The Gambia National Forum on Renewable Energy Regulation: Policy Incentives and Enabling an Environment for Renewable Energy

Transcription

1 The Gambia National Forum on Renewable Energy Regulation: Policy Incentives and Enabling an Environment for Renewable Energy Melicia Charles California Public Utilities Commission January 31,

2 The California i Public Utilities Commission i The California Public Utilities Commission (CPUC) regulates the investor-owned utilities (IOUs) in California in the electric, natural gas, telecommunications and water sectors. The CPUC sets and designs the rates for the electric utilities, regulates electric safety, as well as ensures that the utilities meet their renewable goals. California consumes 265,000 gigawatt hours of electricity per year. California s peak demand can reach up to 52 MW in summer months. Private investor-owned utilities that the CPUC regulates serve 80 percent of the electricity load.

3 CPUC and Energy Policy CPUC is a global l leader in energy initiatives iti designed to mitigate the effects of Climate Change The CPUC develops and oversees hundreds of programs that encourage market- transformation, promote innovation, and stimulate green job growth. The CPUC s energy policy goals are driven by the California s Energy Action Plan 3

4 California s Energy Action Plan Unprecedented collaboration by principal energy agencies in California Summarizes California s energy goals Identifies specific actions to implement goals Establishes a loading order of preferred resources Addresses climate change, RD&D, and transportation

5 The Loading Order The Loading Order sets priorities for California s procurement strategy Efficiency and Demand Response Renewable Energy Clean and Efficient Fossil-Fired Energy

6 Overview of CPUC Renewable Energy Policies and Programs

7 California s RPS Program 7 The Renewable Portfolio Standard (RPS) program requires electric utilities to increase procurement from eligible ibl renewable energy resources to 33% of total procurement by Established in 2002, the California RPS Program is one of the most aggressive in the US. The CPUC and the California Energy Commission jointly implement the RPS program. CPUC responsibilities: Determining annual procurement targets and enforcing compliance. Reviewing and approving each utility s renewable energy procurement plan. Reviewing utility contracts for RPS-eligible energy. Establishing the standard terms and conditions used by utilities in their contracts for eligible renewable energy. Calculating market price referents (MPRs) for non-renewable energy that serve as benchmarks for the price of renewable energy.

8 RPS Progress to date The large investor-owned utilities reached 17.0% of their electric portfolios with RPS-eligible generation in ,541 MW of new renewable capacity has achieved commercial operation under the RPS program MW of new renewable capacity came online in 2011, with an additional 166 MW forecasted to come online by the end of the year. RPS Capacity Installed by Year Capacity (MW) 8 Source: Renewables Portfolio Standard Quarterly Report, 3 rd Quarter 2011.

9 Feed-in-Tariff iff Programs 2008: The CPUC made FiTs available for up to 480 MW of renewable generating capacity from small facilities (1.5 MW or less) FiTs allow utility customers to small renewable generators to sell power to the utility at predefined terms and conditions, without contract negotiations. Eligible Utility Customers Feed-In Tariff Available to Water and Wastewater Facilities Feed-In Tariff Available to Non-Water and Non- Wastewater Facilities Southern California Edison X X Pacific Gas and Electric Co. X X San Diego Gas and Electric Co. PacifiCorp X X X Sierra Pacific Power Co. X Bear Valley Electric Service X 9 Mountain Utilities X

10 Renewable Auction Mechanism RAM: a procurement mechanism for renewable DG projects up to 20 MW on the utility side of the meter. Each utility has a standard RAM contract. Sellers compete for a contract in a renewable auction mechanism. Bidders are allowed to set their own price. Bids are selected by least-cost price first until the auction capacity is reached. Price (and contract) is not negotiable and is paid as bid. 10

11 Introduction to California Solar Initiative (CSI) Key Aspects of CSI Program Design Launched in 2007, but built on related distributed generation rebate programs. Focus on Performance: Rebates paid on expected or actual performance. Declining Incentives: Rebates lower in 10 steps based on market demand: Started at $2.50/watt in 2007 and now at $0.25/watt in CSI Program Includes 5 Sub-Components 1. General Market Program : Provides incentives to all buildings except new homes, includes electric-displacing CSI-Thermal rebates 2. Single-family Affordable Solar Homes (SASH) Program: Provides rebate to low-income customers in deed-restricted single-family homes 3. Multifamily Affordable Solar Housing (MASH) Program: Provides rebates to multifamily affordable housing in deed restricted multi-family residences 4. RD&D Program: Provides up to $50 million in a program for projects related to CSI goals 5. CSI-Thermal Program: Provides rebates for solar water heating and solar heating/cooling technologies

12 CPUC s California Solar Initiative (CSI) Budget Two Sources of Funds CSI is funded separately by electric and gas ratepayers Program Focus 5 program subcomponents fund solar PV and solar thermal (including solar hot water) technologies Budget ($ Millions) Goal CSI Electric Budget ( ) $2,367 1,940 MW General Market Solar Program (includes PV and electric displacing i CSI-Thermal program) $2,097 1,750 MW Single-family Affordable Solar Homes (SASH) $108 ~15 MW Multifamily Affordable Solar Housing (MASH) $108 ~30 MW Research, Development, Demonstration, and Deployment (RD&D) $50 ~ Solar Water Heating Pilot Program (SWHPP) $ SWH systems CSI Gas Budget ( ) CSI-Thermal Program (Gas-Displacing solar thermal/hot water) $ million therms Total CSI Budget $2,617 Note: CPUC D , FOF 15, p. 28 established goal of the general market program as 1,750 MW. The CPUC decisions on MASH and SASH did not explicitly adopt a 95 MW per program goal; however, the CPUC did adopt a total CSI program goal of 1,940 MW in D In addition, D established the CSI Thermal Program pursuant to AB 1470 and SB

13 Introduction to Self-Generation Incentive Program SGIP provides incentives for DG technologies which have demonstrated a need for financial support in order to encourage customer adoption Goals of SGIP Reduce greenhouse gas emissions (SB 412 in 2009) Reduce peak load demand (historical goal from inception in 2001) Budget $83 Million program budget per year $77 Million for incentives, $6 Million for program administration Incentive budget split 75% for renewable/emerging and 25% for nonrenewable 13 Budget Allocated across IOUs as % of electric and natural gas sales No new budget collection authorized after 12/31/2014 (AB 1150 in 2011) SGIP Program authorized through 2016 (AB 1150 in 2011)

14 Net Energy Metering (NEM) Eligible Technologies Solar, wind, biomass, geothermal, renewable fuel cells, small hydroelectric generation, digester gas, municipal solid waste conversion, landfill gas, hydro technologies (up to 1 MW) Onsite Load Facilities must serve onsite electricity needs Export/Import NEM customer-generator export to the grid, and import (consume) from grid Only pay for the net on a billing period basis. Credits NEM customers can rollover excess bill credits up to a year NEM customers will be paid Net Surplus Compensation for any net excess kwh sent to utility on an annual basis. 14

15 Two Variations on NEM Bill Credit Transfer (BCT) Allows a local government (e.g. school district) to install renewable generation of up to 1 MW at one location within its geographic g boundary. Credits can be used to offset charges at one or more other locations within the same geographic boundary Virtual Net Energy Metering (VNM) Allows output from a renewable energy system to be allocated as credits to other meters. Previous policies limited renewable energy to one meter per site; VNM opens the market for multi-tenant properties like apartments and shopping malls. 15

16 Thank you! Melicia Charles 16