Microgrids & the Arctic

Sydney KaufmanBureau of Energy Resources

National Association of State Energy OfficialsFebruary 11, 2016

1

Outline

• Energy picture of the Arctic.

• How do we support clean energy?

– GLACIER

– Arctic Council

Sources: http://www.bakervailmaps.com/map-illustration/world-maps/arctic-circle-map.html

Why we care about the Arctic…

• Climate change – what happens in the Arctic doesn’t stay in the Arctic.

– Feedback loop

– Fisheries

– Weather

– Sea level rise

• Access to new resources– Oil and gas/mineral resources

Source: http://royaldutchshellplc.com/2009/02/13/norwegian-oil-firm-goes-to-energys-last-frontier/

Why we care about the Arctic…

• Climate change – what happens in the Arctic doesn’t stay in the Arctic.

– Feedback loop

– Fisheries

– Weather

– Sea level rise

• Access to new resources– Oil and gas/mineral resources

Source: http://royaldutchshellplc.com/2009/02/13/norwegian-oil-firm-goes-to-energys-last-frontier/

Why do we care about clean energy in the Arctic…

• Economic development– Energy security

– Tax base

– Cost savings

• Diplomacy

• Market development for clean energy technologies

• GHGs/Black carbon– Health

– Warming positive feedback loop

Sources: Bellona & NASA

Microgrid Sites in the Arctic Region

1. Suslov, K.V., “A Microgrid Concept for Isolated Territories in Russia”, 2012 IEEE Innovative Smart Grid Technologies Conference, October, 2012.

Greenland:80

Russia:5,000

1

Canada:300

Alaska: 170

Challenges

March 2015

Briefing for Senator Murkowski

• Balanced thematic pillars of the Arctic Council

during the US Chairmanship 2015-17:

• Arctic Ocean Safety, Security, and

Stewardship

• Improving Economic and Living Conditions

• Addressing Impacts of Climate Change

• Arctic as a region of stability, peace and

international cooperation

• Arctic climate change impacts locally and globally

Arctic Priorities

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U.S. Federal Government InvolvementBlack Carbon – DOS

• MonitoringFocus of U.S. efforts to address barriers to clean energy in the Arctic:

• Capacity building

• Shared technical, financial, and policy best practices

• Promote investment in rural clean energy projects.

• Ensure new sites are designed with the future of energy and healthy homes in mind.

U.S. Federal Government InvolvementBlack Carbon – DOS

• Monitoring• Arctic Remote Energy Networks Academy (ARENA)

U.S. Federal Government InvolvementBlack Carbon – DOS

• Monitoring• Arctic Renewable Energy Atlas

GLACIER Summit

We also resolve to work with our Arctic communities to deploy low-carbon solutions that can improve livelihoods, enhance energy security, and promote sustainable economic growth such as renewable energy technologies and energy efficiency measures.

- U.S., Canada, Kingdom of Denmark, Iceland, Norway, Sweden, Finland, Russia, France, Germany, Italy, Japan, Republic of Korea, Netherlands, Poland, Singapore, Spain, United Kingdom, Canada, and the European Union.

GLACIER Summit

Domestic Announcements:- Arctic Energy Efficiency Competition with up to $4

million in prizes for the winning Alaska community.

- Clean Energy Investment Initiative will deploy over $4

billion from institutional investors to encourage clean

energy development with a focus on expanding investment

in climate solutions for remote communities

- Programs Focused on Climate Resilience

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Questions?Kaufmans@state.gov

Break even range for Arctic oil

development: $35 - $100

Average: $78

U.S.

Beaufort (BP – Liberty) - $109 Chuckchi

- $30 - $80 (probably much higher)

Norway

North Sea - $40

Norwegian Sea - $100

West Barents - $70 - $80

East Barents - $110

Barents (ENI) - $103 - $151

Russia

East Barents (Russia) - $85

Can be as high as $120

Canada

Beaufort (Canada) –

Greenland

East Greenland -

Sources: EIA, Rystad Energy,Source: http://royaldutchshellplc.com/2009/02/13/norwegian-oil-firm-goes-to-energys-last-frontier/

More than 70% of the mean

undiscovered oil resources

is estimated to occur in five

provinces: Arctic Alaska,

Amerasia Basin, East

Greenland Rift Basins, East

Barents Basin, and West

Greenland–East Canada.

Source:

http://www.grida.no/graphic

slib/detail/fossil-fuel-

resources-and-oil-and-gas-

production-in-the-

arctic_a9ca

U.S. Canada Greenland Norway Russia

General Fiscal Terms Very Favorable

Access to Resource Favorable

Competition for Resources Moderate

Cost environment Unfavorable

Existing infrastructure Very unfavorable

Access to infrastructure

Access to markets

Potential for material discoveries

Potential for material value creation

Source: http://www.ey.com/Publication/vwLUAssets/Arctic_oil_and_gas/$FILE/Arctic_oil_and_gas.pdf

U.S. Federal Government Involvement

Task Force on Arctic Marine Oil Pollution PreventionU.S. Global Change Research Program

Task Force on Black Carbon and MethaneDepartment of State

Scientific Cooperation Task Force National Science Foundation

• Developed an “Arctic Council Action Plan for Oil Pollution Prevention”

• Norway and Russia are co-chairing the Task Force

• Working now on implementing those recommendations

• Each country must update a black carbon inventory and report on domestic activities to reduce black carbon emissions.

• Hope to encourage observer countries to participate.

• Conduct Search and Rescue tabletop exercises, and if feasible a functional exercise, to enable the sharing of best practices and understand available SAR resources.

• Address mental health needs of Arctic communities through RISING SUN (Reducing the Incidence of Suicide in Indigenous Groups – Strengths United through Networks.)

• Compile circumpolar black carbon inventories to identify contributing sectors and track progress in reducing emissions.

Highlights of Deliverables

Economic Development

• Harness the expertise and resources of the Arctic Economic Council to inform the Arctic Council’s work to improve economic and living conditions in the region.

• Coordinate an Arctic-wide telecommunications infrastructure assessment to promote the build-out of commercial infrastructure in the region.

• Promote the development of renewable energy technology, such as modular micro-grid systems, to spur public-private partnerships, improve energy affordability, mitigate public health risks and reduce black carbon output in Arctic communities.

• Facilitate collaboration between industry, researchers and public policy experts to increase access to and reduce the operating costs of in-home running water and sewer in remote communities.

Public Outreach Campaign

• Raise awareness among domestic and foreign audiences that America is an Arctic nation and the Arctic is a strategic priority for the United States;

• Highlight the social, economic, and environmental challenges and opportunitiesfound in Alaska, the American Arctic;

• Increase understanding of and support for the Arctic Council among domestic and foreign audiences;

• Raise awareness of the impacts that Arctic climate change is having on the rest of the world;

• Increase public support for domestic and international action on priority Arctic policy issues while enabling the achievement of our chairmanship program deliverables.

U.S. Federal Government InvolvementBlack Carbon – DOS

• Monitoring

U.S. Federal Government InvolvementBlack Carbon – DOS

• Monitoring

U.S. Federal Government InvolvementBlack Carbon – DOS

• Monitoring

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Chairmanship Visual Identity

History and Mandate of the Council

The Ottawa Declaration (1996) formally established the Arctic Council as a high level intergovernmental forum to promote cooperation, coordination and interaction among the Arctic States, with the involvement of the Arctic indigenous communities and other Arctic inhabitants on common Arctic issues.

Particular emphasis on sustainable development and environmental protection in the Arctic; military security issues are specifically excluded from the Council’s mandate.

Emergency Prevention, Preparedness and ResponseNational Nuclear Security Administration

U.S. Federal Government InvolvementArctic Contaminants Action Program

Environmental Protection Agency

Conservation of Arctic Flora and FaunaU.S. Fish and Wildlife Service

Arctic Monitoring and Assessment ProgramU.S. Global Change Research Program

Protection of the Arctic Marine EnvironmentNational Oceanic and Atmospheric Administration

Sustainable Development Working GroupDepartment of State

Scientific Cooperation Task Force National Science Foundation

Telecommunications Infrastructure Expert Group State/National Telecommunications and Information Administration

Regional Seas Program Task Force -State/National Oceanic and Atmospheric Administration

CHAIRMANSHIP PROJECT LEADS• Search and Rescue – U.S. Coast Guard• Marine Environmental Protection – U.S. Coast Guard and Interior/Bureau of Safety and Environmental Enforcement• Marine Protected Areas – Commerce/National Oceanic and Atmospheric Administration• Ocean Acidification – Commerce/National Oceanic and Atmospheric Administration and State/Office of Ocean and Polar Affairs• Short Lived Climate Pollutants – State/Office of the Special Envoy for Climate Change• Climate Resilience – Interior/Office of Policy Analysis and State/Office of International Health and Biodefense• Pan-Arctic Digital Elevation Map – Interior/U.S. Geological Survey• Climate Change Indicator System - U.S. Global Change Research Program and State/Office of Global Change• Renewable Energy – Energy/National Renewable Energy Laboratory, Interior and State/ENR• Sewer and Water Challenge – HHS/Centers for Disease Control and Prevention• Arctic Water Resource Vulnerability Index – State/Office of Ocean and Polar Affairs• Arctic Freshwater Synthesis – Energy/Office of Biological and Environmental Research • Mental Health and Suicide Prevention – HHS/Office of Global Affairs

• Search and Rescue Exercises

• Marine Environmental Protection

• Marine Protected Areas Network

• Regional Seas Program for the Arctic

Ocean

• Arctic Ocean Acidification

• Renewable Energy

• Community Sanitation and Public Health

• Water Resources Vulnerability Index

• Freshwater Security

• Telecommunications Infrastructure

• Suicide Prevention and Resilience

• Short-lived Climate Pollutants

• Arctic Climate Adaptation and Resilience

• Pan-Arctic Digital Elevation Map

• Early Warning Indicator System

Ambitious Chairmanship Program

Thematic Pillars:Arctic Ocean Safety, Security and Stewardship

Improving Economic and Living Conditions Addressing the Impacts of Climate Change

Title

Sources:

Title

Sources:

U.S. Chairmanship Team

Chair of the Arctic Council: Secretary of State John F. Kerry

U.S. Special Representative for the Arctic: Admiral Robert J. Papp, Jr.

Special Advisor on Arctic Science and Policy: Fran Ulmer

Chair of the Senior Arctic Officials: Ambassador David Balton

U.S. Senior Arctic Official: Julia L. Gourley

• Continue strengthening the Arctic Council as an intergovernmental forum

• Introduce new long-term priorities into the Arctic Council

• Raise Arctic and climate change awareness domestically and across the world

Overarching Goals

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The Arctic Region – Sanctions

Sources: ExxonMobil

• Arctic Offshore• Deep Water (> 150 m)• Shale Oil

U.S. Federal Government InvolvementBlack Carbon

Black Carbon Sources

Sources: EPA

U.S. Federal Government InvolvementBlack Carbon – EPA & ACAP

Oil and Gas in the Arctic Region

Source: New Scientist

Alaska Oil and Gas

Source: BOEM

Alaska Oil and Gas

Canada Oil and Gas

Source: BOEM, the Canadian Press