technology Change & Shifting Costs Load Growth & Transmission and Distribution Stakeholder Awareness & Inclusivity Evolving Federal & State Policies 5 Austin Energy is a Leader on the Path to Carbon Free Comparing Calendar Year End 2023 Data AUSTIN ENERGY ERCOT UNITED STATES Natural Gas Wind Wind Coal Solar Nuclear Biomass Solar Geothermal Nuclear Coal Biomass Hydro Natural Gas Nuclear Natural Gas Solar Geothermal Wind Biomass Hydro Coal 74% Carbon Free 41% Carbon Free 40% Carbon Free 6 6 Current Day Challenges The problems we need to solve are immediate Increases in extreme weather & climate risk Growth in population and energy consumption Replacing local power generation lost from plant retirements ERCOT market changes and increasing costs Transmission congestion and volatile pricing to import energy Financial Risk 7 Council Resolution – December 1, 2022 New Plan Needed Council Resolution in December 2022 asked for the plan to be updated by Spring 2024 Later determined that we needed a full plan refresh – the 2035 Plan – instead of simply an update to the 2030 Plan 8 Our Responsibility Austin Energy must adapt to a changing energy landscape to expand achievements of previous resource generation plans and further our mission to safely deliver clean, affordable, reliable energy and excellent customer service. 9 Community and Industry Expert Driven 2 Community Stakeholders Rifeline Facilitation Energy Research Webber Energy Group (UT) Demand Side Mgmt. & Solar Study* DNV Energy Insights 1 4 Portfolio Modeling* Ascend Analytics & Austin Energy Requests for Proposals Carbon-Free & Renewable Developers *Scope informed by EUC Industry Research Group Support E Source & EPRI 10 City of Austin District 2 Residential Customers Tri-City Region Solar and Storage Coalition CCARE Homeowners United for Rate Fairness (HURF) 11 What We Heard from Stakeholders • They value reliability as a top priority, followed by affordability and environmental sustainability • Across all values, energy equity is imperative to protect our most vulnerable populations   Therefore, the 2035 Plan will set standards reflecting our community’s values and objectives while providing the flexibility to power a brighter Austin reliably, affordably and sustainably over the next decade 12 Community Value Statements Reliability Providing consistent and predictable electric service that will power our community as it continues to grow Assessing the impacts and promoting fairness of costs for customers while continuing to provide the public-power benefits that enhance our community’s quality of life Affordability Environmental Sustainability Maintaining flexibility in support of clean and innovative technologies and programs while taking a holistic assessment of the community and environmental impacts Evaluating and expanding access to the services Austin Energy provides so they can reach those who need them most while reducing any negative impact of our operations on the community Energy Equity 13 2035 Plan Objectives Reliability Prioritize reliability and resilience. Mitigate the risk of long-duration statewide and localized system outage events and provide timely communications. Limit the exposure of vulnerable populations to outages. Affordability Limit the impact of bill increases to the most vulnerable customers, while allowing acceptable and predictable increases of greater than 2% for other customers in support of reliability and environmental sustainability. Environmental Sustainability Reduce emissions and other environmental impacts as much as possible. Mitigate any remaining emissions, while supporting affordability and reliability. 14 Modeling So many models, so much data, so many hours . . . to understand tradeoffs and resource plan needs 15 Developing the 2035 Plan Values Objectives Toolkit Developed with the community Provides flexibility to manage tradeoffs and changing conditions Effective policy design keeps tradeoffs in mind and is outcomes based, rather than prescriptive. — Observations from Dr. Michael E. Webber 16 Managing Our “Toolkit” Prioritize Customer Energy Solutions Leverage Local Solutions Achieve Decarbonization Foster a Culture of Innovation 17 Action Categories – Our “Toolkit” Prioritize Customer Energy Solutions • Energy Efficiency • Demand Response • Greenhouse Gas Avoidance • Beneficial Electrification • Customer-Owned Batteries • • Rooftop Solar Virtual Power Plants Achieve Decarbonization Exit Coal and Reaffirm REACH Remote Wind and Solar • Carbon Free by 2035 • • • Geothermal • Nuclear • Carbon-Free Technologies Leverage Local Solutions Transmission Import Capacity • Maximize Demand Side Management • • Utility-Scale Batteries • More Efficient Peaker Units Used Only When Needed • Maintain Black Start Utility Status Foster a Culture of Innovation • R&D Partnerships • Grant Opportunities • Solar for All • Solar Standard Offer • Pilot Geothermal Generation • Nuclear Technologies • Carbon Capture • Vehicle to Grid 18 Final Steps to Adopting the 2035 Plan Nov. 18 — EUC Nov. 19 — AEUOC Nov. 27 — Proposed 2035 Plan Posted Dec. 2 — EUC Recommendation (Vote) Dec. 12 — Council Consideration (Vote) 19 The 2035 Plan – Powering Our Future ✓ Cleanest energy portfolio in Texas ✓ Industry-leading customer energy solutions ✓ Promotes reliability, affordability and sustainability ✓ Protects our most vulnerable ✓ Resilient to extreme weather ✓ Flexible and innovative ✓ Built to adapt to changing conditions ✓ Community-informed plan 20 ©Austin Energy. All rights reserved. Austin Energy and the Austin Energy logo and combinations thereof are trademarks of Austin Energy, the electric department of the City of Austin, Texas. Other names are for informational purposes only and may be trademarks of their respective owners.