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Table 3.11. Estimated Direct Impacts of Reduced Energy Needed to Supply Regulation for Wind Energy Penetration at 25% RPS Reduced Energy Consumption (2030) Baseline Electricity Consumption Electric Sector Annual Reductions (2030) Energy Carbon Emissions Est. % 20 Low % 10 High % 30 % of United States 0.02 9 year) % of United States 0.02 (MMT/ yearr) 1 End-Use Sector(s) Fuel Savings for 0.1% Additional Regulation Requirement 9 (10 kWh/year) 5 (10 kWh/ 1 This mechanism appears to have a negligible effect on energy and emissions because of the small amount of energy involved, although in certain areas of the country where regulation is monetized in wholesale markets, it is apparent that it is quite expensive to provide. It should be investigated as an indirect savings mechanism in future work, to reflect the potential of reduction in regulation costs. It is worth noting that only a very small amount of load (approximately 0.7%) would need to participate in providing all the regulation needed by the grid, as would similarly small amounts of energy from storage or batteries. We also estimate the potential indirect reductions from reinvesting the capital cost savings from avoiding the construction of extra generation capacity required for the total operating reserves (regulation, spinning, non-spinning, load following, and reserve margin) to support wind generation to meet. This has been estimated to increase from 5% of peak load capacity to 7% for an RPS of 25% (Smith et al. 2007). We use the 2% difference to estimate the reduced reserve capacity, with a range from 1% to 3%. We assume the resulting cost savings, from avoiding over 1000 gigawatts of power plant capacity at $1000/kW, are reinvested in additional cost-effective energy efficiency or renewable generation at a levelized cost of 8.8¢/kWh. This results in very substantial estimated reductions of 5% of U.S. electricity consumption and associated CO2 emissions, as shown in Table 3.12. Table 3.12. Estimated Indirect Impacts of Reduced Needed Reserve Capacity for Wind Energy Penetration at 25% RPS Avoided Expenditure Reinvested to Save Carbon (2030) Baseline Captial Expenditure Electric Sector Annual Reductions (2030) Investment 1111 GW Total Generation Capacity @ $1000/kW (109 $) 1111 kWh/ (MMT/ year) 150 Energy Carbon Emissions Est. % 2 Low High % % 1 3 Savings (109 $) 22 % of United States 5 9 year) % of United States 5 (10 253 3.35PDF Image | The Smart Grid: An Estimation of the Energy and CO2 Benefits
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