State RPS targets and the CEC role in achieving success [CSTP 2010]
1. California RPS Targets and the Energy
Commission’s Role in
Achieving Success
Pam Doughman, Ph.D.
Technical Director
Renewable Energy Office
California Energy Commission
May 6, 2010
1
2. California’s Renewables Portfolio Standard
RPS signed into law in 2002 assigning roles to
Energy Commission, CPUC, and requiring retail
sellers to procure 20% renewable energy by 2010.
Publicly owned utilities set their own RPS goals
recognizing the intent of the legislature to attain a
target of 20% of California retail sales of electricity
from renewable energy by 2010.
Governor Schwarzenegger’s Executive Orders set
further goal of 33% renewable energy by 2020.
RPS procurement compliance is measured in terms of
electricity delivered, not signed contracts.
2
3. California’s Renewable Energy Goals
120,000
Estimated Statewide Renewables GWh/year
33% by 2020
100,000
(excluding Large Hydro)
80,000
20% by 2012*
60,000
20% by 2010 33% by 2020 if
AB 32 Scoping
40,000 Plan goals met
20,000
2008 10.6% Renewables
2002 11% Renewables
(RPS begins)
-
1983 1988 1993 1998 2003 2008 2013 2018
Year
20% by 2010 and 33% by 2020 goals based on retail sales.
2002 11% Renewables and 2008 10.6% Renewables based on generation.
*Report assuming 20% by 2012: www.energy.ca.gov/2009publications/CEC-200-2009-011/CEC-200-2009-011.PDF
3
4. Energy Commission Work Related to
Renewable Energy
All four divisions of the Energy Commission work on renewable energy.
– Siting of thermal power plants 50 MW and larger and transmission
planning for renewable energy.
– Policy development and implementation, including eligibility and
verification for the RPS; incentive programs for existing biomass,
small-scale wind, and new solar homes; actions to address barriers to
expansion of renewable energy; and climate change policy related to
renewable energy.
– Analysis of changes needed to electricity system to integrate high
levels of renewable energy.
– Public Interest Energy Research, including smart grid, storage,
renewable energy-based secure communities, mitigation of
environmental impacts of renewable energy.
Collaboration/cooperation within the Energy Commission and with other
agencies at the state, local, and federal level.
Experts and stakeholders help inform our work through advisory
committees, siting case hearings, public workshops, and support services
contracts.
4
5. California Energy Commission Large-scale Solar
Thermal Electric Siting Queue: Projects > 50 MW
5000
4500
4000
3500
3000
Capacity (MW)
2500
2000
1500
1000
500
0
San San Luis Kern Fresno Imperial Los Riverside
Bernardino Obispo Angeles
Note: Capacity above refers to all projects within the Application for Certification process per county classified as Approved, Under-
Review, Pre-Review, and/or Announced.
Source: http://www.energy.ca.gov/siting/solar/index.html
5
6. Improving Processes for Licensing
Renewable Projects (E.O. S-14-08)
“To implement and track the progress of the Executive Order, the California
Energy Commission and the Department of Fish and Game (DFG) signed a
Memorandum of Understanding formalizing a Renewable Energy Action Team
(REAT).”
“… the Energy Commission, DFG, U.S. Fish and Wildlife Service, and the U.S.
Bureau of Land Management signed another Memorandum of Understanding
to establish a coordinated approach with our federal partners in the expedited
permitting process…”
“ … the Energy Commission and DFG will identify renewable energy
development areas and develop a best management practices manual with the
goal of reducing the application time in half for specific renewable projects 50
MW and greater proposed in the designated renewable energy development
areas.”
“To initiate Natural Communities Conservation Plans (NCCPs) … REAT will
begin the Desert Renewable Energy Conservation Plan for the Mojave and
Colorado Desert regions… This should also help reduce the time and
uncertainty normally associated with licensing new renewable projects.”
Source: http://www.energy.ca.gov/33by2020/index.html
6
7. Renewable Energy Program Funding
2002 - 2011
2002-2006 Annual Allocation: $135 million*
2007 Annual Allocation: $145.8 million*
2008-2011 Annual Allocation: $72 million* $75.1
$69.5
$56.9
$54.7
$35.8
$27.0
$14.6 $14.4
$2.7 $1.4 $0.7 $0.0**
Existing Renewable Emerging Consumer New Renewable
Facilities Renewables Education Facilities
*The total amount collected each year is adjusted annually at a rate equal to the lesser of the annual growth in electric commodity sales or inflation,
as defined by the gross domestic product deflator.
**Projected 2008-2011 annual allocation would have been approximately $77.9 million. 7
8. IOU, ESP, and CCA RPS Implementation
CEC ROLE CPUC ROLE
Certify renewable facilities as Oversight of IOU procurement:
eligible for the RPS
Approve procurement plans
Design and implement an
Set baselines and targets
accounting system to track
and verify RPS compliance Develop market price referent
Distribute Supplemental Develop least-cost-best-fit
Energy Payments (Legislation process to evaluate bids
deleted CEC authority to
award SEPs and transfers Set rules for flexible compliance
administrative responsibility Standardize contract terms
to CPUC)
Approve/ reject contracts
Ensure RPS competitiveness
Administer above-market funds
Oversight for other “retail sellers”
8
9. CEC RPS Certification
Facilities certified as RPS eligible represent
more than 10,260 MW of capacity.*
Biofuels (gas & liquid) 374 CEC ROLE
Certify renewable facilities
Biomass (solid) 769 as eligible for the RPS
Design and implement an
Conduit Hydro 179 accounting system to track and
verify RPS compliance
Geothermal 2,472 Distribute Supplemental Energy
Payments (Legislation deleted
Incremental Hydro 0 CEC authority to award SEPs
and transfers administrative
responsibility to CPUC)
MSW Combustion 22
PV 18
Small Hydro 998
Solar Thermal 453
Wind 5,254
0 1000 2000 3000 4000 5000 6000
MEGAWATTS
*Includes only the percent of capacity certified as RPS eligible.
Data as of April 2010.
9
10. What is the Western Renewable Energy
Generation Information System?
WREGIS tracks renewable generation to help ensure the
credibility of the "green" value of renewable electricity
WREGIS is a voluntary, independent renewable
energy registry and tracking system for the CEC ROLE
Western Interconnection transmission area Certify renewable facilities as
eligible for the RPS
– Uses verifiable renewable energy generation Design and implement an
accounting system to track
data and verify RPS compliance
– Creates renewable energy certificates Distribute Supplemental Energy
Payments (Legislation deleted
(WREGIS certificates) CEC authority to award SEPs
and transfers administrative
– Accounts for transactions involving certificates responsibility to CPUC)
– Supports voluntary and regulatory markets for
certificates
WREGIS was launched in June 2007
Retail sellers and renewable facilities participating in California’s RPS are
required to register with and use WREGIS. POUs can opt to use WREGIS
to track their RPS energy.
RESULTS as of April 2010:
More than 330 companies are registered WREGIS Account Holders.
10
11. Attribute Tracking Systems
KEY
ERCOT
M-RETS
Michigan Renewable Energy
Certification System
(in development)
NAR: North American
Renewables Registry
NEPOOL-GIS
North Carolina Renewable
Tracking System
(in development)
ASD
NYSERDA (in development) FAS
FDA
PJM-GATS
FA
WREGIS
11
12. POUs’ RPS Targets and 2008 Procurement
POUs report past and projected procurement of renewable energy
to the Energy Commission.
2008 Target 2008 Target
Anaheim 6.3% 20% 2015 Redding 27.7% 20% 2017
Burbank 1.3% 33% 2020 Riverside 9.3% 33% 2020
Glendale 13.9% 20% 2017 Roseville 18.3% 20% 2017
Imperial 7.9% 30% 2020 SMUD 19.7% 33% 2020
LADWP 7.2% 35% 2020 SVP 27.8% 20% ongoing
Modesto 11.5% 20% 2017 Turlock 4.4% 20% 2017
NCPA 38.0% va ri ous Vernon 1.7% 20% 2017
Pasadena 13.2% 20% 2017
Sources: California Energy Commission, Staff Assessment of POU Resource Adequacy and Electricity Resource
Plans, presentation by Jim Woodward, August 6, 2009.
SMUD data: SMUD website, Community and Environment, www.smud.org/en/community-environment/climate-
change/pages/index.aspx
12
13. 2009 Integrated Energy Policy Report
Major challenges continue to exist for renewable development
and moving the state to 33% renewables by 2020.
Difficulty integrating large amounts of renewable energy into the
electricity system.
Uncertainty on timeline for meeting RPS goals.
Environmental concerns with development of renewable facilities
and associated transmission.
Difficulty securing project financing.
Delays and duplication in siting processes. Time and expense of
new transmission development.
Cost of renewable energy in fluctuating energy market.
Maintaining state’s existing baseline of renewable facilities.
Source: 2009 Integrated Energy Policy Report, Commission Final Report, December 2009,
http://www.energy.ca.gov/2009_energypolicy/index.html
13
14. 2009 IEPR Commission Final Report:
Key Recommendations for Renewable Energy
Continue the cooperative work among state agencies to implement a
33% renewable policy that applies to all load serving entities and retail
providers.
Reduce regulatory uncertainty with legislation to codify the 33%
renewable target.
Implement measures to accelerate permitting of new renewables and
associated transmission.
Address barriers to the expansion of biopower, including regulatory
hurdles and project financing, and encourage R&D to reduce costs for
biomass conversion, biopower technologies, and environmental
controls.
Identify solutions to integrate increasing levels of energy efficiency,
smart grid infrastructure, and renewable energy while avoiding surplus
generation.
Source: 2009 Integrated Energy Policy Report, Commission Final Report, December 2009,
http://www.energy.ca.gov/2009_energypolicy/index.html
14
15. Additional Information
California Energy Commission Web sites:
Renewable Energy Program
www.energy.ca.gov/renewables/index.html
Renewables Portfolio Standard
www.energy.ca.gov/portfolio/index.html
Integrated Energy Policy Reports
http://www.energy.ca.gov/2009_energypolicy/index.html
Proposed Renewable Energy Projects for California
http://www.energy.ca.gov/33by2020/documents/index.html
GoSolar California
www.gosolarcalifornia.org
California Public Utilities Commission Web site:
Renewables Portfolio Standard
www.cpuc.ca.gov/PUC/energy/electric/renewableenergy/index.htm
Air Resources Board Web site:
ARB’s Climate Change Program
www.arb.ca.gov/cc/cc.htm
15
17. California ARB GHG Reduction Plan
Sees Key Role for Renewable Energy
ARB 32 Scoping Plan
Recommended Actions for Electricity Sector
GHG
MEASURE REDUCTIONS
(MMTCO2E) In November 2008, Gov. Schwarzenegger’s
Energy Efficiency 15.2
Executive Order S 14 08 raised California
(32,000 GWh of Reduced Demand) renewable energy goals to 33% by 2020.
Increased Utility Energy
Efficiency Programs
More Stringent Building &
In September 2009, Executive Order
Appliance Standards S 21 09 directed ARB, under its AB 32
Additional Efficiency and authority, to work with the California Public
Conservation Programs Utilities Commission, California
Combined Heat and Power 6.7 Independent System Operator, and Energy
Increase Combined Heat and Power
Use by 30,000 GWh
Commission to adopt regulations by
Renewables Portfolio Standard 21.3 July 31, 2010, consistent with the 33%
Achieve a 33% renewables mix by renewable energy target established in
2020 Executive Order S-14-08.
Million Solar Roofs 2.1
(Including California Solar Initiative,
New Solar Homes Partnership, and RPS target of 33% is expected to provide
solar programs of publicly owned 15.2% of total GHG reductions needed to
utilities)
meet AB 32 goal of 1990 emissions levels
Target of 3000 MW Total
Installation by 2020 by 2020.
TOTAL 45.3
17
18. IOU, ESP, and CCA RPS Eligible Technologies
Biodiesel Landfill gas
Biomass Municipal solid waste (limited)
Conduit hydroelectric Ocean wave, ocean thermal,
tidal current
Digester gas
Fuel cells
Photovoltaic
using renewable fuels Small hydroelectric
(30 MW or less)
Geothermal
Hydroelectric Solar thermal electric
(incremental generation from Wind
efficiency improvements)
These technologies also provide most of the POU RPS energy.
18
19. California’s Generation Mix in 2008
Includes In-State Generation and Estimated Energy Imports
Natural Gas
45.7% Nuclear
14.4%
Wind
2.4%
Renewables
Solar
10.6% 0.2% Biomass
2.1%
Large Hydro
11% Coal Small Hydro
18.2% 1.4%
Source: 2008 Net System Power Report, Energy Commission Publication, #CEC-200-2009-010,
http://www.energy.ca.gov/2009publications/CEC-200-2009-010/CEC-200-2009-010.PDF Geothermal
Totals may not sum due to rounding. 4.5%
For daily renewable energy generation in CA ISO area, see http://www.caiso.com/green/renewrpt/DailyRenewablesWatch.pdf
19
20. IOU RPS Projects: Solar and Wind
Dominate Contracts Signed Since 2002
Operational Status for New, Repowered and Re-Started Capacity, by
Technology (minimum MW)
8000
Not Online
7000
Online
6000
Capacity (MW)
5000
4000
3000
2000
1000
0
wind biogas biomass geothermal ocean small hydro solar thermal solar
photovoltaic
Source: California Energy Commission, Database of IOU Contracts for Renewable Generation, April 2010
update, www.energy.ca.gov/portfolio/IOU_CONTRACT_DATABASE.XLS
20
21. POU RPS Contracts with Target Online Dates of
2009-2015 (MW)
800
200
150
100
50
0
Wind Biogas Biomass Geothermal Small Hydro Solar PV
Source: California Energy Commission, Database of POU Contracts for Renewable Generation, December 2008
http://www.energy.ca.gov/2008publications/CEC-300-2008-005/index.html 21
22. POUs: About ¼ of California’s Electricity
California’s
Publicly Owned Electric Utilities
22
23. Summary of CA Renewable Energy Policies
2010 2016 2020
Accelerated RPS
from IEPR / EAP /
SB 1250 [2006]/107 [2006], Renewables Renewables
Exec Orders S-14-08 and 20% of retail sales 33% of retail sales
S-21-09, and EE and CHP (~55,000 GWh) (~78,000 - 102,000 GWh)
goals from ARB’s AB 32
(2006) Scoping Plan
3,000 MW of new solar
California Solar Initiative
(~4,000 GWh1)
20% of RPS from biopower 20% of RPS from biopower
(~11,000 GWh1) (~20,000 GWh1)
State Bioenergy Goal
(Executive Order S-06-06)2
20% biofuels produced in California 40% biofuels produced in California
Governor’s GHG
Reduction Targets (1990
levels by 2020; 80% below Portion of 2020 GHG reduction target allocated to RE is contained in the
1990 levels by 2050) . CA Air Resources Board’s Climate Change Scoping Plan, October 2008.
Target for 2020 is in state
law (AB 32, 2006)
1Assumes average capacity factors are 15% for solar and 90% for biopower.
2 Executive Order S-06-06 can be downloaded at http://gov.ca.gov/index.php?/print-version/executive-order/183/.
Note: The roadmap also considered detailed policy guidance as stated in the IEPR.
23
24. Electrification & Low-Carbon Generation
Preliminary Research on achieving 2050 GHG goal for California
Electricity demand could nearly double between today and 2050
Increase in demand driven by largely by electric vehicles
Nearly all electricity must be from low-carbon generation by 2050
700,000
Electric Demand at the Generator (GWh)
600,000
Transportation
500,000 Petroleum & Agriculture
400,000 Industrial
Commercial
300,000
Residential
200,000
Baseline
100,000
-
1990 2000 2010 2020 2030 2040 2050
Year
Source: Energy and Environmental Economics, Inc. http://www.climatechange.ca.gov/events/
2009_symposium/presentations/2009-09-09_Wednesday/Track_02/Session_02/Talk3_Session2_308_Wed_Price.pdf
24
25. State Renewables Portfolio Standards
VT: (1) RE meets any increase ME: 30% x 2000
WA: 15% x 2020* New RE: 10% x 2017
MN: 25% x 2025 in retail sales x 2012;
MT: 15% x 2015 (Xcel: 30% x 2020) (2) 20% RE & CHP x 2017 NH: 23.8% x 2025
OR: 25% x 2025 (large utilities)* ND: 10% x 2015 MI: 10% + 1,100 MW MA: 22.1% x 2020
5% - 10% x 2025 (smaller utilities) x 2015* New RE: 15% x 2020
(+1% annually thereafter)
SD: 10% x 2015 WI: Varies by utility; NY: 29% x 2015
10% x 2015 statewide RI: 16% x 2020
NV: 25% x 2025* CT: 23% x 2020
IA: 105 MW OH: 25% x 2025†
CO: 30% by 2020 (IOUs) PA: ~18% x 2021†
10% by 2020 (co-ops & large munis)*
IL: 25% x 2025 WV: 25% x 2025*† NJ: 22.5% x 2021
CA: 33% x 2020 UT: 20% by 2025* KS: 20% x 2020 VA: 15% x 2025* MD: 20% x 2022
MO: 15% x 2021
DE: 20% x 2020*
AZ: 15% x 2025
NC: 12.5% x 2021 (IOUs) DC DC: 20% x 2020
10% x 2018 (co-ops & munis)
NM: 20% x 2020 (IOUs)
10% x 2020 (co-ops)
TX: 5,880 MW x 2015
HI: 40% x 2030
State renewable portfolio standard Minimum solar or customer-sited requirement 29 states +
State renewable portfolio goal DC have an RPS
Solar water heating eligible *
†
Extra credit for solar or customer-sited renewables
Includes non-renewable alternative resources (6 states have goals)
DSIRE: www.dsireusa.org April 2010
25