India aims for 20,000 MW of solar capacity by 2020

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The Indian government is reported to have finalized the draft for the National Solar Mission, outlining ambitious long-term plans to attain an installed solar power generation capacity of 20,000 megawatts (MW) by the year 2020, which would be increased to 100,000 MW by the year 2030, and further to 200,000 MW by the year 2050.

The plan also aims to reduce the cost of solar power generation to between $0.0846 and $0.1058 per kilowatt-hour (kWh) by 2017-20 in order to make solar power competitive with power generated from fossil fuels.

In order to achieve the proposed targets, the government is likely to make investments of approximately $18 billion to $22 billion over a period of 30 years. An estimated investment of about $1.06 billion-$1.27 billion will be required during the current Eleventh Five-Year Plan period, 2007-12, while an investment of $2.54 billion-$3.18 billion will be required during the Twelfth Five-Year Plan, 2012-17.

The Mission envisages 20,000 MW of solar power generation capacity to be installed across five application segments by 2020. These segments include 12,000 MW of power connected to the utility grid, 3,000 MW of power from 1 million captive and grid-connected rooftop solar photovoltaic (PV) installations with an average individual capacity of 3 kilowatts (kW) each, 3,000 MW of rural installations, and 2,000 MW of distributed solar PV applications such as telecom towers. In addition, about 20 million households are envisaged to have access to solar lighting, while solar heating applications would be set up over 20 million square meters of collector area by 2020.

The plans are proposed to be implemented in three phases during 2009-2020. The first phase will focus on achieving economies of scale and validating the economic and technological viability of different solar applications. Some of the plans to be implemented during this phase include promotion of large-scale solar utility plants, and mandatory deployment of onsite or rooftop PV applications in buildings and establishments owned by the government and public sector undertakings to achieve a target of 100 MW through this initiative by 2012.

The government also plans to mandate installation of solar power generation capacity of at least 5% of the total installed capacity of upcoming thermal power plants based on oil, gas and coal. Further, vacant land available in existing power plants would be used for setting up solar power units.

Solar applications are planned to replace diesel generators to meet peak daytime power requirements. Solar PV panels will be used to charge inverter systems in residential and commercial establishments.

The government also plans to develop two or three large-scale concentrating solar power (CSP) plants with capacities of 50 MW, 100 MW with storage, and a 150-200-MW solar/gas hybrid model, to demonstrate economic and technological feasibility. Pilot projects will be undertaken for large-scale rural electrification based on solar power.

Solar lighting systems will be promoted in rural and urban sectors through micro-financing business models to provide access to lighting for 3 million households by 2012. The government is expected to invest up to $254 million in this initiative.

There will also be a focus on the promotion of solar heating systems, for which the target has been set at 7 million square meters of solar heating applications by 2012. The government plans to mandate installation of solar water heaters in functional buildings such as hotels, hospitals and guesthouses, subject to availability of at least 500 square meters of land area.

The first phase of the Mission would also see the establishment of technology parks to promote local manufacturing capacities. This target has been set at 1,000-1,500 MW of manufacturing capacity by 2012-13.

In the second phase of implementation, during the period 2012-17, the plan is to achieve 6,000-7,000 MW of installed solar power generation capacity by 2017. This would be accomplished by scaling up validated applications with focus on grid-tied installations, implementation of validated business models for rural electrification, commercial deployment of solar thermal power projects with storage capabilities, and pilot deployment of advanced technologies such as CSP, thin film applications, storage systems and dish/Stirling systems.

In the third phase, during the period 2017-20, the target is to achieve an installed capacity of 20,000 MW by 2020 and attain tariff parity between solar power and conventional grid power. This phase would see commercial deployment of storage technologies and other advanced technologies indigenously developed through research and development. The Mission envisages the deployment of more than 1 million rooftop systems with an average capacity of 3 kilowatts by the year 2020.

In order to promote rapid and large-scale capital investments in this sector, the government is proposing to provide incentives in the form of feed-in tariffs, tax holidays up to a period of 10 years, and relief from excise duty and customs duty on critical materials and capital equipment. Similar incentives are already in place for projects in the infrastructure and information technology sectors.

Feed-in tariffs would be determined through a market-based price discovery mechanism such as inviting bids for large-scale projects. The incentive would be distributed among the utility and the central and state governments, with the utility bearing a cost of $0.0741 per kWh, while the balance amount would be borne by the central and state governments in the ratio of 70:30. Costs of solar power generation are expected to decline at a rate of 7-9% per year by 2020.

India currently has a PV-module manufacturing capacity of 700 MW. However, there is no indigenous manufacturing capability for solar thermal power plants. The government intends to promote the establishment of new plants to manufacture concentrator collectors and receivers required by CSP plants.

The proposed plans to increase solar power generation capacity to 20,000 MW by 2020 are estimated to result in a reduction of 42 million tons per year of carbon-dioxide emissions. Solar lighting and heating initiatives are expected to further reduce emissions by 3 million and 15 million tons per year, respectively, by eliminating the use of kerosene and other fuels.

Additionally, solar heating applications are expected to result in peak-load shaving of about 7,500 MW, free up 4,500 MW of installed power capacity that is currently used for heating applications, and save about 350 million liters per year of fuel oil. Rooftop PV systems, estimated to reach 3,000 MW by 2020, could save about 1,050 million liters per year of diesel and reduce carbon dioxide emissions by 2.36 million tons per year.

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How Electricity Gets Priced in Europe and How That May Change

EU Power Market Overhaul targets soaring electricity prices by decoupling gas from power, boosting renewables, refining price caps, and stabilizing grids amid inflation, supply shocks, droughts, nuclear outages, and intermittent wind and solar.

 

Key Points

EU plan to redesign electricity pricing, curb gas-driven costs, boost renewables, and protect consumers from volatility.

✅ Decouples power prices from marginal gas generation

✅ Caps non-gas revenues to fund consumer relief

✅ Supports grid stability with storage, demand response, LNG

 

While energy prices are soaring around the world, Europe is in a particularly tight spot. Its heavy dependence on Russian gas -- on top of droughts, heat waves, an unreliable fleet of French nuclear reactors and a continent-wide shift to greener but more intermittent sources like solar and wind -- has been driving electricity bills up and feeding the highest inflation in decades. As Europe stands on the brink of a recession, and with the winter heating season approaching, officials are considering a major overhaul of the region’s power market to reflect the ongoing shift from fossil fuels to renewables.

1. How is electricity priced? 
Unlike oil or natural gas, there’s no efficient way to save lots of electricity to use in the future, though projects to store electricity in gas pipes are emerging. Commercial use of large-scale batteries is still years away. So power prices have been set by the availability at any given moment. When it’s really windy or sunny, for example, then more is produced relatively cheaply and prices are lower. If that supply shrinks, then prices rise because more generators are brought online to help meet demand -- fueled by more expensive sources. The way the market has long worked is that it is that final technology, or type of plant, needed to meet the last unit of consumption that sets the price for everyone. In Europe this year, that has usually meant natural gas. 

2. What is the relationship between power and gas? 
Very close. Across western Europe, gas plants have been a vital part of the energy infrastructure for decades, with Irish price spikes highlighting dispatchable power risks, fed in large part by supplies piped in from Siberia. Gas-fired plants were relatively quick to build and the technology straightforward, at least compared with nuclear plants and burns cleaner than coal. About 18% of Europe’s electricity was generated at gas plants last year; in 2020 about 43% of the imported gas came from Russia. Even during the depths of the Cold War, there’d never been a serious supply problem -- until the relationship with Russia deteriorated this year after it invaded Ukraine. Diversifying away from Russia, such as by increasing imports of liquefied natural gas, requires new infrastructure that takes a lot of time and money.

3. Why does it work this way? 
In theory, the relationship isn’t different from that with coal, for example. But production hiccups and heatwave curbs on plants from nuclear in France to hydro in Spain and Norway significantly changed the generation picture this year, and power hit records as plants buckled in the heat. Since coal-fired and nuclear plants are generally running all the time anyway, gas plants were being called upon more often -- at times just to keep the lights on as summer temperatures hit records. And with the war in Ukraine resulting in record gas prices, that pushed up overall production costs. It’s that relationship that has made the surging gas price the driver for electricity prices. And since the continent is all connected, it has pushed up prices across the region. The value of the European power market jumped threefold last year, to a record 836 billion euros ($827 billion today).

4. What’s being considered? 
With large parts of European industry on its knees and households facing jumps in energy bills of several hundred percent, as record electricity prices ripple through markets, the pressure on governments and the European Union to intervene has never been higher. One major proposal is to impose a price cap on electricity from non-gas producers, with the difference between that and the market price channeled to relief for consumers. While it sounds simple, any such changes would rip up a market design that’s worked for decades and could threaten future investments because of unintended consequences.


5. How did this market evolve?
The Nordic region and the British market were front-runners in the 1990s, then Germany followed and is now the largest by far. A trader can buy and sell electricity delivered later on same day in blocks of an hour or even down to 15-minute periods, to meet sudden demand or take advantage of price differentials. The price for these contracts is decided entirely by the supply and demand, how much the wind is blowing or which coal plants are operating, for example. Demand tends to surge early in the morning and late afternoon. This system was designed when fossil fuels provided the bulk of power. Now there are more renewables, which are less predictable, with wind and solar surpassing gas in EU generation last year, and the proposed changes reflect that shift. 

6. What else have governments done?
There are also traders who focus on longer-dated contracts covering periods several years ahead, where broader factors such as expected economic output and the extent to which renewables are crowding out gas help drive prices. This year’s wild price swings have prompted countries including Germany, Sweden and Finland to earmark billions of euros in emergency liquidity loans to backstop utilities hit with sudden margin calls on their trading.

 

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Gov. Greg Abbott touts Texas power grid's readiness heading into fall, election season

ERCOT Texas Fall Grid Forecast outlines ample power supply, planned maintenance outages, and grid reliability, citing PUC oversight and Gov. Abbott's remarks, with seasonal assessment noting mild demand yet climate risks and conservation alerts.

 

Key Points

ERCOT's seasonal outlook for Texas on fall power supply, outages, and reliability expectations under PUC oversight.

✅ Projects sufficient supply in October and November

✅ Many plants scheduled offline for maintenance

✅ Notes PUC oversight and Abbott's confidence

 

Gov. Greg Abbott said Tuesday that the Texas power grid is prepared for the fall months and referenced a new seasonal forecast by the state’s grid operator, which typically does not draw much attention to its fall and spring grid assessments because of the more mild temperatures during those seasons.

Tuesday’s new forecast by the Electric Reliability Council of Texas showed that there should be plenty of power supply to meet demand in October and November. It also showed that many Texas power plants are scheduled to be offline this fall for maintenance work. Texas power plants usually plan to go down in the fall and spring for repairs to improve reliability ahead of the more extreme temperatures in winter and summer, when Texans crank up their heat and air conditioning and raise demand for power.

ERCOT for at least a decade announced its seasonal forecasts, but did not do so on Tuesday. The grid operator stopped announcing the reports after the 2021 winter storm event. A spokesperson for the grid operator, which posted the report to its website midday without notifying the public or power industry stakeholders, said there were no plans to discuss the latest forecast and referred questions about it to the Public Utility Commission, which oversees ERCOT. Abbott appoints the board of the PUC.

Abbott on Tuesday expressed his confidence about the grid in a news release, which included photos of the governor sitting at a table with incoming ERCOT CEO Pablo Vegas, outgoing interim CEO Brad Jones and Public Utility Commission Chair Peter Lake.

“The State of Texas continues to monitor the reliability of our electric grid, and I thank ERCOT and PUC for their hard work to implement bipartisan reforms we passed last year and for their proactive leadership to ensure our grid is stronger than ever before,” Abbott said in the release.

Abbott has not previously shared or called attention to ERCOT’s forecasts as he did on Tuesday.

Up for reelection this fall, Abbott has faced continued criticism, including from the Sierra Club over his handling of the 2021 deadly power grid disaster, when extended freezing temperatures shut down natural gas facilities and power plants, which rely on each other to keep electricity flowing. The resulting blackouts left millions of Texans without power for days in the cold, and hundreds of people died.

ERCOT’s forecasts for fall and spring are typically the least worrisome seasonal forecasts, energy experts said, because temperatures are usually milder in between summer and winter, even as ERCOT has issued an RFP to procure winter capacity to address shortages, so demand for power usually does not skyrocket like it does during extreme temperatures.

But they’ve warned that climate change could potentially lead to more extreme temperatures during times when Texas hasn’t experienced such weather in the past. For example, in early May six power plants unexpectedly broke down when a spring heat wave drove power demand up and highlighted broader heat-related blackout risks across the grid. ERCOT asked Texans to conserve electricity at home at the time.

Abbott released the seasonal report at a time when he has asserted unprecedented control over ERCOT. Although he had no formal role in ERCOT’s search for a new permanent CEO, he put a stranglehold on the process, The Texas Tribune previously reported. Since the winter storm, Abbott’s office has also dictated what information about the power grid ERCOT has released to the public.

 

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'Pakistan benefits from nuclear technology'

Pakistan Nuclear Energy advances clean power with IAEA guidance, supporting SDGs via electricity generation, nuclear security, and applications in healthcare, agriculture, and COVID-19 testing, as new 1,100 MW reactors near grid connection.

 

Key Points

Pakistan Nuclear Energy is the nation's atomic program delivering clean electricity, SDGs gains, and IAEA-guided safety.

✅ Two 1,100 MW reactors nearing grid connection

✅ IAEA-aligned safety and nuclear security regime

✅ Nuclear tech supports healthcare, agriculture, COVID-19 tests

 

Pakistan is utilising its nuclear technology to achieve its full potential by generating electricity, aligning with China's steady nuclear development trends, and attaining socio-economic development goals outlined by the United Nations Sustainable Development Goals.

This was stated by Pakistan Atomic Energy Commission (PAEC) Chairperson Muhammad Naeem on Tuesday while addressing the 64th International Atomic Energy Agency (IAEA) General Conference (GC) which is being held in Vienna from September 21, a forum taking place amid regional milestones like the UAE's first Arab nuclear plant startup as well.

Regarding nuclear security, the PAEC chief stated that Pakistan considered it as a national responsibility and that it has developed a comprehensive and stringent safety and security regime, echoing IAEA praise for China's nuclear security in the region, which is regularly reviewed and upgraded in accordance with IAEA's guidelines.

Many delegates are attending the event through video link due to the novel coronavirus (Covid-19) pandemic.

On the first day of the conference, IAEA Director General Rafael Mariano Grossi highlighted the role of the nuclear watchdog in the monitoring and verification of nuclear activities across the globe, as seen in Barakah Unit 1 at 100% power milestones reported worldwide.

He also talked about the various steps taken by the IAEA to help member states contain the spread of coronavirus such as providing testing kits etc.

In a recorded video statement, the PAEC chairperson said that Pakistan has a mutually beneficial relationship with IAEA, similar to IAEA assistance to Bangladesh on nuclear power development efforts. He also congratulated Ambassador Azzeddine Farhane on his election to become the President of the 64th GC and assured him of Pakistan's full support and cooperation.

Naeem stated that as a clean, affordable and reliable source, nuclear energy can play a key role, with India's nuclear program moving back on track, in fighting climate change and achieving the Sustainable Development Goals (SDGs).

The PAEC chief informed the audience that two 1,100-megawatt (MW) nuclear power plants are near completion and, like the UAE grid connection milestone, are expected to be connected to the national grid next year.

He also highlighted the role of PAEC in generating electricity through nuclear power plants, while also helping the country achieve the socio-economic development goals outlined under the United Nations SDGs through the application of nuclear technology in diverse fields like agriculture, healthcare, engineering and manufacturing, human resource development and other sectors.

 

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Ontario to seek new wind, solar power to help ease coming electricity supply crunch

Ontario Clean Grid Plan outlines emissions-free electricity growth, renewable energy procurement, nuclear expansion at Bruce and Darlington, reduced natural gas, grid reliability, and net-zero alignment to meet IESO demand forecasts and EV manufacturing loads.

 

Key Points

A plan to expand emissions-free power via renewables and nuclear, cut natural gas use, and meet growing demand.

✅ Targets renewables, hydro, and nuclear capacity growth

✅ Aims to reduce reliance on gas for grid reliability

✅ Aligns with IESO demand forecasts and EV manufacturing loads

 

Ontario is working toward filling all of the province’s quickly growing electricity needs with emissions-free sources, including a plan to secure new renewable generation and clean power options, but isn’t quite ready to commit to a moratorium on natural gas.

Energy Minister Todd Smith announced Monday a plan to address growing energy needs for 2030 to 2050 — the Independent Electricity System Operator projects Ontario’s electricity demand could double by mid-century — and next steps involve looking for new wind, solar and hydroelectric power.

“While we may not need to start building today, government and those in the energy sector need to start planning immediately, so we have new clean, zero-emissions projects ready to go when we need them,” Smith said in Windsor, Ont.

The strategy also includes two nuclear projects announced last week — a new large-scale nuclear plant at Bruce Power on the shore of Lake Huron and three new small modular reactors at the site of the Darlington nuclear plant east of Toronto.

Those projects, enough to power six million homes, will help Ontario end its reliance on natural gas to generate electricity, said Smith, but committing to a natural gas moratorium in 2027 and eliminating natural gas by 2050 is contingent on the federal government helping to speed up the new nuclear facilities.

“Today’s report, the Powering Ontario’s Growth plan, commits us to working towards a 100 per cent clean grid,” Smith said in an interview.

“Hopefully the federal government can get on board with our intentions to build this clean generation as quickly as possible … That will put us in a much better position to use our natural gas facilities less in the future, if we can get those new projects online.”

The IESO has said that natural gas is required to ensure supply and stability in the short to medium term, as Ontario works on balancing demand and emissions across the grid, but that it will also increase greenhouse gas emissions from the electricity sector.

The province is expected to face increased demand for electricity from expanded electric vehicle use and manufacturing in the coming years, even as a $400-billion cost estimate for greening the grid is debated.

Keith Brooks, programs director for Environmental Defence, said the provincial plan could have been much more robust, containing firm timelines and commitments.

“This plan does not commit to getting emissions out of the system,” he said.

“It doesn’t commit to net zero, doesn’t set a timeline for a net zero goal or have any projection around emissions from Ontario’s electricity sector going forward. In fact, it’s not really a plan. It doesn’t set out any real goals and it doesn’t it doesn’t project what Ontario’s supply mix might look like.”

The Canadian Climate Institute applauded the plan’s focus on reducing reliance on gas-fired generation and emphasizing non-emitting generation, but also said there are still some question marks.

“The plan is silent on whether the province intends to construct new gas-fired generation facilities,” even as new gas plant expansions are proposed, senior research director Jason Dion wrote in a statement.

“The province should avoid building new gas plants since cost-effective alternatives are available, and such facilities are likely to end up as stranded assets. The province’s timeline for reaching net zero generation is also unclear. Canada and other G7 countries have set a target for 2035, something Ontario will need to address if it wants to remain competitive.”

 

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Alberta set to retire coal power by 2023, ahead of 2030 provincial deadline

Alberta coal phaseout accelerates as utilities convert to natural gas, cutting emissions under TIER regulations and deploying hydrogen-ready, carbon capture capable plants, alongside new solar projects in a competitive, deregulated electricity market.

 

Key Points

A provincewide shift from coal to natural gas and renewables, cutting power emissions years ahead of the 2030 target.

✅ Capital Power, TransAlta converting coal units to gas

✅ TIER pricing drives efficiency, carbon capture readiness

✅ Hydrogen-ready turbines, solar projects boost renewables

 

Alberta is set to meet its goal to eliminate coal-fired electricity production years earlier than its 2030 target, amid a broader shift to cleaner energy in the province, thanks to recently announced utility conversion projects.

Capital Power Corp.’s plan to spend nearly $1 billion to switch two coal-fired power units west of Edmonton to natural gas, and stop using coal entirely by 2023, was welcomed by both the province and the Pembina Institute environmental think-tank.

In 2014, 55 per cent of Alberta’s electricity was produced from 18 coal-fired generators. The Alberta government announced in 2015 it would eliminate emissions from coal-fired electricity generation by 2030.

Dale Nally, associate minister of Natural Gas and Electricity, said Friday that decisions by Capital Power and other utilities to abandon coal will be good for the environment and demonstrates investor confidence in Alberta’s deregulated electricity market, where the power price cap has come under scrutiny.

He credited the government’s Technology Innovation and Emissions Reduction (TIER) regulations, which put a price on industrial greenhouse gas emissions, as a key factor in motivating the conversions.

“Capital Power’s transition to gas is a great example of how private industry is responding effectively to TIER, as it transitions these facilities to become carbon capture and hydrogen ready, which will drive future emissions reductions,” Nally said in an email.

Capital Power said direct carbon dioxide emissions at its Genesee power facility near Edmonton will be about 3.4 million tonnes per year lower than 2019 emission levels when the project is complete.

It says the natural gas combined cycle units it’s installing will be the most efficient in Canada, adding they will be capable of running on 30 per cent hydrogen initially, with the option to run on 95 per cent hydrogen in future with minor investments.

In November, Calgary-based TransAlta Corp. said it will end operations at its Highvale thermal coal mine west of Edmonton by the end of 2021 as it switches to natural gas at all of its operated coal-fired plants in Canada four years earlier than previously planned.

The Highvale surface coal mine is the largest in Canada, and has been in operation on the south shore of Wabamun Lake in Parkland County since 1970.

The moves by the two utilities and rival Atco Ltd., which announced three years ago it would convert to gas at all of its plants by this year, mean significant emissions reduction and better health for Albertans, said Binnu Jeyakumar, director of clean energy for Pembina.

“Alberta’s early coal phaseout is also a great lesson in good policy-making done in collaboration with industry and civil society,” she said.

“As we continue with this transformation of our electricity sector, it is paramount that efforts to support impacted workers and communities are undertaken.”

She added the growing cost-competitiveness of renewable energy, such as wind power, makes coal plant retirements possible, applauding Capital Power’s plans to increase its investments in solar power.

In Ontario, clean power policy remains a focus as the province evaluates its energy mix.

The company announced it would go ahead with its 75-megawatt Enchant Solar power project in southern Alberta, investing between $90 million and $100 million, and that it has signed a 25-year power purchase agreement with a Canadian company for its 40.5-MW Strathmore Solar project now under construction east of Calgary.
 

 

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Utilities commission changes community choice exit fees; what happens now in San Diego?

CPUC Exit Fee Increase for CCAs adjusts the PCIA, affecting utilities, San Diego ratepayers, renewable energy procurement, customer equity, and cost allocation, while providing regulatory certainty for Community Choice Aggregation programs and clean energy goals.

 

Key Points

A CPUC-approved change raising PCIA exit fees paid by CCAs to utilities, balancing cost shifts and customer equity.

✅ PCIA rises from about 2.5c to roughly 4.25c per kWh in San Diego

✅ Aims to reduce cost shifts and protect non-CCA customers

✅ Offers regulatory certainty for CCA launches and clean energy goals

 

The California Public Utilities Commission approved an increase on the exit fees charged to customers who take part in Community Choice Aggregation -- government-run alternatives to traditional utilities like San Diego Gas & Electric.

After reviewing two competing exit fee proposals, all five commissioners voted Thursday in favor of an adjustment that many CCA advocates predicted could hamper the growth of the community choice movement.

But minutes after the vote was announced, one of the leading voices in favor of the city San Diego establishing its own CCA said the decision was good news because it provides some regulatory certainty.

"For us in San Diego, it's a green light to move forward with community choice," said Nicole Capretz, executive director of the Climate Action Campaign. "For us, it's let's go, let's launch and let's give families a choice. We no longer have to wait."

Under the CCA model, utilities still maintain transmission and distribution lines (poles and wires, etc.) and handle customer billing. But officials in a given local government entity make the final decisions about what kind of power sources are purchased.

Once a CCA is formed, its customers must pay an exit fee -- called a Power Charge Indifference Adjustment -- to the legacy utility serving that particular region. The fee is included in customers' monthly bills.

The fee is required to offset the costs of the investments utilities made over the years for things like natural gas power plants, renewable energy facilities and other infrastructure.

Utilities argue if the exit fee is set too low, it does not fairly compensate them for their investments; if it's too high, CCAs complain it reduces the financial incentive for their potential customers.

The Public Utilities Commission chose to adopt a proposal that some said was more favorable to utilities, leading to complaints from CCA boosters.

"We see this will really throw sand in the gears in our ability to do things that can move us toward (climate change) goals," Jim Parks, staff member of Valley Clean Energy, a CCA based in Davis, said before the vote.

Commissioner Carla Peterman, who authored the proposal that passed, said she supports CCAs but stressed the commission has a "legal obligation" to make sure increased costs are not shouldered by "customers who do not, or cannot, join a CCA. Today's proposal ensures a more level playing field between customers."

As for what the vote means for the exit fee in San Diego, Peterman's office earlier in the week estimated the charge would rise from 2.5 cents a kilowatt-hour to about 4.25 cents.

The Clear the Air Coaltion, a San Diego County group critical of CCAs, said the newly established exit fee -- which goes into effect starting next year -- is "a step in the direction."

But the group, which includes the San Diego Regional Chamber of Commerce, the San Diego County Taxpayers Association and lobbyists for Sempra Energy (the parent company of SDG&E), repeated concerns it has brought up before.

"If the city of San Diego decides to get into the energy business this decision means ratepayers in National City, Chula Vista, Carlsbad, Imperial Beach, La Mesa, El Cajon and all other neighboring communities would see higher energy bills, and San Diego taxpayers would be faced with mounting debt," coalition spokesman Tony Manolatos said in an email.

CCA supporters say community choice is critical in ensuring San Diego meets the pledge made by Mayor Kevin Faulconer to adopt the city's Climate Action Plan, mandating 100 percent of the city's electricity needs must come from renewable sources by 2035.

Now attention turns to Faulconer, who promised to make a decision on bringing a CCA proposal to the San Diego City Council only after the utilities commission made its decision.

A Faulconer spokesman said Thursday afternoon that the vote "provides the clarity we've been waiting for to move forward" but did not offer a specific time table.

"We're on schedule to reach Mayor Faulconer's goal of choosing a pathway that achieves our renewable energy goals while also protecting ratepayers, and the mayor looks forward to making his recommendation in the next few weeks," said Craig Gustafson, a Faulconer spokesman, in an email.

A feasibility study released last year predicted a CCA in San Diego has the potential to deliver cheaper rates over time than SDG&E's current service, while providing as much as 50 percent renewable energy by 2023 and 80 percent by 2027.

"The city has already figured out we are still capable of launching a program, having competitive, affordable rates and finally offering families a choice as to who their energy provider is," said Capretz, who helped draft an initial blueprint of the climate plan as a city staffer.

SDG&E has come to the city with a counterproposal that offers 100 percent renewables by 2035.

Thus far, the utility has produced a rough outline for a "tariff" program that would charge ratepayers the cost of delivering more clean sources of energy over time.

Some council members have expressed frustration more specifics have not been sketched out.

SDG&E officials said they will take the new exit fee into account as they go forward with their counterproposal to the city council.

Speaking in general about the utility commission's decision, SDG&E spokeswoman Helen Gao called it "a victory for our customers, as it minimizes the cost shifts that they have been burdened with under the existing fee formula.

"As commissioners noted in rendering their decision, reforming the (exit fee) addresses a customer-to-customer equity issue and has nothing to do with increasing profits for investor-owned utilities," Gao said in an email.

 

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