Tampa Electric invests in peaking power units

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Tampa Electric announced that the company will install five new 60-megawatt (MW) peaking units to serve its growing service territory. The new peaking units will provide power during periods of peak customer demand in a reliable and environmentally friendly manner.

Four of the units will be single-fuel natural gas and will be located on the site of the existing Bayside Power Station in Tampa. One dual-fuel (natural gas and fuel oil) unit will be located at the Big Bend Power Station in Apollo Beach. The simple-cycle turbines are expected to be in commercial operation by the fourth quarter of 2009 and will provide power to approximately 65,000 homes on a winter peak day.

“The $237 million total project investment includes these new peaking units that will provide Tampa Electric with the flexibility to meet the growing needs of our customers in a safe, reliable and cost-effective manner, while continuing to meet our environmental responsibilities,” said Chuck Black, president.

The new peaking units will be equipped with black start capability. Black start capability will allow power from the peaking units to be used to start the other larger generating units at each of the stations, should power from the system not be readily available.

The Bayside Power Station, part of a more than $1.2 billion 10-year environmental program, is an 1,800-MW natural gas-fired power station that was built when the company retired its coal-fired Gannon Power Station.

The Big Bend Power Station is currently installing state-of-the-art selective catalytic reduction (SCR) equipment to further reduce the plantÂ’s emission levels, also part of the $1.2 billion environmental program. When the $330 million SCR project is completed in 2010, the approximately 1,700-MW Big Bend Station will be one of the cleanest pulverized coal power plants in the country.

Tampa Electric recently completed its Chicago Climate Exchange Phase I greenhouse gas reduction commitment. With an actual system-wide reduction of 20 percent, the company far surpassed the CCX Phase I requirement of 4 percent below the average of the years 1998-2001. The Chicago Climate Exchange (CCX), launched in 2003, is the worldÂ’s first and North AmericaÂ’s only active voluntary, legally binding integrated trading system to reduce emissions of all six major greenhouse gases (GHGs), with offset projects worldwide.

Emissions reductions across Tampa Electric's generating fleet have been the cornerstone of the $1.2 billion environmental commitment the company made in 1999. Compared to 1998 levels, Tampa Electric reduced overall sulfur dioxide emissions by 93 percent and nitrogen oxide emissions by 60 percent (90 percent by 2010). By the same comparison, the company also reduced overall mercury and particulate matter emissions by more than 70 percent. These reductions, in addition to the fact that the company cut carbon dioxide emissions by 23 percent since 1998, have helped establish Tampa Electric as an industry leader in emissions reductions.

To complement and reduce the need for conventional generation, Tampa Electric continues to focus on partnering with customers to increase their energy efficiency. In October 2007 the company received permission from the Florida Public Service Commission to expand its existing portfolio of energy efficiency programs by adding 13 new programs and modifying nine existing programs. Almost 400,000 customers have participated in Tampa ElectricÂ’s conservation programs to date.

From 1979 to 2007, the companyÂ’s conservation programs have offset the need to generate enough electricity to serve more than 550,000 average-size homes over a 12-month period.

Tampa Electric is also in the final stages of evaluating responses to its request for proposals for 150 megawatts of energy from renewable sources.

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Australia PM rules out taxpayer funded power plants amid energy battle

ACCC energy underwriting guarantee proposes government-backed certainty for new generation, cutting electricity prices and supporting gas, pumped hydro, renewables, batteries, and potentially coal-fired power, addressing market failure without direct subsidies.

 

Key Points

A tech-neutral, government-backed plan underwriting new generation revenue to increase certainty and cut power prices.

✅ Government guarantee provides a revenue floor for new generators.

✅ Technology neutral: coal, gas, renewables, pumped hydro, batteries.

✅ Intended to reduce bills by up to $400 and address market failure.

 

Australian Taxpayers won't directly fund any new power plants despite some Coalition MPs seizing on a new report to call for a coal-fired power station.

The Australian Competition and Consumer Commission recommended the government give financial certainty to new power plants, guaranteeing energy will be bought at a cheap price if it can't be sold, as part of an electricity market plan to avoid threats to supply.

It's part of a bid to cut up to $400 a year from average household power prices.

Prime Minister Malcolm Turnbull said the finance proposal had merit, but he ruled out directly funding specific types of power generation.

"We are not in the business of subsidising one technology or another," he told reporters in Queensland today.

"We've done enough of that. Frankly, there's been too much of that."

Renewable subsidies, designed in the 1990s to make solar and wind technology more affordable, have worked and will end in 2020.

Some Coalition MPs claim the ACCC's recommendation to underwrite power generation is vindication for their push to build new coal-fired power plants.

But ACCC chair Rod Sims said no companies had proposed building new coal plants - instead they're trying to build new gas projects, pumped hydro or renewable projects.

Opposition Leader Bill Shorten said Mr Turnbull was offering solutions years away, having overseen a rise in power prices over the past year.

"You don't just go down to K-Mart and get a coal-fired power station off the shelf," Mr Shorten told reporters, admitting he had not read the ACCC report.

Energy Minister Josh Frydenberg said the recommendation to underwrite new power generators had a lot of merit, as it would address a market failure highlighted by AEMO warnings about reduced reserves.

"What they're saying is the government needs to step in here to provide some sort of assurance," Mr Frydenberg told 9NEWS today.

He said that could include coal, gas, renewable energy or battery storage.

Deputy Nationals leader Bridget McKenzie said science should determine which technology would get the best outcomes for power bills, with a scrapping coal report suggesting it can be costly.

Mr Turnbull said there was strong support for the vast majority of the ACCC's 56 recommendations, but the government would carefully consider the report, which sets out a blueprint to cut electricity bills by 25 percent.

Acting Greens leader Adam Bandt said Australia should exit coal-fired power in favour of renewable energy to cut pollution.

In contrast, Canada has seen the Stop the Shock campaign advocate a return to coal power in some provinces.

The Australian Energy Council, which represents 21 major energy companies, said the government should consult on changes to avoid "unintended consequences".

 

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Wind turbine firms close Spanish factories as Coronavirus restrictions tighten

Spain Wind Turbine Factory Shutdowns disrupt manufacturing as Vestas, Siemens Gamesa, and Nordex halt Spanish plants amid COVID-19 lockdowns, straining supply chains and renewables projects across Europe, with partial operations and maintenance continuing.

 

Key Points

COVID-19 lockdowns pause Spanish wind factories by Vestas, Siemens Gamesa, and Nordex, disrupting supply chains.

✅ Vestas, Siemens Gamesa, Nordex halt Spanish manufacturing

✅ Service and maintenance continue under safety protocols

✅ Supply chain and project timelines face delays in Europe

 

Europe’s largest wind turbine makers on Wednesday said they had shut down more factories in Spain, a major hub for the continent’s renewables sector, in response to an almost total lockdown in the country to contain the coronavirus outbreak as the Covid-19 crisis disrupts the sector.

Denmark’s Vestas, the world No.1, has suspended production at its two Spanish plants, a spokesman told Reuters, adding that its service and maintenance business was still working. Vestas has also paused manufacturing and construction in India, which is under a nationwide lockdown too, he said, and similar disruptions could stall U.S. utility solar projects this year.

Top rival Siemens Gamesa, known for its offshore wind turbine lineup, suspended production at six Spanish factories on Monday, bringing total closures there to eight, a spokeswoman said.

Four components factories are still partially up and running, at Reinosa on the north coast, Cuenca near Madrid, Mungia and Siguiero, she added.

Germany’s Nordex, the No.8 globally which is 36% owned by Spain’s Acciona, has now shuttered all of its production in Spain, even as new projects like Enel’s 90MW build move ahead, including two nacelle casing factories in Barasoain and Vall d’Uixo, as well as a rotor blade site in Lumbier.

“Production is no longer active,” a spokeswoman said in response to a Reuters query.

The new closures take the number of idled wind power factories on the continent to 19, all in Spain and Italy, the European countries worst hit by the pandemic, with investments at risk across the sector.

Spain is second only to Italy in terms of numbers of coronavirus-related fatalities and restrictions have become even stricter in the country’s third week of lockdown at a time when renewables surpassed fossil fuels for the first time in Europe.

“Some factories have temporarily paused activity as a precautionary step to strengthen sanitary measures within the sites and guarantee full compliance with government recommendations,” industry association WindEurope said, noting that wind power grows in some markets despite the pandemic.

 

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Greening Ontario's electricity grid would cost $400 billion: report

Ontario Electricity Grid Decarbonization outlines the IESO's net-zero pathway: $400B investment, nuclear expansion, renewables, hydrogen, storage, and demand management to double capacity by 2050 while initiating a 2027 natural gas moratorium.

 

Key Points

A 2050 plan to double capacity, retire gas, and invest $400B in nuclear, renewables, and storage for a net-zero grid.

✅ $400B over 25 years to meet net-zero electricity by 2050

✅ Capacity doubles to 88,000 MW; demand grows ~2% annually

✅ 2027 gas moratorium; build nuclear, renewables, storage

 

Ontario will need to spend $400 billion over the next 25 years in order to decarbonize the electricity grid and embrace clean power according to a new report by the province’s electricity system manager that’s now being considered by the Ford government.

The Independent System Electricity Operator (IESO) was tasked with laying out a path to reducing Ontario’s reliance on natural gas for electricity generation and what it would take to decarbonize the entire electricity grid by 2050.

Meeting the goal, the IESO concluded, will require an “aggressive” approach of doubling the electricity capacity in Ontario over the next two-and-a-half decades — from 42,000 MW to 88,000 MW — by investing in nuclear, hydrogen and wind and solar power while implementing conservation policies and managing demand.

“The process of fully eliminating emissions from the grid itself will be a significant and complex undertaking,” IESO president Lesley Gallinger said in a news release.

The road to decarbonization, the IESO said, begins with a moratorium on natural gas power generation starting in 2027 as long as the province has “sufficient, non-emitting supply” to meet the growing demands on the grid.

The approach, however, comes with significant risks.

The IESO said hydroelectric and nuclear facilities can take 10 to 15 years to build and if costs aren’t controlled the plan could drive up the price of clean electricity, turning homeowners and businesses away from electrification.

“Rapidly rising electricity costs could discourage electrification, stifle economic growth or hurt consumers with low incomes,” the report states.

The IESO said the province will need to take several “no regret” actions, including selecting sites and planning to construct new large-scale nuclear plants as well as hydroelectric and energy storage projects and expanding energy-efficiency programs beyond 2024.

READ MORE: Ontario faces calls to dramatically increase energy efficiency rebate programs

Ontario’s minister of energy didn’t immediately commit to implementing the recommendations, citing the need to consult with stakeholders first.

“I look forward to launching a consultation in the new year on next steps from today’s report, including the potential development of major nuclear, hydroelectric and transmissions projects,” Todd Smith said in a statement.

Currently, electricity demand is increasing by roughly two per cent per year, raising concerns Ontario could be short of electricity in the coming years as the manufacturing and transportation sectors electrify and as more sectors consider decarbonization.

At the same time, the province’s energy supply is facing “downward pressure” with the Pickering nuclear power plant slated to wind down operations and the Darlington nuclear generating station under active refurbishment.

To meet the energy need, the Ford government said it intended to extend the life of the Pickering plant until 2026.

READ MORE: Ontario planning to keep Pickering nuclear power station open until 2026

But to prepare for the increase, the Ontario government was told the province would also need to build new natural gas facilities to bridge Ontario’s electricity supply gap in the near term — a recommendation the Ford government agreed to.

The IESO said a request for proposals has been opened and the province is looking for host communities, with the expectation that existing facilities would be upgraded before projects on undeveloped land would be considered.

The IESO said the contract for any new facilities would expire in 2040, and all natural gas facilities would be retired in the 2040s.

 

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Newsom Vetoes Bill to Codify Load Flexibility

California Governor Gavin Newsom vetoed a bill aimed at expanding load flexibility in state grid planning, citing conflicts with California’s resource adequacy framework and concerns over grid reliability and energy planning uncertainty.

 

Why has Newsom vetoed the Bill to Codify Load Flexibility?

Governor Gavin Newsom’s veto blocks legislation that would have required the California Energy Commission to incorporate load flexibility into the state’s energy planning and policy framework, a move that has stirred debate across the clean energy sector.

✅ Argues the bill conflicts with California’s existing Resource Adequacy system

✅ Draws backlash from clean energy and grid modernization advocates

✅ Exposes ongoing tension over how to manage renewable integration and demand response

 

California Governor Gavin Newsom has vetoed Assembly Bill 44, which would have required the California Energy Commission to evaluate and incorporate load management mechanisms into the state’s energy planning process. The move drew criticism from clean energy advocates who say it undermines efforts to strengthen grid reliability and reduce costs.

The bill directed the commission to adopt “upfront technical requirements and load modification protocols” that would allow load-serving entities to adjust their electrical demand forecasts. Proponents viewed this as a way to modernize California’s grid management, and to explore a revamp of electricity rates to help clean the grid, making it more responsive to demand fluctuations and renewable energy variability.

In his veto statement, Newsom said the bill was incompatible with existing energy planning frameworks, even as a looming electricity shortage remains a concern. “While I support expanding electric load flexibility, this bill does not align with the California Public Utility Commission’s Resource Adequacy framework,” he said. “As a result, the requirements of this bill would not improve electric grid reliability planning and could create uncertainty around energy resource planning and procurement processes.”

Newsom’s decision comes shortly after he signed a broad package of energy legislation that set the stage for a regional Western electricity market and extended the state’s cap-and-trade program. However, that legislative package did not include continued funding for several key grid reliability programs — including what advocates have called the world’s largest virtual power plant, a distributed network of connected devices that can balance electricity demand in real time.

Clean energy supporters saw AB 44 as a crucial step toward integrating these distributed energy resources into long-term grid planning. “With Assembly Bill 44 being vetoed, the state has missed a huge opportunity to advance common-sense policy that would have lowered costs, strengthened the grid, and unlocked the full potential of advanced energy,” said Edson Perez, California lead at Advanced Energy United.

Perez added that the setback increases pressure on lawmakers to take stronger action in the next legislative session. “The pressure is on next session to ensure that California is using all tools in its policy toolbox to build critically needed infrastructure, strengthen the grid, and bring costs down,” he said.

California’s growing use of demand response programs and virtual power plants has been central to its strategy for managing grid stress during heat waves and wildfire seasons. These systems allow utilities and customers to temporarily reduce or shift energy use, helping to prevent blackouts and reduce the need for fossil-fuel peaker plants during peak demand.

A recent report by the Brattle Group found that California’s taxpayer-funded virtual power plant could save ratepayers $206 million between 2025 and 2028 while reducing reliance on gas generation. The study, commissioned by Sunrun and Tesla Energy, highlighted the potential for flexible load management to improve both grid reliability and reduce costs, even as regulators weigh whether the state needs more power plants to ensure reliability.

Despite these findings, Newsom’s veto signals continued tension between state policymakers and clean energy advocates over how best to modernize California’s power grid. While the governor has prioritized large-scale renewable development and regional market integration, critics argue that California’s climate policy choices risk exacerbating reliability challenges and that failing to codify load flexibility could slow progress toward a more adaptive, resilient, and affordable clean energy future.

 

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Should California Fund Biofuels or Electric Vehicles?

California Biofuels vs EV Subsidies examines tradeoffs in decarbonization, greenhouse gas reductions, clean energy deployment, charging infrastructure, energy security, lifecycle emissions, and transportation sector policy to meet climate goals and accelerate sustainable mobility.

 

Key Points

Policy tradeoffs weighing biofuels and EVs to cut GHGs, boost energy security, and advance clean transportation.

✅ Near-term blending cuts emissions from existing fleets

✅ EVs scale with a cleaner grid and charging buildout

✅ Lifecycle impacts and costs guide optimal subsidy mix

 

California is at the forefront of the transition to a greener economy, driven by its ambitious goals to reduce greenhouse gas emissions and combat climate change. As part of its strategy, the state is grappling with the question of whether it should subsidize out-of-state biofuels or in-state electric vehicles (EVs) to meet these goals. Both options come with their own sets of benefits and challenges, and the decision carries significant implications for the state’s environmental, economic, and energy landscapes.

The Case for Biofuels

Biofuels have long been promoted as a cleaner alternative to traditional fossil fuels like gasoline and diesel. They are made from organic materials such as agricultural crops, algae, and waste, which means they can potentially reduce carbon emissions in comparison to petroleum-based fuels. In the context of California, biofuels—particularly ethanol and biodiesel—are viewed as a way to decarbonize the transportation sector, which is one of the state’s largest sources of greenhouse gas emissions.

Subsidizing out-of-state biofuels can help California reduce its reliance on imported oil while promoting the development of biofuel industries in other states. This approach may have immediate benefits, as biofuels are widely available and can be blended with conventional fuels to lower carbon emissions right away. It also allows the state to diversify its energy sources, improving energy security by reducing dependency on oil imports.

Moreover, biofuels can be produced in many regions across the United States, including rural areas. By subsidizing out-of-state biofuels, California could foster economic development in these regions, creating jobs and stimulating agricultural innovation. This approach could also support farmers who grow the feedstock for biofuel production, boosting the agricultural economy in the U.S.

However, there are drawbacks. The environmental benefits of biofuels are often debated. Critics argue that the production of biofuels—particularly those made from food crops like corn—can contribute to deforestation, water pollution, and increased food prices. Additionally, biofuels are not a silver bullet in the fight against climate change, as their production and combustion still release greenhouse gases. When considering whether to subsidize biofuels, California must also account for the full lifecycle emissions associated with their production and use.

The Case for Electric Vehicles

In contrast to biofuels, electric vehicles (EVs) offer a more direct pathway to reducing emissions from transportation. EVs are powered by electricity, and when coupled with renewable energy sources like solar or wind power, they can provide a nearly zero-emission solution for personal and commercial transportation. California has already invested heavily in EV infrastructure, including expanding its network of charging stations and exploring how EVs can support grid stability through vehicle-to-grid approaches, and offering incentives for consumers to purchase EVs.

Subsidizing in-state EVs could stimulate job creation and innovation within California's thriving clean-tech industry, with other states such as New Mexico projecting substantial economic gains from transportation electrification, and the state has already become a hub for electric vehicle manufacturers, including Tesla, Rivian, and several battery manufacturers. Supporting the EV industry could further strengthen California’s position as a global leader in green technology, attracting investment and fostering growth in related sectors such as battery manufacturing, renewable energy, and smart grid technology.

Additionally, the environmental benefits of EVs are substantial. As the electric grid becomes cleaner with an increasing share of renewable energy, EVs will become even greener, with lower lifecycle emissions than biofuels. By prioritizing EVs, California could further reduce its carbon footprint while also achieving its long-term climate goals, including reaching carbon neutrality by 2045.

However, there are challenges. EV adoption in California remains a significant undertaking, requiring major investments in infrastructure as they challenge state power grids in the near term, technology, and consumer incentives. The cost of EVs, although decreasing, still remains a barrier for many consumers. Additionally, there are concerns about the environmental impact of lithium mining, which is essential for EV batteries. While renewable energy is expanding, California’s grid is still reliant on fossil fuels to some degree, and in other jurisdictions such as Canada's 2019 electricity mix fossil generation remains significant, meaning that the full emissions benefit of EVs is not realized until the grid is entirely powered by clean energy.

A Balancing Act

The debate between subsidizing out-of-state biofuels and in-state electric vehicles is ultimately a question of how best to allocate California’s resources to meet its climate and economic goals. Biofuels may offer a quicker fix for reducing emissions from existing vehicles, but their long-term benefits are more limited compared to the transformative potential of electric vehicles, even as some analysts warn of policy pitfalls that could complicate the transition.

However, biofuels still have a role to play in decarbonizing hard-to-abate sectors like aviation and heavy-duty transportation, where electrification may not be as feasible in the near future. Thus, a mixed strategy that includes both subsidies for EVs and biofuels may be the most effective approach.

Ultimately, California’s decision will likely depend on a combination of factors, including technological advancements, 2021 electricity lessons, and the pace of renewable energy deployment, and the state’s ability to balance short-term needs with long-term environmental goals. The road ahead is not easy, but California's leadership in clean energy will be crucial in shaping the nation’s response to climate change.

 

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Tracking Progress on 100% Clean Energy Targets

100% Clean Energy Targets drive renewable electricity, decarbonization, and cost savings through state policies, CCAs, RECs, and mandates, with timelines and interim goals that boost jobs, resilience, and public health across cities, counties, and utilities.

 

Key Points

Policies for cities and states to reach 100% clean power by set dates, using mandates, RECs, and interim goals.

✅ Define eligible clean vs renewable resources

✅ Mandate vs goal framework with enforcement

✅ Timelines with interim targets and escape clauses

 

“An enormous amount of authority still rests with the states for determining your energy future. So we can build these policies that will become a postcard from the future for the rest of the country,” said David Hochschild, chair of the California Energy Commission, speaking last week at a UCLA summit on state and local progress toward 100 percent clean energy.

According to a new report from the UCLA Luskin Center for Innovation, 13 states, districts and territories, as well as more than 200 cities and counties, with standout clean energy purchases by Southeast cities helping drive momentum, have committed to a 100 percent clean electricity target — and dozens of cities have already hit it.

This means that one of every three Americans, or roughly 111 million U.S. residents representing 34 percent of the population, live in a community that has committed to or has already achieved 100 percent clean electricity, including communities like Frisco, Colorado that have set ambitious targets.

“We’re going to look back on this moment as the moment when local action and state commitments began to push the entire nation toward this goal,” said J.R. DeShazo, director of the UCLA Luskin Center for Innovation.

Not all 100 percent targets are alike, however. The report notes that these targets vary based on 1) what resources are eligible, 2) how binding the 100 percent target is, and 3) how and when the target will be achieved.

These distinctions will carry a lot of weight as the policy discussion shifts from setting goals to actually meeting targets. They also have implications for communities in terms of health benefits, cost savings and employment opportunities.

 

100% targets come in different forms

One key attribute is whether a target is based on "renewable" or "clean" energy resources. Some 100 percent targets, like Hawaii’s and Rhode Island’s 2030 plan, are focused exclusively on renewable energy, or sources that cannot be depleted, such as wind, solar and geothermal. But most jurisdictions use the broader term “clean energy,” which can also include resources like large hydroelectric generation and nuclear power.

States also vary in their treatment of renewable energy certificates, used to track and assign ownership to renewable energy generation and use. Unbundled RECs allow for the environmental attributes of the renewable energy resource to be purchased separately from the physical electricity delivery.

The binding nature of these targets is also noteworthy. Seven states, as well as Puerto Rico and the District of Columbia, have passed 100 percent clean energy transition laws. Of the jurisdictions that have passed 100 percent legislation, all but one specifies that the target is a “mandate,” according to the report. Nevada is the only state to call the target a “goal.”

Governors in four other states have signed executive orders with 100 percent clean energy goals.

Target timelines also vary. Washington, D.C. has set the most ambitious target date, with a mandate to achieve 100 percent renewable electricity by 2032. Other states and cities have set deadline years between 2040 and 2050. All "100 percent" state laws, and some city and county policies, also include interim targets to keep clean energy deployment on track.

In addition, some locations have included some form of escape clause. For instance, Salt Lake City, which last month passed a resolution establishing a goal of powering the county with 100 percent clean electricity by 2030, included “exit strategies” in its policy in order to encourage stakeholder buy-in, said Mayor Jackie Biskupski, speaking last week at the UCLA summit.

“We don’t think they’ll get used, but they’re there,” she said.

Other locales, meanwhile, have decided to go well beyond 100 percent clean electricity. The State of California and 44 cities have set even more challenging targets to also transition their entire transportation, heating and cooling sectors to 100 percent clean energy sources, and proposals like requiring solar panels on new buildings underscore how policy can accelerate progress across sectors.

Businesses are simultaneously electing to adopt more clean and renewable energy. Six utilities across the United States have set their own 100 percent clean or carbon-free electricity targets. UCLA researchers did not include populations served by these utilities in their analysis of locations with state and city 100 percent clean commitments.

 

“We cannot wait”

All state and local policies that require a certain share of electricity to come from renewable energy resources have contributed to more efficient project development and financing mechanisms, which have supported continued technology cost declines and contributed to a near doubling of renewable energy generation since 2008.

Many communities are switching to clean energy in order to save money, now that the cost calculation is increasingly in favor of renewables over fossil fuels, as more jurisdictions get on the road to 100% renewables worldwide. Additional benefits include local job creation, cleaner air and electricity system resilience due to greater reliance on local energy resources.

Another major motivator is climate change. The electricity sector is responsible for 28 percent of U.S. greenhouse gas emissions, second only to transportation. Decarbonizing the grid also helps to clean up the transportation sector as more vehicles move to electricity as their fuel source.

“The now-constant threat of wildfires, droughts, severe storms and habitat loss driven by climate change signals a crisis we can no longer ignore,” said Carla Peterman, senior vice president of regulatory affairs at investor-owned utility Southern California Edison. “We cannot wait and we should not wait when there are viable solutions to pursue now.”

Prior to joining SCE on October 1, Peterman served as a member of the California Public Utilities Commission, which implements and administers renewable portfolio standard (RPS) compliance rules for California’s retail sellers of electricity. California’s target requires 60 percent of the state’s electricity to come from renewable energy resources by 2030, and all the state's electricity to come from carbon-free resources by 2045.  

 

How CCAs are driving renewable energy deployment

One way California communities are working to meet the state’s ambitious targets is through community-choice aggregation, especially after California's near-100% renewable milestone underscored what's possible, via which cities and counties can take control of their energy procurement decisions to suit their preferences. Investor-owned utilities no longer purchase energy for these jurisdictions, but they continue to operate the transmission and distribution grid for all electricity users.                           

A second paper released by the Luskin Center for Innovation in recent days examines how community-choice aggregators are affecting levels of renewable energy deployment in California and contributing to the state’s 100 percent target.

The paper finds that 19 CCAs have launched in California since 2010, growing to include more than 160 towns, cities and counties. Of those communities, 64 have a 100 percent renewable or clean energy policy as their default energy program.

Because of these policies, the UCLA paper finds that “CCAs have had both direct and indirect effects that have led to increases in the clean energy sold in excess of the state’s RPS.”

From 2011 to 2018, CCAs directly procured 24 terawatt-hours of RPS-eligible electricity, 11 TWh of which have been voluntary or in excess of RPS compliance, according to the paper.

The formation of CCAs has also had an indirect effect on investor-owned utilities. As customers have left investor-owned utilities to join CCAs, the utilities have been left holding contracts for more renewable energy than they need to comply with California’s clean energy targets, amid rising solar and wind curtailments that complicate procurement decisions. UCLA researchers estimate that this indirect effect of CCA formation has left IOUs holding 13 terawatt-hours in excess of RPS requirements.

The paper concludes that CCAs have helped to accelerate California’s ability to meet state renewable energy targets over the past decade. However, the future contributions of CCAs to the RPS are more uncertain as communities make new power-purchasing decisions and utilities seek to reduce their excess renewable energy contracts.

“CCAs offer a way for communities to put their desire for clean energy into action. They're growing fast in California, one of only eight states where this kind of mechanism is allowed," said UCLA's Kelly Trumbull, an author of the report. "State and federal policies could be reformed to better enable communities to meet local demand for renewable energy.”

 

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