This presentation was created by Philadelphia's Office of Sustainability in partnership with Econsult for public consumption regarding the PGW Business Diversification study.
The purpose of this study is to address the issue of decarbonizing PGW (the largest pubically owned gas utility in the United States) while safeguarding low-income households, maintaining reliable energy services in Philadelphia, retaining PGW's workforce, and ensuring health and safety of residents of Philadelphia. This study will be identifying and evaluating new opportunities for PGW to diversify its business model in a low carbon future, as Philadelphia aims to be carbon neutral by 2050. The Study will:
• Review the range of possible business “pathways” for PGW, such as using new energy sources (renewable natural gas (RNG), hydrogen, geothermal energy, electrification, or others) and/or providing new energy services;
• Assess each pathway based on evaluation criteria such as carbon emission reduction, net job creation, net revenue, technological readiness, equity, customer choice, and others;
• Analyze regulatory and legal barriers;
• Incorporate comments from project engagement activities and past Gas Commission hearings;
• Develop a Diversification Tool for analyzing how investing resources in different business practices will affect different evaluation criteria;
• Propose a set of carbon reduction and strategic business goals for PGW;
• Identify a pilot project for OOS and PGW to implement and test in the short-term.
The challenges of PGW decarbonizing include safeguarding low-income households (who increasingly prop up PGW's gas grid as wealthier residents transition away from natural gas), maintaining reliable energy services in Philadelphia, retaining PGW's workforce, and ensuring health and safety of residents of Philadelphia. Options for decarbonization, according to this study, include the following:
Decarbonized gas Injecting Renewable Natural Gas (RNG), consisting of biomethane, hydrogen or Synthetic Natural Gas* into the existing pipeline. In a decarbonized gas scenario, customers keep their existing gas furnaces. Heat is supplied by Renewable Natural Gas from a variety of sources
Hybrid electrification: Customers adopting heat pumps paired with a gas furnace to meet “peak heat” demands during the coldest periods of winter. In a hybrid electrification scenario, customers keep their existing gas furnace, but adopt a heat pump to supply heat throughout most of the year. In a hybrid scenario, heat is supplied by the heat pump throughout most of the year. When the temperature drops below a certain degree, the gas furnace “jumps in” as a backup source of heat.
Electrification: Customers adopting electric heat pumps or connecting to geothermal micro-districts, plus induction stoves. In an electrification scenario, customers replace their gas furnace with a heat pump. The heat pump uses (clean) electricity to provide heat to the home. There are two types of heat pumps that would be used in this scenario: air-source heat pumps which transfers heat absorbed from the outside air to an indoor space, and ground source heat pumps which transfers heat absorbed from the ground to an indoor space. Pipes from neighboring homes can be connected to form a “Geothermal MicroDistrict”.
*Add commentary on pros and cons of options*
One of the suggestions coming from this study's scenario analysis is for PGW to expand its current role in helping customers weatherize their homes, as weatherization increases customer comfort and lowers bills.
Energy & Environmental Economics (E3) Portfolio Associates and Econsult Solutions Inc. (ESI), "PGW Diversification Study - Draft Materials April 2021", contributed by Morgan Sarao and Alison Kenner, The Energy Rights Project, Platform for Experimental Collaborative Ethnography, last modified 19 July 2024, accessed 24 August 2024. https://energyrights.info/content/pgw-diversification-study-draft-materials-april-2021
Critical Commentary
This presentation was created by Philadelphia's Office of Sustainability in partnership with Econsult for public consumption regarding the PGW Business Diversification study.
The purpose of this study is to address the issue of decarbonizing PGW (the largest pubically owned gas utility in the United States) while safeguarding low-income households, maintaining reliable energy services in Philadelphia, retaining PGW's workforce, and ensuring health and safety of residents of Philadelphia. This study will be identifying and evaluating new opportunities for PGW to diversify its business model in a low carbon future, as Philadelphia aims to be carbon neutral by 2050. The Study will:
• Review the range of possible business “pathways” for PGW, such as using new energy sources (renewable natural gas (RNG), hydrogen, geothermal energy, electrification, or others) and/or providing new energy services;
• Assess each pathway based on evaluation criteria such as carbon emission reduction, net job creation, net revenue, technological readiness, equity, customer choice, and others;
• Analyze regulatory and legal barriers;
• Incorporate comments from project engagement activities and past Gas Commission hearings;
• Develop a Diversification Tool for analyzing how investing resources in different business practices will affect different evaluation criteria;
• Propose a set of carbon reduction and strategic business goals for PGW;
• Identify a pilot project for OOS and PGW to implement and test in the short-term.
The challenges of PGW decarbonizing include safeguarding low-income households (who increasingly prop up PGW's gas grid as wealthier residents transition away from natural gas), maintaining reliable energy services in Philadelphia, retaining PGW's workforce, and ensuring health and safety of residents of Philadelphia. Options for decarbonization, according to this study, include the following:
*Add commentary on pros and cons of options*
One of the suggestions coming from this study's scenario analysis is for PGW to expand its current role in helping customers weatherize their homes, as weatherization increases customer comfort and lowers bills.