CLEAN Resource Hub
Tools to Open Wholesale DG Markets
Ted Ko
Associate Executive Director
Clean Coalition
ted@clean-coalition.org
Making Clean Local Energy Accessible Now
September 26, 2013
Clean Coalition – Mission and Advisors
Mission
To 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
Board of Advisors
Jeff Anderson
Eric Gimon
Co-founder and Former ED, Clean Economy
Network
Independent Energy Expert
Josh Becker
Patricia Glaza
L. Hunter Lovins
President, Natural Capitalism Solutions
Ramamoorthy Ramesh
Founding Director, DOE SunShot Initiative
General Partner and Co-founder, New Cycle Capital
Principal, Arsenal Venture Partners
Governor Bill Ritter
Pat Burt
Dan Kammen
CEO, Palo Alto Tech Group;
Councilman & Former Mayor, City of Palo Alto
Director of the Renewable and Appropriate Energy
Laboratory at UC Berkeley; Former Chief Technical
Specialist for RE & EE, World Bank
Director, Colorado State University’s Center for the
New Energy Economy, and Former Colorado
Governor
Jeff Brothers
CEO, Sol Orchard
Jeffrey Byron
Fred Keeley
Treasurer, Santa Cruz County, and Former Speaker
pro Tempore of the California State Assembly
Vice Chairman National Board of Directors,
Cleantech Open; Former Commissioner, CEC
Felix Kramer
Terry Tamminen
Former Secretary of the California EPA and Special
Advisor to CA Governor Arnold Schwarzenegger
Jim Weldon
Technology Executive
Founder, California Cars Initiative
R. James Woolsey
Senior Business Advisor, InVisM, Inc.
Amory B. Lovins
John Geesman
Chairman and Chief Scientist, Rocky Mountain
Institute
Chairman, Foundation for the Defense of
Democracies; Former Director of Central
Intelligence (1993-1995)
Rick DeGolia
Former Commissioner, CEC
Kurt Yeager
Vice Chairman, Galvin Electricity Initiative; Former
CEO, Electric Power Research Institute
Making Clean Local Energy Accessible Now
2
Wholesale DG is the Critical & Missing Segment
Project Size
Central Generation
Serves Remote Loads
Wholesale DG
Serves Local Loads
Retail DG
Serves Onsite
Loads
Behind the
Meter
Distribution
Grid
Making Clean Local Energy Accessible Now
Transmission
Grid
3
Wholesale DG Leader: Germany
Solar Markets: Germany vs California (RPS + CSI + other)
35,000
30,000
Cumulative MW
25,000
20,000
California
Germany
15,000
10,000
5,000
2002
2006
2007
2008
2009
2010
2011
2012
Sources: CPUC, CEC, SEIA and
German equivalents.
Germany added over 7 times more solar than California in 2012,
even though California’s solar resource is 70% better!!!
Making Clean Local Energy Accessible Now
4
German Solar Capacity is Small WDG (Rooftops)
German Solar PV Capacity Installed in 2010
26%
2,000
23.25%
1,800
22.5%
19%
1,600
1,400
MW
1,200
1,000
800
9.25%
600
400
200
up to 10 kW
10 to 30 kW
30 to 100 kW
100 kW to 1 MW
over 1 MW
Source: Paul Gipe, March 2011
Germany’s deployed solar capacity is essentially 100% WDG
and about 90% is on rooftops
Making Clean Local Energy Accessible Now
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German Solar Pricing Translates to 5 cents/kWh
Euros/kWh
USD/kWh
California Effective
Rate $/kWh
Under 10 kW
0.145
0.1903
0.0762
10 kW to 40 kW
0.138
0.1805
0.0722
40.1 kW to 1 MW
0.123
0.161
0.0644
1.1 MW to 10
MW
0.101
0.1317
0.0527
Project Size
Source: http://www.wind-works.org/cms/index.php?id=92, 10 September 2013
Conversion rate for Euros to Dollars is €1:$1.309
California’s effective rate is reduced 40% due to tax incentives and
then an additional 33% due to the superior solar resource
Replicating German scale and efficiencies would yield rooftop solar at only
between 5 and 7 cents/kWh to California ratepayers
Making Clean Local Energy Accessible Now
6
Wholesale DG in the US (sample)
Policy/Program
Gainesville, FL
FIT Program
Vermont SPEED
2009 Legislation
Sacramento Municipal Utility
District (SMUD)
California AB 1969
2008 Legislation
AR, IA, OR, ME
2013 CLEAN bills
Long Island Power Authority
(LIPA) CLEAN Solar-II
Minnesota HF720
2013 Legislation
Georgia Power Advanced Solar
Initiative
Type
Municipal Program
German Style Feed-in Tariff
Statewide Program
FIT converted to RFP
Municipal Program
Value-based CLEAN Program
State Legislation
Value-based Standard Offer
State Legislation
Variety of CLEAN designs
Municipal Program
State Legislation
Pseudo-CLEAN Program
Regulated Utility Program
Mixed CLEAN / RFP
Making Clean Local Energy Accessible Now
Market Results
Installed solar grew 53x
Local companies grew > 3x
Original 50 MW program expanded to
127.5 MW in 2012, then oversubscribed
100 MW installed < 2 years
Equivalent to 2.5 GW across CA
2+ years of no uptake
Fully subscribed with drop in PV costs
Introduced legislation all held or died in
the process
Successful 50 MW led to 100 MW
expansion
Unlimited program with value of solar
methodology
735 MW total over 5 years
Initial allocation heavily oversubscribed
7
Processes for Creating State Policies
Start
Campaign
Sufficient Statutory Mandates?
No
Yes
Open
Proceeding
Build
Coalition
Build
Coalition
Navigate
Pitch
Concept
Enact
Design
Implementation
Intervene
Design Bill
Launch
Making Clean Local Energy Accessible Now
8
CLEAN Resource Hub (CRH) and Stakeholders
Policymakers: Legislators, Regulators, Standards Setters
Local
Companies
NGO
Advocates
Labor
Unions
Legislative
Materials
Implementation
Guides
Communications
Collateral
Model Tariffs
Model Contracts
Local
Government
Making Clean Local Energy Accessible Now
Trade
Assoc
Supporting
Materials
Local CLEAN
Program Guide
Community
Orgs
9
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
Making Clean Local Energy Accessible Now
10
CRH Scenario: Arizona
Start
Campaign
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”
Making Clean Local Energy Accessible Now
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AZ CLEAN : Build Coalition
Build
Coalition
Supporting
Materials
DG Catalog of Benefits
Locational Benefits Brief
CLEAN Program Checklists
Making Clean Local Energy Accessible Now
Communications
Collateral
CLEAN Program Standard Deck
12
AZ CLEAN : Pitching Legislative Concept
Pitch
Concept
Legislative
Materials
Legislation Examples & References
Legislation Summary Template
Supporting
Materials
CLEAN Program Checklists
DG Catalog of Benefits
Communications
Collateral
CLEAN Program Standard Deck
Making Clean Local Energy Accessible Now
13
AZ CLEAN : Designing Legislation
Design Bill
Legislative
Materials
Full Proposal Example
Legislation Proposal Template
Legislation Examples & References
In-State Renewables Brief
Supporting
Materials
Market Responsive Pricing Brief
Implementation
Guides
Pricing Guide
Program Rules & Best Practices Guide
Making Clean Local Energy Accessible Now
14
AZ CLEAN : Campaigning
Navigate
Enact
Communications
Collateral
Supporting
Materials
CLEAN Program Standard Deck
Example Op-Eds
Media Training Guide
Legislative
Materials
Making Clean Local Energy Accessible Now
DG Catalog of Benefits
CLEAN Program Checklists
Market Responsive Pricing Brief
Locational Benefits Brief
Legislation Examples & References
In-State Renewables Brief
15
AZ CLEAN : Implementation
Design
Implementation
Implementation
Guides
Model Tariffs
Model Contracts
Pricing Guide
Program Rules &
Best Practices Guide
Model Interconnection Tariff
CLEAN Model PPA
Supporting
Materials
DG Catalog of Benefits
Locational Benefits Brief
Making Clean Local Energy Accessible Now
Launch
16
CLEAN Resource Hub - Today
The CLEAN Resource Hub makes it easy for policymakers and
advocates to design, enact and implement CLEAN Programs
Available on the website today
CLEAN Program Legislative Materials
CLEAN Program Implementation Guides
Model Interconnection Tariff and Model PPA
WDG Supporting Material
WDG Communications Collateral
CRH is a Living Resource
Feedback on materials is welcome
Constantly evolving and growing (notices will be sent for major
releases of new material)
Open to contributions from other parties
Making Clean Local Energy Accessible Now
17
CLEAN Resource Hub – Future Vision
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 Interconnection
Grid Modeling
Automated interconnection studies
Distribution Grid Planning
Optimal locations
Proactive distributed resource planning
Intelligent Grid solutions
Renewables Integration & Advanced Inverters
Grid balancing / Ramp control with intermittent resources
Voltage support / reactive power
Frequency support
Making Clean Local Energy Accessible Now
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Follow Up
Legislative
Materials
Implementation
Guides
Communications
Collateral
Model Tariffs
Model Contracts
Supporting Materials
Local CLEAN
Program Guide
New Initiatives
General Questions
Contact: Gary Pett
gary@clean-coalition.org
Making Clean Local Energy Accessible Now
Content / Policy Details
Custom Collaboration
Contact: Ted Ko
ted@clean-coalition.org
19
Back-Up Slides
Making Clean Local Energy Accessible Now
2013
Making Clean Local Energy Accessible Now
21
CRH Materials
Topic
Legislative
Materials
Materials
Proposal Template and Bill Examples
Full Proposal Example, Summary Template
In-state Renewables Brief
Implementation
Guides
Supporting
Materials
Pricing, Program Rules
Purpose
Advocacy, Design
Advocacy
Design
Design concepts
CLEAN Program Checklists
Advocacy content
DG Catalog of Benefits
Advocacy content
Locational Benefits Brief
Design content
Market Responsive Pricing Brief
Communications
Collateral
Model Tariffs
and Contracts
Media Training Guide, Example Op-Eds
Comm content
CLEAN Program Standard Deck
Comm collateral
Template Letter to Regulatory
Comm collateral
Model Interconnection Tariff
Detailed Design
Model PPA
Detailed Design
Making Clean Local Energy Accessible Now
22
Model Tariffs
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”
Making Clean Local Energy Accessible Now
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Model Contracts
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“
Making Clean Local Energy Accessible Now
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Guides: CLEAN Program Rules
Rule Type
Eligibility
Seller Concentration
Example
Capacity limited to 100% minimum
coincident load (“no backflow”)
No single developer can have contracts for
more than X% of allocated capacity based
on size of overall program
Viability
Development Security of $20/KW
Timelines
Commercial Online Date (COD) within 18
months with permitted extensions
Interconnection
Making Clean Local Energy Accessible Now
Initial interconnection cost study completed
before contract execution
25
Locational Benefits
Local Generation Facility
Avoided Grid Costs
and Line Losses
Private Investment in Community
Making Clean Local Energy Accessible Now
Employment
Avoided Environmental Impacts
26
Market Responsive Pricing (MRP) Brief
“adjust prices offered over time under
CLEAN programs based on the market response”
Making Clean Local Energy Accessible Now
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