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Title:

Enhancing the Role of Renewable Energy in California

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Renewable Energy in California Robert A. Laurie Commissioner California Energy Commission Geothermal Resources Council Annual Meeting September 2000 – PowerPoint PPT presentation

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Title: Enhancing the Role of Renewable Energy in California


1
Enhancing the Role of Renewable Energy in
California
  • Robert A. Laurie
  • Commissioner
  • California Energy Commission
  • Geothermal Resources Council Annual Meeting
  • September 2000

2

California Energy Commission
  • The Energy Commission is the energy policy and
    information advisor to the California governor
    and legislature
  • The agency implements state energy policies while
    promoting a reliable energy supply at affordable
    prices for California

3
Major Functions of the California Energy
Commission
  • Gather and analyze energy data
  • Forecast energy supply and demand
  • License large power plants
  • Promote energy efficiency
  • Advance energy technologies
  • Promote renewable energy markets
  • Plan for and direct response to energy
    emergencies
  • Enhance energy export opportunities

4
Electricity Supply Demand Balance (7
Operating Reserve at Coincident Peak)

1 in 40 Year Peak Demand
1 in 5 Year Peak Demand
1 in 2 Year Peak Demand
Existing generation excludes 2,500 MW for outages
5

Californias 1998 Net System Power
6
ELECTRICITY SOURCES
Twenty five percent of the states electricity
comes from out-of-state generation
7
California Power Plant Projects (As of September
2000)
8
Barriers to Proposed Power Plants
  • Availability of water for cooling power plants
  • Air quality standards and emissions from power
    plants
  • Supply of natural gas
  • Local opposition
  • Transmission constraints system stability needs

9
Renewables in California
  • About 12 of Californias electricity supply in
    2000
  • California has added 790 MW of renewable plants
    to the system since 1990
  • Geothermal comprises about 5 of states total
    electricity production
  • State support for geothermal is provided through
    the Public Interest Energy Research Program, the
    Renewable Energy Program, and the Geothermal
    Grant Program

10
Renewable Energy Program
  • Also funded from Public Goods Charge established
    by AB 1890
  • 540 million over four years to support existing,
    new, and emerging renewable technologies
  • Three of the programs five accounts offer
    incentives for the production or purchase of
    geothermal energy
  • Existing (243 million)
  • New (162 million)
  • Customer Credit Account (75.6 million)

11
Renewable Energy Program
  • Existing Account
  • Pays cents/kWh production incentives (capped at
    1.5 cents/kWh) to renewable generators on-line
    before 9-96
  • 259 existing renewable facilities (more than
    4,000 MW) have received more than 130 million
    in incentives
  • 36 geothermal facilities totaling 1,200 MW have
    received nearly 13 million (about 10)

12
Renewable Energy Program
  • New Account
  • Pays production incentives (capped at 1.5
    cents/kWh) to generators on-line after 9-96
  • Auction to allocate funds held June 1998
  • 55 winning bidders (500 MW) included 4 geothermal
    facilities (157 MW) that were awarded over 80
    million
  • Incentive not paid until projects are built and
    operating

13
Renewable Energy Program
  • Customer Credit Account
  • Provides /kWh rebates (capped at 1.5 /kWh) to
    customers for the purchase of renewable energy
  • More than 33 million paid in rebates
  • About 80 of customer rebates is attributable to
    geothermal sales

14
PIER Program
  • Funded from Public Goods Charge established by AB
    1890
  • 62.5 million annually for public interest"
    energy RDD efforts
  • Renewable energy one of five subject areas in the
    PIER portfolio
  • Three solicitations in 1997 and 1998 committed
    nearly 51 million to 82 different projects in
    the five subject areas

15
Geothermal Grant Program
  • Funded through Geothermal Resources Development
    Account (GRDA)
  • Promotes RDD of geothermal energy in California
    through co-funding and technical assistance
  • Current projects include the Geysers Pipeline and
    Southeast Geysers projects to carry treated
    wastewater from treatment plant for reinjection,
    resulting in increased steam supply at existing
    geothermal plants

16
New Developments
  • Late 2000 - PIER will release a Renewables
    Affordability Solicitation. Amount of available
    funds is yet to be determined.
  • Spring 2001 - Geothermal Grant Program will
    release solicitation for 2.8 million in GRDA
    funds for geothermal-related projects
  • Renewable Energy Program may hold a second
    auction for new renewable resources that can come
    on-line by June 2001. Amount of available funds
    is yet to be determined.

17
Future of Renewables
  • Less than half of the states potential renewable
    capacity has been developed
  • New renewable generation needed to satisfy the
    growing green market and help alleviate the
    states current electricity supply shortage
  • AB 995 (currently before the Governor) extends
    funding for 10 years for both renewables (135
    million/year) and public interest RD (62.5
    million/year)

18
In Closing
  • Through PIER, the Geothermal Grant Program, and
    the Renewable Energy Program, the Energy
    Commission will continue to pursue its goals of
  • Improving cost-competitiveness of renewable
    technologies through reduction of high life cycle
    costs and enhanced productivity
  • Helping to develop a self-sustaining renewable
    industry
  • Encouraging market-based development of new
    renewable resources
  • Maintaining the benefits and diversity of the
    existing renewables industry while helping the
    transition to a fully competitive market
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