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In 2004, California produced 10.6% of its electricity from renewable sources (25.4% if big hydro plants are included), to be compared with a low 2% proportion in the whole United States (9% including hydro). These numbers alone show the special status of California within the US: the Golden State is traditionally considered progressive and environment-friendly, and is keen on its role of leader in this matter. The bulk of California’s production is made up by geothermal resources (4.8%), followed by biomass (2%), hydro plants smaller than 30 MW (1.6%) and wind (1.5%).

The geothermal production is mainly located in the North, near the Oregon border, and the South Western parts of the State, where geysers are present. This is a rather old exploitation, involving well-known technologies and well-established partners.

Biomass refers mainly to wood and agricultural products. Municipal waste is not considered a renewable resource (except in one county). There used to be more active plants, during the eighties and early nineties, which had been developed thanks to very important state incentives. In 1996, the production dwindled from 800 MW to 590 MW, due to the market liberalization and incentives reductions.

Small hydro plants also are quite old. The potential for development is being restrained by strong debates over the dams’ location and ecological impact.

Finally, wind and solar are the newest and fastest-growing technologies. The main wind regions are Tehachapi, Altamont and San Gorgonio which account for 95% of the total production. The main obstacle to wind development is the irregular profile of this resource, highly unpredictable and in opposition with the load.

Two ambitious standards

Creating an atmosphere of competition for resources between the three main utilities (investor owned since the deregulation in 1996), this standard imposes stronger constraints on them, but also fosters the development of various energy sources. More and more bids are received every 6 months during the request for offers sent around by the utilities. Moreover, no project so far has asked for the funding made available by the state to help renewables contracts priced higher than conventional ones. Yet, given the starting portfolio of each utility, there is a suspicion that the ambitious 33% goal will be very difficult to reach.

Million Solar Roofs

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The current plan, named the California Solar Initiative, aims for a total installed capacity of solar of 3000 MW by 2018. This is “one million solar roofs equivalent”, where large buildings count for multiple homes. In the current proposal, buyers of solar get a rebate of $2.80 for each installed Watt of solar on their rooftop. This is a considerable incentive, given the total installation price of about $7/Watt. The subsidies decrease to zero in ten years time, with the aim of having a competitive solar industry at the end of the next decade.

Whether the current $3.2 billion subsidies will lead to the desired 3000 MW outcome in 2018, remains to be seen. Still, CSI is important for the future of solar energy. With a global installed solar capacity of 3700 MW in 2004, the reader will appreciate the enormous size of the current plan. California has earned its position as the global leader in solar energy, together with Germany and Japan

Conclusion

Source: California Energy Commission website www.energy.ca.gov

Note: the editors of EnergiePortal thank Laure Bernhardt for her contribution. Laure graduated from Stanford University in 2005, and afterwards worked on a project on the Renewable Portfolio Standard for Pacific Gas & Electric, California’s largest utility company.