Fair Compensation for Distributed Solar Generation
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Transcript of Fair Compensation for Distributed Solar Generation
Fair Compensation for Distributed Solar Generation
Jason Keyes Keyes, Fox & Wiedman LLP
October 21, 2014 www.irecusa.org
@IRECUSA #3iForum
Photovoltaics Installations and Pricing
Source: GTM Research/SEIA, U.S. Solar Market Insight®, 2013 Year-In-Review
< 1 % < 3 % < 5 % ≥5% Unlimited
DC
Net Metering Program Caps (percent of utility peak demand)
DC
2014 Net Metering Grades (www.freeingthegrid.org)
A B C D F N/A
DC
Valuation Highlights
• Energy value • Capacity value • Line losses • Utility environmental
Valuation Highlights, cont’d
• Ancillary benefits • Market price impacts • Societal benefits • Costs
AEE/Synapse Benefit-Cost Report
• Discussion of Societal Benefits/Costs
• Various Cost Tests • Screening and Decision Analysis Templates, ValuaDon OpDons checklist
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
Addressing the “Duck Curve”: TOU rates, demand response, and storage
Credit: CAIISO’s Building a Sustainable Energy Future: 2014-16 Strategic Plan
Avoided capacity costs
Hourly Loads for CA IOUs on 9/16/14 (and what they would have been without NEM solar)
0
5000
10000
15000
20000
25000
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
Cumulative Loads for CA IOUs on 9/16/14
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
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
PV narrows the peak, which could ease the ability of demand response, storage, etc. to provide capacity
0
10,000
20,000
30,000
40,000
50,000
60,000
0% 2% 6% 10%
PV Penetration and Hour
Gen
erat
ion
(MW
)
PVCTPSHydroCCImportsCoalNuclearWindGeo
Base 2% 6% 10% (no PV)
Source: NREL
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
AZ: ACC workshops to develop methodology. MulDple studies to date
CA: 2012 legislaDon required a CPUC study of costs and benefits of NEM;
LADWP considering VOS approach
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