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Wind Energy Recent California Developments Report to CREPC WIWET

Wind Energy Recent California Developments Report to CREPC WIWET. Energy Commission Staff Cynthia Praul Assistant Executive Director January 21, 2003. Overview of Presentation. Renewable Energy In CA Supply Mix Renewable Energy Program Auctions Renewable Portfolio Standard Provisions

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Wind Energy Recent California Developments Report to CREPC WIWET

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  1. Wind EnergyRecent California DevelopmentsReport to CREPC WIWET Energy Commission Staff Cynthia Praul Assistant Executive Director January 21, 2003

  2. Overview of Presentation • Renewable Energy In CA Supply Mix • Renewable Energy Program Auctions • Renewable Portfolio Standard Provisions • Public Interest Wind Energy Research

  3. Renewable Energy In California Supply Mix Tim Tutt / Todd Lieberg 916-654-4590 ttutt@energy.state.ca.us Renewable Energy Program Auctions Suzanne Korosec 916-654-4516 skorsec@energy.state.ca.us Renewable Portfolio Standard Provisions Heather Raitt 916-654-4735 hraitt@energy.state.ca.us PIER Renewables Wind Energy R&D Dora Yen-Nakafuji 916-653-4128 dyen@energy.state.ca.us CEC Contact Information Renewable Call Center 1-800-555-7794

  4. I. Background: Renewable Energy in California Supply Mix • The Highest Percentage of Renewables in California (12.7%) was Achieved in 1993. • For 2001, the Percentage was about 10.5% • Renewable Generation Declined Between 1993-1998. This Trend Reversed in 1998 with the Beginning of the CEC’s Renewable Energy Program. • The Percentage of Renewable Generation for 2001 was About the Same Level as it was in 1986 (10.5%)

  5. California’s In-State Renewable Capacity (MW) 2000

  6. Renewable GWhs Generated in California

  7. Percent of Renewable Generation in California that comes from Wind

  8. Percent of California's GWhs Derived from Wind Generation

  9. II. Renewable Energy Program(REP)New Auction Results • Restructuring included PGC and established REP • To date, the New Renewable Resources Account has held three auctions • First Auction: June 1998, $162 Million • Second Auction: November 2000, up to $40 Million • Third Auction: September 2001, up to $40 Million

  10. Cumulative Total of All Three New Account Auctions (MW)

  11. Summary of All Winning Projects Participating in the New Renewable Resources Account

  12. III: California’s Renewable Portfolio Std. • Target of 20 percent renewable energy for the state • Each Electrical Corporation (IOU) shall increase its procurement of eligible renewables by at least 1% of retail sales per year to reach 20% portfolio by 2017 • Local Publicly Owned Utilities are directed to: • Prepare individual plans to comply with RPS • Implement Legislative intent while taking into account effect on rates, reliability, financial resources, environmental benefit and report to customers annually • Applies to Community Choice Aggregators and ESPs (CPUC rulemaking to specify requirements) • Seeks to address problem of the lack of power purchase agreements

  13. RPS: Legislative History • AB 995/SB 1194 (Wright/Sher, ‘00) Extended collection of Public Goods Charge (PGC) of $135 million per year over ten years, beginning 1/1/02. • AB 57 (Wright, ‘02) Directs utilities to file annual procurement plans to the CPUC • SB 1038 (Sher/Bowen, ‘02) Authorizes expenditures of PGC, funding for new facilities tied to RPS (almost $70 million/year) • SB 1078 (Sher, ‘02) Creates RPS

  14. RPS: CPUC Implementation Role By June 30, 2003 the CPUC shall adopt by rule, in consultation with the CEC: • A process to provide criteria for rank ordering and selection of least cost and best fit renewable resources • Flexible compliance rules • Standard Terms and Conditions to be used by utilities in contracting for renewables, including performance requirements for renewable generators • A process for determining market prices

  15. RPS: Utilities’ Implementation Role Prepare renewable procurement plan-- “least cost best fit”: • Assesses “annual or multiyear portfolio supplies and demand to determine optimal mix of renewable generation resources with delivery characteristics that may include peaking, dispatchable, baseload, firm, and as-available capacity.” • Employs CPUC’s processes to meet Annual Procurement Targets, including least-cost best-fit, compliance flexibility, and (possibly) renewable diversity. • Describes a bid solicitation.

  16. RPS: Utilities’ Role (cont.) • Within 90 days of being deemed credit worthy, the utility would conduct solicitations to implement CPUC approved procurement • Offer standardized contracts, for at least 10 years • Contracts at or below market price considered reasonable • Any costs above market price can be supplemented with PGC funds, to the extent funds are available, within caps • If unable to procure 1% in given year, 3 years to make up • Rank order resulting bids by least cost best fit • Propose to CPUC which contracts to accept • Sign contracts CPUC approves

  17. RPS: CEC Implementation Role • Certify facilities as “eligible renewable energy resources” • Establish criteria for “incremental” output from existing geothermal facilities • Design and implement an accounting system to verify retail sellers’ compliance with the RPS • Verify that generation is counted only once in this or any other state • Develop comprehensive renewable electricity generation resource plan by December 1, 2003

  18. RPS: Integration with CEC REP • Allocate/award supplemental energy payments (SEPs) to eligible renewable resources to cover the above-market costs • May set caps on PGC /kWh • May reduce or terminate SEP if project fails to meet obligation • Determine eligibility of out-of-state facilities • Determine definition of new • Determine applicability of requirement that only 25% of funds may go to any particular project • Integrate PGC payments allowed by SB 90 with SEP for 10 years

  19. RPS: Implementation Questions • Verification and Accounting? • Tags? • Munis/ESPs? • PGC/ Market Price: • What will the market price be? Will FERC and the courts accept it? • Will the PGC funds be adequate to meet the RPS? • How will PGC funds be allocated among utilities/ others? • How will projects that already have PGC awards be integrated?

  20. IV. CA Wind Energy ResearchPIER • Economic Motivator – wind energy most financed and developable renewable technology • California Energy Commission Goal – provide environmentally safe, affordable & reliable, diverse energy services/choices to the public • Wind resource potential 7000MW • Over24 billion KWh wind generated electricity to displaceNOx, CO2 and other sources of emissions • Nearly $3.2 billion investment revenue & jobs • National Energy (DOE/EERE) Goal – promote diverse fuel supplies & foster a secure and reliable energy system that is environmentally sustainable and increase national renewable portfolio to 20% by 2020

  21. Top 5 Key Activities • Support for small wind community • High-resolution remapping of CA wind resources & follow-on activities • California Wind Energy Consortium • Forecasting efforts • Understand California’s Wind resources - monitoring & validation

  22. Wind Program Accomplishments • Established California Wind Energy Consortium (forum Dec 17-18, 2002) • PIER publishing annual WPRS reports (data from 1985-2001 available) • Re-mapping and Validation • Installation of WTC EMD 500kW turbine in Lancaster, CA test site • Support for California based Clipper Windpower Technology to develop advance drivetrain (DGD) • Strong collaboration with industry and national efforts (DOE, NREL)

  23. Re-mapping & Validation • High resolution maps avail.http://www.energy.ca.gov/maps/wind.html • Numerical modeling techniques coupled with meteorological expertise & field measurements • Integrate GIS techniques for analysis & planning • Couple tall tower and remote sensing data High resolution maps & GIS tools for planning wind project development

  24. Top 5 Lessons Learned • Invest in long-term, programmatic program approach for continuity (transmission, siting, planning) • More collaboration among intra-state and inter-states (mapping, forecasting, policies) – understanding of regional issues • State leadership in standardization, setting direction and data collection • Education, education • Communication, communication

  25. Anticipated Future Wind RD&D Activities • Developing wind systems for low wind speed areas in CA ($5 million) • Wind Forecasting ($1 million) • Lowering the cost of wind energy systems ($2 million) • Integrating wind electricity into California’s grid ($1 million) • Lowering the cost of small wind energy systems ($1 million)

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