Utilities Say Renewable Availability, Yes; Economics, No

Renewable power?s economics will make it difficult to meet the state?s 20 percent renewables goal in 2010, investor-owned utilities told the California Energy Commission this week during a 2005 Integrated Energy Planning Report development workshop. They agree, however, that California and the West have plenty of potential renewable resources. ?To us, the right question is whether the resources are in the right locations and deliverable at a reasonable cost,? said Robert Anderson, San Diego Gas & Electric director of resource planning. The company can easily meet the state?s 20 percent renewables portfolio standard by 2017, the required date. But reaching it by 2010, agencies? preferred deadline, will be ?a real stretch,? he said. ?We have a vast amount of resources available to meet our targets, but it doesn?t seem to comport with reality,? added Gary Allen, Southern California Edison manager of qualifying facility contracts. Edison issued a request for offers for renewable energy last month. An earlier request, in 2003, generated renewable power proposals totaling 5,000 MW, but after Edison analyzed them on a ?least-cost, best-fit? basis, they boiled it down to six contracts that will bring just 140 to 425 MW of power, he said. Commissioner John Geesman warned that unless investor-owned utilities pick up the pace of procurement, regulators will be pressured to prescribe standardized terms and conditions for renewables contracts. Some attributed the slow pace of green supply procurement to transmission and distribution constraints, not to utility procurement processes. California has the ?technical potential? to generate 100,000 MW of wind power and 17,000 MW of solar power, said commission analysts, plus a wealth of additional geothermal and biomass energy. The analysts acknowledged, however, that renewable resources face formidable economic and transmission challenges. ?There are severe transmission challenges,? said Ray Dracker, Center for Resource Solutions director of renewable resource assessment, particularly when bringing in renewable power from outside the state. Existing transmission lines into the state often operate near capacity, said Ron Davis, president of Davis Power Consultants. He also noted that in-state transmission upgrades will be needed to move power from new interstate lines to load centers. Robert Anderson, a consultant, pointed out during the May 10 workshop that renewable resources and coal power are often located in the same places in the interior West. Thus, they will inevitably compete for the same transmission lines. He advocated that the commission address in its integrated plan the need for coal projects supplying California to use clean technology and sequester carbon dioxide emissions. The commission will take up developing a strategic transmission plan for the state?as required under SB 1565, passed last year?at a workshop slated for May 19.

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Utilities Say Renewable Availability, Yes; Economics, No

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