WILL CALIFORNIA WIRES BRING THE NEW ENERGY?

In the military, there is a saying: The job isn’t over until the paperwork is done. For New Energy projects, the job doesn’t even start until the paperwork is done. Mountains of paperwork.

The deadline on the California Renewable Electricity Standard (RES), requiring state utilities to obtain 20% of their power from New Energy sources, is less than 2 years off (2010). Utilities are rushing ahead, making Power Purchase Agreements with New Energy producers. When the PPA contracts are signed, the New Energy producers must submit project plans to the California Independent System Operator (Cal-ISO), requesting grid interconnection to get the power they produce delivered.

The result? More mountains of paperwork.

Cal-ISO, the entity responsible for processing paperwork on transmission interconnects, believes it can streamline that part of the process.

The catch: It will cost more. Higher fees discourage hypothetical applications.

Another catch: Not all pending projects will get the benefit of the new rules.

Pending: 361 applications, representing 105 megawatts of potential new generation (65% is New Energy generation).

New Energy producers say Cal-ISO could do better.

Nancy Rader, spokeswoman, California Wind Energy Association (CWEA): "While the proposal tremendously improves the status quo, the study timeline remains untenably long and fails to integrate generation interconnections with the transmission planning process…"

Cal-ISO says it is doing the best it can.

Gregg Fishman, spokesman, Cal-ISO: "I'm sure there are project sponsors who are not happy…We were faced with difficult decisions; we had to draw a line in the sand, and this is where the line is."

Is this a big deal or bureaucratic infighting?

Keely Wachs, spokesman for utility Pacific Gas & Electric (PG&E): "Building transmission and making sure new projects come online is one of the most significant challenges we face in bringing renewables to our customers…"

By one assessment, even the new rules won’t get projects applied for in 2006 onto the grid until 2011. The need for new transmission may keep much New Energy from being delivered before 2016.

The RES due date, the date utilities are required to get 20% of the electricity they deliver from New Energy sources, is December 31, 2010.

(NewEnergyNews is currently engaged in a search of the mountains of paperwork at the California Public Utilities Commission (CPUC) and California Energy Commission (CEC) websites to identify the details about meeting the deadline. If any readers have info, please submit.)

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California Moves To Speed Solar, Wind Power Grid Connections
Cassandra Sweet, July 16, 2008 (Dow Jones via CNN Money)

WHO
California Independent System Operator (Cal-ISO); The Large-scale Solar Association (Abengoa SA, Ausra Inc., BrightSource Energy Inc. and Solel Solar Systems Ltd.); California Wind Energy Association (CalWEA) (Acciona SA's North American subsidiary, AES Corp., Ameron International Corp., and EDF Energy Nouvelles’ subsidiary EnXco Inc.)

WHAT
Cal-ISO has filed for new rules it contends will improve grid interconnections and facilitate New Energy transmission. New Energy producers

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WHEN
- The California Renewable Electricity Standard (RES) requires state utilities to obtain 20% of their power from New Energy sources by 2010.
- By one assessment, projects applied for in 2006 may not get onto the grid until 2011 and the need for new transmission may keep New Energy from being delivered before 2016.

WHERE
- California’s deserts have some of the most exploitable solar assets in the world and its mountain passes have rich wind energy resources.
- California is 2nd in the U.S. in installed wind energy capacity and an installation in the Tehachapi Pass awaits only transmission to carry it.
- 11 square miles in California’s Kern County Mojave Desert gets more solar energy than any other comparably sized U.S. location.
- Funded solar power plants of up to 1600 megawatts await only new transmission to deliver the electricity.

WHY
- Cal-ISO will more quickly review 90 of 361 pending applications using old rules. It will review a second portion using the new, streamlined rules. A third part of the applications will remain on hold.
- The new plan will group clusters of similarly located projects for review.
- The fee for a Cal-ISO application will go from $10,000 to $250,000.
- Cal-ISO will also require either a lease/land deed of applicants, proving permission to build, or an additional $250,000 for processing.

It is a California issue now but it will be a national issue soon. (click to enlarge)

QUOTES
- Gregg Fishman, spokesman, Cal-ISO: "The $10,000 fee allows projects that may not be viable to get into the queue and hold a place in the queue when, for some of these projects, it's not clear they will get built…"
- Shannon Eddy, executive director, Large-scale Solar Association: "[The lead time from approval to grid connection will] stifle innovation and discourage renewable developers from participating in the California market…"