PV Shortage Not Enough to Change New CEC Guidelines

The current shortage of photovoltaic panels available for installation in California isn?t severe enough to change new renewables guidelines that shorten the deadline for project completion to reserve future subsidies. The California Energy Commission voted to change the current nine-month reservation window to six months at its June 30 meeting. ?The program is based on ?tough love,?? said commissioner John Geesman. He added that if one manufacturer has trouble meeting orders, the market will tilt toward other manufacturers. ?If it proves to be industrywide and insurmountable, we can come back? and change the policy, he added. A run on photovoltaics due to high demand in Germany is pressuring California commitments for installation. Some contractors are having trouble procuring panels promised by manufacturers because they are being diverted to Europe, where they fetch higher prices ( Circuit , June 18, 2004). The commission also allowed several renewables projects that have secured subsidies, but have had trouble getting built, to extend on-line dates in order to remain qualified for the subsidies. The project?s ?been hanging on by its fingernails waiting for the market to open up,? said Diane Fellman, attorney for Comcor Energy. Comcor is developing the 10 MW Ox Mountain landfill gas project. Its on-line deadline was extended to December 31, 2005. Fellman said the renewables portfolio standard solicitation being opened this summer should provide the needed break for the project. Two wind projects also received on-line extensions to December 31, 2004. The 19.8 MW Windland and the 30 MW Windridge projects are now owned by Oasis Power Partners. Both were expected to be on line by 2002. The commission allowed the delay and a grace period as long as the company shows it is diligently pursuing construction. The commissioners did not, however, grant the owner?s request to extend the on-line date on a day-by-day basis for every day Congress does not approve tax credits, according to Todd Lieberg, CEC associate energy specialist. Commissioner Jackie Pfannensteil recused herself on the wind votes because prior to her current position, she consulted for eneXco, a wind developer affiliated with Oasis, according to CEC spokesperson Chris Davis. One item on the agenda that the commission avoided was another ruling on the Morro Bay repowering project. The third revised decision on Morro?s upgrade and expansion by Duke Energy was postponed because of ?ongoing issues with other agencies,? said chair Bill Keese. Commissioners asked staff to immediately begin talks with the Coastal Commission and the Bay Conservation and Development Commission to smooth out overlaps in jurisdiction. CEC executive director Bob Therkelsen noted that such talks?working out memoranda of understanding?with sister agencies were an ongoing process until the energy crisis diverted the commission. ?We?re happy to pick it up again,? he said. Therkelsen also announced that the commission wants to expand. It plans to submit a budget change proposal for fiscal year 2005-06 for new personnel to perform analyses. Therkelsen is looking for $29 million to fund 61 new positions and contractors. In related CEC action, Roseville Energy Park got a preliminary approval from CEC staff this week. The 120 MW facility is set to go on line in summer 2006. Staff recommended that owner Roseville Electric be required to mitigate NOx by securing 16.15 tons/year of emission reduction credits. However, there is a shortage of available credits. According to the CEC?s Davis, Roseville is considering reducing planned hours of operation because of the emissions credit crunch. Staff also recommend more PM10 offsets as well as more study on noise and cultural resources.

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PV Shortage Not Enough to Change New CEC Guidelines

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