QUICK NEWS, March 5: CALIFORNIA’S ENERGY PLAN; WIND MANUFACTURING COMES BACK IN IOWA, KANSAS; HAWAII UTILITY OPENS UP TO NEW ENERGY

CALIFORNIA’S ENERGY PLAN A Glimpse Into The Future Of Renewable Energy In California

Jessica Lillian, 1 March 2013 (Solar Industry)

“California's solar market - the U.S.' largest - now stands at the edge of a new era. Although the PV portion of the [$2.2 billion] California Solar Initiative (CSI) - the state's primary incentive program for customer-sited solar generation - has all but wound down, industry advocates are optimistic that other drivers, including the state's aggressive renewable portfolio standard (RPS), will help keep the market moving forward…Californians have installed more than 140,000 solar projects - totaling nearly 1.5 GW - to date…Equally importantly, the average pre-incentive price for a CSI-assisted solar array has dropped from $9.48/W at its most expensive point to $6.10/W today - a reduction of more than 35%...

“…[The newly released final 2012 Integrated Energy Policy Report (IEPR) from the California Energy Commission] incorporates full forecasts of energy supply and demand, as well as discussion of the state's most crucial energy issues…Covering myriad energy issues, from natural gas pipeline safety to electrical infrastructure needs to nuclear capacity replacements, the document gives supportive - but realistic - treatment to California's ongoing renewable energy transition, outlining both problems and solutions.”

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“Overall, the [report’s] goal is…a renewable-centric generating portfolio that minimizes cost and risk while maximizing economic, social and environmental benefits…The CEC's recommendations for achieving this delicate balance…include five key strategies…[1]- Identifying suitable geographic zones within the state for developing DG renewable energy projects…[2] Recalculating the ‘true’ costs and benefits of renewable energy by incorporating integration costs, creating levelized cost of generation evaluations that use more accurate assumptions, and adopting ‘changes to procurement practices for utility-scale generation and DG’…

“…[3] Reducing licensing, planning, transmission and interconnection costs by better preparing the grid to accept increased levels of DG, developing a more integrated planning process, and, for PV specifically, implementing new grid-reliability and control capabilities for inverters…[4] Promoting in-state investment and job creation through renewable energy…[and, 5] Encouraging continued renewable energy research and development (R&D) and financing, in order to continue to lower system costs, improve system operability and encourage the creation of new technologies….”

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WIND MANUFACTURING COMES BACK IN IOWA, KANSAS Siemens Restaffing Wind Turbine Manufacturing Facilities In Iowa, Kansas

25 February 2013 (North American Windpower)

“After the uncertain fate of the production tax credit (PTC) led Siemens to lay off approximately 37% of its U.S. wind energy workforce last year, the company is now in the process of restaffing its operations in Fort Madison, Iowa, and Hutchinson, Kan…Although the tax credit has been renewed, Siemens' decision to hire more workers is not a direct result of the PTC extension…”

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“…[T]he company is restaffing in order to produce wind turbine components for projects located outside the U.S……[S]ome of the company’s [upcoming] decisions will be based on the results of further guidance from the U.S. Internal Revenue Service and the Treasury Department on the definition of what constitutes ‘begin construction’ in order for projects to qualify for the PTC…”

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HAWAII UTILITY OPENS UP TO NEW ENERGY Hawaiian Electric Offering Waivers To Qualified Renewable Energy Projects

1 March 2013 (Renew Grid)

“Hawaiian Electric Co. [HECO] says it is seeking qualified utility-scale renewable energy projects that developers can place into service quickly at a low cost per kilowatt-hour. If one or more such projects are identified, the utility will work with the developer to seek a waiver from the Hawaii Public Utilities Commission (PUC) Competitive Bidding Framework.

“To qualify to seek a waiver, a project must be located on Oahu and be larger than 5 MW. It can use any viable renewable technology, including wind or solar. The project must also meet all applicable archaeological, environmental and construction permitting requirements.”

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“In addition to the waiver from competitive bidding, Hawaiian Electric and any developer selected must negotiate a power purchase agreement that will be subject to PUC approval. The goal is to have one or more such projects in service by 2015.

“…[HECO believes] renewable energy on long-term, fixed-price contracts [can cut its ratepayers bills and believes] there may be projects substantially ready to go that can be built quickly and at a cost that can help reduce our heavy dependency on fossil fuels…”

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