Renewable Electricity Procurement in California

Similar documents
PG&E s Role in California s Clean Energy Future. Emma Wendt Pacific Gas and Electric Company January 25, 2011

ICC Regulatory Framework for Renewable Energy Sources. Matthew L. Harvey Office of General Counsel Illinois Commerce Commission August 9, 2010

California s Approach to Designing a Net Energy Metering (NEM) Tariff. Sara Kamins California Public Utilities Commission June 18, 2014

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

Presentation to Lafayette City Council. Amy Dao Community Energy Manager Jan. 26, 2015

Status Report on Electric Renewable Resource Procurement and Renewable Portfolio Standard; Update on Senate Bill X1-2

Renewable Portfolio Standards

Webinar: PG&E and Solar

SCE Solar Programs Overview SOUTHERN CALIFORNIA EDISON

SMUD. Renewable Energy. Resources Eligibility Guidebook. First Edition October 2008 SACRAMENTO MUNICIPAL UTILITY DISTRICT

Renewable & Alternative Energy Resources: What s the difference? 2

Comparison of Renewable Portfolio Standards (RPS) Programs in PJM States

SB 838: Oregon Renewable Energy Act Establishing an Oregon Renewable Energy Standard

Renewable Rules and Markets: A California Perspective October 2, 2008

California s Approach to Designing a Feed-in Tariff. Sara Kamins California Public Utilities Commission June 19, 2014

California s Renewable Portfolio Standard

Exploring the Impacts of California s Renewable Portfolio Standard

State Policy in the Biogas Arena

SB 838: Oregon Renewable Energy Act Establishing an Oregon Renewable Energy Standard

California s Renewable Portfolio Standard Program

CCA Terms Glossary. Valley Clean Energy Alliance. i CCA Terms Glossary

Leading Insights into Solar

6th Annual Forum of the California Biomass Collaborative

Diablo Canyon Power Plant: Joint Proposal Overview. Tom Jones Director of Strategic Initiatives October 20, 2016

Risks And Opportunities For PacifiCorp State Level Findings:

Renewable and Distributed Power in California

Renewable Energy Update. Sustainability/Energy Committee April 22, 2014

Laura Genao Director of Regulatory Affairs Southern California Edison May 18, 2012

New England State and Federal Laws and Regulations and the Electric Power Sector

PASADENA WATER AND POWER MEMORANDUM. August 9, 2016

Renewable Energy Sources. Lesson Plan: NRES F1-2

Journey in supporting important energy and environmental policies while maintaining reliability through a resilient power grid system

Impact of Regional Greenhouse Gas Initiative and Renewable Portfolio Standards on Power System Planning

Renewables Portfolio Standard (RPS) Sara Kamins April 2, 2008

SCE s Experience In Energy Storage

TREASURE COAST REGIONAL PLANNING COUNCIL M E M O R A N D U M. To: Council Members AGENDA ITEM 8

Policies Affect Energy Affordability, Reliability

Journey in supporting important energy and environmental policies while maintaining reliability through a resilient power grid system

CCA is a public-private mix

Oregon Renewable Energy Resources

California Strengthens Renewable Energy And Energy Efficiency Goals

Community Choice and Renewable Energy

RENEWABLE ENERGY IN THE PACIFIC NORTHWEST

Renewable Energy Plan 2011 Biennial Review Lansing Board of Water & Light MSCP Case No. U-16619

California s Renewable Energy Policy

UPDATE: RENEWABLE PORTFOLIO STANDARDS IN THE NORTHWEST - A renewable power struggle?

Acreage Needed in 2050 for Renewable Generation to Meet California s GHG Emission Reduction Goals California Energy Commission May 9, 2011

Viewpoint. Renewable portfolio standards and cost-effective energy efficiency investment

GUIDEBOOK RENEWABLES PORTFOLIO STANDARD ELIGIBILITY SECOND EDITION CALIFORNIA ENERGY COMMISSION MARCH 2007 CEC CMF

CHAPTER 6 - Load Forecast & Resource Plan

The Future of Power? Power is the Future!

Renewable Energy Act of 2008

RENEWABLE ENERGY. California Implements Renewable Auction Mechanism for Distributed Clean Energy NITED STATES OF

New England Power Sector Overview

Southern California Edison Approach to Renewable Integration June 7, 2011

California Regulations on Renewable Hydrogen and Low Carbon Technologies

PREPARED DIRECT TESTIMONY OF JAMES P. AVERY CHAPTER 1 ON BEHALF OF SAN DIEGO GAS & ELECTRIC COMPANY

SB 843 (WOLK) Community Based Renewable Energy Self Generation Program. Utility & Policy Maker Frequently Asked Questions

Independent Power Production Policy

RENEWABLE ENERGY DEVELOPMENT STATE TAX POLICIES AND INCENTIVES IMPACTING

Biomass and the RPS. Anthony Eggert Commissioner. California Energy Commission

Supporting a Green Vision with Renewable Energy

Can Connecticut Meet Renewable Portfolio Standards and Improve Air Quality, Increase Energy Reliability, and Strengthen the Economy?

Massachusetts Solar Carve-Out Program

MARIN CLEAN ENERGY. introducing. MCE How It Started 1/24/2011. Community Choice Aggregation. Policy. Grassroots. Public Surveys*

From: Keith Casey, Vice President, Market and Infrastructure Development

Feed-In Tariffs Abroad and in the US. Renewable Energy Markets 2009 Hilary Flynn September 15 th, 2009

Levelized Cost of New Generation Resources in the Annual Energy Outlook 2012

Net Zero Bay Area: Getting There Through Public/Private Networks of Innovation

RENEWABLE ENERGY DEVELOPMENT STATE TAX POLICIES AND INCENTIVES IMPACTING

INTERSESSIONAL PANEL OF THE UNITED NATIONS COMMISSION ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT (CSTD)

SENATE, No STATE OF NEW JERSEY 218th LEGISLATURE

Incentives to Increase Renewable Energy. Linda M. Wagner Senior Legal and Policy Advisor Illinois Commerce Commission

HOUSE BILL 1186 CHAPTER. Renewable Energy Portfolio Standard Renewable Energy Credits Geothermal Heating and Cooling

U.S. Regional Approaches to Energy Policy and CO 2 Mitigation

John Reasoner Professional Engineer, Colorado Department of Regulatory Agencies

Integrating Renewables into the Power Grid

Draft Renewable Portfolio Standard Rule

ING. ALEXIS J. MIRANDA RAMIREZ Associate Director. LUIS BERNAL JIMÉNEZ Executive Director April 2011

State Incentives for Biomass Products and Power

Enter information in green-shaded fields. Do not modify blue-shaded fields. Energy Independence Act (EIA) Renewable Energy Report 2017

Renewable Energy Outlook of the Philippines

Implementation of the Renewable Energy and Energy Efficiency Portfolio Standard (REPS)

SOCALGAS DISTRIBUTED ENERGY RESOURCE TARIFF

HARNESSING THE POWER OF RENEWABLES

INDONESIAN PARTICIPANTS REVIEW CALIFORNIA S RENEWABLE ENERGY PLANS

Distributed Generation

Utility Perspectives on Bioenergy for California

Renewable Energy in California Building Livable Communities: Creating Resilient and Sustainable Economies

Los Angeles Department of Water and Power. Green Energy and Good Jobs Initiative Presentation for City Council

California Energy Commission SEEC Statewide Energy Webinar

Opportunity for NC. January 25, Alex Hobbs, PhD, PE NC Solar Center. ncsu Advancing Renewable Energy for a Sustainable Economy

Regulatory Perspective

CALSEIA 2017 Legislative Session Wrap-Up October 16, 2017

House Energy and Public Utilities Committee March 8, Kendal Bowman Vice President, Regulatory Affairs and Policy

JAN M. MADURO, ESQ. Deputy Executive Director

In the United States of America

2001~2011 : FIT: Feed-In-Tariff 2012~present : RPS Spot market : auction, once a month (

Renewable Energy Today

An Overview of Eligible SGIP Technologies. March 10, 2010

Transcription:

Renewable Electricity Procurement in California June 25, 2012 Yuliya Shmidt Division of Ratepayer Advocates, California Public Utilities Commission National Association of Regulatory Utility Commissioners Energy Regulatory Partnership Program - Yerevan, Armenia

About DRA The Division of Ratepayer Advocates (DRA) is an advocate within the California Public Utilities Commission that represents customers interests on utility matters. Our statutory mission is to obtain the lowest possible rates for utility services consistent with safe and reliable service levels. In fulfilling this goal, DRA also advocates for customer and environmental protections. 2

1. Programs and Technologies 3

Renewables Portfolio Standard (RPS) background California has launched one of the most ambitious renewable efforts in the world -- the Renewables Portfolio Standard (RPS) with a mandate that 33% of all retail electricity sales come from renewable sources by 2020 History of California s RPS Senate Bill 1078 (2002) instituted a 20% RPS by 2020 Senate Bill 107 (2006) accelerated the 20% RPS to 2010 with possible extension to 2013 Senate Bill 1036 (2007) adopted ratepayer protections through limits on above-market costs Cost limits were surpassed in less than two years Current RPS program Senate Bill 2(1x) (2011) established a 33% RPS by 2020 Implements a mandatory RPS for all utilities in the state, including small and publicly-owned utilities Includes the possibility of penalties for non-compliance Requires reporting on total cost of program each year and that the CPUC to establish an enforceable cost limitation for each investor-owned utility Currently, the CPUC is beginning to develop the cost limitation mechanism 4

Eligible technologies Resource Solar Wind Geothermal Hydropower Biomass Ocean Wave, Thermal, and Tidal Description 1) Photovoltaic (PV) cells which are grouped into panels 2) Solar thermal power plants which heat fluid to produce steam to power a generator Wind turns the blades, which are connected to a drive shaft that turns an electric generator to produce electricity Geothermal power plants harness heat from the Earth s core by drilling wells and piping steam or hot water to the surface to generate electricity Convert water s kinetic energy into electricity. Only small run-of-the-river dams up to 30 MW qualify for the RPS Biomass is burned which produces steam for electricity generation and other energy uses Various energy conversion technologies harness the energy in tides, waves, and thermal gradients in the oceans Fuel Cell (using renewable fuels) Landfill Gas Municipal Solid Waste Generate an electrical current by converting the chemical energy of a fuel directly into electrical energy. Fuel cells differ from conventional electrical cells in that the active materials such as fuel and oxygen are not contained within the cell but are supplied from outside The methane in landfill gas may be vented, flared, or combusted to generate electricity or useful thermal energy onsite, or injected into a pipeline for combustion off-site Residential solid waste and some nonhazardous commercial, institutional, and industrial wastes 5

Forecasted Generation (GWh) Renewable energy generation by technology (2011-2020) 70000 60000 50000 Wind 40000 30000 20000 Solar Thermal Solar PV Small Hydro 10000 Geothermal 0 Biopower 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 6

California s renewable resource mix Renewable Resource Mix by MWh (2012) Renewable Resource Mix by MWh (2020) Wind 40% Biopower 14% Wind 31% Biopower 5% Geothermal 12% Small Hydro 5% Solar Thermal 2% Solar PV 4% Small Hydro 7% Geo-thermal 33% Solar Thermal 19% Solar PV 28% 7

Variety of renewable programs Multiple methods of renewable procurement have been created Utility Requests for Offers (RFOs): solicitation conducted annually for large renewable facilities Bilaterally Negotiated RPS Contracts: contracts with large facilities executed outside of solicitations Tradable Renewable Energy Credits (now referred to as unbundled RECs): purchases of RECs without their underlying electricity Utility Owned Generation (UOG): renewable facilities developed and owned by the utility Feed-In-Tariff (FiT): standard contract for small renewable facilities (0.5 MW to 3 MW) California Solar Initiative (CSI): incentive program for residential roof-top solar Qualifying Facilities (QFs): generators under 20 MW with must-take agreements Renewable Auction Mechanism (RAM): twice-yearly reverse auction for facilities under 20 MW Self Generation Incentive Program (SGIP): incentive program for non-solar facilities up to 3 MW Emerging Renewables Program (ERP): incentive program for wind and fuel cells installed by customers Net Energy Metering (NEM): tariff for receiving credit for onsite renewable generation under 1 MW New Solar Homes Partnership (NSHP): incentive program for solar on new residential buildings 8

Renewable programs by size and technology Size Solar PV Wind Other Less than 1 MW - California Solar Initiative - New Solar Homes Partnership - Emerging Renewables Program - Net Energy Metering - Emerging Renewables Program - Small Generator Incentive Program - Net Energy Metering - Net Energy Metering 1-3 MW - Feed-in Tariff - Renewables Auction Mechanism - Solar Photovoltaic Program - Request for Offers Power Purchase -Bilateral Power Purchase - Feed-in Tariff - Renewables Auction Mechanism - Small Generator Incentive Program - Request for Offers Power Purchase - Bilateral Power Purchase - Feed-in Tariff - Renewables Auction Mechanism -Request for Offers Power Purchase -Bilateral Power Purchase 1-20 MW - Solar Photovoltaic Program - Request for Offers Power Purchase - Renewables Auction Mechanism - Bilateral Power Purchase - Request for Offers Power Purchase - Renewables Auction Mechanism - Bilateral Power Purchase -Request for Offers Power Purchase -Renewables Auction Mechanism - Bilateral Power Purchase Greater than 20 MW - Request for Offers Power Purchase - Utility Owned Generation - Solar Photovoltaic Program - Bilateral Power Purchase - Request for Offers Power Purchase - Utility Owned Generation - Bilateral Power Purchase - Request for Offers Power Purchase - Bilateral Power Purchase - Utility Owned Generation 9

Overlap in renewable programs CSI = California Solar Initiative ERP = Emerging Renewables Program FIT = Feed-in Tariff NEM = Net Energy Metering NSHP = New Solar Homes Partnership PPA = Power Purchase QFs = Qualifying Facilities RAM = Renewables Auction Mechanism RFO = Request for Offers RPS = Renewables Portfolio Standard SGIP = Small Generator Incentive Program SPVP = Solar Photovoltaic Program TRECs = Tradable Renewable Energy Credits UOG = Utility Owned Generation Note: not to scale 10

Limitations on REC-only purchases Utilities may use a limited amount of Renewable Energy Credit (REC)- only purchases, called unbundled RECs, to comply with the RPS They may also use a limited amount of Firmed and Shaped contracts. Firmed and Shaped contracts are purchases of RECs coupled with purchases of energy from a different facility Compliance Period Bundled Unbundled REC-only Firmed and Shaped 2011-2013 At least 50% Up to 25% Remainder 2014-2016 At least 65% Up to 15% Remainder 2017-2020 At least 75% Up to 10% Remainder 11

2. Interconnection and Integration 12

Interconnection of distributed generation (DG) California has ambitious DG goals with the Governor aiming to have 12,000 MW of DG renewables in the state Interconnection of small, distribution-level facilities poses a procedural and technical problem for renewable generators and utilities Interconnection under the small DG tariff, Rule 21, can take up to a year and the generator will incur substantial costs for necessary system studies A Fast Track process is being developed within Rule 21 to allow a faster and cheaper option of interconnection for DG facilities The Fast Track will allow interconnection within 30 days at a much lower cost to eligible facilities The utilities will provide the generators with tools to locate and size installations to serve available local load and thus not impact either the distribution system or the transmission system Eligibility MW Limit Screen Distribution system maps that show available local load that needs serving are made available to the generators 13

Sample Interconnection Map 14

Rule 21 Fast Track Process 15

Integration of renewables into the grid Intermittency of most renewable technologies creates additional costs and reliability concerns Very few of California s renewable facilities are dispatchable, majority operate on a must-take basis The California Independent System Operator has called for over 4,000 MW of new conventional generation to back up intermittent renewables CPUC does not yet have a systematic approach to renewable integration CPUC is studying the amount of new conventional generation, if any, that will need to be built to integrate renewables Fast-ramping facilities will likely be necessary Valuation of renewable offers may include an integration adder to account for the cost on integrating the facility 16

Other mechanisms to address intermittency Energy storage: the CPUC is studying the possibility of using energy storage to collect off-peak renewable generation, especially nighttime wind production, and use during peak hours. Currently, most energy storage options are not cost-competitive Plug-in electric vehicles: a tariff is being designed to enable customers to charge electric vehicles and incentivize charging during off-peak hours Demand response: utilities are starting to use demand response programs to ramp load up and down in response to intermittent supply. Demand response programs can be based on price signals, remotelycontrolled technology or stages of emergency 17

Renewable production example June 17, 2012 Data from the California Independent System Operator 18

Resources DRA s Renewable Jungle report: http://www.dra.ca.gov/uploadedfiles/content/energy/renewable_junglerevisedjan31final.pdf DRA s renewables web page: http://www.dra.ca.gov/general.aspx?id=174 CPUC s renewable web page: http://www.cpuc.ca.gov/puc/energy/renewables/ Handbook for Rule 21 interconnection (from 2003, currently being updated): http://www.energy.ca.gov/reports/2003-11-13_500-03-083f.pdf California Independent System Operator renewable web page: http://www.caiso.com/market/pages/reportsbulletins/dailyrenewableswatch.aspx 19