C A L I F O R N I A E N E R G Y Update on Renewable Action Plan Suzanne Korosec Deputy Director, Renewable Energy Division May 11, 2015 C O M M I S S I O N
C A L I F O R N I A E N E R G Y C O M M I S S I O N Renewable Action Plan • Adopted February 2013 • Identified 5 strategies to support renewable development – Prioritize geographic locations – Evaluate costs and benefits – Minimize interconnection and integration costs and time – Promote incentives for projects that create in‐state jobs and economic benefits – Promote and coordinate existing financing and incentive programs 2
C A L I F O R N I A E N E R G Y C O M M I S S I O N Strategy 1: Identify and prioritize geographic areas in the state for both renewable utility‐scale and distributed generation development. 1. Incorporate DG renewable development zones into local planning processes 2. Identify renewable energy development zones and incorporate into local planning processes 3. Conduct 2030 analysis 4. Continue development of renewable energy on government property 3
C A L I F O R N I A E N E R G Y C O M M I S S I O N #1: Incorporate DG renewable development zones into local planning processes • • CPUC: Distribution Resource Plans – Optimal Locations CAISO: Distributed Generation Deliverability Study IOUs: Renewable Auction Mechanism Maps CEC: – Distributed Energy Resource Pilot Study – Identification of Low‐Impact Interconnection Sites for Wholesale Distributed Photovoltaic Generation Using Energynet Power System Simulation – Integrated Transmission and Distribution Model for Assessment of Distributed Wholesale Photovoltaic Generation – Distributed Generation Integration Cost Study – Analytical 4 Framework
C A L I F O R N I A E N E R G Y C O M M I S S I O N #2: Identify renewable energy development zones and incorporate into local planning processes • Desert Renewable Energy Conservation Plan • DRECP datasets used for environmental screening • San Joaquin Valley study • Renewable Energy and Conservation Planning Grants Program 5
C A L I F O R N I A E N E R G Y C O M M I S S I O N #3: Conduct 2030 analysis • Pathways Project: Long‐Term Greenhouse Gas Reduction Scenarios • CAISO 2015‐ 2016 Transmission Planning Process • DRECP – 2040 scenarios 6
C A L I F O R N I A E N E R G Y C O M M I S S I O N #4: Continue development of renewable energy on government property • Developing Renewable Generation on State Property – Goal of 2, 500 MW of renewables on state properties by 2020 – Inventory of potential: • State buildings in load centers: 14‐ 26 MW • Properties with wholesale generation potential: 54. 5‐ 195 MW • Land leased for wholesale generation: 14, 460‐ 26, 030 MW • DGS Renewable Energy Directory – 43 MW installed renewables – 8 MW planned 7
C A L I F O R N I A E N E R G Y C O M M I S S I O N Strategy 2: Evaluate costs of renewable energy projects beyond technology costs – including costs associated with integration, permitting, and interconnection – and their impact on retail electricity rates. 5. Modify procurement practices to develop a higher value portfolio 6. Revise residential electricity rate structure 7. Improve transparency of renewable generation costs 8. Strengthen links between transportation and clean electrification 8
C A L I F O R N I A E N E R G Y C O M M I S S I O N #5: Modify procurement practices to develop a higher value portfolio • POUs submitting annual information on procurement as result of SB X 1 2 RPS requirements • CPUC – D. 14‐ 11‐ 042, Decision Conditionally Accepting 2014 Renewables Portfolio Standard Procurement Plans and an Off‐Year Supplement to 2013 Integrated Resource Plan – R. 15‐ 020, Administrative Law Judges Ruling Seeking Post Workshop Comments, potential revisions to RPS Calculator 9
C A L I F O R N I A E N E R G Y C O M M I S S I O N #6: Revise residential electricity rate structure • CPUC Residential Rate Reform proceeding (R. 12‐ 06‐ 013 – Proposed decision May 2015 – Flattened tiered rates beginning 2015 – IOUs to propose default TOU rates to begin in 2019 10
C A L I F O R N I A E N E R G Y C O M M I S S I O N #7: Improve transparency of renewable generation costs • CEC Distributed Generation Integration Cost Study – Analytical Framework – http: //www. energy. ca. gov/2013 publications/CEC‐ 200‐ 2013‐ 007‐REV. pdf • CEC Distributed Energy Resource Pilot Study 11
C A L I F O R N I A E N E R G Y C O M M I S S I O N #8: Strengthen links between transportation and clean electrification • EV Connect – Public charging at five transit parking areas for the Los Angeles County Metropolitan Transit Authority (Completed 12/31/2013) • Southern California Regional Collaborative – Public charging at 315 sites (Planned completion 6/30/2016) • Aero. Vironment – Charging for Car 2 Go vehicles at apartment venues (Completed 3/28/2015) • Aero. Vironment – Charging for Car 2 Go vehicles at YMCAs (Planned completion 2/28/2016) • Clipper Creek – Upgrade legacy public chargers throughout California (Completed 6/30/2014) • Alameda‐Contra Costa Transit District – hydrogen fueling station to support 12 hydrogen fuel cell buses in the transit fleet (Completed 11/30/2014) 12
C A L I F O R N I A E N E R G Y C O M M I S S I O N #8: Strengthen links between transportation and clean electrification • Motiv Power Systems – Electric‐drive Class 4 delivery vehicle (Completed 12/30/2012) • Electric Vehicle International – manufacture/assembly of components for electric drive medium‐duty delivery vehicles (Planned completion 5/8/2015) • Kenworth Truck Company – electric hybrid Class 8 goods movement truck (Planned completion 5/15/2015) • Electric Power Research Institute – plug‐in electric hybrid delivery trucks (Planned completion 3/31/2016) • Electricore – plug‐in electric delivery trucks (Planned completion 3/31/2016) • Calstart – plug‐in electric shuttle buses and drayage trucks, and hybrid electric drayage trucks (Planned completion 3/31/2018) • Boulder Electric – medium‐ and heavy‐duty electric drive delivery trucks (Completed 3/31/2104) • Transpower – heavy‐duty electric truck manufacturing (Completed 9/30/2013) • Wrightspeed – Range‐extended electric drive systems for medium‐ and heavy‐duty delivery and goods movement vehicle (Completed 10/31/2013) 13
C A L I F O R N I A E N E R G Y C O M M I S S I O N #8: Strengthen links between transportation and clean electrification • California Statewide Plug‐In Electric Vehicle Infrastructure Assessment, May 2014 • Regional Plug‐in Electric Vehicle Planning Grants • Alternative Fuel Readiness Plans and Zero Emission Vehicle Readiness (24 awards, $5. 6 M) • U. S. DOD V 2 G demonstration – Contract 600‐ 12‐ 016 (Concurrent Technologies Corporation) to be completed 3/31/2016 14
C A L I F O R N I A E N E R G Y C O M M I S S I O N Strategy 3: Minimize interconnection and integration costs and requirements at the distribution and transmission level 9. Consider environmental and land‐use factors in renewable scenarios 10. Monitor status of California ISO approved transmission projects to ensure timely completion 11. Streamline transmission permitting 12. Develop dialogue on distribution planning and opportunities for a more integrated distribution planning process 13. Disaggregate CEC demand forecast 14. Create a statewide data clearinghouse for renewable energy generation planning 15. Enable deployment of advanced inverter functions 16. Develop a forward procurement mechanism 17. Define clear tariffs, rules, and performance requirements for integration services 18. Provide regional solutions to renewable integration 19. Ensure adequate natural gas pipeline infrastructure 15
C A L I F O R N I A E N E R G Y C O M M I S S I O N #9: Consider environmental and land-use factors in renewable scenarios • Energy agencies coordinating on analysis to identify appropriate areas for renewable generation and transmission • Information developed through DRECP should be incorporated in renewable scenarios for CPUC LTPP and CAISO TPP • Potential revisions to CPUC RPS Calculator • CEC efforts to develop ability for landscape‐scale analysis 16
C A L I F O R N I A E N E R G Y C O M M I S S I O N #10: Monitor status of CAISO approved transmission projects to ensure timely completion • 2013 IEPR – 17 transmission projects approved by CAISO, IID, and LADWP; 4 now operating, 1 removed • CAISO 2013‐ 14 Transmission Plan – 2 additional major projects approved: Delaney‐Colorado River and Harry Allen‐Eldorado • CEC now tracking 14 transmission projects to support renewable delivery. • CAISO 2014‐ 15 Transmission Plan – no new transmission projects needed to support 33% RPS 17
C A L I F O R N I A E N E R G Y C O M M I S S I O N #11: Streamline transmission permitting • CAISO Generator Interconnection and Deliverability Allocation Procedures and annual Transmission Plan • 2013 IEPR: Energy agencies should evaluate cost‐ effectiveness, prudency and alternatives for full deliverability of future renewable generation to meet RPS • CPUC RPS Calculator proceeding including 50% by 2030 RPS portfolio for CAISO’s 2015‐ 2106 annual TPP • CEC consultant report on transmission alternatives to address SONGs closure – found land use permit challenges for most projects considered 18
C A L I F O R N I A E N E R G Y C O M M I S S I O N #12: Develop dialogue on distribution planning and opportunities for a more integrated distribution planning process • CPUC Distribution Resource Plan Rulemaking (R. 14‐ 08‐ 013) • “More Than Smart” Working Group – http: //greentechleadership. org/wp‐ content/uploads/2014/08/More‐Than‐Smart‐Report‐by‐ GTLG‐and‐Caltech. pdf 19
C A L I F O R N I A E N E R G Y C O M M I S S I O N #13: Disaggregate CEC demand forecast • 2013 IEPR – provided forecast output for 16 climate zones • 2015 IEPR – will include 20 climate zones and redefined planning areas to be consistent with balancing authority areas 20
C A L I F O R N I A E N E R G Y C O M M I S S I O N #14: Create a statewide data clearinghouse for renewable energy generation planning • CPUC adopted rules for access to energy usage data (Rulemaking 08‐ 12‐ 009, Decision 14‐ 05‐ 016) • Rule 21 – IOUs file quarterly NEM interconnection reports • CEC energy statistics and data • County‐level renewable energy permits 21
C A L I F O R N I A E N E R G Y C O M M I S S I O N #15: Enable deployment of advanced inverter functions • Phase 1: Autonomous functions (implemented by mid‐ 2016) – Anti‐islanding – Ride‐through (low/high voltage excursions, low/high frequency excursions) – Volt/var control – Default and emergency ramp rates – Provide reactive power by a fixed power factor. • Phase 2: Communications functions – Recommendations to CPUC February 2015 22
C A L I F O R N I A E N E R G Y C O M M I S S I O N #15: Enable deployment of advanced inverter functions • Phase 3: Advanced inverter functions – Emergency alarms, info and measurements on current energy/ancillary services – Real power functions (limiting max and setting real power, command to connect or disconnect) – Autonomous functions (frequency‐watt, voltage‐watt, dynamic power factor, watt‐power factor) – Ancillary services (black start capabilities, spinning reserve, reactive power support, fast VAR support, backup power) – Storage specific functions (setting charge rates, ability to vary active power, scheduling storage delivery and charging) – Scheduling and forecasting inverter functionalities – Market interactions (responding to power or ancillary services pricing 23 signals)
C A L I F O R N I A E N E R G Y C O M M I S S I O N #16: Develop a forward procurement mechanism • CPUC 2014 LTPP (R. 13‐ 12‐ 010) – consideration of flexibility issues at 10‐year forward horizon, terminated March 2015; model development ongoing for 2016 LTPP • CPUC Joint Reliability Plan (R. 14‐ 02‐ 001) – portion of rulemaking on flexibility requirements suspended January 2015 24
C A L I F O R N I A E N E R G Y C O M M I S S I O N #17: Define clear tariffs, rules, and performance requirements for integration services • CAISO – Demand Response and Energy Efficiency Roadmap – Energy Storage Roadmap 25
C A L I F O R N I A E N E R G Y C O M M I S S I O N #18: Provide regional solutions to renewable integration • Energy Imbalance Market began operation November 2014 – NV Energy joining in fall of 2015 – APS considering joining – $11 M in gross benefits to date • CAISO/Pacifi. Corp MOU (April 2015) 26
C A L I F O R N I A E N E R G Y C O M M I S S I O N #19: Ensure adequate natural gas pipeline infrastructure • 2013 IEPR ‐ “ 2013 Natural Gas Issues, Trends, and Outlook” • FERC Docket No. RM 14‐ 2‐ 000; comments under consideration • FERC Docket No. RP 14‐ 442‐ 000 requires interstate pipelines to post offers to buy excess capacity • E 3 report “Natural Gas Infrastructure Adequacy in the Western Interconnection: An Electricity System Perspective” – technical feasible to meet gas demands to integrate renewables • Columbia. Grid paper on reliability issues from limited natural gas supplies to generators • PG&E and So. Cal Gas advice letters submitted in 2014 – adequate capacity for current and forecasted demand • CEC Program Opportunity Notice (PON‐ 14‐ 506) released January 2015 to investigate improvements needed to natural gas system to integrate 27 renewables
C A L I F O R N I A E N E R G Y C O M M I S S I O N Strategy 4: Promote incentives for renewable technologies and development projects that create in‐state jobs and support in‐state industries, including manufacturing and construction. 20. Better align workforce training to needs 21. Enhance linkage between clean energy policies, workforce, and employers 22. Support the Innovation Hub Initiative at the Governor’s Office of Business and Economic Development 28
C A L I F O R N I A E N E R G Y C O M M I S S I O N #20 -#22: Align workforce training to needs, enhance links between clean energy and workforce, support i. Hub • CEC R&D funding for workforce development • California Workforce Investment Board – State Strategic Workforce Development Plan – $3 M in Proposition 39 funding • Clean Technology and Renewable Energy Partnership Academies (SB X 1 1 (2011) and SB X 1 1 (2013), $8 M/year through 2017 • 54, 700 solar jobs in California 29
C A L I F O R N I A E N E R G Y C O M M I S S I O N Strategy 5: Promote and coordinate existing state and federal financing and incentive programs for critical stages of renewable development 23. Advance R&D for existing and co‐located renewable technologies 24. Advance R&D for innovative renewable technologies 25. Promote R&D for renewable integration 26. Support R&D for siting of renewable projects 30
C A L I F O R N I A E N E R G Y C O M M I S S I O N #23: Advance R&D for existing and co-located renewable technologies • • • 41 projects, ~$70 M Reduce costs and improve reliability, efficiency, and performance Improve materials, manufacturing, and installation Develop enabling technologies for solar, biomass, wind, geothermal, small hydro Develop community‐scale bioenergy facilities and address challenges for anaerobic digesters and wastewater treatment facilities Assess environmental impacts and mitigation strategies Explore barriers to biomethane use including biogas quality, biogas cleanup technology, and standards Evaluate synergistic combination of renewable technologies for sites and regions that have the potential for co‐located resources Enable higher penetrations of PV Develop and integrate advanced inverter technologies Support for bioenergy technologies and projects 31
C A L I F O R N I A E N E R G Y C O M M I S S I O N #24: Advance R&D for innovative renewable technologies • 20 projects, ~$20 M • Advance technologies and bring closer to commercialization • Assess potential of technologies on the horizon to contribute to state RPS goals • Develop data and tools to advance technology development and support market facilitation • Create opportunities for research, development, and demonstration initiatives to verify technical, economic, and environmental performance of innovative technologies • Promote a variety of renewable generating and integration technologies 32
C A L I F O R N I A • • • E N E R G Y C O M M I S S I O N #25: Promote R&D for renewable integration 75 projects, ~$109 M Integrate increasing levels of intermittent generation into the grid Improve forecasting capabilities Improve existing grid technologies and expand smart grid technologies and microgrids Improve energy storage, distribution modeling, distribution monitoring systems, and electric vehicle smart charging to take advantage of renewable availability Applied research projects to advance energy storage, grid planning tools, and distribution system upgrades Demonstration and deployment of renewable‐based microgrids Improve solar & wind forecasting to <95% accuracy at 15‐minutes ahead Explore flexible geothermal generation to serve as a load‐following resource to support the grid during periods of solar/wind intermittency. Demonstrate microgrids with high levels of renewables while maintaining reliability 33
C A L I F O R N I A E N E R G Y C O M M I S S I O N #26: Support R&D for proactive siting of renewable projects • 21 projects, ~$9 M • Applied R&D to address environmental barriers • New technology designs, studies, and decision support tools • Analysis of preferred locations for renewable development • Vulnerability to changing climate • Performance of operating facilities • Air quality and climate impacts 34
C A L I F O R N I A E N E R G Y C O M M I S S I O N Strategy 5: Promote and coordinate existing state and federal financing and incentive programs for critical stages of renewable development 27. Create interagency clean energy financing working group 28. Support extension of federal tax credits 29. Study the effectiveness and impacts of the property tax exclusion 35
C A L I F O R N I A E N E R G Y C O M M I S S I O N PACE Loan Loss Reserve • California Alternative Energy and Advanced Transportation Financing Authority • $10 M loan loss reserve funding provided by CEC • 24, 423 residential PACED financings, $499 M • No defaults • Program estimated to last 8‐ 10 years 36
C A L I F O R N I A E N E R G Y C O M M I S S I O N #30: Modify the Clean Energy Business Financing Program • Funded under ARRA • Some projects did not achieve goals • CEC exploring transfer of funds to Department of General Services 37
C A L I F O R N I A E N E R G Y C O M M I S S I O N #31: Develop marketing outreach plan for Energy Conservation Assistance Account Program • ECAA funding augmented by Proposition 39 and Greenhouse Gas Reduction Fund • 90% of Prop 39 funding for 0% interest rate loans, 10% for technical assistance grants for energy audits; all funds fully identified for projects • GGRF funded portion of program is 1% interest with maximum term of 20 years; loans up to $5 M per application 38
C A L I F O R N I A E N E R G Y C O M M I S S I O N Conclusions • Areas with most progress – – – Identifying preferred areas for renewable development Electrifying transportation system Advanced inverters Energy Imbalance Market Research and development • Areas needing additional work – Renewables on state property – Transparency of renewable costs and distribution planning processes – Tariffs, rules, and performance requirements for integration services – Workforce development 39
C A L I F O R N I A E N E R G Y C O M M I S S I O N Questions? 40