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2011 Final Energy Master Plan, The State of New Jersey

2011 Final Energy Master Plan, The State of New Jersey

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Final State Energy Master Plan Charts Course to Lower Energy Costs and Protect the Environment With Focus on Clean Energy Resources
Final State Energy Master Plan Charts Course to Lower Energy Costs and Protect the Environment With Focus on Clean Energy Resources

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Published by: Governor Chris Christie on Dec 06, 2011
Copyright:Attribution Non-commercial

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07/10/2013

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2011NEW JERSEYENERGY MASTER PLAN
December 6, 2011
Chris Christie, GovernorKim Guadagno, Lieutenant GovernorLee Solomon, President - NJ Board of Public Utilities
 
TABLE OF CONTENTS
1 Introduction ............................................................................................................................. 12 Executive Summary ................................................................................................................ 33 Energy Master Plan Background .......................................................................................... 113.1 The 2011 Update Process ............................................................................................. 113.2 CEEEP Analysis ........................................................................................................... 123.3 Implementation of the EMP .......................................................................................... 134 New Jersey’s Electric Industry ............................................................................................. 144.1 The New Jersey Power System ..................................................................................... 144.2 The PJM Market ........................................................................................................... 164.2.1 Transmission System ................................................................................................ 174.2.2 Energy Market .......................................................................................................... 204.2.3 Capacity Market ........................................................................................................ 214.3 EDECA and Deregulation ............................................................................................ 224.4 New Jersey Market Dynamics ...................................................................................... 234.5 Load Growth ................................................................................................................. 284.6 Existing In-State Capacity ............................................................................................ 314.7 Generation Addition and Retirement ............................................................................ 344.7.1 Development of New Generation Facilities .............................................................. 344.7.2 Generator Retirements .............................................................................................. 354.8 Pricing Dynamics .......................................................................................................... 374.9 Retail Electricity Market and Customer Classes .......................................................... 384.9.1 Basic Generation Service Auction Process ............................................................... 394.9.2 Competitive Retail Supply ........................................................................................ 414.9.3 Renewable Portfolio Standard .................................................................................. 464.10 Understanding Retail Electric Costs ............................................................................. 484.10.1 Basic Generation Service Components ................................................................. 504.10.2 State and Federal Charges and Policies ................................................................ 514.11 EE and DR Program Evaluation ................................................................................... 555 Natural Gas and Other Fuels ................................................................................................. 565.1 New Jersey Gas Distribution Companies ..................................................................... 565.2 Sources of Natural Gas ................................................................................................. 565.3 Home Heating Oil ......................................................................................................... 585.4 Transportation Fuels ..................................................................................................... 595.5 Fuel Market Outlook ..................................................................................................... 615.6 Understanding Retail Natural Gas Costs ...................................................................... 635.6.1 Basic Gas Supply Service Components .................................................................... 645.6.2 Distribution Charges ................................................................................................. 655.6.3 State and Federal Charges and Policies .................................................................... 65
 
6 Recent Legislative and Regulatory Initiatives ...................................................................... 686.1 Initiatives to Promote a Diverse Portfolio of Efficient Generation Resources ............. 686.2 Initiatives to Promote Renewable Energy .................................................................... 706.3 Initiatives to Promote Energy Efficiency and Conservation ........................................ 736.4 Other New and Pending Legislation ............................................................................. 73 6.5 State Strategic Plan……………………………………………………………………74 7 2011 Plan for Action ............................................................................................................. 757.1 In-State Electricity Resources ....................................................................................... 777.1.1 Advantages of a Diverse Supply Portfolio................................................................ 787.1.2 Advantages of New Baseload and Mid-Merit Generation ........................................ 787.1.3 Nuclear Generation to Satisfy the Global Warming Response Act .......................... 807.1.4 Transmission Solutions and Out-of-State Resources ................................................ 807.1.5 Policy Direction and Recommendations ................................................................... 817.2 Cost-Effective Renewable Resources ........................................................................... 867.2.1 Subsidies for Renewable Resources ......................................................................... 867.2.2 Solar PV Development ............................................................................................. 877.2.3 Solar RPS and Economics ........................................................................................ 917.2.4 Onshore and Offshore Wind Development ............................................................. 1007.2.5 Biomass Potential in New Jersey ............................................................................ 1027.2.6 Policy Direction and Recommendations ................................................................. 1057.3 Cost-Effective Conservation, Energy Efficiency, and Peak Load Reduction ............ 1107.3.1 Peak Demand and Energy Reduction Goals ........................................................... 1107.3.2 Energy Efficiency and Conservation ...................................................................... 1117.3.3 Peak Demand Reduction ......................................................................................... 1147.3.4 Policy Direction and Recommendations ................................................................. 1167.4 Innovative Energy Technologies and Businesses ....................................................... 1217.4.1 Energy Technologies to Simulate Economic Growth ............................................. 1217.4.2 Innovative Technology Opportunities in Transportation ........................................ 1317.4.3 Policy Direction and Recommendations ................................................................. 134

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