State Should Accelerate Green Power, Says CEC Report

Accompanying its draft papers on geriatric power plants and transmission problems is the California Energy Commission?s staff analysis recommending an increase in renewable energy development to exploit green power?s potential. The commission urges the renewables portfolio standard (RPS) law mandating that one-fifth of private utilities? power is green be adopted by 2010, and that further increases in alternative power be made. The paper also recommends that all retail suppliers of electricity, including public power agencies and other providers, be required to meet the RPS law?s target of 20 percent green power by 2017. The law mandates only that investor-owned utilities meet the 20 percent green mark. ?Continued investment in renewable energy is important to increasing fuel diversity and associated benefits for California?s electricity supply,? states the draft report, Accelerated Renewable Development. It calls for going beyond the 20 percent target after 2010 ?to avoid losing momentum, continue pushing technology innovation, and drive down costs for renewables.? The report notes that since 2002, investor-owned utilities have increased their use of ?central-station renewables? though interim solicitations to more than 2 percent?4,000 GWh. Many of these investments have been given CEC subsidies. The paper points out that while many of the municipal agencies have adopted plans to increase renewables development to 20 percent by 2017, many count large hydro as renewable, which is not permitted under the RPS law for utilities. ?[T]his reduces the significance of the 20 percent target for development of new renewable energy to meet growing electricity sales in California.? Also noted is the well-known problem of transmission constraints hampering green power development. Another hurdle in renewables development?s path is said to be the lack of a green certificate trading program, which is green power once removed. ?Inter-utility transmission congestion poses a challenge for the RPS because there is a mismatch between the location of abundant, cost-effective renewables and unmet RPS requirements,? according to the paper. Green tags do not qualify as part of the renewables target set by California?s RPS statute because there is no clear showing they would be consistent with the law?s goals, which include public health, job development, and other benefits. For a copy of the report, see www.energy.ca.gov/2004_policy_update/documents/index.html#draftwhitepapers.

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State Should Accelerate Green Power, Says CEC Report

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