Future 1 3% 5% N/A N/A Future 2 3% 5% N/A N/A Future 3 1% 3% 0.5% 1% 4.: Utility and Distributed Solar as a percentage of peak demand Additional Emission Reduction Measures In order to meet the required emission goals in Futures 1 and 2, multiple carbon reduction steps were taken. The initial addition of increased renewables in these Futures provided a large reduction in emissions. The next measure involved determining additional retirements that might be expected under a carbon reduction scenario. This involved analyzing multiple scenarios with varying carbon pricing to affect a dispatch that is more reliant on lower carbon emitting resources. Utilizing these simulations and generator commission dates, a list of potential coal steam unit retirements was developed and targeted considering unit age and operational capacity factors. Units in operation more than 40 years and operating below a 30% annual capacity factor were targeted for retirement in the year relative to each simulated year. This list was reviewed for exclusions by the SPP Stakeholders. Retirements were further targeted based on the needs of either the regionFuture 1 or each individual state 2. Table 4.2 shows the coal capacity retirements for Futures 1 and 2 reflective of SPP owned or purchased MW capacity. Some generation that was slated for retirement by 2025 in the reference case was retired early in order to aid in meeting interim carbon emission reduction goals. Retired (MW) Retired Early (MW) Future 1 994 414 Future 2 1,694 74 Table 4.: Additional Coal Steam Capacity Retirements by Future After including additional renewables and retirements, the last step was to utilize carbon cost adders to further reduce and fine-tune emission outputs to meet the goals set forth for each Future. For the purposes of resource planning, this adder was applied to all thermal units. Discussion on adjustments to this assumption will occur With limitations on the ability of the simulation to effectively consider multiple carbon cost adders, a common carbon cost adder for all thermal generators was used for both Futures 1 and 2 with the difference in any simulation outputs being driven primarily by the differing retirement assumptions. Resource Plan Results Combined cycle (CC) units are generally selected because their moderately low capital cost and low operating costs make them the most economically viable technology for meeting energy needs in these Futures. CC units are typically selected primarily to supply additional energy to serve load. The combustion turbine (CT) units are generally selected because the very low capital costs associated with these units make them the most economically viable technology for meeting peak capacity
Future 1 3% 5% N/A N/A Future 2 3% 5% N/A N/A Future 3 1% 3% 0.5% 1% 4.: Utility and Distributed Solar as a percentage of peak demand Additional Emission Reduction Measures In order to meet the required emission goals in Futures 1 and 2, multiple carbon reduction steps were taken. The initial addition of increased renewables in these Futures provided a large reduction in emissions. The next measure involved determining additional retirements that might be expected under a carbon reduction scenario. This involved analyzing multiple scenarios with varying carbon pricing to affect a dispatch that is more reliant on lower carbon emitting resources. Utilizing these simulations and generator commission dates, a list of potential coal steam unit retirements was developed and targeted considering unit age and operational capacity factors. Units in operation more than 40 years and operating below a 30% annual capacity factor were targeted for retirement in the year relative to each simulated year. This list was reviewed for exclusions by the SPP Stakeholders. Retirements were further targeted based on the needs of either the regionFuture 1 or each individual state 2. Table 4.2 shows the coal capacity retirements for Futures 1 and 2 reflective of SPP owned or purchased MW capacity. Some generation that was slated for retirement by 2025 in the reference case was retired early in order to aid in meeting interim carbon emission reduction goals. Retired (MW) Retired Early (MW) Future 1 994 414 Future 2 1,694 74 Table 4.: Additional Coal Steam Capacity Retirements by Future After including additional renewables and retirements, the last step was to utilize carbon cost adders to further reduce and fine-tune emission outputs to meet the goals set forth for each Future. For the purposes of resource planning, this adder was applied to all thermal units. Discussion on adjustments to this assumption will occur With limitations on the ability of the simulation to effectively consider multiple carbon cost adders, a common carbon cost adder for all thermal generators was used for both Futures 1 and 2 with the difference in any simulation outputs being driven primarily by the differing retirement assumptions. Resource Plan Results Combined cycle (CC) units are generally selected because their moderately low capital cost and low operating costs make them the most economically viable technology for meeting energy needs in these Futures. CC units are typically selected primarily to supply additional energy to serve load. The combustion turbine (CT) units are generally selected because the very low capital costs associated with these units make them the most economically viable technology for meeting peak capacity