EnergyPortal.eu

Within the United States, California has always had a leading role in technology development in general, and renewable energy technology in particular. This review highlights the status of renewables in California, and describes the two most important state policies to further boost the development of non-fossil electricity.

 

The Californian renewables portfolio

n 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
Many measures have been implemented to promote renewables. Among them, the two most famous are the Renewables Portfolio Standard (RPS), and the Million Solar Roofs initiative (recently renamed California Solar Initiative (CSI)).

Renewables Portfolio Standard

In September 2002, Governor Davis signed a bill requiring that 20% of the electricity sold in California come from renewable sources by 2017, increasing by 1% per year until then. Although this is the most stringent standard (RPS) to date in the United States, there is currently a debate over accelerating the goal to reach the 20% milestone by 2010, or the possibility of raising the standard to 33% by 2020.

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
Inspired by existing federal tax advantages for solar energy, Governor Schwarzenegger announced during his campaign that California should have one million solar roofs by 2015. This immediately raised a debate between the utilities, the solar industry and politicians about who is going to pay for this. After two years of planning and legislative procedures, the million solar roofs plan has recently been launched (see our news post dated 17 January 2006).

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
California has always played an important role in the development of renewable energy. The current policies underline that this ambition is valid as ever in today’s environment. To underline this, the state has also announced plans for a “hydrogen highway”, a system of about 200 hydrogen refueling stations along the major highways. Those interested in renewable energy in Europe, should also keep an eye on California. In some areas, this could be a snapshot of Europe’s future policies. 

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

Note: the webmasters 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.