# Presentation: 723641

## Marwan Masri
Director, Renewable Energy Program
California Energy Commission

November 9, 2004

**Director, Renewable Energy Program**
**California Energy Commission**
**November 9, 2004**

**California’s Market for **
**Renewable ****Energy**

***Energy Analysis Forum ***

## Today’s Topics

- Status of California’s Renewables Market
- The Renewable Energy Program
- California’s Renewables Portfolio Standard

## Renewable Energy Generation in California

**Renewable Energy Generation in California**

## Historical and Projected Renewable Generation in California (1983-2020)

## Renewable Energy Program Funding Allocations$135 Million/Year (1998 – 2006)

**Notes:**
Support for Existing Renewable Facilities
Incentives for New Renewable Facilities development
Rebates for installing renewable energy technologies for distributed generation
Consumer Education
Renewable energy tracking & verification
Rebates for solar on schools

## Renewable Energy Program

- New Renewable Facilities Program
- In total, awards made to 70 projects (1.2 GW)
- 45 projects (429 MW) are now online
- Existing New Renewables Program
- Has supported 4,400 MW of renewable power
- Currently supporting about 2,021 MW (wind, solar thermal, biomass)
- Emerging Renewables Program
- Over 10,000 systems installed (PV, wind, fuel cells)
- 42 MW of renewable distributed generation capacity
- Consumer Education Program
- Two statewide public awareness campaigns
- 20 outreach & demonstration project grants
- Tracking and verifying RPS sales

**Notes:**
2004 Activity for Existing Program
	# of Facilities    Capacity (MW)
Biomass                        28                    641
Solar Thermal                  8                    354

## New Renewable Facilities Program

- New renewable projects online total 429 MW of capacity.
- More than half of the participating projects are on-line.

**On-Line Dates by Capacity****(Developers’ Plans for 2004-2006 in White)**

**Notes:**
71 projects awarded conditional funding awards

45 projects on-line, $88 million, 429 total MW
2 biomass = 11 MW
1 digester gas = 2 MW
2 geothermal = 59 MW
14 landfill gas = 37 MW
3 small hydro = 31 MW
23 wind = 288 MW

26 projects not yet on-line, $106 million, 832 total MW
5 landfill gas = 18 MW
2 small hydro = 2 MW
1 waste tire = 30 MW
156 wind = 684 MW
2 geothermal = 98 MW

10 projects cancelled (33 MW)
1 biomass = 8 MW
8 landfill gas = 22 MW
1 wind = 3 MW

## New Account Facilities

| Technology | #
Facilities
Funded | # Online | Funded
Capacity 
(MW) |     On-line 
       Capacity 
       (MW) | Power Purchase Contracts |
| --- | --- | --- | --- | --- | --- |
| Biomass | 2 | 2 | 11 | 11 | 0 |
| Digester Gas | 1 | 1 | 2 | 2 | 1 |
| Geothermal | 4 | 2 | 157 | 59 | 3 |
| Landfill Gas | 18 | 14 | 50 | 36 | 12 |
| Small Hydro | 5 | 3 | 33 | 31 | 1 |
| Waste Tire | 1 | 0 | 30 | 0 | 0 |
| Wind | 39 | 23 | 973 | 288 | 25 |
| TOTALS | 70 | 45 | 1,256 | 429* | 42 |

- * Rows do not add to total due to rounding

**Notes:**
For those not online yet but having a contract, there are other issues keeping them from coming online. For example: 
Medicine Lake=permitting issues (geothermal) 
Wind=transmission access in Tehachapis.

## Existing Renewable Facilities Program Market Activity (1998-2004)

**Existing Renewable Facilities Program ****Market Activity (1998-2004)**

**Notes:**
Explanation of blips:
Late ’01 very low SRAC = paid all three tiers
Jan 03 Tier 2 payments = Enron retroactive payments after court resolution

## Slide 10

**Notes:**

California Energy Commission	40 MW (as of 9/04)
The Rest of the State	                     44 MW (CPUC=20 MW)

The Emerging Renewables Program has provided rebates for the installation of over 10,000 PV systems representing about 40 megawatts of capacity	
Program paid >$100 Million in last 2 years, $162 Million since program began in 1998. 

The Legislature supports giving the Energy Commission an additional $60 million to continue offering emerging technology rebates. (AB 135, Reyes) for funding thru Jan 2007. Difficult to say how long $60M would last; received requests for $20 Million in June ’04 alone. Increased demand occurs when rebates are scheduled to drop in June and December.

## California’s PV Capacity

- Total grid-connected PV capacity in California is about 85 MW.
- Emerging Renewables Program rebates supported installation of nearly half of the state’s PV capacity.

**Notes:**

California Energy Commission	40 MW (as of 9/04)
The Rest of the State	                     44 MW (CPUC=20 MW)

The Emerging Renewables Program has provided rebates for the installation of over 10,000 PV systems representing about 40 megawatts of capacity	
Program paid >$100 Million in last 2 years, $162 Million since program began in 1998. 

The Legislature supports giving the Energy Commission an additional $60 million to continue offering emerging technology rebates. (AB 135, Reyes) for funding thru Jan 2007. Difficult to say how long $60M would last; received requests for $20 Million in June ’04 alone. Increased demand occurs when rebates are scheduled to drop in June and December.

## Comparison of Leading PV Markets

**Notes:**

California Energy Commission	40 MW (as of 9/04)
The Rest of the State	                     44 MW (CPUC=20 MW)

The Emerging Renewables Program has provided rebates for the installation of over 10,000 PV systems representing about 40 megawatts of capacity	
Program paid >$100 Million in last 2 years, $162 Million since program began in 1998. 

The Legislature supports giving the Energy Commission an additional $60 million to continue offering emerging technology rebates. (AB 135, Reyes) for funding thru Jan 2007. Difficult to say how long $60M would last; received requests for $20 Million in June ’04 alone. Increased demand occurs when rebates are scheduled to drop in June and December.

## PV Trends in Germany v. California

**Notes:**

California Energy Commission	40 MW (as of 9/04)
The Rest of the State	                     44 MW (CPUC=20 MW)

The Emerging Renewables Program has provided rebates for the installation of over 10,000 PV systems representing about 40 megawatts of capacity	
Program paid >$100 Million in last 2 years, $162 Million since program began in 1998. 

The Legislature supports giving the Energy Commission an additional $60 million to continue offering emerging technology rebates. (AB 135, Reyes) for funding thru Jan 2007. Difficult to say how long $60M would last; received requests for $20 Million in June ’04 alone. Increased demand occurs when rebates are scheduled to drop in June and December.

## Established in 2002  Senate Bill 1078
Goal of 20% of retail sales from renewables by 2017
Implemented jointly by CPUC/CEC 
2003 Joint-Agency Energy Action Plan recommended accelerating target to 2010
Energy Commission 2003 Integrated Energy Policy Report (IEPR) recommends more ambitious goal for post-2010
2004 IEPR Update is examining possible goal of 33% by 2020

- Goal of 20% of retail sales from renewables by 2017
- Implemented jointly by CPUC/CEC
- 2003 Joint-Agency *Energy Action Plan* recommended accelerating target to 2010
- Energy Commission 2003 *Integrated Energy Policy Report* (IEPR) recommends more ambitious goal for post-2010
- 2004 IEPR Update is examining possible goal of 33% by 2020

**California’s Renewables Portfolio Standard**

## CEC-CPUC RPS Collaboration

**CEC ROLE**
- Certify eligible facilities
- Establish criteria for “incremental” output from existing geothermal facilities
- Supplemental Energy Payments
- Accounting system to  track and verify RPS compliance

**CPUC ROLE**
- MPR methodology
- Least-cost-best-fit process
- Rules for flexible compliance
- Standard contract T & Cs
- IOU procurement plans, baselines and targets
- Approve or reject proposed contracts
- Ensure RPS competitiveness
- Define rules for ESPs & Community Choice Aggregators

## RPS Target vs. the Statewide Potential

**RPS Target vs. the Statewide Potential**

**Technical  Potential**

**20% by 2010**

**55,170 GWh/yr**

- *Estimated  potential for other WECC states is 3.7 million GWh/yr

**262,150 GWh/yr***

## 20 percent by 2010 for Six Largest CA Utilities

## July 2004 – PG&E and SDG&E issued Requests for Offers
IOUs anticipate short list of bidders ready by mid-October
Once IOU short lists are developed CPUC will calculate and release Market Price Referent
IOUs anticipate filing contract advice letters with CPUC in December 2004
Sept. 2004 – CPUC issued ruling asking for comments on participation of DG resources in the RPS program
Upcoming ruling expected to address other outstanding RPS issues:
Refinement of Market Price Referent methodology
Participation of small/multi-jurisdictional electric utilities, ESPs, and CCAs in the RPS program, etc.

- IOUs anticipate short list of bidders ready by mid-October
- Once IOU short lists are developed CPUC will calculate and release Market Price Referent
- IOUs anticipate filing contract advice letters with CPUC in December 2004
- Sept. 2004 – CPUC issued ruling asking for comments on participation of DG resources in the RPS program
- Upcoming ruling expected to address other outstanding RPS issues:
- Refinement of Market Price Referent methodology
- Participation of small/multi-jurisdictional electric utilities, ESPs, and CCAs in the RPS program, etc.

**RPS Implementation - Summer 2004**

**Notes:**
Edison did not issue 2004 RPS solicitation – waiting for interim procurement negotiations to conclude

## RPS-Certified Facilities

- Energy Commission certified 23 facilities as RPS eligible
- For a list of RPS-certified facilities and how to get certified
**www.energy.ca.gov/portfolio/documents**

|  | Capacity (MW) | # Facilities
Total | # Facilities
Planned |
| --- | --- | --- | --- |
| Biodiesel/Biomass | 190 | 4 | 2 |
| Geothermal | 1,108 | 16 | 7 |
| Landfill Gas | 4 | 2 | 0 |
| Solar Thermal | 101 | 1 | 1 |
| TOTAL | 1,403 | 23 | 10 |

***Canada: British Columbia and Alberta are participating in WREGIS, and Manitoba is participating in the northern Midwest system. ***
***Mexico: northern Baja is participating in the WREGIS system. ***

**REC Tracking in North America**

## RPS Tracking and Verification

- Long-term electronic tracking system anticipate operational by end of 2005
- Energy Commission is working with Western Governors’ Association (WGA) on Western Renewable Energy Generation Information System (WREGIS)
- WECC agreed to be institutional home for WREGIS
- Interim tracking system requires annual submittal of third-party verified meter reads until WREGIS is operational

## RPS - Looking Forward

- Ensure adequate transmission system for new renewables development
- Establish RPS goals beyond 2010
- Develop rules for Electric Service Providers and Community Choice Aggregators
- Make SEPs available

## The Renewable Energy Program supports renewable energy development throughout California.

**The Renewable Energy Program**** ****supports ****renewable energy**** development throughout ****California.**

## Additional Information

**www.energy.ca.gov/renewable**
**(800) 555-7794**