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Recommendations

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Chapter VI: Integrating North American Energy Markets QER Recommendations ARCTIC ENERGY TS&D INFRASTRUCTURE Through the U.S. chairmanship of the Arctic Council and in partnership with Canada, the U.S. government should provide leadership on energy safety, reliability, and environmental protection in Arctic regions, and on improving energy availability in remote areas, through the following: Partner with Canada and the Arctic Council on Arctic energy safety, reliability, and environmental protection: DOE, the Department of the Interior, the Coast Guard, and the State Department should partner with Canada and other Arctic Council members, including the Arctic Regulators Forum, to emphasize research and information sharing on the effects of spills and the effectiveness of countermeasures, the identification and mobilization of the resources necessary to mitigate the effects of a pollution incident, and the development of international guidelines for preparedness and response in this logistically challenging region. Partner with Canada and the Arctic Council on energy delivery to remote areas: Additionally, under the Arctic Council, and domestically, DOE, the Department of the Interior, and the State Department should promote the Remote Community Renewable Energy partnership: first by developing, testing, and demonstrating its proposed modules in the United States and second by seeking avenues to deploy small-scale, hybridized conventional fuel-renewable generation platforms in other Arctic Council countries. Infrastructures for Diversification of Caribbean Energy Supply The Caribbean energy market is not large, but, given its proximity to the North American markets and energy systems, it could be a beneficiary of the North American energy renaissance. Current dependence on highcost fuel imports for transportation and electricity generation is a major challenge for Caribbean islands, has local environmental and affordability impacts, and raises regional energy security and market concerns. Several strategies have emerged throughout the Caribbean to address the economic, environmental, and energy security issues associated with reliance on oil imports for electricity and transportation there. The principal cause of high energy prices for electricity and transportation is the reliance of many Caribbean islands on oil imports. Currently, much of the Caribbean’s oil imports come from Venezuela through its Petrocaribe organization, financed in part by deferred payment structures. k From June 2005 through the first quarter of 2009, Venezuela delivered approximately 90.5 million barrels of crude oil and refined products at an estimated $14 per barrel price reduction from market price among receiving countries. 58 Recently, Venezuela has been cutting the oil it supplies under these terms, which, in some cases, is leading to supply shortages on the islands. k On June 29, 2005, 14 Caribbean and Central American nations signed the Energy Cooperation Agreement, establishing Petrocaribe during the First Energy Meeting of Heads of State/Government of the Caribbean on Petrocaribe. Presently, the now 18-member energy alliance consists of Antigua and Barbuda, the Bahamas, Belize, Cuba, Dominica, the Dominican Republic, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Saint Lucia, Suriname, and Venezuela. 6-16 QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015
Risk and Resilience in the Caribbean Recent history has illustrated the potentially devastating consequences of natural disasters in the Caribbean. Small Island Developing States, including many Caribbean nations, face high risks and potential losses due to their size, location, economic characteristics, capital stock, and investment ability. For example, the United Nations reported that climate change leads to an additional $1.4 billion in the expected average annual losses associated with wind damage alone in the Caribbean through 2055. l Apart from volatile energy prices, which affect Caribbean electricity generation and transportation, Caribbean islands face climate impacts to their energy infrastructure. Changes in precipitation may impact water availability on larger islands, including Jamaica, Haiti, and the Dominican Republic, for hydroelectric and thermal plants. Additionally, sea-level rise projections indicate greater impacts in the Caribbean due to gravitational and geophysical factors, and these impacts may affect coastal facilities, including power plants, oil refineries, and port facilities that receive oil and gas deliveries. Tropical storms represent a current and significant threat to Caribbean islands, and recent storms have resulted in the damage to energy production and distribution infrastructure, including damage to offshore platforms, pipelines, railways, roads, and bridges. Given the region’s current reliance on oil for electricity generation, disruptions to transportation infrastructure also impact energy reliability. m Since its establishment in 2007, the Caribbean Catastrophe Risk Insurance Facility (CCRIF), the world’s first multi-country risk pool, has made nine payouts for extreme weather events (tropical cyclones, excess rainfall, and trough systems), totaling nearly $27 million to six member countries. n, o, p The CCRIF also performs regional tropical cyclone risk modeling in order to produce country profiles for its members. For example, using historic data, exposure assessment, and tropical cyclone risk modeling, the CCRIF profile of the Bahamas estimates a national loss of nearly $2.5 billion for a tropical cyclone with a 20- year return period. l United Nations International Strategy for Disaster Relief. “Making Development Sustainable: The Future of Disaster Risk Management, Global Assessment Report on Disaster Risk Reduction.” 2015. http://www.preventionweb.net/english/hyogo/ gar/2015/en/home/GAR_2015/GAR_2015_1.html. Accessed March 26, 2015. m Martin, R. et al. “An assessment of the economic and social impacts of climate change on the energy sector in the Caribbean.” United Nations Economic Commission for Latin America and the Caribbean. February 2013. http://www.cepal.org/ portofspain/noticias/documentosdetrabajo/8/49708/Energy.pdf. Accessed March 26, 2015. n Caribbean Catastrophe Risk Insurance Facility. “Annual Report 2013-2014.” October 2014. http://www.ccrif.org/sites/ default/files/publications/CCRIF_Annual_Report_2013_2014.pdf. Accessed March 26, 2015. o Caribbean Catastrophe Risk Insurance Facility. “About Us.” January 2015. http://www.ccrif.org/content/about-us. Accessed March 26, 2015. p Current members include Anguilla, Antigua and Barbuda, the Bahamas, Barbados, Belize, Bermuda, Cayman Islands, Dominica, Grenada, Haiti, Jamaica, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Trinidad and Tobago and Turks and Caicos Islands Opportunities for Clean Energy Supplies for Caribbean Nations and Territories Recognizing the need for tailored approaches to energy infrastructure in the region, the United States (with a delegation led by Vice President Biden) and several Caribbean partners developed the Caribbean Energy Security Initiative, which promotes and finances clean energy technologies in the region (see box on Current Administration Activities and Plans). Recent increases in U.S. natural gas production—as well as longstanding natural gas production in Trinidad and Tobago q —may also provide opportunities to export liquefied natural gas (LNG) to Caribbean islands. This could lower energy costs, address the variability of renewable electricity generation resources, and reduce emissions from existing fuel oil-fired electricity generation. 59 Making natural gas a viable fuel source in the q Trinidad and Tobago is unique among the Caribbean island nations in its significant fossil energy resource base. It has long been an oil and gas producer, and it exports significant quantities of LNG—approximately 675 billion cubic feet of LNG in 2012. QER Report: Energy Transmission, Storage, and Distribution Infrastructure | April 2015 6-17
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QUADRENNIAL ENERGY REVIEW: ENERGY T
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Preface In June 2013, through the P
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Presidential Memorandum The White H
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(xx) the Small Business Administrat
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TABLE OF CONTENTS Preface..........
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LIST OF FIGURES Figure SPM-1. Age b
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Figure 7-7. Conditions Affecting Li
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Summary TRANSFORMING U.S. ENERGY IN
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same systems (e.g., ports and railw
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Aging Infrastructure and Changing R
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Actions taken in the first term of
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Figure SPM-3. Billion-Dollar Disast
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Key Findings Mitigating energy disr
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Recommendations in Brief To continu
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The potential range of new transmis
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Improve grid communication through
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Undertake a study of the relationsh
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• Doubling the size of the Inland
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Key Findings The United States has
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Promote Caribbean energy TS&D infra
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Recommendations in Brief Improve qu
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• Developing curricula and certif
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(2) the Fish and Wildlife Service I
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Table SPM-2. Examples of Federal Me
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Chapter I INTRODUCTION This chapter
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The requirements that this TS&D inf
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Increases in U.S. Oil and Natural G
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Increased Deployment of Renewable E
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Figure 1-3. Percent Change in Retai
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Climate Science The key conclusions
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Figure 1-7. Change in Annual Averag
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Other actions to deploy low-carbon
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Figure 1-8. Historic and Projected
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Government can build and incentiviz
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Notes: 1. Analyses were conducted w
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Organization of the Remainder of th
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Endnotes 1. Edison Electric Institu
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39. Energy Information Administrati
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Chapter II INCREASING THE RESILIENC
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The Importance of Resilient, Reliab
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Figure 2-1. Illustration of Tornado
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Continued increases in extreme weat
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Weather-Related and Other Reliabili
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Drought is also problematic. In 201
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Electricity TS&D Vulnerabilities Va
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Distribution hardening projects are
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Although pipelines above and below
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Safety and Methane Emissions from G
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Indianapolis’ in 2013 (see Figure
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Natural Gas Infrastructure Dependen
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• The changing geography of natur
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ose to greater than $34 per million
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NE MN IA MO WI IL MI IN KY TN OH Gr
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Vulnerability of Fuel Supply Disrup
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Figure 2-8. Earthquake Vulnerabilit
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Liquid Fuel TS&D Dependencies on El
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Results from an Argonne National La
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QER Recommendations (continued) Sup
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QER Recommendations (continued) Ana
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Endnotes 1. Government Accountabili
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31. The Climate Institute. “Water
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63. Global Climate Change Research
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131. Quadrennial Energy Review Anal
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Chapter III MODERNIZING THE ELECTRI
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The Electric Grid in Transition The
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esources, including central station
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demand; and the costs of alternativ
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In the Southwest, transmission buil
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Pumped hydro storage currently repr
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Resilience investments can require
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Communication with Customer Devices
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and maintenance of the interconnect
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technical experts to develop a set
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Table 3-2. Taxonomy of Utility Busi
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Figure 3-6. Select Electricity Juri
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QER Recommendations The Administrat
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QER Recommendations (continued) Coo
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RECOMMENDATIONS IN BRIEF: Modernizi
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48. North American Electric Reliabi
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Chapter IV MODERNIZING U.S. ENERGY
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A Broad and Collective View of Ener
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States was forecast to become highl
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Changing Global and Domestic Oil Ma
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QER Recommendations SPR MODERNIZATI
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Biofuels and TS&D Infrastructure Is
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QER Recommendations TS&D INFRASTRUC
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The United States and Canada share
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Endnotes 1. Foreign Affairs, Trade
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Chapter V IMPROVING SHARED TRANSPOR
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Page 227 and 228: TS&D infrastructure already plays a
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Page 237: Administration Activities and Plans
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Chapter VIII: Enhancing Employment
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Chapter IX: Siting and Permitting o
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Chapter X: Analytical and Stakehold
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LIST OF ACRONYMS AND UNITS APE - Ar
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