Presentation on theme: "Energy and Economy Transition California’s energy system to a highly efficient, renewables-based system and electrify transportation."— Presentation transcript:
Energy and Economy Transition California’s energy system to a highly efficient, renewables-based system and electrify transportation.
Why Promote This Transition? Transitioning our energy system means jobs. Clean tech jobs grew 53% between1995 and 2010, compared with CA’s overall job growth of 12%. This transition saves consumers money. Ratepayers have saved $56 billion since 1978 through energy efficiency, and will save an additional $23 billion through 2013. It is needed to meet our long term climate goals: 80% reduction in GHG pollution by 2050 requires fundamental changes.
Figure 1 shows the amount of renewable generation for California, excluding large hydro, from 1982-2009 as well as estimates of the amount of renewable generation needed to meet the renewable targets. The graph also shows the amount of renewable energy that could be expected if all investor and public utility renewables portfolio standard contracts are realized and scenarios if 30 or 40 percent of the contracts fail.
California’s three large IOUs collectively served 20.6% (33, 967,249 MWhs) of their 2011 retail electricity sales with renewable power. PG&E – 20% SDG&E – 20% SCE – 21%
Permitted Projects in 2010-2011 (Land Use Permits) Source: California Energy Commission renewable energy projects data base
Permitted Projects W/PPA Agreement 2010-2012 Source: California Energy Commission renewable energy projects data base
Locations of existing utility scale renewable facilities
Transmission Major transmission projects can be identified through the California Independent System Operator (ISO) large generator interconnection process (LGIP). The ISO has identified and approved key transmission projects that provide sufficient capacity to enable the state to achieve the 33% renewables target by 2020, as illustrated in the following table and map:
Existing Energy Storage in California The vast majority (~99%) of existing storage capacity in California is from pumped hydro. Pumped Hydro: 3,950 MW 1 Batteries: 10 MW+ 2 Flywheel: ~0.1 MW 2 Compressed Air: 0 MW 2 1 Source: California Energy Commission Energy Almanac 2 Source: California Energy Commission staff estimates
Energy Storage Projects in the Pipeline ARRA-funded projects: PG&E compressed air energy storage project (Kern Co.)- 300 MW Primus Power zinc-chloride battery “wind firming” project (Modesto)- 25 MW SCE lithium ion battery wind energy storage project (Tehachapi)- 8 MW SMUD zinc-bromine battery project (Sacramento)- 0.5 MW Ktech iron-chromium redox flow battery project (Sunnyvale, Snelling)- 0.25 MW Amber Kinetics flywheel project (Fremont)- 0.05 MW Seeo lithium ion battery project (Berkeley, Van Nuys)- 0.25 MWh End use thermal storage: Ice Energy Inc. signed contract in 2010 to provide 53 MW of ice cooling storage to Southern California Public Power Authority Longer term possibilities for energy storage include hydrogen, ultracapacitors, and electric vehicle batteries
How much DG is already in place? Total Online: 2,767 MW Total Pending: 1,698 MW Current DG Total 4,465 MW Total “Authorized” 4,518 MW ?? 3,017 MW Governor’s Goal 12,000 MW
Elements of energy transformation 1. Improve energy efficiency and reduce energy demand 2. Develop a cleaner, more responsive energy supply 3. Implement an efficient and responsive energy infrastructure 4. Reduce emissions from the transportation sector (Source: California Clean Energy Future)
Developing a cleaner energy supply: Renewables of all sizes are needed Electricity demand will increase: population growth and electrified transportation. Along with energy demand programs, we will need more power. A recent report estimated the state’s solar energy capacity must increase 12% and its wind capacity 7.5% every year between now and 2050 to meet electricity demand increases while meeting our long-term climate goal. Governor Brown has called for expansion of both large-scale and small-scale energy (aka “Distributed Generation”)
What’s Distributed Generation? Energy systems that: 1. Are renewable (technologies and fuels accepted as renewable in state’s RPS) 2. Are sized up to 20 MW 3. Are located within the low-voltage distribution grid; or if outside of the distribution grid, supply power directly to the consumer.
Important elements of our DG portfolio The state’s DG portfolio should achieve the following: Increase the flexibility and reliability of utilities’ distribution grids and the state’s overall energy system. Work in conjunction with other key state energy initiatives, including energy storage, demand response and electrified transportation. Include a range of renewable technologies, including both intermittent and base-load energy sources. Is delivered in a cost-effective manner that provides long term benefits to energy consumers and ratepayers. Develops renewable energy resources in communities across the state.
Challenge 1: Grid Planning and Integration Need: Update the state’s distribution grids in a manner that allows for integration of more DG. Actions: Thorough analysis of where may DG bolster or add risk to electric grid. What grid upgrades are needed? How to build grid “flexibility” (Energy storage, Demand Response)
Challenge 2: Interconnection Process Need: Enable efficient interconnections of DG projects to the energy grid. Actions: Implement Rule 21 settlement Coordination with utilities’ procurement Interconnection queue that includes realistic projects Education and interaction
Challenge 3: Permitting Goal: Streamline and standardize local approval of DG projects. Actions: Update state codes for solar PV Help local governments streamlining and standardize approval process Maps and Zoning? Clarity and consistency
Challenge 4: Financing Goal: Increase investment in all sizes of DG. Actions: #1: Continuity and certainty within procurement programs and regulations. Support (expand?) promising financing programs on-bill repayment commercial PACE programs Innovative customer side financing Schools Resolve barrier to residential PACE