Fair Compensation for Distributed Solar Generation
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This document summarizes key points from a presentation on fair compensation for distributed solar generation. It shows that distributed solar provides benefits by offsetting natural gas power and reducing costs. It also outlines several state regulatory proceedings that are examining the costs and benefits of net metering programs and developing valuation methodologies to properly compensate for the value provided by distributed solar. The presentation concludes by providing contact information for the speaker if more information is desired.
Fair Compensation for Distributed Solar Generation
- 1. Fair Compensation for Distributed Solar Generation Jason Keyes Keyes, Fox & Wiedman LLP October 21, 2014 www.irecusa.org @IRECUSA #3iForum
- 2. Photovoltaics Installations and Pricing Source: GTM Research/SEIA, U.S. Solar Market Insight®, 2013 Year-In-Review
- 3. DC Net Metering Program Caps (percent of utility peak demand) < 1 % < 3 % < 5 % ≥5% Unlimited
- 4. 2014 Net Metering Grades (www.freeingthegrid.org) DC A B C D F N/A
- 5. Valuation Highlights • Energy value • Capacity value • Line losses • Utility environmental
- 6. Valuation Highlights, cont’d • Ancillary benefits • Market price impacts • Societal benefits • Costs
- 7. AEE/Synapse Benefit-Cost Report • Discussion of Societal Benefits/Costs • Various Cost Tests • Screening and Decision Analysis Templates, ValuaDon OpDons checklist
- 8. IREC’s Regulator’s Guidebook Distributed Solar: • Primarily offsets combined-cycle natural gas facilities • Should be credited with a capacity value upon interconnection • Should include societal benefits
- 9. Addressing the “Duck Curve”: TOU rates, demand response, and storage Credit: CAIISO’s Building a Sustainable Energy Future: 2014-16 Strategic Plan
- 11. Hourly Loads for CA IOUs on 9/16/14 (and what they would have been without NEM solar) 25000 20000 15000 10000 5000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SCE PG&E SDG&E Solar
- 12. Cumulative Loads for CA IOUs on 9/16/14 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SCE PG&E Solar Capacity SDG&E
- 13. PV narrows the peak, which could ease the ability of demand response, storage, etc. to provide capacity 60,000 50,000 40,000 MW) (Generation 30,000 20,000 10,000 0 PV Penetration and Hour 0% 2% 6% 10% PV CT PS Hydro CC Imports Coal Nuclear Wind Geo Base 2% 6% 10% (no PV) Source: NREL
- 14. NV: PUC docket 13-‐07010, E3 developed study proving NEM’s benefit to grid VT: 2012 legislaDon directed the V PSB to complete an evaluaDon of NEM MN: 2013 legislaDon required development of a VOST, methodology complete CA: 2012 legislaDon required a CPUC study of costs and benefits of NEM; LADWP considering VOS approach AZ: ACC workshops to develop methodology. MulDple studies to date CO: PUC considering Xcel cost/benefit study of NEM TX: AusDn Energy developed a VOST in 2012; San Antonio’s CPS will be replacing NEM with a SunCredit tariff NC: In docket No. E-‐100 Sub 136, NCUC is examining avoided cost methodology. PNNL study just released. SC: E3 chosen to develop valuaDon methodology for PSC WA: Docket UE-‐131883 to discuss costs and benefits of DG LA: Consultant chosen to conduct benefit/cost study OR: PUC recently held a workshop to discuss solar rates in docket UM 1452 HI: NARUC funded a NEM benefit/ cost study from E3 AL: Consultant hired by PSC in 2014 to study costs-‐benefits of NEM MS: ValuaDon study completed ME: 2014 legislaDon directed PUC to complete VOS study UT: Defeat of proposed solar charge, valuaDon study forthcoming
- 15. For more information Jason Keyes jkeyes@kfwlaw.com irecusa.org