Tag Archives: Renewables Portfolio Standard (rps)

Los Angeles has lined up record-cheap solar power. But there’s a problem

By Sammy Roth, Los Angeles Times

Los Angeles has been sitting on a contract for record-cheap solar power for more than a month — and city officials declined to approve it Tuesday because of concerns raised by the city-run utility’s labor union, which is still fuming over Mayor Eric Garcetti’s decision to shut down three gas-fired power plants.

Under the 25-year contract with developer 8minute Solar Energy, the Los Angeles Department of Water and Power would pay less than 2 cents per kilowatt-hour — a number city officials and independent experts say would be the lowest price ever paid for solar power in the United States, and cheaper than the cost of electricity from a typical natural gas-fired power plant.

In addition to 400 megawatts of solar power, the Eland project would include at least 200 megawatts of lithium-ion batteries, capable of storing solar power during the day and injecting it into the grid for four hours each night. The combined price to L.A. ratepayers of the solar and storage would be 3.3 cents per kilowatt-hour — also a record low for this type of contract.

But LADWP’s Board of Commissioners voted not to send the contract to the City Council for approval, after utility staff said concerns had been raised by the International Brotherhood of Electrical Workers Local 18, which represents utility employees. In recent months, IBEW Local 18 has run television and radio ads attacking Garcetti’s Green New Deal initiative, which includes the retirement of three coastal gas plants that employ more than 400 LADWP workers.

…The Eland project, which is planned for the Mojave Desert north of Los Angeles, wouldn’t replace those gas plants. But it could help L.A. reduce its reliance on gas, which has become California’s largest electricity source as utilities look for evening power sources to fill in for solar after the sun goes down.

Read full article in the Los Angeles Times

Opinion: An uncertain path to a cleaner future – Zero carbon electricity legislation in New York and California

By Thomas R. Brill & Steven C. Russo (Greenberg Traurig), Utility Dive

Last month, New York passed the Climate Leadership and Community Protection Act, which calls for a carbon free electricity market by 2040. With passage of this law, New York became the sixth state to pass legislation calling for a carbon free electricity market. Just one year earlier, California passed similar legislation, SB100, adopting a state policy to achieve a zero-carbon electricity market by 2045.

These goals will have to be pursued notwithstanding the fact demand for electricity is projected to increase as other sectors pursue beneficial electrification to comply with ambitious emission reduction goals they face. Whether these goals can be achieved, and at what cost, will depend on technology advancements and how these laws are interpreted and implemented by regulators.

New York’s Climate Leadership and Community Protection Act requires 70% of electricity consumed in New York be generated by renewable resources by 2030 and the state must be carbon free by 2040. California’s SB100 requires 60% of electricity come from renewable resources by 2030 and adopts a state policy of a 100% zero carbon electricity by 2045.

The New York legislation explicitly conditions meeting these extraordinarily ambitious renewable energy mandates on maintaining reliability and affordability. This leads to obvious questions: Can a zero-carbon electricity market be achieved in a manner that maintains reliability and affordability, and if so, how? What flexibility exists under these laws to ensure these emission reduction goals can be achieved even if new technologies or significant price declines fail to materialize?

Read full article from Utility Dive

Opinion: How Lackluster Grid Maintenance Jeopardizes California’s Green Energy Future

By Ariel Cohen (Contributor), Forbes

In Part I of this story, I examined the factors that led to California’s now infamous ‘Camp Fire’ and the bankruptcy of the state’s largest utility, Pacific Gas and Electric Co. (PG&E). It turns out that while climate change, forest mismanagement, and overzealous lawmakers share some of the blame, PG&E is at the center of this multibillion-dollar catastrophe.

But in California, it is ratepayers, shareholders, and green energy that will pay the greatest price. PG&E has been a key partner in California’s green energy agenda, investing aggressively in solar, wind, and other renewable energy projects over the past decade. Last year renewables accounted for 33% of PG&E’s power mix — an impressive amount by industry standards. However, PG&E’s bankruptcy in the wake of the Camp Fire means that a lack of trust (and credit) in the utility could imperil the state’s green energy sector, and with it dreams of 100% carbon-free power by 2045.

Green power is now an uncertain space to do business in California, and we are already seeing the consequences: a major PG&E solar farm – Topaz – had their credit rating downgraded even before PG&E officially filed for bankruptcy, imperiling the clean electricity it provides to roughly 180,000 homes in California. The credit agency Fitch Ratings recently downgraded NextEra Energy’s 250-megawatt Genesis Solar project in the Sonoran Desert, citing its link to PG&E. Others are on the chopping block.

More critically, bankruptcy court might also jeopardize PG&E’s many long-term power purchase agreements (PPAs) with renewable energy providers. From a financial perspective, it makes sense for PG&E to tear up these contracts and start anew. The falling cost of wind and solar means that energy prices negotiated in 2012 and 2013 are three to four times higher per megawatt hour (MWh) than they are today. According to Bloomberg New Energy Finance (NEF), the estimated remaining obligation on these PPAs are more than $2 billion, though they would be worth only around $800 million at current market rates. Restructuring these contracts in court would increase cashflow, affording PG&E a much-needed liquidity boost to help deal with mounting liabilities.

Read full article at Forbes

 

Solar is Generation of Choice in California

By Robert Mullin, RTO Insider

California’s second-largest publicly owned utility is “not buying anything other than solar right now,” said Arlen Orchard, CEO of Sacramento Municipal Utility District (SMUD). Orchard’s comment reflected prevailing opinion at the Infocast California Energy Summit last week: Solar is the generation of choice now in California — and its role will only grow.

For SMUD, the decision to go with solar is a financial one. Despite historically low natural gas prices, California’s environmental mandates — such as emissions caps and a ban on once-through cooling — make investment in even the most efficient new gas-fired generation less attractive than solar, even in the resource-constrained Los Angeles basin. “It sounds like for a lot of reasons, building more gas-fired generation in L.A. is not going to happen,” said Charles Adamson, principal manager with Southern California Edison, also pointing out the political unpopularity of building new gas generation in the state.

In Northern California, the alternatives to solar are other — more expensive — renewable resources. “Solar was once the most expensive — now it’s the lowest cost,” said Jan Smutny-Jones, CEO of the Independent Energy Producers Association, whose membership includes gas-fired and renewable merchant generators.

Declining solar costs are attracting the interest of more than just traditional utilities, according to Mark Fillinger, director of project development for First Solar. California’s investor-owned utilities have effectively met the state’s 33% by 2020 renewable portfolio standard. Fillinger said his company is now seeing a “huge shift” in demand from those customers to large “direct access” commercial and industrial clients who choose to purchase power from an independent electricity supplier rather than a regulated utility.

Read full article from RTO Insider

Yikes! Is California’s interest in Solar Energy Collapsing?

GTM Research and the Solar Energy Industries Association (SEIA) released their US Solar Market Insight 2015 Year in Review on Wednesday, March 9. We’ve been tracking their PV capacity reports for the past several years, and in the figure below we plot the 2015 capacity increases reported in their Executive Summary.

While there was strong national growth in installation capacity this past year, California’s capacity additions were less than in 2014. After a couple years of providing over half the annual capacity additions in the country (57% last year), California’s share has fallen to a mere 45%.

 Annual PV Installations: California and U.S. Total (2010-2015)

Annual PV Installations: California & U.S. Total (2010-2015)

We picked ourselves up off the floor and asked “What is happening; is this for real?” So we called GTM Research and checked other sources to find out what in the world was going on. Turns out that despite the disastrous looking change, solar growth in California remains alive and well.
Turns out the primary reason for the downturn is a sharp decline in Utility-scale PV projects. According to GTM, these additions fell to the vicinity of 1800 MW last year. [I wish we could afford the $2000 – $6000 for the full report that our SEIA Membership entitles us to so that we could access all the GTM data. But we live in lean times and use information from diverse public sources such as US Energy Information Agency (EIA) and California Energy Commission (CEC) as well as GTM’s summaries to inform our understanding.]

According to EIA information published in late February, it appears that Utility-scale solar PV expanded by 2000 MW in 2014, but only 1100 MW (preliminary) in 2015. Data from diverse sources rarely match-up year-to-year, but the trends are identical—California’s utility-scale PV installations experienced a sharp reduction in 2015.

After checking the CEC’s most recent Tracking Progress, Renewable Energy-Overview, we can see why—the utility industry is ahead of target for meeting the state’s 2016 Renewable Portfolio Standard (RPS) 25% goal. The industry achieved almost 25% renewables in 2014! The state added approximately 4000 MW of utility scale PV capacity between 2013 and 2015. Utilities are meeting their target early; the apparent slowdown is a temporary pause while utilities work on the installations that will get the state to 33% renewable electricity by 2020.

Distributed generation activity remains strong in California, both in the Residential and Non-Residential segments. The state’s residential customers generated demand for approximately 1000 MW of installations—almost half the national total of 2100 MW. And other distributed generation customers (eg, commercial rooftops) account for about another 300 MW.

So for the first time in years, California’s share of new solar PV installation is now less than half the national total. Good news! The rest of the country is waking up to the benefits of solar energy with capacity increasing in numerous states. The Utility sector is leading this expansion, while the residential sector growth is accelerating. We’re pleased to see this expansion.

San Diego Vows to Move Entirely to Renewable Energy in 20 Years

By Matt Richtel, The New York Times

Last weekend, representatives of 195 countries reached a landmark accord in Paris to lower planet-warming greenhouse gas emissions. On Tuesday, local leaders in San Diego committed to making a city-size dent in the problem. With a unanimous City Council vote, San Diego, the country’s eighth-largest city, became the largest American municipality to transition to using 100 percent renewable energy, including wind and solar power.

In the wake of the Paris accord, environmental groups hailed the move as both substantive and symbolic. Other big cities, including New York and San Francisco, have said they intend to use more renewable energy, but San Diego is the first of them to make the pledge legally binding. Under the ordinance, it has committed to completing its transition and cutting its greenhouse gas emissions in half by 2035.

The steps to get there may include transferring some control of power management to the city from the local utility. Officials said they would also shift half of the city’s fleet to electric vehicles by 2020 and recycle 98 percent of the methane produced by sewage and water treatment plants. Many details have yet to be determined, including how the new power sources will be delivered and managed.

Under the Paris accord, nations offered general, nonbinding plans to reduce their carbon emissions. Officials in the United States envision reaching the nation’s goals mainly through higher fuel-economy standards for cars and a move to cleaner sources of electrical power, something states could help oversee. This is where the actions of a city like San Diego fit in. As the city moves to renewable energy, the State of California can begin to build its bank of carbon reductions and contribute to global goals.

Read full article in the New York Times

At Paris climate talks, nations will look to California

By Sammy Roth, The Desert Sun

California has long led the world in tackling climate change. Now, Golden State leaders hope the rest of the world will follow their lead.

Negotiators from more than 190 countries will gather in Paris two weeks from Monday, in a last-ditch effort to strike a deal that averts catastrophic levels of global warming. Gov. Jerry Brown plans to lead a delegation of eight lawmakers, and they’ll be joined by former Gov. Arnold Schwarzenegger, billionaire climate activist Tom Steyer, and many other environmental advocates who want to see world leaders draw inspiration from California.

California isn’t a country, but for the purposes of Paris it might as well be. It’s the world’s eighth-largest economy, and the federal government often adopts the state’s ambitious environmental policies. Brown’s administration has worked with national and regional governments in Canada, Mexico, China and elsewhere on programs to slash carbon emissions. The governor has made it clear he wants California to play a prominent role in Paris. “The real source of climate action has to come from states and provinces,” Brown said earlier this year at a climate summit in Toronto. “This is a call to arms. We’re going to build up such a drumbeat that our national counterparts — they’re going to listen.”

When Brown and others arrive in Paris, they’ll have quite a story to tell. California now gets a quarter of its electricity from renewable sources like solar and wind, a figure expected to double by 2030. Californians use the same amount of energy today as they did in the 1970s, even as per-person energy use has spiked across most of the country. Policies to discourage gasoline consumption have led to cleaner fuels and helped put more than 150,000 electric vehicles on the road, a number that is growing quickly.

While California’s climate efforts are by no means perfect, world leaders can learn a lot from the state’s multi-pronged approach to global warming, policy and legal experts say. The key lesson, they say, is that the state has acted on climate without inflicting economic disaster. The state has outpaced the rest of the country in job growth and GDP growth since the height of the Great Recession, even as carbon pollution has fallen.

The Desert Sun interviewed nearly a dozen lawmakers, academics, activists and researchers about what California is doing to address climate change. Here’s a primer on what they think the nations of the world should — and shouldn’t — learn from the Golden State…[Read More]

Read full article in the Desert Sun

Why Rooftop Solar Advocates Are Upset About California’s Clean-Energy Law

By Ivan Penn, The Los Angeles Times

California’s aggressive push to increase renewable energy production comes with a catch for people with solar panels on the roof: You don’t count.

If a home or business has a rooftop solar system, most of the wattage isn’t included in the ambitious requirement to generate half of the state’s electricity from renewable sources such as solar and wind by 2030, part of legislation signed in October by Gov. Jerry Brown.

That means rooftop solar owners are missing out on a potentially lucrative subsidy that is paid to utilities and developers of big power projects. It also means that utility ratepayers could end up overpaying for clean electricity to meet the state’s benchmark because lawmakers, by excluding rooftop solar, left out the source of more than a third of the state’s solar power.

Owners of rooftop solar systems and their advocates aren’t happy about the policy…The rooftop solar industry and consumer advocates say opposition to including rooftop solar in California’s renewable energy mandate came from large developers that feared competition for subsidies as well as unions that were upset because rooftop solar installers typically aren’t members.

Read full article in the Los Angeles Times

Inside California’s energy politics, the FERC Order 745 case, and the coming storage cost shift

By Gavin Bade, Utility Dive

[Editor’s Note: The following is part of Utility Dive’s coverage of the 2015 Energy Storage North America conference.]

For many power sector observers, California utilities are the ideal partners for forward-thinking regulators looking to adapt the utility business model to the 21st century. California’s investor-owned utilities proclaim their commitment to clean energy technologies demonstrating how they’ve surpassed mandates, accepted more rooftop solar, or integrated large amounts of storage.

Utility executives from San Diego Gas & Electric (SDG&E), Southern California Edison (SCE), and Pacific Gas & Electric (PG&E), provided apt examples in their keynotes at the Energy Storage North America conference. All these announcements could logically lead observers to conclude that California utilities have been proactive partners in helping set California’s ambitious clean energy goals. Not exactly, two veteran state legislators told Utility Dive at the conference.

Politics of renewable energy policy:

State Sen. Ben Hueso, chair of the Senate energy and utilities committee, ushered SB 350, the bill that set the state’s 50% RPS, through committee earlier this year. He said that the utilities have always fought hard against any mandates behind closed doors, whether it was SB 350 or earlier efforts. Former Assemblymember Nancy Skinner, echoed Hueso’s observations, but said that the power industry doesn’t behave much differently than others in this respect. “No industry likes mandates,” she said, noting that it took three legislative sessions to usher through the state’s previous 33% RPS, which was met with utility pressure behind closed doors.

California’s new RPS, by contrast, was authored and passed in one legislative session, a feat that Skinner said cannot be overstated. Not only does the bill increase the renewables portfolio standard to 50% by 2030, it also specifically calls on utilities to deploy energy storage and combines the renewables goal with an aggressive efficiency standard. So what changed to get such an aggressive bill passed so quickly?

…Clifford Rechtschaffen, a senior advisor to Brown, said the most important thing was that, in the end, “all of the utilities with the tiny exception of some northern California power agencies that had some qualms, they all supported SB 350.” Rechtschaffen said that while the utilities may have shown some resistance as the bill was working its way through the legislature, most of their concerns were operational in nature. “They weren’t quarreling with the notion that we needed to get to 50%,” he said. “They had concerns about how best to do it — some of which we agree with and others which we aren’t completely in line with, but we’re working on those. Storage is a big part of the solution.”

The role of storage in California’s renewable energy economy:

In a keynote panel discussion the California policymakers highlighted energy storage as the technology that can make 50% renewables and beyond possible for California. Once you get to that level of renewables, Rechtschaffen said, “storage is absolutely critical for grid integration. There’s no arguing about that.”

But the situation for storage, especially in the eyes of utilities, wasn’t always so rosy, Rechtschaffen said. Back in 2014, the state’s IOUs were resistant to the PUC’s mandate to deploy over 1,300 MW of storage on the grid by 2020, worried that the technology wasn’t ready and that it would “put storage in a bad light.”

In reality, the opposite happened, and SCE started off the storage procurements by buying 264 MW, when it was only compelled to purchase 50 MW at the time. For the California policymakers, it was a validation of the power of mandates to drive innovation in the power sector.

Read full article from Utility Dive

Related article: Why energy storage is key to a future with ‘no more gas turbines’ (Utility Dive) – Oct. 15, 2015

Desert plant has pollution problem

By David Danelski, The Press-Enterprise

A solar power plant at the center of the Obama administration’s push to reduce America’s carbon footprint by using millions of taxpayer dollars to promote green energy has its own carbon pollution problem.

The Ivanpah plant in the Mojave Desert uses natural gas as a supplementary fuel. Data from the California Energy Commission show that the plant burned enough natural gas in 2014–its first year of operation–to emit more than 46,000 metric tons of carbon dioxide. That’s nearly twice the pollution threshold for power plants or factories in California to be required to participate in the state’s cap-and-trade program to reduce carbon emissions. The same amount of natural gas burned at a conventional power plant would have produced enough electricity to meet the annual needs of 17,000 homes–or roughly a quarter of the Ivanpah’s total electricity projection for 2014.

The plant’s operators say they are burning small amounts of natural gas in order to produce steam to jump-start the solar generating process. They said burning natural gas has always been part of the process. David Knox, a spokesman for NRG Energy, which runs the facility, said the plant still meets a state requirement that no more than 5 percent of its electricity production come from burning fossil fuel.

This rule, however, does not factor in the gas burned to heat water before enough steam is generated to produce electricity. That distinction is significant because it could affect the plant’s customers. Under state law, alternative energy plants can’t use more than 5 percent “nonrenewable” fuel for electricity generation. If a plant goes over that threshold, its electricity can’t count toward the state’s renewable energy goals.

Read full article in the Press-Enterprise