California s RPS Program: Progress Towards California s 33% RPS Goal and the Role of Concentrating Solar Power CSP Conference

Transcription

1 California s RPS Program: Progress Towards California s 33% RPS Goal and the Role of Concentrating Solar Power CSP Conference Presented by Edward Randolph Energy Division Director, California Public Utilities Commission June 27,

2 Presentation Outline Overview of California s RPS Program Roll of CSP in RPS Program New 33% RPS Procurement Framework 2

3 Overview of California s RPS Program 3

4 RPS Program Background A market-based program that requires all retail sellers of electricity to procure increasing amounts of renewable energy through 2020 California's RPS program was established in statute in 2002 Senate Bill (SB) 1078 (Sher, 2002) 20% by 2017; SB 107 (Simitian, 2006) 20% by 2010; SB 2 (1X) (Simitian, 2011) 33% by 2020 RPS-obligated entities CPUC regulates: Investor Owned Utilities (IOUs), Electric Service Providers (ESPs), Community Choice Aggregators (CCAs); and CEC and CARB oversight and enforcement, respectively: Publicly Owned Utilities (POUs) 4

5 Achieving RPS Requires Coordination CPUC is responsible for: Approving annual RPS procurement plans and resulting RPS contracts for PG&E, SCE and SDG&E Establishing RPS compliance targets and determining compliance for retail sellers Approving California transmission projects California Energy Commission (CEC) is responsible for: Certifying & Verifying renewable generating facilities as RPS-eligible Overseeing Publicly Owned Utility RPS programs; works with ARB on enforcement Permitting for thermal power plants CAISO Real time grid management to accommodate variations in supply and demand Generator interconnection processes (coordination with IOUs on distribution interconnection) Transmission planning (transmission for RPS may be policy driven ) Market operations (energy, ancillary services, congestion, etc) 5

6 Role of CSP in California s RPS 6

7 Current and Projected RPS Resource Mix (GWh) Projects Under Contract with PG&E, SCE and SDG&E 2011 Generation: Approximately 34,000 GWh 2020 Generation (forecast): Approximately 55,000 GWh 7

8 CSP Procurement in California 19 large scale projects representing over 4,000 MW have been successfully contracted since the beginning of the RPS program 12 additional projects experienced contract terminations mostly due to economic viability All CSP contracts were signed between All projects are currently in development and not delivering electricity and are expected to come online beginning in 2015 Technologies include solar trough and power tower with and without thermal storage capabilities 8

9 Forecast Compliance Position, Not Risk Adjusted Contracted for RPS Projects Online and In Development California Public Utilities Commission, May 2012 For planning purposes, the Commission assumes that less than 100% of contracted projects will achieve commercial operation 9

10 RPS Solicitation Resource Bids 10

11 CSP Price and Value The average solar thermal bid price from the 2011 RPS Solicitation was higher than the average price for all other technologies The average bid price for all projects in the 2011 RPS Solicitation was down 30% from the last RPS Solicitation in 2009 Average bid prices for all technologies decreased over this period expect for solar thermal which stayed relatively constant Because of the higher price of solar thermal contracts, the average value of the contracts is lower than for other technologies, when using the current least-cost, best-fit bid evaluation methodology No CSP projects were shortlisted in the IOUs 2011 RPS solicitation 11

12 RPS Cost Containment Statute Requires new cost containment requirements that will establish a limitation on procurement expenditures to achieve RPS goals ( (c)) The commission shall establish a limitation for each electrical corporation on the procurement expenditures for all eligible renewable energy resources used to comply with the renewables portfolio standard. 12

13 CSP and Integration Needs Solar thermal facilities are unique relative to other intermittent renewable technologies in that they can provide ancillary services and optimize load based on system need and pricing The value associated with providing these benefits is not currently reflected in the CPUC s least-cost, best-fit bid evaluation methodology The incremental value that can be attributed to solar thermal facilities will be determined by the need for renewable integration The CPUC is currently deliberating the need for renewable integration in its Long-Term Procurement Planning (LTPP) proceeding Within the LTPP, the CPUC will work with stakeholders, including the CAISO, to quantify California s integration needs based on analyzing various system models 13

14 RPS Procurement Programs Annual RPS Solicitation All technologies and project sizes greater than one MW Utility articulates the type of projects it is looking for Negotiated contract terms and conditions Renewable Auction Mechanism Projects sized 1 20 MW 1,299 MW Program limit 4 auctions over two year pilot program Project of all technologies compete for contracts within three different categories: baseload, peaking and non-peaking Utility Solar PV Programs Solar PV projects sized 1 20 MW 776 MW program limit Feed-in Tariff Projects sized 1 3 MW 750 MW Program limit 14

15 New 33% RPS Procurement Framework 15

16 Key CA RPS Market Rules are Established CPUC set long-term procurement quantity requirements (targets) increasing from 20% to 33% through 2020, and beyond (See ; D ) CPUC implemented the RPS Portfolio Content Categories established in the 33% law (SB 2 (1X) ( ; D ) Includes all RPS-eligible facilities located within the Western Electricity Coordinating Council (WECC) Three statutorily defined Portfolio Content Categories (or buckets ) are differentiated by a project s impacts on the grid in supplying electricity, as well as, meeting the requirements of the 33% RPS statute. CPUC implemented new compliance rules for 33% RPS program RECs associated with any contract originally executed prior to June 1, 2010 counts in full and are not subject to new compliance rules set by SB 2 (1X). 16

17 Portfolio Content Categories Characteristics RPS Facilities Within WECC May Produce Category 1, 2 or 3 RECs Category 1: Procurement of Energy and RECs delivered to a California balancing authority (CBA) without substituting electricity from another source Minimum required for each compliance period; 75% by 2020 Category 2: Procurement of Energy and RECs that cannot be delivered to a California balancing authority (CBA) without substituting electricity from another source Category 3: Procurement of unbundled RECs only, or RECs that do not meet the conditions for Category 1 and 2 Maximum allowed for each compliance period; 10% by

18 More Information CPUC Website: RPS Proceeding (R ) and Program Information: Long-Term Procurement Plan Proceeding (R ): Contact Information: 18