Georgia Power's Solar Overview. Ervan Hancock III Renewable Development and Green Strategy Manager Georgia Power Company

Transcription

1 Georgia Power's Solar Overview Ervan Hancock III Renewable Development and Green Strategy Manager Georgia Power Company

2 GPC is largest of four Southern Company electric utilities $7.2 billion in revenue 2.3M+ customers 8,300 employees 13,000 miles of transmission lines 72,000 miles of distribution lines High customer satisfaction Rates10 percent below the national average 45% of customers earn under $40k

3 Growth in the South

4 Georgia Power Company s Circle of Life Constructive Regulation Healthy Capital Spending CUSTOMERS High Reliability Low Prices High Customer Satisfaction

5 29 states plus DC have Renewable Portfolio Standards as of January states have Renewable Portfolio goals. Target RPS Mandates RPS Goals Source: November 2011, Database of State Incentives for Renewable Energy (DSIRE) RPS standards vary by the requirement size, eligible resources, dates, technology tiers/multipliers, and other factors. AZ 15% by 2025 CA 33% by 2020 * NJ CO 30% by 2020 (IOUs) 10% by 2020 (co- ops & large munis) NH 23.8% x 2025 NM CT 27% x 2020 NV 25% x 2025* DC 20% by 2022* NY 29% x 2015 DE 25% by 2026* OH 25% x 2025 HI 40% by 2030* OR 20.38% RE x ,316 GWh solar x % x 2020 (IOUs) 10% x 2020 (co- ops) 25% x 2025 (large ulliles)* 5% - 10% x 2025 (smaller ulliles) IA 105 MW PA 18% x 2021 IL 25% x 2025 RI 16% x 2020 IN 15% x 2025 SD 10% x 2015 KS 20% x 2020 TX 5,880 MW x 2015 MA 22.1% x 2020 New RE: 15% x 2020 (+1% annually thereaver) UT 20% by 2025 MD 20% x 2022 VA 15% x 2025 ME 30% x 2000 New RE 10% x 2017 MI 10% & 1,100 MW x 2015* WA 15% x 2020 MN 25% x 2025 (Xcel: 30% x 2020) WI 10% x 2015 MO 15% x 2021 WV 25% x 2025 MT 15% x % x 2021 (IOUs) NC 10% x 2018 (co- ops & munis) ND 10% x 2015 VT (1) RE meets any increase in retail sales x 2012; (2) 20% RE & CHP x 2017 States Increased RPS Targets

6 Solar Energy - State of the Market Tax credits 30% federal solar tax credit % state tax credit including solar 2014 (already allocated) Wind production tax credit Technology Trends Utility scale solar technologies costs down 40% National Policy 37 states with portfolio standards or goals State of Georgia Low electricity rates make it harder for solar to compete

7 Georgia Power Renewables Strategy Renewable generation sources will be developed and purchased at a cost which is at or below the company s avoided cost Renewable energy sources will be purchased at a premium if there are specific customers who are willing to voluntarily bear that premium Georgia Power continues to monitor renewable technology costs, efficiency and market trends to take advantage of these technologies when

8 Georgia Power Solar Activity Solar Research Projects 241 Rooftop Demonstration Project/ EPRI Distribution Project Green Energy Program 4,000 customers, 70 million kwh annual supply, 52 million kwh annual purchases (began in 2003) Solar Purchase Tariff 180 Customers, 3.8 MW online; 5.5MW on waiting list RNR Tariff 77 customers,.922 MW 1 MW Solar PPA to Supply Green Energy Program 6/1/12 Enhanced Solar Presence on Website and in the field Large Scale Solar Program Almost 50 MW under contract (COD 2015) Georgia Power Advanced Solar Initiative 210 MW New Advanced Solar Initiative 525 MW

9 Qualifying Facilities Hickory Ridge Landfill MARTA IKEA

10 Georgia Power Advanced Solar Initiative

11 Advanced Solar Initiative - Objectives Continue to expand Georgia Power s solar portfolio in a manner which creates no additional upward pressure on rates Provide customers additional options to sell solar energy back to the Company Continue to responsibly grow the solar industry in Georgia by providing additional programs to stimulate solar development in the state Create a structure which accurately prices the value solar provides to the system Acquire utility scale solar through a competitive market based process 11

12 Georgia Power Advanced Solar Initiative Overview (210MW) Distributed Solar Purchase Programs (45MW per year, 2 years) Small Scale Purchase Program (<100kW)- Customer & Developer Medium Scale Purchase Program (100kW-1000kW)- Customer & Developer Utility Scale Solar RFP Program (60MW per year, 2 years) Projects selected through RFP with Independent Monitor (IM) Project sizes will range from 1MW-20MW No single project will exceed 20MW 12

13 Overview 120 Utility + 90 Distributed = 210 MW Total The Balance of Any Unused DG *** DG 11MW Small & 34MW Medium Programs

14 2013 DG Application Statistics Total Applications Total MW Received Complete Lottery Selected Waitinglist 0 Received Complete Lottery Selected Waitinglist

15 2013 Integrated Resource Plan Outcome July 11, 2013

16 Future Solar Options New ASI - Distributed Solar Purchase Program (50MW per year, 2015 and 2016) Small Scale Purchase Program (<100kW)- Customer & Developer Medium Scale Purchase Program (100kW-1000kW)- Customer & Developer New ASI - Utility Scale Solar RFP Program (210 MW in 2015, 215 in 2016) Projects selected through competitive RFP with Independent Monitor (IM) Project sizes will range from 1MW-215MW (no cap) GPC Ownership Approved for 3 30 MW Renewable Generators, at or below avoided cost Georgia Power Energy Services owns equipment, leases to customer

17 Georgia Power Cumulative Contracted Solar Capacity Largest Voluntary Solar Portfolio 531 Total 3 rd Largest Solar Portfolio 271 in USA (2012 Numbers) Total $2B in Capital Investment 166 in the State Total No 55 Upward 61 Pressure on Rates!!! Total Total

18 All Arrows in the Quiver Adding Two Zero-Emission Nuclear Power Units Investing in Cost -Effective Energy Efficiency Nine Programs - $41M Annually Environmental Controls $4B investment in retrofit since 1990 CO2 reduced by 35%, NOx, Mercury, SO2 reduced 90% Investing in Diversified Fuel Mix Largest Voluntary Solar Portfolio in Country Biomass and Wind Generation Growth Natural Gas Capacity Additions Doubling of Renewable Portfolio in 36 months

19 Thank You Ervan Hancock III

20 Germany vs. Georgia Solar Purchase Price=.39/kWh Solar Avg. Capacity Factor = ~11% Average Retail Rate= ~31 cents/kwh Solar per kwh Subsidy = 5-10 cents Cost Impact to Avg. Customer= $229 per/year Solar Purchase Price=.13/kWh Solar Avg. Capacity Factor = ~17% Average Retail Rate = ~10 cents/kwh Solar per Kwh Subsidy = 0 Cost Impact to Avg. Customer= 0