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 Update on Renewable Action Plan Suzanne Korosec...

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

Update on Renewable Action Plan

Suzanne KorosecDeputy Director,

Renewable Energy Division

May 11, 2015


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


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 analysis4. Continue development of renewable energy

on government property3


#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 Framework

4


#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 Program5


#3: Conduct 2030 analysis

• Pathways Project: Long-Term Greenhouse Gas Reduction Scenarios

• CAISO 2015-2016 Transmission Planning Process

• DRECP – 2040 scenarios

6


#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


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 structure7. Improve transparency of renewable generation

costs8. Strengthen links between transportation and clean

electrification 8


#5: Modify procurement practices to develop a higher value

portfolio • POUs submitting annual information on

procurement as result of SB X1 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. 15-02-020, Administrative Law Judges Ruling Seeking Post Workshop Comments, potential revisions to RPS Calculator 9


#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


#7: Improve transparency of renewable generation costs

• CEC Distributed Generation Integration Cost Study – Analytical Framework– http://www.energy.ca.gov/2013publications/

CEC-200-2013-007/CEC-200-2013-007-REV.pdf

• CEC Distributed Energy Resource Pilot Study

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#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)

• AeroVironment – Charging for Car2Go vehicles at apartment venues (Completed 3/28/2015)

• AeroVironment – Charging for Car2Go 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)

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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


• 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, $5.6M)

• U.S. DOD V2G demonstration – Contract 600-12-016 (Concurrent Technologies Corporation) to be completed 3/31/2016

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electrification


Strategy 3: Minimize interconnection and integration costs and requirements at the

distribution and transmission level9. Consider environmental and land-use factors in renewable scenarios10.Monitor status of California ISO approved transmission projects to

ensure timely completion11.Streamline transmission permitting12.Develop dialogue on distribution planning and opportunities for a more

integrated distribution planning process13.Disaggregate CEC demand forecast14.Create a statewide data clearinghouse for renewable energy generation

planning15.Enable deployment of advanced inverter functions 16.Develop a forward procurement mechanism17.Define clear tariffs, rules, and performance requirements for integration

services18.Provide regional solutions to renewable integration19.Ensure adequate natural gas pipeline infrastructure

15


#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 analysis16


#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% RPS17


#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


#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


#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


#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


#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


#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 signals)23


#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


#17: Define clear tariffs, rules, and performance requirements for

integration services• CAISO

– Demand Response and Energy Efficiency Roadmap

– Energy Storage Roadmap

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#18: Provide regional solutions to renewable integration

• Energy Imbalance Market began operation November 2014– NV Energy joining in fall of 2015– APS considering joining– $11M in gross benefits to date

• CAISO/PacifiCorp MOU (April 2015)

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#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. RP14-442-000 requires interstate pipelines to

post offers to buy excess capacity• E3 report “Natural Gas Infrastructure Adequacy in the Western

Interconnection: An Electricity System Perspective” – technical feasible to meet gas demands to integrate renewables

• ColumbiaGrid paper on reliability issues from limited natural gas supplies to generators

• PG&E and SoCal 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 renewables

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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 needs21.Enhance linkage between clean energy policies,

workforce, and employers22.Support the Innovation Hub Initiative at the

Governor’s Office of Business and Economic Development

28


#20-#22: Align workforce training to needs, enhance links between

clean energy and workforce, support iHub

• CEC R&D funding for workforce development• California Workforce Investment Board

– State Strategic Workforce Development Plan– $3M in Proposition 39 funding

• Clean Technology and Renewable Energy Partnership Academies (SB X1 1 (2011) and SB X1 1 (2013), $8M/year through 2017

• 54,700 solar jobs in California29


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 integration26.Support R&D for siting of renewable projects

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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, ~$70M

• 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


#24: Advance R&D for innovative renewable technologies

• 20 projects, ~$20M• 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

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#25: Promote R&D for renewable integration• 75 projects, ~$109M

• 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

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#26: Support R&D for proactive siting of renewable projects

• 21 projects, ~$9M• 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

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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 credits29.Study the effectiveness and impacts of the

property tax exclusion

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PACE Loan Loss Reserve

• California Alternative Energy and Advanced Transportation Financing Authority

• $10M loan loss reserve funding provided by CEC

• 24,423 residential PACED financings, $499M• No defaults• Program estimated to last 8-10 years

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#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

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#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 $5M per application

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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

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Questions?

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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 Update on Renewable Action Plan Suzanne Korosec...

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