Developments Shaping California s Energy Storage Market

Transcription

1 Developments Shaping California s Energy Storage Market Capture the Energy NY-BEST Annual Meeting and Conference Mark Higgins Head of Government and Utility, Strategen Consulting Senior Advisor to the California Energy Storage Alliance March 5, 2015

2 Why California?» Economy» History of Clean Energy Innovation» Political and Regulatory Climate» Energy Storage Market and Procurement 2

3 California s Economy California Economic Statistics (2013):» $2.05 trillion gross domestic product (GDP)» 8 th largest economy in the world Global Economies by GDP (in trillions of USD) 3

4 California s History of Clean Energy Leadership California frequently passes groundbreaking legislation and regulation that is later adopted by other states and countries. 4

5 GHG Emission Reductions Global Warming Solutions Act (AB 32)» 2020 GHG emissions must be 1990 levels» Maximum technologically feasible and costeffective reductions through efficiency, renewables and clean transportation Greenhouse Gas Emissions Performance Standard (SB 1368)» All new long-term IOU generation from plants with emissions must be CCCT Greenhouse Gas Emissions and Gross Domestic Product California relative trends since 1990 / Greenhouse Gas Emissions (MTCO 2 E) and GDP Dollars, per Capita Image sources: Green Innovation Index - 5

6 Renewable Portfolio Standards Renewables Portfolio Standard» SB 1078 passed in 2002, required 20% RPS by 2010» SB X1-2 passed in 2011, accelerated RPS target to 30% by 2020 Percent of Total Electricity Generation from Renewables California and United States Image source: Green Innovation Index : 6

7 Solar Incentives Solar Incentive Program» $2.167 Billion from » Covers up to 50% of PV cost» 1,940 MW new solar generation» Incentives based on actual PV performance, not capacity» Encourages energy efficiency California Solar Installations Image source: Green Innovation Index : 7

8 Growth of Diverse Renewable Energy Mix California s Renewable Energy Mix and Growth Data source: CPUC RPS Report Image Source: D. Hochschild, CEC 8

9 California s Cycle: Strong Economy & Energy Innovation Economic Growth $ $ Clean Energy Leadership 9

10 Why California?» Economy» History of Clean Energy Innovation» Political and Regulatory Climate» Energy Storage Market and Procurement 10

11 California Regulatory Agencies California Energy Commission (CEC) California Public Utilities Commission (CPUC) California Independent System Operator (CAISO) 11

12 California Regulatory Agencies California Energy Commission (CEC)» CEC has funded 60 storage projects around CA» $34M of funding and $111M matched funding leveraged» Awarded $38.3M to fund 9,369 EV Charging Stations» Helped with the new Storage Roadmap to guide activities along with CPUC and CAISO» Bi-annual Integrated Energy Policy Report (IEPR) 12

13 California Regulatory Agencies California Public Utilities Commission (CPUC)» Energy Storage Rulemaking (AB 2514)» Long Term Procurement Planning» Resource Adequacy» Distributed Energy Resources Plans» Integrated Demand Side Management» Demand Response» Net Energy Metering» Alternative Fueled Vehicles» Distributed Generation & Storage Interconnection 13

14 California Regulatory Agencies California Independent System Operator (CAISO)» Energy Storage Roadmap» Interconnection Initiative» Metering & Telemetry Options» Flexible Ramping Mechanism» Reliability Services Initiative» Transmission Planning Process 14

15 California Political Climate: 2030 Energy Goals If we have any chance at all of achieving (a 2 degree limit on global warming by 2015), California, as it does in many areas, must show the way.it means that we continue to transform our electrical grid, our transportation system and even our communities - Governor Brown (1/5/2015) Governor s 2030 energy goals:» Increase renewable energy goals from 33% to 50%» Reduce petroleum use in vehicles by up to 50%» Increase existing building energy efficiency by 100% 15

16 Why California?» Economy» History of Clean Energy Innovation» Political and Regulatory Climate» Energy Storage Market and Procurement 16

17 Factors Advancing Energy Storage in California AB 2514» 1,325 MW procured by 2020 OTC and SONGS retirement» 6,209 MW of Retiring OTC Capacity by 2024 Long Term Procurement Planning» SCE ( MW)» SDG&E ( MW) CAISO Reforms to Wholesale Market» Market design & interconnection process updates» Storage considered in transmission planning process Self Generation Incentive Program (SGIP)» $83M per year through 2020 Net Energy Metering / Rate Design 17

18 AB 2514: Resulting Energy Storage Targets California IOU Energy Storage Targets established in October 2013 Use case category, by utility Total Southern California Edison Transmission Distribution Customer Subtotal SCE Pacific Gas & Electric Transmission Distribution Customer Subtotal PG&E San Diego Gas & Electric Transmission Distribution Customer Subtotal SDG&E Total all 3 Utilities ,325 18

19 AB 2514: Utility Contracting Began in Nov. 2014» As part of Long Term Procurement, Southern California Edison was required to procure at least 50 MW of energy storage.» SCE contracted for 261 MW Southern California Edison LCR RFO Energy Storage Procurement November 2014 Company MW Type Siting AES 100 Batteries Peaker Addition STEM 85 Batteries Customer Sited Advanced Microgrid Systems 50 Batteries Customer Sited Ice Energy 25 Ice Storage Customer Sited NRG <1 EV Enabling Customer Sited 19

20 Self-Generation Incentive Program (SGIP) Provides financial incentives for qualifying, customer-sited, distributed generation technologies that are installed to meet all or a portion of the electric energy needs of a facility.» Launched in 2001 to initially provide solar incentives; later amended to include storage» Legislatively reauthorized in 2014 to provide $83M/year, $415 M total through 2019 SGIP Program Statistics Installed and Reserved Incentives as of February 2015 Technology Source: Center for Sustainable Energy: 20

21 Energy Storage Companies in California Source: California Energy Storage Alliance,

22 Energy Storage Projects in California Batteries & Ultracapacitors Thermal Pumped Hydro Flywheel 165+ Projects 6,555 Megawatts* Source: DOE Global Energy Storage Database, February *Includes pumped hydro storage

23 California s Cycle: Economy, Policy & Energy Innovation Economic Growth Clean Energy Leadership Innovative Policies and Regulations 23