Slides from David Phillips, Associate Vice President, Energy and Sustainability, University of California, Office of the President; Hans Royal, Director, Schneider Electric; Chip Wood, Director of Strategic Partnerships, CRS; presented at the Sustainable Purchasing Leadership Council’s 2019 Summit in Portland, OR.
SPLC 2019 Summit: Buying Renewables: How Leaders are Shifting Energy from a Cost Center to an Asset
1. The University of California’s
100-Project Path to 100 Percent Clean Electricity
May 22, 2019
David Phillips
Associate Vice President for Energy and Sustainability
UC Office of the President
2. The University of California improves the lives of people in California and around the world through world-class
educational opportunities, groundbreaking research, top-rated health care and agricultural expertise.
The University of California
3. Mission
University of California’s buildings and fleets will
become net carbon neutral by 2025.
Vision
The University of California is developing scalable
solutions to build the low-carbon future our research has
proven to be imperative.
UC Carbon Neutrality Initiative
3
Sherwood Rowland
and Mario Molina
Charles David Keeling
UC Research
4. = Smart Growth
UC’s Carbon Neutrality Strategies
= Energy efficiency + conservation
= On-site renewable energy
= Utility-scale clean electricity
= Biomethane
= Cap and trade compliance offsets
= Off-campus carbon reduction actions
4
5. UC’s On-site Renewables Goal and Progress
5
0
10
20
30
40
50
60
2010 2011 2012 2013 2014 2015 2016 2017
ThousandsofkW
Biogas Solar
2014 policy goal
What’s worked:
• Clear
systemwide
policy goals and
technical support
• Local planning
and procurement
10. Off-campus Utility-scale Energy Supply
10
• Establishing a centralized internal team to help plan and
implement UC’s clean energy supply strategies
• Establishing a Governing Board, comprised of representatives
from each campus, to direct and oversee collective procurement
decisions
• Creating UC’s own electricity company to directly serve the
eligible campuses
• Using all available contracting methods
What’s worked:
13. UC’s Wholesale Power Program Results
13
…and costs will be less-expensive
than traditional utility services
Carbon Intensity of Supplied Electricity Price Relative to Business as Usual
UC’s electricity supplies will
be carbon neutral in 2019…
14. 14
UC now has over 100 renewable energy supplies on-line
15. 15
What’s next for UC given California’s plans?
Renewable Portfolio Standard
Renewable and/or
Carbon Free
SB100
CA 2045UC 2025
CA’s Electric Grid:
60% Renewable by 2030
100% Clean by 2045
16. 16
UC is now targeting the “gaps” in renewable supplies
17. 17
Our goal is to select projects with all positive cashflow
18. Recommendations for UC power purchase agreements:
18
• Include all technologies (e.g., wind, solar, geothermal) in RFP
• Prioritize new projects on previously disturbed lands
• Prioritize projects that qualify to make California Bucket 1 RECs
• Consider projects in any state connected to CAISO (CA, AZ, NM)
• Allow energy storage (not mandatory) as part of all projects
• Run NPV & annual cash flow analyses with multiple “duck curve”
scenarios
• Study congestion and deliverability constraints on short-listed projects
• Pick a portfolio of different project types and locations
21. 21
How much will carbon neutrality by 2025 cost?
2019 Findings:
• It’s wise to be
conservative in
forecasting cost savings.
• Analyze both cash flows
and long-term results.
• Early adoption has
inherent risks/rewards.
• UC’s stakeholders are
generally pleased with
results to date.
• We can do this!
Our perspective in 2016:
24. UC’s Greenhouse Gas Emissions without Further Action
24
NPV of forecast energy
spending 2018 - 2037: $4.42 billion
2018: $232 million
2037: $509 million
Campus utility expenses are
about 2% of total expenses.
27. UC’s Long-term Plan
27
Energy efficiency, clean
electricity, biomethane, and
electrification can
complement one another to
create carbon-free campuses