Making Clean Local Energy Accessible Now September 26, 2013
Ted KoAssociate Executive DirectorClean [email protected]
CLEAN Resource HubTools to Open Wholesale DG Markets
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Clean Coalition – Mission and Advisors
Board 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
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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
Supporting Materials
CommunicationsCollateral
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
LegislativeMaterials
Supporting Materials
CommunicationsCollateral
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
LegislativeMaterials
Supporting Materials
Design Bill
ImplementationGuides
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
LegislativeMaterials
Supporting Materials
CLEAN Program Standard DeckExample Op-EdsMedia Training Guide
Navigate Enact
CommunicationsCollateral
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DG Catalog of BenefitsLocational Benefits Brief
AZ CLEAN : Implementation
Supporting Materials
Model Interconnection TariffCLEAN Model PPA
Design Implementation
ImplementationGuides
Pricing GuideProgram Rules &Best Practices Guide
Model TariffsModel Contracts
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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LegislativeMaterials
CommunicationsCollateral
ImplementationGuides
Supporting Materials
Model TariffsModel Contracts
Local CLEANProgram Guide
CLEAN Resource Hub
Follow Up
New InitiativesGeneral QuestionsContact: Gary Pett
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
Supporting Materials
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”
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