Energy Policy, Economics and Technology
Project Report/ Assignment 3
Renewables and Solar photovoltaics in California (United States of America)
Dr. Stefan Storey”,
April 18th, 2019
2. Energy policy
3. Energy portfolio
5. Recommendations for energy policy
7. Stakeholders engagement
8. California’s renewables and distributed power
9. Stakeholders costs and benefits
10. Unintended consequences
California along with other states need the adjustments in their electric framework inside the following 15 years than they have at present. This change is finished by the state power supply and conveyance framework. The power plant kept running via carbon and non-renewable energy sources are starting to close and another framework which is driven by renewables is set. The power is being appropriated all things considered and innovations possessed by clients, utilities and stakeholders are being put.
This venture desire is lead by state law with a net zero energy wastage objectives. This law is dealing with the utilization of renewables intensity of 33% by 2020. The government of California has objectives to deliver and disperse 12″,000 MW of intensity by 2020 and an extra 6″,500 MW of heat and power by 2030.on.
Many states have implemented many fundraising and financial incentive programmes. The stakeholders and the investors must invest a huge amount of money into the new energy system such as solar and wind. These policy programs consist of many renewable portfolio standards, grants, rebate programs, tax incentives, loans, performed based incentives and more.
The government of California set up some standards for renewable power which is called renewable portfolio standard (RPS). Under this portfolio, it is mandatory that every company should provide a certain percentage of electricity from certain renewable sources. The government also gave many tax credits to help the companies to fulfill the government goals.
In 2016, California reported a total of 19″,763 GW in solar electric generation. This is approximately 9.97% of all electricity generation. Over the past years, California is called the home for the world’s largest solar power facility. Many of the solar facilities are in the Mojave Desert which is very near to the border of Nevada. There is a massive increase in solar power generation from mid-2010 to the end of 2013. California has 490 MW of solar power and 5″,183 MW of photovoltaic capacity in operation.
In December 2007, the California government started a program which is solar multifamily affordable housing. They invested over 1 billion dollars over a decade to make the solar accessible housing for affordable prices. In May 2018, the 5 commissioners of the California Energy Commission voted unanimously to require the nearly all new houses in the state should be built with solar panels starting from January 2020.
The essential issue happening in this framework is that California looks to change its distributed power framework. The financial specialists and different stakeholders face an administrative framework that they think it is risk-taking and new administration base. This may turn into an issue if the financial specialists and partners don’t care for the plans of the legislature. This is claiming the legislature does not have an economical guide that the financial specialists are looking for. The absence of a guide, utility motivating forces, and administration structure are moderating private speculations and slowing down innovation selection.
California has the most aspiring and muddled inexhaustible projects in the United States. A gradual agglomeration of arrangement objectives and needs by different administrative partners throughout the years has left the state with a thick snare of sustainable and appropriated control related projects. The CPUC and CEC are the two essential state offices in charge of embedding projects to energize the advancement, establishment, and buy of sustainable power. These projects give money related help through ensured income streams, incentives, and refunds or lower electric bills. In 2002, the California Legislature set up California’s first Renewable Portfolio Standard, requiring the state to meet 20% of its power request from qualified sustainable power source assets
Recommendations for energy policy:
There is an opportunity of giving the institutional structure. It can withstand the structure as well as the utilities, clients, and even stakeholders. This will update the electric framework towards renewables. The updates should be possible in two different ways
· Short term
· Long term
Short term goals:
1. Identifying an office that can create and execute the guide. The office deciding, the schedule for California’s renewables and distribution objectives.
2. Addressing the issues intrinsic in cost moving to a limited base of the clients and recognize rate alternatives that energize long term public help for distributing power.
3. The program cost data is released into the public and monitor economic and distributed power.
Long term goals:
1. Establish clear organization duties regarding renewables and disseminated vitality programs.
2. Developing a plan to increase California’s private investment into policies and lower the cost of research and development.
3. Creating a pathway for the investor-based firms and maintain the balance between government, investors, and stakeholders.
Successful stakeholder engagement requires active participation in relevant government agencies institution, civil society groups, and others. The identification of the stakeholders and the right balance of different stakeholders to include. This is ideally done at the start of the project to make sure stakeholders are engaged throughout the process.
The framework is various from one policy to another, so as the stakeholders. A successful renewable energy zone process depends on active stakeholders’ engagement and the information between stakeholders and decision makers.
1. Renewable energy project developers
2. Electric utilities
3. Environment, natural resources, and land-use authorities
4. Economic & social authorities
5. Wildlife, social and other interest groups
6. Non- governmental organizations
7. Residents and business owners
Fig 1. Policies stakeholders before 2015
Fig 2. Policies stakeholders at present (2015-2030)
Fig 3. Policy stakeholders in future ( after 2030)
California’s Renewable and Distributed Power Program Costs:
· RPS power agreement program:
· The California power unit board estimates that the utilities will spend on an average of $1.22 billion annually through 2020 on renewable electricity produced through the RFO process at an average rate of about $105.85 per MWh, with a total of $20.8 billion dollars over 2003-2020.
· Tradable Renewable Energy Credits (TREC’s):
· IOU’s purchased 5 TWh or TREC in 2010, and PG&E and SCE forecast the procurements of 27.57 TWhs of TREC’s for the 2010-2013 period. These amounts represent a maximum annual average spending of about $350 million dollars over the 2010-2013 period, which total four-year spending of about $1.4 billion.
· Quality Facilities:
· Currently, California QFs represent 3.72 GW of renewable power capacity. The IOU expected to spend an average of $1.22 billion annually.
· Solar Photovoltaic Program:
· PG&E has received CPUC approval to develop 250 MW of utility generation. Over the 5 years from 2010-2014, the capital; cost estimates are $1.45 billion. It also compressed of the third party to have an additional 250 MW at a maximum rate of $246 / MWh
Costs and Benefits of stakeholders:
Renewables and energy
Costs and befits
Environment, natural resources, and land use authorities
Solar photovoltaic companies and land authorities
Modes and failure
The roadmap, agency failure
Taxpayers, unbalanced power grids
habitat and land wastage.
There are three potential speculations on the effect RPSs on sustainable power source generation and power costs. The main theory depends on the presumption that energy generation is more costly than petroleum or atomic power generations, and along these lines, increment in sustainable power source generation impelled by RPS will prompt increments in power costs. Along with this, the main theory is that RPSs will prompt an expansion in both sustainable power source age and power costs. The second theory is that RPSs will neither lead to an increment in power rates nor renewable power generation.
1. California Energy Commission. (2018). Tracking process. Retrieved from the Legislative Assembly of Government of California website:
2. California Energy Commission. (2018). Tracking process. Retrieved from the Legislative Assembly of Government of California website:
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4. Oliver, Kevin (9 May 2018). “Regulator OKs solar panel mandate for new California homes”. News KCRA, Sacramento-Stockton-Modesto. Retrieved 9 May 2018
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