Renewable Energyin California.pptVIP

November 7, 2003 Renewable Energy in California Rasa Keanini and Heather Raitt Renewable Energy Program Efficiency, Renewables Demand Analysis Division November 16, 2005 CA Renewables Portfolio Standard RPS signed into law in 2002 Legislative goal of 20% of retail sales from renewables by 2017, with increase by at least 1% per year In 2003, state energy agencies set goal of 20% by 2010 20% in 2010 is estimated to be about 56,000 GWh California’s technical potential is more than 260,000 GWh/yr Technical potential for western-region is 3.7 million GWh/yr Energy Commission’s Integrated Energy Policy Report recommends more ambitious goal for post-2010 Governor Schwarzenegger’s goal is 33% by 2020 CEC-CPUC RPS Collaboration California’s RPS Process CPUC calculates utilities’ annual procurement target Utilities develop RPS procurement plans for CPUC approval Generator applies to Energy Commission for certification as eligible for the RPS Utilities hold RPS solicitations for long-term delivery from RPS eligible generators (10, 15, 20 years) Each utility uses least-cost, best-fit evaluation process to rank bids and selects “short list” of bidders After utilities select short lists, CPUC calculates and announces Market Price Referent (the estimated cost for a similar long-term natural gas electricity product) Winning bids priced higher than MPR may be eligible for supplemental energy payments Contracts priced at or below MPR are considered reasonable California’s RPS Process, con’t. Utilities negotiate contracts with short-listed bidders and sign contracts using standard terms and conditions. If contract is priced above MPR, generator applies for supplemental energy payments from the Energy Commission Energy Commission evaluates public goods charge funds availability for supplemental energy payments , subject to caps Energy Commission awards supplemental energy payments to eligible RPS generators (new or repowered) Utilities request contract approval from CPUC CPUC app