An Introduction to 24/7 Carbon Free Energy and Hourly Matching

IMAGE: FLICKR/MICHAEL MULLER
An Introduction to 24/7 Carbon-Free
Energy and Hourly Matching
What, Why, and How
May 9, 2022

AGENDA
• Welcome Remarks
• Transformative Clean Energy Procurement Practices
– Lori Bird: Director, U.S. Energy Program and Polsky Chair for Renewable
Energy, World Resources Institute
• Panelist Perspectives
– Tanuj Deora: Director, Clean Energy, White House Council on Environmental
Quality
– Jan Pepper: Chief Executive Officer, Peninsula Clean Energy
– Jesse Jenkins: Assistant Professor of Mechanical & Aerospace Engineering
and Andlinger Center for Energy & Environment, Princeton University
• Panelist Discussion
• Questions & Answer Period
• Closing Remarks

TODAY’S SPEAKERS
Lori Bird
U.S. Energy
Director,
World Resources
Institute
Jesse Jenkins
Assistant
Professor,
Princeton
University
Jan Pepper
Chief Executive
Officer,
Peninsula Clean
Energy
Tanuj Deora
Director, Clean
Energy,
White House
Council on
Environmental
Quality

A 24/7 CARBON-FREE GRID REQUIRES RAPID
CHANGE AND NEW CUSTOMER ROLES
Grid transition needed for net-zero by 2050:
• 10s-100s of GW per year of new
renewables
• 3-5x today’s transmission
• Large flexible loads: 50-180 GW of six-hour
batteries
• 240 new 1 GW nuclear reactors
• 300+ natural gas combined cycle-carbon
capture & storage plants
• Carbon capture at ~1000+ facilities
Transition Needed in U.S. Over Next Decade
Sources: UC Berkeley 2035 Report (90% Clean Energy) & Princeton Net Zero America Study

REPORT LAUNCH
Access WRI's issue brief:
https://www.wri.org/research/actions-large-
energy-buyers-can-take-transform-and-
decarbonize-grid
Report discusses:
• Need to address timing of clean energy
use as we decarbonize grid
• Case studies and customer actions to
help achieve 100% carbon free electricity

24/7 CARBON FREE ENERGY COMPACT
https://gocarbonfree247.com/
Click to add text
Click to add text
66 Signatories to compact on 24/7 carbon free energy purchasing
Coordinated by: Sustainable Energy for All, UN, UN Energy, High Level Dialog on Energy

24/7 ENERGY MATCHING CONTRACT
MICROSOFT & AES CORPORATION
In November 2021, Microsoft and AES Corporation signed a 15-year agreement to achieve Microsoft’s goal of
100/100/0 by 2030. Microsoft will use the around-the-clock renewable energy for its Virginia data centers. AES will
source the energy from a portfolio of 576 MW of contracted renewable assets, including wind, solar, as well as battery
energy storage projects in PJM.
2012 2018 2020 2025 2030 2050
Carbon neutral 50% 60% 100% Carbon negative
& diesel-free
datacenters
Zero carbon
100/100/0
Removal of all
historical carbon
emitted directly or
through electrical
consumption
Supply of renewable energy

24/7 RENEWABLES WITH SHARED STORAGE
GOOGLE & NV ENERGY RENEWABLES & SHARED STORAGE
Nevada PUC approved an agreement between NV Energy and Google
to supply a data center with 350 MW of solar and 280 MW of battery
storage under the Large Customer Market Price Energy (LCMPE) tariff.
The agreement includes a short term energy supply period to allow
for flexibility in bringing on CFE.
The agreement includes a capacity-sharing mechanism in which the
cost of battery storage facilities is shared between NV Energy and
Google. Nevada Power will dispatch the battery storage during peak
summer evening hours June-August between 4 - 9 p.m.

24/7 METHODOLOGY AND METRICS
https://www.peninsulacleanenergy.com/our-path-to-
24-7-renewable-power-by-2025/
https://www.gstatic.com/gumdrop/sustainability/24x7-carbon-free-
energy-methodologies-metrics.pdf

Introduction to 24/7 Carbon-Free
Energy and Hourly Matching: What,
Why, and How
World Resources Institute Webinar
May 9, 2022
WHITE HOUSE OFFICE OF THE FEDERAL CHIEF SUSTAINABILITY OFFICER

Pre-decisional – Not for distribution
EO 14057 “Catalyzing Clean Energy Industries & Jobs through Federal
Sustainability” directs USG operations to reach net zero by 2050
Federal
Sustainability
Plan
Advancing
environmental justice
and equity
Mainstreaming
sustainability within
Federal workforce
Enabled by:
Leveraging domestic
and international
partnerships
All Fleet
Acquisitions
ZEV by 2035
Net-Zero
Emissions
Procurement by
2050
Net-Zero
Emissions
Operations by
2050
Climate
Resilient
Infrastructure
& Operations
Net-Zero
Emissions
Buildings by
2045
100% 24/7
Carbon Free
Electricity by
2035

By 2030
the USG will reach
100% annual matching
& 50% hourly matching
of electricity demand
with carbon free electricity…
…to accelerate the transition
of the entire US grid
to 100% CFE by 2035
Reduce
Scope 2
GHG Emissions
from Federal
Operations
Empower
Agencies with
New Electricity
Supply
Capabilities
Lead by Example as
a Large Buyer to
Catalyze Market
Capacity

CFE
CFE
Non-CFE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2020 Grid 2030 Grid 2035 Grid, BAU
Annual and hourly matching demands can transform the electricity market
in complementary ways
Source: 2035 Report: Plummeting Solar, Wind, and
Battery Costs can Accelerate our Clean Electricity
Future, Goldman School of Public Policy, June 2020
Annual Match:
Pull forward the possible by
overcoming near-term
interconnection challenges
US Grid Share of Carbon Pollution-Free Electricity 100% market-wide
CFE goal
1

CFE
CFE
Non-CFE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2020 Grid 2030 Grid 2035 Grid, BAU
Annual Match:
Hourly Match: Push the
frontier to address longer-
term integration challenges
CFE goal
1
2

CFE
CFE
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2020 Grid 2030 Grid 2035 Grid, Policy Target
Hourly Match: Push the
frontier to address longer-
term integration challenges
CFE goal
2
Catalyze the Market
for faster, deeper
market-wide adoption
to 100% CFE US grid
by 2035
Annual Match:
1

Achieving a fully CFE grid will require significant technology and market
reforms
Market
Access &
Operation
Energy
Storage
Clean
Firm
Demand
Flexibility
• Provides resilience, demand management, and power quality benefits
• New technologies may be necessary to support longer duration integration
• Cost & GHG benefits for hourly CFE match are market / grid mix dependent
• Can provide dispatchable energy with capacity & ancillary benefits
• Limited availability today, but multiple promising technologies
• Availability & economics will be market dependent
• Serves as a key integration enabler to allow reliability & affordability
• Consists of physical, software, financial, regulatory, and infrastructure
• Technology exists, deployment is the challenge
• Provides resilience, demand management, and power quality benefits
• Can be optimized for a combination of GHG, cost, reliability benefits
• Requires integration within a facilities behind the meter strategy

CEQ aims to support agencies with CFE procurement, focusing on 75% USG
load in vertically integrated markets
Vertically
integrated Vertically
integrated
Retail Retail
On-site
0%
20%
40%
60%
80%
100%
U.S. electricity market USG electricity
Electricity Consumption
by Market Type
Green Tariffs, Sleeved PPAs, VPPAs
through Direct Negotiation & Regulatory Participation
Retail Supply Agreements, In Market EAC Purchases
through Competitive Solicitations
Potential Sourcing Options
Efficiency, Demand Flexibity, Disributed Gen & Storage
through EULs, PPAs, ESPCs & UESCs

Impact Principles:
● Technology Neutral
(all demonstrated CFE)
● Temporally Specific
(annual, hourly matching)
● Locally Sourced
(match demand “grid region”)
● Additionality
(direct preservation
or addition)
● Maximal Effect
(GHG, catalytic,
grid transformation)
Considerations for Policy Design – Conceptual Approach
Impact
USG Achievability
High
High
Low
Low
Target Policy
Design
Policy Objective Optimizations Achievability Constraints:
● Allowable within Authorities
(Statute, FAR, Delegations,
Agency rules)
● Mission Fit
(Site compatible, potential
synergies)
● Budget
(Cost, scoring)
● Human Capital
(Capability & capacity)
● Business Practices
(Process, Tools, Culture)

USG procurement policy & implementation will be both informed
by, and design to influence, the market’s ability to supply CFE
Impact
USG Achievability
High
High
Low
Low
Policy
Design
USG Ability to Procure Market Ability to Supply
● Generation Supply
(Grid mix, CFE pipeline, CFE potential)
● Delivery Infrastructure
(Transmission, storage, etc.)
● State Regulatory Structures
(IRPs, tariffs, sleeves, retail options)
● Regional Market Rules
(Interconnection, dispatch, tracking)
● Macroeconomic & Macropolicy Factors
(Interest rates, etc.)

How Can We Best Partner with Suppliers, Regulators, and Other Stakeholders
to Achieve Our 2035 100% CFE Goal?
Areas of Focus:
• Building Federal Government Specific Capabilities for 24x7 Hourly Matching
Deploying Data Collection & Analysis Capability for Hourly Load Profiles;
Building Procurement Capabilities; Removing Barriers to On-Site Generation; Providing Budget &
Human Capital
• Expanding Market Infrastructure
Physical (i.e. Transmission;) Operational (e.g. Hourly Attribute Tracking Systems, Hourly CFE
Tariffs, Green Button;) Standards (w/ EPA GPP)
• Accelerating Deployment of Specific CFE Additions
Anchor Tenancy for New or At-Risk Generation; Offshore Wind, Deploying SMRs, Hydro on Existing
Dams, Clean Microgrids, etc.

Visit www.sustainability.gov for:
• Executive Order 14057
• WH Fact Sheet on the Executive Order
• Federal Sustainability Plan
@WhiteHouseCSO
Listserv: http://tinyurl.com/yc6jrpyy
Thank You!

Introduction to 24/7
Carbon-Free Energy
World Resources Institute
May 9, 2022
Jan Pepper, CEO, Peninsula Clean Energy
| 10

Peninsula Clean Energy
• What does that mean?
• What are the supply options?
• What are the demand options?
• Next steps
24/7 100% Renewable
PenCleanEnergy.com/our-path-to-24-7-
renewable-power-by-2025/

Heatmap of 2020 estimated emissions intensity
FIGURE 1. Hour-by-hour emission intensity for 2022

How to get to 24/7 - Step 1
FIGURE 4. Diversify renewable portfolio
A hypothetical day demonstrating a mix of renewable resources being used to try and match hourly load. In some
hours, there is excess solar generation, and in other hours, this example load is still relying on generic grid energy.

FIGURE 5. Use storage to shift renewable energy timing
By adding storage to the hypothetical example, some of the excess solar generation in the middle of the
day can be stored and discharged in the evening and early morning to reduce reliance on generic grid energy.

FIGURE 6. Shape and shift load to match renewable availability
Using demand-side resources can help further align load with the timing of renewables to reduce
the need for as much storage

16
System-level Impacts
of 24/7 Carbon-free
Electricity Procurement
(a) Post-doctoral Research Scholar, Zero-carbon Energy Systems Research and Optimization Laboratory (ZERO Lab), Andlinger Center for Energy and the
Environment
(b) Undergraduate Research Assistant, ZERO Lab, Andlinger Center for Energy and the Environment
(c) Associate Research Scholar, ZERO Lab, Andlinger Center for Energy and the Environment
(d) Assistant Professor, Department of Mechanical and Aerospace Engineering and the Andlinger Center for Energy and the Environment and
Principal Investigator, ZERO Lab
Qingyu Xua, Aneesha Manochab, Neha Patankarc, Jesse D. Jenkinsd
Suggested citation: Xu, Q., Manocha, A., Patankar, N., and Jenkins, J.D., System-level Impacts of 24/7 Carbon-free Electricity Procurement, Zero-carbon Energy Systems Research and
Optimization Laboratory, Princeton University, Princeton, NJ, 16 November 2021.
November 16, 2021
https://zenodo.org/record/6229426

$0
$50
$100
$150
$200
$250
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Levelized
cost
of
wind
and
solar
($/MWh)
Utility Solar PV $/MWh -85%
Total cost declines (2010-2021)
17
Onshore Wind $/MWh -69%
Voluntary Clean Energy Purchasing Can Have Transformative Impact
Data Sources: Wind & solar costs from Lazard (2021), Lazard’s Levelized Cost of Energy Analysis – Version 15.0.
Battery pack costs from Bloomberg New Energy Finance (2021), Battery Price Survey.
Large energy buyers
procured 10.6
gigawatts of new
renewable energy in
2020, ~1/3rd of all
U.S, renewable
energy capacity
additions that year.

18
Example annual time profile of hourly renewable energy generation contracted to
match 100% of annual participating commercial and industrial demand in PJM.
100% Annual Matching Has Its Limits

19
The next frontier in clean energy procurement is to match a
buyer’s electricity demand, hour-by-hour, 24/7, with
corresponding clean electricity generation from within the
same electricity grid region as the buyer’s operations.
This is 24/7 carbon-free electricity procurement.
The Next Frontier In Clean Energy Procurement

20
• Uses a detailed open-source electricity system optimization model, GenX.
• Implements a set of new constraints to model the impact of a share of
corporate and industrial (C&I) electricity consumers participating in voluntary
24/7 CFE procurement, where a portfolio of carbon-free generation from
within the same grid region is used to meet hourly electricity demand profiles
of participating C&I consumers.
• Models impacts of 24/7 CFE procurement in two regional power systems:
California and the PJM Interconnection.
• Also models reference cases with no voluntary procurement and cases where
the equivalent share of C&I consumers meet 100% of annual energy demand
on a volumetric basis with renewable energy procurement (100% annual
matching).
This study represents the first analysis of the electricity
system-level impacts of 24/7 carbon-free energy procurement

• 24/7 carbon-free electricity enables deeper emissions reductions and
deeper transformation of the electricity sector than 100% annual matching
by driving early deployment of advanced clean firm and long-duration
energy storage technologies.
• It does so at a potentially significant cost premium for early leaders, a
premium paid to accelerate innovation, maturity, financeability, and
widespread availability of clean firm resources that can make it much easier
for broader society to follow on the path to a 100% carbon-free grid.
• Just as 100% annual matching helped transform wind and solar PV from
expensive “alternative energy sources” to mainstream, affordable options
for the world, 24/7 procurement is likely to have similar transformative
impacts on clean firm resources.
21
Summary

24/7 CFE procurement can eliminate emissions from a buyer's electricity consumption,
going beyond the impact 100% annual matching with renewable energy
22
California Participants’ emissions, 10% C&I Participation,
3.1 3.1 3.1
2.2 2.2 2.2
1.7 1.7 1.7
1.5 1.5 1.5
1.3 1.3 1.3
1.0 1.0 1.0
0.8 0.8 0.8
0.6 0.6 0.6
0.4 0.4 0.4
0.2 0.2 0.2
0.5
1.0
1.5
2.0
2.5
3.0
3.5
A B C A B C A B C A B C A B C A B C A B C A B C A B C A B C A B C
Reference 100% Annual
Matching
84% 86% 88% 90% 92% 94% 96% 98% 100%
Emission
Reduction
Against
the
Reference
(Mtons/year)
24/7 CFE Procurement, CFE Score =
Participants
A = Current Technologies
B = Advanced Technologies, No Combustion
C = Advanced Technologies, Full Portfolio
@ Reference, CFE Score = 70%,
@ 100% Annual Matching, CFE Score = 80%

24/7 CFE procurement can drive greater system-level emissions reductions than 100%
annual matching if the CFE target is high enough
23
California system emissions reduction, 10% C&I Participation,
0.9 0.9 0.9
1.4 1.4 1.4 1.6 1.6 1.6 1.8 1.8 1.8 2.1 2.1 2.1 2.3 2.3 2.3 2.5 2.5 2.5 2.7 2.7 2.7 2.9 2.9 2.9 3.1 3.1 3.1
1.5 1.5 1.5
0.3 0.3 0.3
0.5 0.5 0.5
0.7 0.7 0.7
1.0 1.0 1.0
1.3 1.3 1.3
1.6 1.6 1.6
1.8 1.8 1.8
2.1 2.1 2.1
2.6 2.5 2.3
0
1
2
3
4
5
6
7
Matching
84% 86% 88% 90% 92% 94% 96% 98% 100%
Emission
Reduction
Against
the
Reference
(Mtons/year)
Participants Rest of the Load
@ Reference, Total system load carbon footprint = 44.2 Mtons, where
@ 10% Participation Rate:
Participants' carbon footprint = 3.1 Mtons
Rest of the load's carbon footprint = 41.1 Mtons

24
24/7 clean electricity procurement drives deployment of advanced, "clean firm”
generation and/or long-duration energy storage
0.6 0.6 0.6 0.8 0.8 0.8 0.9 0.9 0.9 1.1 1.1 1.1 1.3 1.3 1.3 1.3 1.3 1.3 1.5 1.5 1.5 1.7 1.7 1.7 1.7 1.7 1.7
7.1 7.1 7.1
2.6 2.6 2.6
2.7 2.7 2.7
2.7 2.7 2.7
2.7 2.7 2.7
2.6 2.6 2.6 2.5 2.5 2.5
2.5 2.5 2.5
2.4 2.4 2.4
3.7
3.0 2.8
0.4 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.2
0.3
0.6
0.3
0.1 0.1 0.1 0.4 0.4 0.4
1.5
0.8
0.8
0.3
0.2
0.6
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
A B C A B C A B C A B C A B C A B C A B C A B C A B C A B C
100% Annual
Matching
84% 86% 88% 90% 92% 94% 96% 98% 100%
Capacity
Procurement
(GW)
ZCF CC Gas CC w/CCS LDS Metal-Air
LDS Hydrogen Battery Geothermal NFEGS
Offshore Wind Onshore Wind Utility Solar
Geothermal

25
24/7 CFE procurement better matches participating demand during periods of limited
supply and displaces natural gas generation and imports from outside California
-7.4 -7.4 -7.4
-3.0 -3.0 -3.0 -3.7 -3.7 -3.7 -4.7 -4.6 -4.7 -5.7 -5.6 -5.6 -6.7 -6.7 -6.7 -7.7 -7.7 -7.7 -7.8 -7.8 -7.9 -7.9 -7.8 -7.9
-4.7
-7.2 -7.7
-2.8 -2.8 -2.8
-2.2 -2.2 -2.2
-2.7 -2.7 -2.7
-3.3 -3.3 -3.3
-4.0 -4.0 -4.0
-4.5 -4.5 -4.5
-5.2 -5.2 -5.2 -6.1 -6.1 -6.1 -7.1 -7.1 -7.1
-9.6
-8.4 -8.0
5.2 5.2 5.2 6.5 6.5 6.6
8.0 8.0 8.0
9.5 9.5 9.5
11.011.011.011.511.511.5
13.313.313.3
14.814.814.814.114.714.8
10.310.310.3
-0.5 -0.5
1.3 1.3 1.3
0.9 0.9 0.9
0.7 0.7 0.7 1.0
1.9 0.9
0.4
-20
-15
-10
-5
0
5
10
15
20
Matching
84% 86% 88% 90% 92% 94% 96% 98% 100%
Difference
Against
the
Reference
(TWh)
ZCF CC Gas CC w/CCS Onshore Wind Utility Solar
Geothermal Gas CT Gas CC Net Imports
This plot only shows data labels with
difference >= 0.3 TWh

27
24/7 CFE procurement comes at a more significant cost premium relative to 100%
annual matching; reduced with full portfolio of clean firm resources and/or CFE <100%.
-0.4 -0.4 -0.4 -0.3 -0.3 -0.3 -0.4 -0.4 -0.4 -0.5 -0.5 -0.5 -0.6 -0.6 -0.6 -0.7 -0.7 -0.7 -0.8 -0.8 -0.8 -0.8 -0.8 -0.8 -0.9 -0.9 -0.9 -1.1 -1.1 -1.1
1.9 2.0 2.0 2.0 2.0 2.0 2.6 2.6 2.6 3.3 3.3 3.3 3.9 3.9 3.9 4.7 4.7 4.7
5.9 5.9 5.9
7.4 7.4 7.4
9.4 9.4 9.4
20.3
16.5
15.1
1.6 1.6 1.6 1.9 1.9 1.9 2.4 2.4 2.4
3.0 3.0 3.0
3.6 3.6 3.6
4.3 4.3 4.3
5.5 5.5 5.5
7.0 7.0 7.0
9.0 9.0 9.0
19.9
16.0
14.6
-5
0
5
10
15
20
25
Matching
84% 86% 88% 90% 92% 94% 96% 98% 100%
Cost
Difference
Against
the
Reference
($/MWh
Load)
Total Premium Energy Payment
Congestion Revenue CO2 Revenue
Capacity Payment Net Payment
@ Reference, Participants' Cost = $36.8/MWh,
<

• 24/7 carbon-free electricity (CFE) procurement can be the next step on the
road to zero emissions can be for corporate, government, and institutional
leaders.
• 24/7 (CFE) procurement presents added challenges and raises electricity
costs relative to 100% annual matching, but also enables a buyer to
eliminate emissions associated with a buyer’s electricity usage.
• However, alternative procurement strategies optimized to maximize
generation during periods of high grid carbon intensity rather than match
demand may deliver greater direct overall emissions reductions.
28
Closing Opening Thoughts

• The heart of the matter for 24/7 carbon-free procurement is the pursuit of
transformative impact on electricity systems via accelerated innovation.
• 24/7 procurement drives early deployment of advanced clean firm
generation and long-duration energy storage technologies, offering the
potential to accelerate innovation, maturity, financeability, and widespread
availability of these critical ingredients in the broader societal transition to
a 100% carbon-free grid.
• Just as 100% annual matching helped transform wind and solar PV from
expensive “alternative energy sources” to mainstream, affordable options
for the world, 24/7 procurement can have similar transformative impacts on
clean firm resources.
29
Closing Opening Thoughts

Leadership isn't just
about doing one's part.
It is about making it
easier for others to follow.
30
ZERO LAB
PRINCETON UNIVERS I TY
Ze ro-carbon Energy Systems Research and Optimiza t i on Laboratory

IMAGE: FLICKR/MICHAEL MULLER
THANK YOU
Look out for our next webinar in this series!

An Introduction to 24/7 Carbon Free Energy and Hourly Matching

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