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.

 

  

 

Installed Capacity

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

Installed Capacity Utility Scale Generation

Contracted Capacity Expected 2011-2012

2011-2012 Expected Utility Scale Renewables (MW) – 8,014

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:

Transmission

Demand Response

Energy Efficiency |

Current Goal0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

8,518 MW 8,518 MW

6,500 MW

Combined Heat and Power Generation in California

CHP Generation by Utility

PG&E SCE SMUD SDG&E LADWP Other0

1,000

2,000

3,000

4,000

5,000

6,000

4,768 MW

2,580 MW

464 MW 363 MW 294 MW49 MW

Source: CEC and CPUC data compiled in ICF report “Combined Heat and Power Market Assessment Updated 2011”

Total Existing Charging Stations in California (As of November 2011)

Residential (3700)

Public (1100)

Electrical Vehicle Charging Stations in California (Existing and Planned) (As of November 2011)

0

5000

10000

15000

20000

25000

4000

5050

2730

4000

4800

ExistingSouth CoastSan DiegoBay AreaCEC

Estimated Plug-In Electrical Vehicles Sold in California in 2011

8,500

Existing Energy Storage in California

The vast majority (~99%) of existing storage capacity in California is from pumped hydro.

•Pumped Hydro: 3,950 MW1

•Batteries: 10 MW+2

•Flywheel: ~0.1 MW2

•Compressed Air: 0 MW2

1 Source: California Energy Commission Energy Almanac2 Source: California Energy Commission staff estimates

Pumped Hydro Capacity (MW)

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Bureau of ReclamationSCEDWRPG&ELADWP

California Pumped Hydro Capacity by Owner

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 MW3. 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