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Progress on the California RPS

Progress on the California RPS. PANC Annual Conference May 16, 2012. Progress on the California Renewable Performance Standard. Utilities confident about meeting 33% Renewable prices have dropped dramatically Transmission is being constructed

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Progress on the California RPS

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  1. Progress on the California RPS PANC Annual Conference May 16, 2012

  2. Progress on the California Renewable Performance Standard • Utilities confident about meeting 33% • Renewable prices have dropped dramatically • Transmission is being constructed • The Large Generator Interconnection Process has been reformed – again • The grid is accommodating utility-scale solar

  3. Renewable Procurement Has Increased Substantially Historical Renewable Procurement by CA IOUs Source: CPUC filings. Note: 2001-2010 are historical, 2011 and on are projections based on March 2012 CPUC Compliance Filings.

  4. Renewable Energy Prices Have Decreased Substantially Historical MPR and Solar Contract Signing By Solicitation Year (1) Source: MPR values from CPUC through 2011 MPR. Percentage of PV contracts above and below MPR, by solicitation year, from April 2012 CEC. Note: MPR reflects the next year’s MPR (i.e. 2011 MPR value reflects MPR for a project with a 2012 COD). Represents both CSP and PV. (1) 2004 MPR value reflects peaking MPR.

  5. Transmission underway to meet 33% RPS in 2020 Total cost = $7.2 billion * Large Generator Interconnection Agreement ** Petition to modify CPCN pending. Page 5

  6. Progress on Transmission Interconnection Reform 2008: Generator Interconnection Process (GIP) Reform 1 • Increased cost to apply and stay in process • Network Upgrade costs & timing studied in cluster rather than serial process • Only large projects (>20 MW) can achieve Full Capacity Deliverability 2010: GIP Reform 2 • Combined SGIP & LGIP into a single interconnection procedure • Introduced CAISO deliverability options for all projects, including Small and previously Energy Only projects • Coordinated with the Transmission Planning Process (TPP) for 33% Renewable Procurement Goals 2012: TPP-GIP and GIP Reform 3 • Holistic GIP and TPP to approve upgrades with ratepayer funding • Aligning the interconnection process with the TPP resource portfolios • Structure GIP study process to produce realistic results even with extreme interconnection queue volume • Full Capacity Deliverability would be awarded to projects with environmental permits, PPAs and financing, or willing to pay for major upgrades without reimbursement.

  7. Agua Caliente – Supporting Grid Integration Quote from the North American Electric Reliability Corporation’s Integration of Variable Generation Task Force (IVGTF): “As VERs [Variable Energy Resources] increasingly augment and/or supplant conventional generation, the reliable operation of the grid will depend increasingly on the reactive power control, active power control and other contributions from VERs. The new reliability standards should require that VERs adequately mimic or replace the capabilities that are lost when VERS supplant conventional generation.” Agua Caliente Controls include • Reactive Power and Voltage Control • Low Voltage Ride-Through • Low/High frequency Ride Through • Active Power Control Additional features such as frequency regulation and inertial response possible, but require production curtailments IVGTF Draft Report: Special Reliability Assessment: Interconnection Requirements for Variable Generation, March 2012. (p 15)

  8. Obstacles to a Successful RPS Program • Too many sub-programs: RAM, FiT, Small PV, UOG • Is integration a problem? • Are rates a problem? • California going it alone

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