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Modern Grid Initiative
November 15, 2006
Energy Recycling – Enhancing the Grid
Thomas R. Casten
Past Chairman & CEO
Primary Energy, LLC
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Conference Mission
(From Conference Invitation)
• Create a shared national agenda for
modernizing the electrical system
• Create a framework for upgrading the
U.S. electric infrastructure
• Actions taken will shape the direction fo
the grid for years, even decades
• Collect best ideas from a broad group of
stakeholders
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An Inconvenient Truth
• Al Gore has described global warming
as an ‘Inconvenient Truth’ – a reality that
we would rather not face
• Conventional wisdom: policy changes
that mandate GHG (Greenhouse Gas)
reductions will increase energy costs
and penalize industry
• Electric generation produces 38% of US
GHG emissions
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More ‘Inconvenient Truths”
• US industrial production shrinking at
alarming rate, especially in Midwest
• Electricity prices under pressure from
CAIR, added T&D investment and
permanently higher fossil fuel prices
• Our fossil fuel addiction dictates foreign
policy (and expensive wars), bloats balance
of payments deficits, and exacerbates
pollution control costs
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Final ‘Inconvenient Truth’
Adding T&D will do little to mitigate
the major energy problems facing
America and the world
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‘A Convenient Truth’
Energy Recycling Eases All Problems
• US industrial waste energy could produce 20%
of US electricity
z Recycling creates significant new revenue streams
for US manufacturers and reduces emissions
• Power generation that recycles waste heat uses
half of the fossil fuel of conventional generation
z Recycling cuts power costs, reduces emissions
• US industries single best hope to regain
competitiveness: recycle waste energy
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Examining Energy Trends
• Raw energy use and GDP do not
correlate, economists treat energy as
simply a 4% factor in overall economy
• Robert U. Ayres recently examined
relationship between useful work and
GDP (gross domestic product)
• Ayres showed that changes in useful
work explained most of the pa