Now that we have discussed different emissions scopes, understanding how the power grid works and how electricity gets from the power plant
to the end consumer is crucial for Scope 2 emissions. In addition, Electrification is critical for decarbonization, and the source of the electricity
generation should define the prioritization of Electrification.
What is Electrification? Replacing fossil-fueled assets in a building with efficient electric assets powered by clean electricity
(The key here is powered by clean electricity).
Figure 1: Scope 2 Emissions - Electricity [Power Plant to End User]
The infographic above shows the three key components of the grid: Generation, Transmission, and Distribution.
1. GENERATION
Generation is the process of power plants generating Electricity.
As of December 31, 2021, 11,925 utility-scale electric power plants in the U.S. generate 4.2 trillion kilowatt-hours (kWh) of Electricity annually.
Typically the power plants are owned and operated by private, public, or investor-owned utilities.
Figure 2: Power Generation Breakdown by Type (USA)
Coal and nuclear power plants are known as baseload power plants as they cannot easily adjust their output. Power generation from renewable sources like
wind and solar is not constant and depends on ambient conditions. Therefore, natural gas plants are primarily used in meeting peak demand because
their output can be adjusted relatively quickly
Figure 3: Power Generation Breakdown by Type (last 23 years/USA)
Coal plants' usage has reduced by 48% since 2015, whereas natural gas plant usage has increased by 50% in the same period.
On the other hand, the Renewable sources utility plant like Wind and Solar had a 150% and 600% increase compared to 2015, respectively.
2. TRANSMISSION
Transmission is the process of transporting Electricity from power plants to centers of demand. The Electricity is sent from power plants to substations where transformers step up to extremely high voltages(69kV to 765kV) for transmission. High-voltage conversions help minimize the Electricity lost as heat. The higher the voltage, the less Electricity is lost due to losses(approx. 5% lost in the U.S.).
Transmission lines then carry this high-voltage(69kV to 765kV) Electricity across long distances through overhead or underground lines.
2. DISTRIBUTION & CONSUMPTION
Distribution is the process of transporting Electricity to the end customer.
Step-down transformers in the sub-stations convert the high-voltage power from transmission lines into
lower voltages suitable for use. Distribution lines and poles deliver Electricity to end consumers, including households,
commercial buildings, factories, and electric vehicles.
Figure 4: Energy Usage Breakdown by End-Use Sectors
Space Cooling(16.2%), Space Heating(15.9%), Water Heating(11.4%), Refrigerators & Freezers(6.9%) & Lighting(4.4%) are the largest energy users in the residential sector. In the commercial sector, HVAC, Lighting, refrigeration, computers, and other office equipment account for over half of electricity use. The transportation sector is the smallest electricity consumer, but these figures will change as electric vehicle sales rise.
Three Important Takeaways
1 Distributed Energy Resources (DER) -promote the Onsite Generation and Smart Power Management
We are seeing an increased demand for EV charging stations in commercial buildings enforced by City and State.
For example, Per the City of Atlanta Ordinance 2017, 20% of the parking spaces in new parking structures to be EV-ready.
Smart power management to charge cars during no peak hours is important to eliminate peak load on the grid. Buildings
can use Battery energy storage systems (BESS) to discharge energy during peak utility hours for demand savings.
Onsite generation should also be considered to improve resiliency and effective demand management.
2 Improve Energy Efficiency.
According to Energy Star, over 30% of the energy consumed in a commercial building is wasted. Energy efficiency is the most prominent way to reduce waste and emissions. Therefore, it is essential to improve the energy efficiency of the building to reduce the load on the grid. The more efficient the building, the less power the grid needs to provide.
According to Science-Based Target Initiative (SBTi) criteria,
"If a company has significant scope 3 emissions (over 40% of total scope 1,2 and 3 emissions), it should set a scope 3 target."
3 Do the Due Diligence before Accelerating Electrification:
Consultants are pushing for electrification without understanding how the grid works. Is the grid ready for the electrification era?
Natural gas and coal accounted for 60% of annual electricity generation in 2022, followed by nuclear power.
Renewable energy sources make up 21.5% of electricity generation. The average efficiency of a Natural Gas and coal power plant is 44% and 32%, respectively.
According to a study by NREL, reaching 100% clean electricity by 2035 could require an additional power system expenditure of anywhere from $330 billion to $740 billion.
We will discuss the pros and cons of Electrification in the coming chapters. But for now, Electrification makes sense for new construction. And for retrofits, replace your fossil fuel-powered water heaters and boilers as they reach the end of life with Electric heat pumps and boilers. Electrification can be capital-intensive and might not drive significant carbon reductions until the power sources on the grid are clean. Hence, Electrification shouldn't be prioritized over other Energy Conservation Measures. (Note: depends on the local power generation source and life of the assets)
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