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Enhancing the Role ofRenewable Energy in California
Robert A. LaurieCommissioner
California Energy Commission
Geothermal Resources Council Annual Meeting
September 2000
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The Energy Commission is the energy policy and information advisor to the California governor and legislature
The agency implements state energy policies while promoting a reliable energy supply at affordable prices for California
California Energy Commission
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Major Functions of the California Energy Commission
Gather and analyze energy data
Forecast energy supply and demand
License large power plants
Promote energy efficiency
Advance energy technologies
Promote renewable energy markets
Plan for and direct response to energy emergencies
Enhance energy export opportunities
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35,000
40,000
45,000
50,000
55,000
60,000
2000 2001 2002 2003
MegawattsFuture Curtailable Load ?
Curtailable Load
Net Imports
Net New Additions
Existing Generation
1 in 40 Year Peak Demand
1 in 5 Year Peak Demand
1 in 2 Year Peak Demand
Existing generation excludes2,500 MW for outages
Electricity Supply & Demand Balance
(7% Operating Reserve at Coincident Peak)
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California's 1998 Net System Power
Coal20%
Large Hydroelectric
22%Natural Gas
31%
Nuclear16%
Other0%Eligible
Renewables:11%
California’s 1998 Net System Power
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ELECTRICITY SOURCES
Twenty five percent of the state’s electricity comesfrom out-of-state generation
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Barriers to Proposed Power Plants
Availability of water for cooling power plants
Air quality standards and emissions from power plants
Supply of natural gas Local opposition Transmission constraints & system stability
needs
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Renewables in California
About 12% of California’s electricity supply in 2000
California has added 790 MW of renewable plants to the system since 1990
Geothermal comprises about 5% of state’s total electricity production
State support for geothermal is provided through the Public Interest Energy Research Program, the Renewable Energy Program, and the Geothermal Grant Program
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Renewable Energy Program Also funded from Public Goods Charge established
by AB 1890 $540 million over four years to support existing, new,
and emerging renewable technologies Three of the program’s five “accounts“ offer
incentives for the production or purchase of geothermal energy: Existing ($243 million) New ($162 million) Customer Credit Account ($75.6 million)
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Renewable Energy Program
Existing Account
Pays cents/kWh production incentives (capped at 1.5 cents/kWh) to renewable generators on-line before 9-96
259 existing renewable facilities (more than 4,000 MW) have received more than $130 million in incentives
36 geothermal facilities totaling 1,200 MW have received nearly $13 million (about 10%)
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Renewable Energy Program
New Account
Pays production incentives (capped at 1.5 cents/kWh) to generators on-line after 9-96
Auction to allocate funds held June 1998 55 winning bidders (500 MW) included 4 geothermal
facilities (157 MW) that were awarded over $80 million
Incentive not paid until projects are built and operating
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Renewable Energy Program
Customer Credit Account
Provides ¢/kWh rebates (capped at 1.5 ¢/kWh) to customers for the purchase of renewable energy
More than $33 million paid in rebates About 80% of customer rebates is attributable to
geothermal sales
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PIER Program
Funded from Public Goods Charge established by AB 1890
$62.5 million annually for “public interest" energy RD&D efforts
Renewable energy one of five subject areas in the PIER portfolio
Three solicitations in 1997 and 1998 committed nearly $51 million to 82 different projects in the five subject areas
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Geothermal Grant Program
Funded through Geothermal Resources Development Account (GRDA)
Promotes RD&D of geothermal energy in California through co-funding and technical assistance
Current projects include the Geysers Pipeline and Southeast Geysers projects to carry treated wastewater from treatment plant for reinjection, resulting in increased steam supply at existing geothermal plants
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New Developments
Late 2000 - PIER will release a Renewables Affordability Solicitation. Amount of available funds is yet to be determined.
Spring 2001 - Geothermal Grant Program will release solicitation for $2.8 million in GRDA funds for geothermal-related projects
Renewable Energy Program may hold a second auction for new renewable resources that can come on-line by June 2001. Amount of available funds is yet to be determined.
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Future of Renewables
Less than half of the state’s potential renewable capacity has been developed
New renewable generation needed to satisfy the growing green market and help alleviate the state’s current electricity supply shortage
AB 995 (currently before the Governor) extends funding for 10 years for both renewables ($135 million/year) and public interest R&D ($62.5 million/year)
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In Closing Through PIER, the Geothermal Grant Program, and the
Renewable Energy Program, the Energy Commission will continue to pursue its goals of: Improving cost-competitiveness of renewable technologies
through reduction of high life cycle costs and enhanced productivity
Helping to develop a self-sustaining renewable industry Encouraging market-based development of new renewable
resources Maintaining the benefits and diversity of the existing
renewables industry while helping the transition to a fully competitive market
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