Kentucky's Energy Plan

The Department for Energy Development and Independence's (DEDI's) mission is to improve the quality and security of life for all Kentuckians by creating efficient, sustainable energy solutions and strategies; by protecting the environment; and by creating a base for strong economic growth.

This mission will be achieved by following Gov. Steve Beshear's 7-point Strategy for Energy Independence, Intelligent Energy Choices for Kentucky's Future. The plan provides an important framework around existing policies so that we can aggressively increase our use of renewable energy sources; improve energy efficiency, develop cleaner methods to utilize our fossil energy resources, diversify our electricity and transportation energy portfolios; and more fully integrate our agriculture and energy economies.

The Strategies and Goals

Strategy 1
Improve the energy efficiency of Kentucky's homes, buildings, industries and transportation fleet.
Goal: Energy efficiency will offset at least 18 percent of Kentucky's projected 2025 energy demand.

Strategy 2
Increase Kentucky's use of renewable energy
Goal: By 2025, Kentucky's renewable energy generation will triple to provide the equivalent of 1,000 megawatts of clean energy while continuing to produce safe, abundant and affordable food, feed and fiber.

Strategy 3
Sustainably grow Kentucky's production of biofuels
Goal: By 2025, Kentucky will derive from biofuels 12 percent of its motor fuels demand, while continuing to produce safe, abundant and affordable food, feed and fiber.
Strategy 4
Develop a coal-to-liquids industry in Kentucky to replace petroleum-based liquids
Goal: Kentucky will develop a coal-to-liquids industry that will use 50 million tons of coal per year to produce four billion gallons of liquid fuel per year by 2025.

Strategy 5
Implement a major and comprehensive effort to increase gas supplies, including coal-to-gas in Kentucky
Goal: Kentucky will produce the equivalent of 100 percent of our annual natural gas requirement by 2025 by augmenting in-state natural gas production with synthetic natural gas from coal-to-gas processing.

Strategy 6
Initiate aggressive carbon capture/sequestration projects for coal-generated electricity in Kentucky
Goal: By 2025, Kentucky will have evaluated and deployed technologies for carbon management, with use in 50 percent of our coal-based energy applications.

Strategy 7
Examine the use of nuclear power for electricity generation in Kentucky
Goal: Nuclear power will be an important and growing component of the nation's energy mix and Kentucky must decide whether nuclear power will become a significant part of meeting the state's energy needs by 2025.

The Concepts

Renewable and Efficiency Portfolio Standard (REPS) - By 2025, 25 percent of Kentucky's energy needs will be met by reductions through energy efficiency and conservation and through the use of renewable resources.  Strategies 1 and 2 will help the commonwealth achieve this standard.

Alternative Transportation Fuel Standard (ATFS) - This standard incorporates the use of fuels such as those derived from biomass and coal, plug-in hybrid vehicles and compressed natural gas to help transition Kentucky and the U.S. away from dependence on foreign petroleum.  Strategies 3 and 4 will help the commonwealth achieve this standard.

Results

If enacted the plan will:

  • Provide 30,000-40,000 new Kentucky jobs as a result of a booming diversified energy sector.
  • Achieve energy independence for Kentucky from imported oil.
  • Produce annually approximately four billion gallons of liquid fuels from coal (utilizing about 50 million tons of coal annually).
  • Produce annually 135 billion cubic feet of synthetic gas from coal (utilizing about nine million tons of coal annually) to augment Kentucky's natural gas supply.
  • Reduce the net per capita carbon emissions into the atmosphere by 50 percent, while ensuring Kentucky's economic viability by protecting Kentucky's coal industry against negative impacts of federally mandated carbon management legislation.
  • Optimize our renewable energy resources, utilizing wind, solar, hydropower, landfill gas, and biomass.
  • Maintain current energy per capita use despite major energy growth requirements.
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