- •Foreword
- •Table of contents
- •1. Executive summary
- •Overview
- •“Energy dominance” strategy
- •Deregulation
- •Energy infrastructure
- •Innovation
- •Power sector transition
- •Policy co-ordination
- •Energy security
- •Energy systems resilience
- •Key recommendations
- •2. General energy policy
- •Country overview
- •Supply and demand of energy
- •Primary energy supply
- •Energy production and self-sufficiency
- •Energy consumption
- •Energy trade
- •Institutions
- •“Energy dominance” strategy
- •Energy policies
- •Federal Power Act
- •Clean Air Act
- •National Environmental Policy Act
- •Natural Gas Act
- •Energy Policy and Conservation Act
- •Energy Policy Act of 2005
- •Energy Independence and Security Act
- •American Recovery and Reinvestment Act
- •Energy permitting and regulatory regimes
- •Energy pricing and taxation
- •Energy data
- •Assessment
- •Recommendations
- •3. Energy and climate change
- •Overview
- •Institutions
- •Climate change mitigation
- •Emissions targets
- •Federal policies and regulations
- •Power sector
- •Transportation sector
- •Oil and gas sector methane emissions and natural gas flaring
- •Regional, state and local policies
- •Regional Greenhouse Gas Initiative
- •California’s climate action plan
- •Other regional programmes
- •Adapting to climate change
- •Assessment
- •Recommendations
- •4. Energy efficiency
- •Overview
- •Institutional governance of energy efficiency policies
- •Transport sector
- •Energy consumption in the transport sector
- •Energy efficiency policies in the transport sector
- •Electric vehicles
- •Residential and commercial
- •Energy consumption in the buildings sector
- •Energy efficiency policies in the buildings sector
- •Tax credits
- •Building codes
- •Appliance and equipment standards
- •Co-generation
- •Federal buildings
- •Industry
- •Energy consumption in the industry sector
- •Energy efficiency policies in the industry sector
- •Demand response
- •Utility efficiency obligations
- •Assessment
- •Recommendations
- •5. Renewable energy
- •Overview
- •Supply and demand
- •Renewable energy in TPES
- •Electricity from renewable energy
- •Policies and measures
- •Federal tax credits
- •Public Utility Regulatory Policies Act
- •Renewable portfolio standards
- •Corporate tax policy
- •Trade policy
- •Net metering
- •Grid upgrades
- •Department of Energy initiatives
- •Solar PV
- •Grid Modernization Initiative
- •Hydropower Vision
- •Offshore wind
- •Battery storage
- •Renewable Fuel Standard
- •Biofuels tax credits
- •Low Carbon Fuel Standard
- •Assessment
- •Recommendations
- •6. Energy technology research, development and demonstration
- •Overview
- •Public spending on energy RD&D
- •Institutional framework
- •Energy RD&D programmes
- •Science and innovation programmes
- •National laboratories
- •Loan Programs Office
- •Advanced Research Projects Agency for Energy
- •Nuclear energy
- •Energy efficiency and renewable energy
- •Efficiency
- •Renewables
- •Transportation
- •Fossil energy
- •Office of Clean Coal and Carbon Management
- •Advanced fossil energy systems
- •Carbon capture, utilisation and storage
- •Electricity
- •Pathways to commercialisation
- •Technology-to-Market
- •Energy Investor Center
- •Technology Commercialization Fund
- •STEM
- •International collaborations
- •Assessment
- •Recommendations
- •Overview
- •Supply and demand
- •Crude oil production
- •Refined oil products
- •Trade: Imports and exports
- •Trade of crude oil
- •Trade of refined oil products
- •Oil demand
- •Increasing biofuels demand in the United States
- •Outlook of oil supply and demand
- •Prices and taxes
- •Institutions
- •Oil exploration policies
- •Oil exploration
- •Tax reform
- •Permitting and mineral rights
- •Infrastructure
- •Pipelines
- •Price differentials
- •Refining
- •Ports
- •Emergency response policy
- •Legislation and emergency response policy
- •National Emergency Strategy Organization
- •Oil emergency reserves
- •Storage locations
- •SPR modernisation programme, planned sales and commercial lease
- •Emergency response to supply disruptions
- •Impacts of hurricanes
- •Responses to hurricanes
- •Participation in IEA collective actions
- •Assessment
- •Oil upstream
- •Oil markets
- •Oil security
- •Recommendations
- •8. Natural gas
- •Overview
- •Supply and demand
- •Production
- •Consumption
- •Biogas
- •Supply and demand outlook
- •Trade: Imports and exports
- •Market structure
- •Price and taxes
- •Infrastructure
- •Gas pipeline networks
- •Ongoing projects in the Northeast and New England
- •Ongoing projects between the United States and Mexico
- •Recent regulatory developments related to the construction of energy projects
- •LNG terminals
- •Regulation
- •LNG developments
- •Storage
- •Gas flaring
- •Gas emergency response
- •Gas emergency policy
- •Gas emergency organisation: Roles and responsibilities
- •Gas emergency response measures
- •Strategic storage
- •Interruptible contracts
- •Demand restraint
- •Fuel switching
- •Assessment
- •Natural gas markets
- •Natural gas security
- •Recommendations
- •9. Electricity
- •Overview
- •Electricity supply and demand
- •Electricity generation and trade
- •Electricity consumption
- •Electricity system regulation
- •FERC
- •NERC
- •State regulators
- •The physical grid
- •Market structure
- •Wholesale electricity markets
- •Traditional vertically integrated utility bulk systems
- •ISOs and RTOs
- •Capacity markets
- •Energy Imbalance Market
- •Distribution system rates and competition
- •Ownership
- •Retail prices and taxation
- •Policies and regulations
- •Federal Power Act
- •Public Utilities Regulatory Policies Act
- •Energy Policy Act of 1992
- •FERC Orders 888 and 889
- •FERC Order 2000
- •Energy Policy Act of 2005
- •Electricity in the low-carbon transition
- •Federal environmental policy
- •State-level clean energy policies
- •Renewable portfolio standards
- •Zero-emissions credits
- •Net metering
- •System integration of renewables
- •Transmission
- •Demand response
- •Energy security
- •Grid reliability and resilience
- •NERC assessments
- •DOE and FERC efforts
- •Capacity market reforms
- •Other capacity mechanisms
- •Fuel security
- •Extreme weather
- •Cyberthreats
- •Emergency response
- •The DOE role
- •Assessment
- •Bulk power markets
- •Electricity reliability
- •Recommendations
- •10. Nuclear
- •Overview
- •Institutional oversight and regulation
- •The Nuclear Regulatory Commission
- •The Department of Energy
- •Operational fleet
- •Valuing low-carbon generation
- •Valuing resilience
- •New builds
- •V.C. Summer
- •Vogtle
- •SMRs and other advanced reactors
- •Nuclear fuel cycle
- •Interim storage and the Yucca Mountain repository
- •Production of enriched uranium
- •Accident tolerant fuels
- •Innovation, nuclear research, human resources, education
- •Versatile Test Reactor
- •Funding for nuclear innovation
- •Training nuclear scientists and engineers
- •Assessment
- •Recommendations
- •11. Coal
- •Overview
- •Supply and demand
- •Institutions
- •Policy and regulation
- •Coal mining
- •Environmental regulations for coal-fired power plants
- •Fuel security
- •Emissions reduction efforts for coal-fired generation
- •Refined coal
- •Small-scale coal plants
- •CCUS
- •Assessment
- •Recommendations
- •12. The resilience of US energy infrastructure
- •Overview
- •Definition of resilience
- •Institutional governance
- •Energy resilience policies
- •Incident emergency response
- •Exercises
- •Climate resilience
- •Energy production
- •Energy consumption
- •Energy infrastructure siting
- •Resilience in electricity
- •Resilience in oil and gas infrastructure
- •Upstream
- •Downstream
- •Midstream
- •Cybersecurity resilience
- •Assessment
- •Recommendations
- •ANNEX A: Organisations visited
- •Review criteria
- •Review team and preparation of the report
- •Organisation visited
- •ANNEX B: Energy balances and key statistical data
- •Footnotes to energy balances and key statistical data
- •ANNEX C: International Energy Agency “Shared Goals”
- •ANNEX D: Glossary and list of abbreviations
- •Acronyms and abbreviations
- •Units of measure
12. THE RESILIENCE OF US ENERGY INFRASTRUCTURE
designed to simulate cyberand physical attacks on electric and other critical infrastructures across North America.
After each exercise or emergency incident, lessons learned are developed, which result in corrective actions and improvements to the DOE’s plans, policies and procedures. Once these corrections are made, the responders train towards the corrections and validate the training and corrections through exercises. This is referred to as the preparedness cycle, as referenced in Presidential Policy Directive 8.
Climate resilience
Several studies have assessed in depth how the US energy sector can improve its resilience to climate change. These include, among others, the Regional Energy Sector Vulnerabilities and Resilience Solutions report published by DOE:
“U.S. energy sector vulnerabilities to climate change and extreme weather” (DOE, 2013)
Climate Change and the U.S. Energy Sector: Regional Vulnerabilities and Resilience Solutions (DOE, 2015)
Climate Change and the Electricity Sector: Guide for Climate Change Resilience Planning
(DOE, 2016a) and “A review of climate change vulnerability assessments: Current practices and lessons learned from DOE’s Partnership for Energy Sector Climate Resilience” (DOE, 2016b).
The Fourth National Climate Assessment, Vol II: Impacts, Risks, and Adaptation in the United States, led by the NOAA and published in 2018, is the fourth report in the National Climate Assessment series and focuses on the human welfare, societal and environmental elements of climate change and variability for 10 regions and 18 national topics (GlobalChange.gov, 2018). The DOE led the development of the energy chapter that characterises the effects of climate change on the energy supply, delivery and demand sectors in the United States. In addition to analysing the climate adaptation challenges (Table 12.3), the report also assesses how the US energy sector can enhance its resilience to climate change.
The report lays out current efforts to increase the resilience of the energy system in the United States (Table 12.3). Energy companies, utilities and system operators are increasingly adopting data collection methods, modelling and data analysis to support planning activities that enhance the climate resilience of energy systems. For instance, coastal infrastructure planning is beginning to consider rising sea levels and the risk of flooding, while thermal power plants started taking into account the potential changes to fuel and water supplies. Private and public-private partnerships are increasingly used to support co-ordinated action on climate resilience in the sector. The deployment of new, innovative energy technologies (e.g. alternative cooling systems that reduce water withdrawals, or use non-traditional water sources) for adapting energy assets to extreme weather hazards has also started improving the resilience of the energy system. However, some key barriers to scaling up resilience efforts in the US energy sector still exist, including the lack of reliable projections of climate change at the local level and the associated risks to energy assets, and the lack of national or regional cost-effective risk reduction design standards and strategy.
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12. THE RESILIENCE OF US ENERGY INFRASTRUCTURE
Table 12.3 Potential energy sector impacts from extreme weather and climate change
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- Higher summer temperatures drive increasing demand for |
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Energy demand |
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cooling energy (primarily electricity). |
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- Higher winter temperatures drive reduced demand for heating |
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energy (including natural gas, oil and electricity). |
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- Winds, ice storms and wildfires damage transmission and |
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Electric grid |
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distribution towers/lines. |
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- Extreme heat reduces power line/transformer capacity. |
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- Flooding can damage substations/transformers/underground |
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lines. |
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- Changes in wind patterns and solar resources impact |
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Wind, solar and biofuels |
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generation. |
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- Extreme winds damage wind and solar infrastructure. |
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- Increasing temperatures reduce generating capacity. |
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- Extreme heat/drought reduces biofuels production. |
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Hydropower |
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- Drought and reduced run-off reduce power production. |
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- Earlier snowmelt shifts peak production earlier in the year. |
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- Flooding increases risk of damage and disruption. |
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-Higher air and water temperatures can reduce power plant |
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efficiency and capacity. |
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- Reduced water availability can reduce capacity and lead to |
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Thermoelectric power |
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shutdowns. |
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- Inland and coastal flooding can disrupt operation and damage |
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equipment. |
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- Increasing scarcity of fresh water can limit siting of new |
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generation. |
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- Inland and coastal flooding inundates low-lying roads and |
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rails and can damage bridges, river and coastal ports, and |
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Fuel transport |
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storage facilities. |
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- Reduced river run-off can impede barge traffic. |
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- Extreme weather, flooding and blackouts can disrupt |
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distribution outlets and gas stations. |
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- Extreme weather/flooding damages refineries. |
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Refineries |
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- Reduced water availability can constrain fuel refining and |
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processing. |
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- Loss of electricity impacts refining operations. |
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Pipelines |
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- Flooding damages pumping stations, undermines/scours river |
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crossings. |
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- Loss of electricity impacts pumping operations. |
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- Extreme weather, sea level rise and flooding disrupt/damage |
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offshore and onshore energy operations and facilities. |
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Oil, gas and coal |
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- Reduced water availability constrains drilling, fracking and |
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mining operations. |
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- Thawing permafrost and subsidence reduce access and |
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impact production. |
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Source: NOAA (2018), Fourth National Climate Assessment, Vol II: Impacts, Risks, and Adaptation in the United States.
Table 12.4 Examples of energy sector resilience solutions
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- Building/strengthening berms, levees and flood walls |
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- Elevating substations, control rooms and pump stations |
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- Expanding wetlands restoration |
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- Installing flood monitors |
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12. THE RESILIENCE OF US ENERGY INFRASTRUCTURE |
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Wind protection |
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- Inspecting and upgrading poles and structures |
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- Burying power lines underground |
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- Improving vegetation management efforts |
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Drought protection |
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- Adopting water-efficient thermoelectric cooling |
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- Utilising non-freshwater sources |
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- Expanding low-water-use generation |
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- Deploying sensors and control technology |
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- Installing asset databases/tools, including supervisory control |
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Modernisation |
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and data acquisition system redundancies |
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- Deploying energy storage and microgrid infrastructure |
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(distributed energy resources, demand response programmes, |
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islanding capabilities) |
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- Conducting extreme weather risk assessment planning, |
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preparedness and training |
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Advanced planning and |
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- Participating in mutual assistance groups and public-private |
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partnerships |
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preparedness |
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- Purchasing or leasing mobile transformers and substations |
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- Utilising geographic information system (GIS) analysis to help |
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identify vulnerabilities and plan for new builds and relocations |
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Storm-specific readiness |
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- Co-ordinating priority restoration and waivers |
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- Securing emergency fuel contracts |
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- Improving communication during outages to assist customers |
Source: NOAA (2018), Fourth National Climate Assessment, Vol II: Impacts, Risks, and Adaptation in the United States.
As previously mentioned, the DOE works regularly with private-sector utilities to address critical energy infrastructure challenges, including resiliency.
The US Climate Resilience Toolkit (CRT) was launched in November 2014 and is managed by the NOAA Climate Program Office and hosted by the NOAA National Centers for Environmental Information (U.S. Climate Resilience Toolkit, 2019). The tool is a result of interagency co-ordination and initiative among the NOAA, US Geological Survey, Bureau of Reclamation, EPA and National Aeronautics and Space Administration (NASA), with guidance from the US Global Change Research Program. As part of the US federal climate data-sharing initiative, the toolkit is a website designed to help people and institutions find and use tools, information and expertise to promote climate resilience.
Mapping and monitoring climate risks requires a solid database. Given the importance of the energy-climate nexus, energy is examined as one of ten topics under the CRT with a particular focus on the impact of climate change on energy security. The DOE in collaboration with the NOAA and NASA has included climate data relevant for energy sector resilience planning.
Climate-related factors are critical to energy production and demand, notably when it comes to water and cooling needs, or the geographic location of infrastructure (see also Chapter 3, “Energy and Climate Change”).
Energy production
Energy production in the United States is exposed to climate-related environmental changes, which can reduce the efficiency of energy production, especially for production processes that require water for cooling, thereby straining the resilience of energy systems.
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12. THE RESILIENCE OF US ENERGY INFRASTRUCTURE
Water withdrawals for hydraulic fracturing represent a large demand for fresh water in the United States, and when water supplies are constrained, it affects the supply of oil and natural gas. In 2012, during one of the worst droughts in US history, certain companies that extract oil and gas using hydraulic fracturing faced higher water costs or were denied access to water for six weeks or more in several states, including Kansas, Texas, Pennsylvania and North Dakota. Some companies started to reuse hydraulic fracturing fluids to reduce freshwater requirements (EPA, 2019a).
Decreased precipitation, increased evaporation and increased temperatures associated with climate change may also reduce longer-term energy production in some regions such as the Southeast, Southwest and Northeast. For instance, water needs for cooling in power plants (the United States has a large nuclear and coal-fired power plant fleet) represents the largest demand for fresh water in the country, accounting for up to 41% of total water withdrawals in some regions. If water supplies are constrained, the supply of energy could be as well.
The Fourth National Climate Assessment also notes that in warmer climate, the efficiency of thermal power plants as well as the efficiency of transmission and distribution lines decline.
Reliable hydropower generation is also at risk as precipitation levels decline and seasonal streamflow becomes more irregular; California periodically faces serious water shortages and has cut the water use of its energy infrastructure.
Energy consumption
As the average temperature goes up, a combination of milder winters and hotter summers is expected to result in a net increase in energy consumption at a national level, but regional impacts may vary. Hotter and longer summers will increase power demand for air conditioning or cooling, particularly in the Southeast and Southwest parts of the country, while warmer winters will reduce the natural gas demand for heating, notably in the Northeast, Midwest and Northwest (EPA, 2019b).
The mix of energy sources in different regions may also change. Since heating depends on a mixture of electricity, fuel oil and natural gas, whereas cooling primarily uses electricity, the rise in temperature over time will increase demand for electricity and reduce demand for fuel oil and natural gas. These changes will alter the resilience attributes of the energy system, and increase the need to bolster electricity infrastructure resilience, in particular (EPA, 2019c).
Energy infrastructure siting
Making the most informed choices for siting, operating and managing energy facilities can promote resilience in the energy sector. Energy infrastructure assets are increasingly exposed to the threats of rising sea levels and extreme weather events. Sea level rises and resulting higher storm surges have the potential to impact multiple major energy facilities along the coast of the United States, such as power plants in California or oil and gas facilities near the Gulf of Mexico.
Planning flexible operation schedules to better manage energy peak hours; deploying more climate-resilient technologies, such as decentralised renewable energy; smart grids; ensuring regional multi-fuel product reserves for supply disruptions; and
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