making clean local energy accessible now september 26, 2013 ted ko associate executive director...

Making Clean Local Energy Accessible Now September 26, 2013

Ted KoAssociate Executive DirectorClean [email protected]

CLEAN Resource HubTools to Open Wholesale DG Markets

Making Clean Local Energy Accessible Now

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Clean Coalition – Mission and Advisors

Board of AdvisorsBoard of AdvisorsJeff Anderson

Co-founder and Former ED, Clean Economy Network

Josh BeckerGeneral Partner and Co-founder, New Cycle Capital

Pat BurtCEO, Palo Alto Tech Group;

Councilman & Former Mayor, City of Palo Alto

Jeff BrothersCEO, Sol Orchard

Jeffrey ByronVice Chairman National Board of Directors, Cleantech Open; Former Commissioner, CEC

Rick DeGoliaSenior Business Advisor, InVisM, Inc.

John GeesmanFormer Commissioner, CEC

Eric GimonIndependent Energy Expert

Patricia GlazaPrincipal, Arsenal Venture Partners

Dan KammenDirector of the Renewable and Appropriate Energy Laboratory at UC Berkeley; Former Chief Technical

Specialist for RE & EE, World Bank

Fred KeeleyTreasurer, Santa Cruz County, and Former Speaker

pro Tempore of the California State Assembly

Felix KramerFounder, California Cars Initiative

Amory B. LovinsChairman and Chief Scientist, Rocky Mountain

Institute

L. Hunter LovinsPresident, Natural Capitalism Solutions

Ramamoorthy RameshFounding Director, DOE SunShot Initiative

Governor Bill RitterDirector, Colorado State University’s Center for the

New Energy Economy, and Former Colorado Governor

Terry TamminenFormer Secretary of the California EPA and Special

Advisor to CA Governor Arnold Schwarzenegger

Jim WeldonTechnology Executive

R. James WoolseyChairman, Foundation for the Defense of Democracies; Former Director of Central

Intelligence (1993-1995)

Kurt YeagerVice Chairman, Galvin Electricity Initiative; Former

CEO, Electric Power Research Institute

MissionTo accelerate the transition to local energy systems through innovative policies and programs that deliver cost-effective renewable energy, strengthen local economies, foster environmental sustainability, and provide energy

resilience

MissionTo accelerate the transition to local energy systems through innovative policies and programs that deliver cost-effective renewable energy, strengthen local economies, foster environmental sustainability, and provide energy

resilience


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Wholesale DG is the Critical & Missing Segment

Retail DGServes Onsite

Loads

Central Generation Serves Remote Loads

Distribution Grid

Transmission Grid

Project Size

Wholesale DGServes Local Loads

Behind the Meter


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Wholesale DG Leader: Germany

Solar Markets: Germany vs California (RPS + CSI + other)

Germany added over 7 times more solar than California in 2012,even though California’s solar resource is 70% better!!!

Sources: CPUC, CEC, SEIA and German equivalents.

Cum

ulati

ve M

W

2002 2006 2007 2008 2009 2010 2011 2012 -

5,000

10,000

15,000

20,000

25,000

30,000

35,000

CaliforniaGermany


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German Solar Capacity is Small WDG (Rooftops)

up to 10 kW 10 to 30 kW 30 to 100 kW 100 kW to 1 MW over 1 MW -

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

German Solar PV Capacity Installed in 2010

MW

Source: Paul Gipe, March 2011

Germany’s deployed solar capacity is essentially 100% WDG and about 90% is on rooftops

22.5%

26%

23.25%

9.25%

19%


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German Solar Pricing Translates to 5 cents/kWh

Project Size Euros/kWh USD/kWh California Effective Rate $/kWh

Under 10 kW 0.145 0.1903 0.076210 kW to 40 kW 0.138 0.1805 0.072240.1 kW to 1 MW 0.123 0.161 0.06441.1 MW to 10 MW

0.101 0.1317 0.0527

Conversion rate for Euros to Dollars is €1:$1.309California’s effective rate is reduced 40% due to tax incentives and then an additional 33% due to the superior solar resource

Source: http://www.wind-works.org/cms/index.php?id=92, 10 September 2013

Replicating German scale and efficiencies would yield rooftop solar at only between 5 and 7 cents/kWh to California ratepayers


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Policy/Program Type Market Results

Gainesville, FLFIT Program

Municipal ProgramGerman Style Feed-in Tariff

Installed solar grew 53xLocal companies grew > 3x

Vermont SPEED2009 Legislation

Statewide ProgramFIT converted to RFP

Original 50 MW program expanded to 127.5 MW in 2012, then oversubscribed

Sacramento Municipal Utility District (SMUD)

Municipal ProgramValue-based CLEAN Program

100 MW installed < 2 yearsEquivalent to 2.5 GW across CA

Wholesale DG in the US (sample)

California AB 19692008 Legislation

State LegislationValue-based Standard Offer

2+ years of no uptakeFully subscribed with drop in PV costs

AR, IA, OR, ME2013 CLEAN bills

State LegislationVariety of CLEAN designs

Introduced legislation all held or died in the process

Long Island Power Authority (LIPA) CLEAN Solar-II

Municipal Program Successful 50 MW led to 100 MW expansion

Minnesota HF7202013 Legislation

State LegislationPseudo-CLEAN Program

Unlimited program with value of solar methodology

Georgia Power Advanced Solar Initiative

Regulated Utility ProgramMixed CLEAN / RFP

735 MW total over 5 yearsInitial allocation heavily oversubscribed


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Processes for Creating State Policies

StartCampaign

Sufficient Statutory Mandates?

Pitch Concept

Build Coalition

Design Bill

Navigate

Enact

Open Proceeding

Build Coalition

Design Implementation

Intervene

Launch

Yes

No

LEGISLATIVE PROCESS

REGULATORY PROCESS


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Policymakers: Legislators, Regulators, Standards Setters

LegislativeMaterials

CommunicationsCollateral

ImplementationGuides

Supporting Materials

Model TariffsModel Contracts

Local CLEANProgram Guide

Labor Unions

Trade Assoc

NGO Advocates

Local Companies

CLEAN Resource Hub

CommunityOrgs

LocalGovernment

CLEAN Resource Hub (CRH) and Stakeholders


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CLEAN Programs Defined

CLEAN = Clean Local Energy Accessible Now

CLEAN Program Features:Procurement: Standard and guaranteed contract between the utility and a renewable energy facility owner to purchase 100% of generation at a predefined rate for a long duration

Interconnection: Predictable, streamlined distribution grid access

Financing: Low-risk contracts will attract lower-interest financing


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Fictional Advocacy Group – AZ Energy Futurists

“Let’s take advantage of our most abundant renewable resource – the sun - with a CLEAN Program for Arizona focused on wholesale distributed solar PV”“Arizona is actively talking about the value of solar energy, so let’s make sure we highlight all the benefits of distributed PV.”

“Our campaign will be called AZ CLEAN”

CRH Scenario: Arizona

StartCampaign


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DG Catalog of BenefitsLocational Benefits BriefCLEAN Program Checklists

AZ CLEAN : Build Coalition

Build Coalition



CLEAN Program Standard Deck


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Legislation Examples & ReferencesLegislation Summary Template

AZ CLEAN : Pitching Legislative Concept

CLEAN Program ChecklistsDG Catalog of Benefits

Pitch Concept




CLEAN Program Standard Deck

Pitch meetings


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Full Proposal ExampleLegislation Proposal TemplateLegislation Examples & ReferencesIn-State Renewables Brief

AZ CLEAN : Designing Legislation

Market Responsive Pricing Brief



Design Bill


Pricing GuideProgram Rules & Best Practices Guide


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Legislation Examples & ReferencesIn-State Renewables Brief

AZ CLEAN : Campaigning

DG Catalog of BenefitsCLEAN Program ChecklistsMarket Responsive Pricing BriefLocational Benefits Brief



CLEAN Program Standard DeckExample Op-EdsMedia Training Guide

Navigate Enact



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DG Catalog of BenefitsLocational Benefits Brief

AZ CLEAN : Implementation


Model Interconnection TariffCLEAN Model PPA

Design Implementation


Pricing GuideProgram Rules &Best Practices Guide


Launch


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The CLEAN Resource Hub makes it easy for policymakers and advocates to design, enact and implement CLEAN Programs

Available on the website todayCLEAN Program Legislative MaterialsCLEAN Program Implementation GuidesModel Interconnection Tariff and Model PPAWDG Supporting MaterialWDG Communications Collateral

CRH is a Living ResourceFeedback on materials is welcomeConstantly evolving and growing (notices will be sent for major releases of new material)Open to contributions from other parties

CLEAN Resource Hub - Today


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The CLEAN Resource Hub will provide the latest thinking, policy designs and actionable materials for opening up the wholesale DG market segment

Next generation of InterconnectionGrid ModelingAutomated interconnection studies

Distribution Grid PlanningOptimal locationsProactive distributed resource planningIntelligent Grid solutions

Renewables Integration & Advanced InvertersGrid balancing / Ramp control with intermittent resourcesVoltage support / reactive powerFrequency support

CLEAN Resource Hub – Future Vision


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Local CLEANProgram Guide

CLEAN Resource Hub

Follow Up

New InitiativesGeneral QuestionsContact: Gary Pett

[email protected]

Content / Policy DetailsCustom Collaboration

Contact: Ted [email protected]

Making Clean Local Energy Accessible Now 2013

Back-Up Slides


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Topic Materials Purpose

Legislative Materials

Proposal Template and Bill ExamplesFull Proposal Example, Summary Template

In-state Renewables Brief

Advocacy, DesignAdvocacyDesign

Implementation Guides

Pricing, Program Rules

Design concepts


CLEAN Program Checklists DG Catalog of Benefits

Locational Benefits BriefMarket Responsive Pricing Brief

Advocacy contentAdvocacy contentDesign content

Communications Collateral

Media Training Guide, Example Op-EdsCLEAN Program Standard Deck Template Letter to Regulatory

Comm contentComm collateralComm collateral

Model Tariffs and Contracts

Model Interconnection TariffModel PPA

Detailed DesignDetailed Design

CRH Materials


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Model Interconnection Tariff for Wholesale DG• “Clear and simple standards and procedures reduce errors and uncertainty,

allowing applications to be handled consistently and without delay“• “Clear cost determination is the overriding issue for developers decisions and for

a successful interconnection process”• “Current grid information should be maintained and readily available to

generation interconnection staff and developers”• Review Screens: “is the aggregate Generating Facility capacity on the line section

less than 100% of the section minimum load?”• Timelines: “Within fifteen (15) days following determination of Simplified

Interconnection…the Utility shall tender a draft Interconnection Agreement”

Model Tariffs


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Model Tariffs and Contracts are full best practice examples, including actual legal language and detailed justifications

Model Power Purchase Agreement (PPA)• “Seller hereby provides and conveys all Green Attributes associated with all

electricity generation from the Project to Buyer as part of the Product being delivered.”

• “Buyer shall pay Seller the Contract Price for the Product that Seller would have been able to deliver but for the Unforced Curtailment Order”

• “a collateral requirement equal to twenty dollars ($20.00) if Contract Capacity is less than 1,000 kW, or fifty dollars ($50.00) if Contract Capacity is greater than or equal to 1,000 kW, for each kilowatt of the Contract Capacity”

• “Seller may, without Buyer’s consent, transfer, sell, pledge, encumber or assign this Agreement or the accounts, revenues or proceeds hereof to its Lender“

Model Contracts


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Rule Type Example

Eligibility Capacity limited to 100% minimum coincident load (“no backflow”)

Seller Concentration No single developer can have contracts for more than X% of allocated capacity based on

size of overall programViability Development Security of $20/KW

Timelines Commercial Online Date (COD) within 18 months with permitted extensions

Interconnection Initial interconnection cost study completed before contract execution

Guides: CLEAN Program Rules


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Locational Benefits

Avoided Grid Costs and Line Losses

Private Investment in Community Avoided Environmental Impacts

Employment

Local Generation Facility


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Market Responsive Pricing (MRP) Brief

“adjust prices offered over time underCLEAN programs based on the market response”

making clean local energy accessible now september 26, 2013 ted ko associate executive director...

Documents

clean local energy accessible

clean rfp

local energy systems

mw program

clean coalition mission

energy resilience slide

local economies

local loads