Shared
renewables programs move towards reality in California
Under
the rules set by California regulators the state's three large private utilities
will put online 600 MW, with PG&E and SCE to take around 270 MW
each.
On
December 30th, the California Public Utilities Commission (CPUC) issued a proposed decision setting out rules for utilities to comply
with a 2013 law mandating 600 MW of additional renewable energy under community
and “green tariff” programs.
SB43,
California's “shared renewables” law was passed in September 2013. This decision
by the CPUC was pushed back from July, which the agency said was due to the need
to design a fair and effective program and the complexity of that
task.
Under
the new rules PG&E, SCE and SDG&E will use the Renewable Auction
Mechanism (RAM), PG&E's ReMAT “feed-in tariff” or similar mechanisms to
procure the 600 MW of solar PV, including 110.5 MW in 2015.
The maximum size of individual projects is set at 20 MW.
The
utilities will then make electricity from these renewable projects available to
the public through voluntary purchase, with customers paying a renewable energy
rate plus and administrative charge.
The
program is designed for customers who are not able to install solar or small
wind turbines because they are renters, they don't have sufficient credit or
their roofs are not good sites to host solar PV. Solar "crowd-funding"
company Mosaic estimates that this includes 75% of households and 70% of
businesses.
SB43
set out the share of each utility according to its retail electricity sales,
which results in PG&E and SCE each assigned around 270 MW, and SDG&E
getting the remaining 60 MW.
Additionally,
SB43 requires 100 MW to be set aside for participation by residential customers,
and another 100 MW to be located in “the most impacted and disadvantaged
communities”. Finally 20 MW is reserved for the city of Davis, which bill author
Senator Lois Wolk represents. These first two categories will be evenly split
among the three utilities.
An
important detail of the program is that the renewable energy credits for this
600 MW will be retired, meaning that this entire capacity will be in addition to
the mandate that California utilities procure 33% of their electricity
generation from renewable energy by 2020.
The
CPUC will make a final decision on the proposed rules in its meeting on January
27th.
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