Sacramento – The FIT Coalition hosted an educational briefing on the economic benefits of Feed-In Tariffs (FITs) in a packed State Capitol committee room on Wednesday. Featured speakers included Dan Pellissier, Deputy Cabinet Secretary for Governor Arnold Schwarzenegger, Mary Nichols, California Air Resources Board Chairman, Hans-Josef Fell, Member of the German Parliament and co-author of Germany’s Renewable Energy Sources Act, and Craig Lewis, FIT Coalition Executive Director. Dan Jacobson of Environment California moderated the briefing.
The standing room only crowd heard evidence on how Feed-In Tariffs provide tremendous economic benefits. FITs are fixed price, long-term contracts that require a utility to buy electricity produced by renewable energy generators. Pellissier opened the discussion remarking that, “Feed-In Tariffs are completely in line with the Governor’s approach to increasing renewable energy generation in California and transitioning the state to a clean energy economy. While it is too soon to know whether the Governor would sign a specific measure, we’re hopeful that the Coalition can get a good Feed-In Tariff bill to the Governor’s desk this year.”
Hans-Josef Fell presented a compelling presentation on how Germany has been able to deploy more solar and wind projects than any other country of comparable size because of their robust Feed-In Tariff. He went on to highlight the phenomenal economic benefits that come with such growth. “In the 10 years of our FIT program, people employed by the renewable energy industry have increased 10-fold.” In referencing cost, Fell explained, “For the price of about one beer per month per household, the German people are importing 6 billion Euros less of fossil fuels per year and getting 16% of their energy from renewable sources.”
California Air Resources Board Chairman Mary Nichols said Feed-In Tariffs complement California’s landmark climate law, AB 32, which requires the state to reduce global warming emissions to 1990 levels by 2020. “A well-crafted FIT would help Californians get where they need and want to be on cleaner air and more efficient energy – only faster,” Nichols said. “It would help launch thousands of renewable energy projects across the state quickly and cost-effectively.”
Craig Lewis dove into the details of a FIT legislative proposal called the REESA, or the Renewable Energy and Economic Stimulus Act, which will be introduced in the 2011 legislative session in California. Lewis explained, “The REESA creates a statewide FIT for renewable energy projects up to 20-megawatts (MW) in size that would deliver an incremental 2% of California’s energy every year through 2020.” Lewis explained how FITs work by removing barriers and leveling the playing field. “By having a set price for each type of renewable technology - solar, wind, biomass, etc. – investors and developers can start their renewable energy projects with confidence and ease knowing that utilities will interconnect their projects and purchase the generated power at a known price. The fact that FITs are simple, fair, and effective is the reason that FITs are responsible for the vast majority of renewable energy that has been deployed in the world.”
Lewis also presented the findings of a recent UC Berkeley study, led by Professor Dan Kammen, showing that a comprehensive FIT would create 3 times the number of jobs, over $2 billion in additional tax revenue, and stimulate tens of billions in new investment in the state compared to current models for how California will reach its 33%-by-2020 Renewable Portfolio Standard goal. “The UC Berkeley study shows that FITs are the best policy mechanism for accelerating the deployment of cost-effective renewables while delivering tremendous economic benefits. The State of California must act to leverage this unparalleled opportunity for creating hundreds of thousands of jobs, attracting tens of billions in renewable energy investment, and yielding billions to the State through increased tax revenue. It’s a win-win-win for California,” concluded Lewis.
Moderator Dan Jacobson wrapped up the briefing by summing up the economic benefits of Feed-In Tariffs in the following manner, “Thousands of new jobs with no tax payer money used. Now that is clean energy policy that works.”
The FIT Coalition is a leading force in replicating Feed-In Tariffs and other global renewable energy best-practices throughout the United States. The FIT Coalition’s mission is to identify and advocate for policies that will accelerate the deployment of cost-effective renewable energy. The FIT Coalition believes the right policies will result in a timely transition to renewable energy while yielding tremendous economic benefits, including new job creation, increased tax revenue, and the establishment of an economic foundation that will drive growth for decades. The FIT Coalition is active at the national, state, and municipal levels.
For further information on the FIT Coalition, please visit www.FITCoalition.com.
Contact: Mircalla Wozniak, Mircalla@FITCoalition.com
415-448-7734
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]]>Hello FIT Coalition Friends,
Thank you for agreeing to take action with us.
As described in the original FIT Coalition (FITC) action alert dated 6/24, the FITC believes that CAISO’s effort at reforming its interconnection procedures and their proposed elimination of the Small Generator Interconnection Procedure (SGIP) will severely undermine the Wholesale Distributed Generation (WDG) market segment, which is comprised of 20 MW and below projects that are interconnected to the distribution grid.
The FITC has been a leading participant in the CAISO proceeding, including as an active member of its formal Working Group, and would like to submit the below and attached letter to CAISO leadership. As you will see, the letter outlines the steps we believe should be taken that will protect and promote Wholesale Distributed Generation. The letter will also be circulated to the leadership at FERC, Governor Arnold Schwarzenegger’s office, and other influential policymaking bodies.
Please let us know as soon as possible if we can add your name / company / organization to the letter as a co-signer.
Please email a confirmation to Action@FITCoalition.com in order to be added to the letter and include the following information:
Name
Title
Company / Organization
Mailing address
Contact phone number
Contact email address
Thank you again for taking action with the FIT Coalition. We believe that we must succeed; otherwise California would be introducing significant obstacles to wholesale distributed generation at a time when that market segment is needed most.
Sincerely,
Craig Lewis
]]>View the full report, executive summary and press release here.
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The California Independent System Operator (CAISO) is on the verge of undermining the Wholesale Distributed Generation (WDG) market segment, which is comprised of 20 megawatt (MW) and under proje cts that are interconnected to the distribution grid.
CAISO has proposed eliminating the Small Generator Interconnection Procedure (SGIP), which is the streamlined interconnection process for 20 MW and below energy projects that is mandated by the Federal Energy Regulatory Commission (FERC).
The FIT Coalition urges all developers pursuing WDG projects in California to get involved to help ensure that CAISO does not eliminate SGIP. Please email Action@FITCoalition.com if the FIT Coalition can call on your support to join our efforts.
On the surface, CAISO has initiated reform because the SGIP process has been taking longer than the 9-month timeframe that is intended to be its maximum duration. Rather than simply fixing the SGIP process, however, CAISO is proposing to eliminate SGIP by processing all projects through a process akin to the Large Generator Interconnection Procedure (LGIP), which would add a significant delay to the interconnection process for projects sized 20 MW and under.
The proposed process would take up to 2 years - and perhaps even longer. This would significantly undermine what is currently a MAJOR benefit of 20 MW and below renewables: a streamlined interconnection procedure. CAISO claims that it would maintain a so-called Fast Track process for 2 MW and under projects, but considering that the Fast Track process has virtually unattainable requirements, this is a useless concession even for the sliver of tiny wholesale projects that it is intended to help.
Additionally, the FIT Coalition is extremely concerned that the Investor-Owned Utilities (IOUs) would attempt to reflect any SGIP changes in their Wholesale Distribution Access Tariffs (WDATs), thereby creating HUGE impediments for WDG. While the WDATs are supposedly not being discussed in this CAISO proceeding, the IOUs historically adopt changes made in SGIP into their WDATs. As such, CAISO's proposed elimination of SGIP would very likely lead to de facto reforms that make the WDATs equivalent to the LGIP (ie, all WDG projects would essentially be subject to LGIP, which would be a HUGE impediment to WDG).
CAISO needs to fix SGIP rather than eliminate it. The FIT Coalition urges all developers pursuing WDG projects in California to get involved to help ensure that CAISO does not eliminate SGIP. Please email Action@FITCoalition.com if the FIT Coalition can call on your support to join our efforts.
This CAISO proceeding is open to the public, and here is the calendar
of related events:
June 25: Working Group meeting #3
July 8: Working Group meeting #4
July 12: Draft Final Proposal posted to ISO website
July 20: Stakeholder meeting to discuss Draft Final Proposal
July 27: Written stakeholder comments due on Draft Final Proposal
Weeks of August 2 & 9:
Additional stakeholder engagement
Aug 13: Stakeholder Process Complete
Sep 9-10: Board of Governors meeting – approval of modified
SGIP requested
Sept 13: Draft tariff language posted
Sept 20: Written stakeholder comments on draft tariff language due
Sept 27: Stakeholder meeting to discuss draft tariff language
Oct 12: Tariff language filed at FERC
Dec 20: Anticipated FERC Order Issued
Additional details, including location and participation details, can be found at this CAISO weblink: http://www.caiso.com/27a2/27a2f34fa360.pdf
The FIT Coalition has submitted comments on this proceeding, and these can be found here. The link to download is at the top of this posting.
Again, the FIT Coalition hopes to have your support.
Please email Action@FITCoalition.com if the FIT Coalition can call on you to join our efforts.
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Printed in the Capitol Weekly, May 6, 2010
The recent controversy around Tradable Renewable Energy Credits (TRECs) and spending California’s money for out-of-state renewable energy may wake people up to the numerous advantages of developing a strong Wholesale Distributed Generation (WDG) market segment in California. If the recent California Public Utilities Commission (CPUC) decision to stay the use of TRECs in the Renewable Portfolio Standard (RPS) program focuses attention on WDG, California has its first real chance to regain the lead in renewable energy that it lost over the last several decades.
To be a leader in renewables again, California must tap the vast potential of the WDG market segment. WDG is comprised of 20 megawatts-and-under renewable energy projects that are interconnected to the distribution grid, with all energy production sold to a utility. A 20 megawatt (MW) project can fit on a relatively small area while delivering a considerable amount of power: 20 MW of solar PV, for example, fits on about 100 acres while meeting the peak load of roughly 20,000 homes.
Many countries around the world are deploying renewables at a far faster pace than California. Why? Better policies that unleash the enormous potential of WDG. Germany installed more than 17 times the amount of solar that California did last year; despite the fact that California has a solar resource that is 70% better. And perhaps surprising, Spain’s solar market continues to be more than twice the size of California’s even though they have nearly identical populations and electric loads.
Although the California Solar Initiative (CSI) is a reasonably successful program, it only applies to “retail distributed generation” (RDG), typically referred to as net metering. RDG projects are constrained by many complications and the incentives only apply to projects up to 1 MW. Hence, even if the CSI fulfills its highest expectations, it will only account for about two percent of California’s total electric demand when the program ends in 2017. In contrast, reaching California’s 33% RPS mandate with solar by 2020 requires about 4 GW of new solar deployments every year.
Large-scale renewable energy projects, often referred to as “central station,” have also failed to deliver the energy we need. Central station renewables are generally dependent on transmission lines that take more than a decade to build. In addition, the environmental battles over the conversion of remote pristine lands into massive energy farms delay or kill these projects.
WDG provides the solution for renewables in California. The relatively small size of WDG projects and their location within the distribution grid means these projects can be built immediately. WDG projects can be financed and permitted with relative ease on rooftops and disturbed lands, without dependence on new transmission lines. WDG avoids all of the constraints associated with net metering like limited onsite loads, non-owner occupied properties, split metered situations, and changing retail rates.
WDG delivers the most cost-effective renewable energy for California ratepayers. A CPUC study that is being revised to reflect the current pricing of solar is expected to show that WDG is a better deal for ratepayers than the large central station projects that require transmission build-outs and suffer the inefficiencies of transporting energy over long distances. Hence, WDG is California’s best hope for achieving its renewable energy goals cost-effectively and in a timely fashion. In addition, WDG can begin delivering tremendous economic dividends for California in the form of immediate job creation and increased tax revenue.
The easiest way to grow the WDG market segment is to implement a Feed-In Tariff (FIT), a widely proven policy mechanism for unleashing WDG. Germany and many other countries have successfully implemented FITs, which are essentially pre-defined, pre-approved “power purchase agreements” (PPAs). FITs remove barriers and parasitic transaction costs/time associated with solicitation processes, including auctions. FITs enable any party to own renewable energy facilities and get paid for the power delivered to the grid. The rate they are paid is set to make efficient projects profitable. Numerous studies, including multiple from the National Renewable Energy Laboratory (NREL), have found that WDG FITs are far-and-away the policy of choice for scaling cost-effective renewable energy quickly.
Since mid-2009, four WDG FITs have been implemented in North America: Gainesville, Florida; Province of Ontario; State of Vermont; and the Sacramento Municipal Utility District (SMUD). These four FIT markets are either deploying renewables far faster than any other region in North America or are staged to do so soon.
A WDG FIT represents a massive opportunity for California. A recent study by the California Energy Commission found the potential for over 27,000 MW of solar projects that can connect to the existing distribution grid immediately. 27,000 MW is roughly ten times the total CSI goal and about half of California’s peak energy demand.
WDG is the answer. The question is how long it will take California to exploit it with a comprehensive FIT that puts the state back into a leadership position.
Craig Lewis is the Executive Director of the FIT Coalition.
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San Francisco – The FIT Coalition announces its intention to have enacted the largest comprehensive Feed-In Tariff (FIT) in North America. The campaign will focus on the bipartisan passage of FIT legislation in California that delivers on the state’s renewable energy goals while boosting the economy in a way that creates tens of thousands of jobs and stimulates billions of dollars in increased tax revenue for California.
The passage of the Renewable Energy and Economic Stimulus Act (REESA) in the California state legislature is the FIT Coalition’s number #1 campaign goal. The legislation calls for enacting a FIT for renewable energy projects up to 20-megawatts (MW) in size and delivering an incremental 2% of California’s delivered energy from renewables every year through 2020. A FIT is a standard, must-take, long-term contract eligible to any party that generates renewable energy under the guidelines of the program and sells that energy to a utility for a predetermined, fixed price. FITs remove barriers and level the playing field by eliminating inefficient solicitation and/or auction processes; in addition to providing pricing transparency and interconnection certainty for renewable energy generators.
The REESA FIT unleashes the Wholesale Distributed Generation (WDG) market segment, which is comprised of 20 MW-and-under renewable energy projects that are interconnected to the distribution grid, with all energy production sold wholesale to a utility. WDG is the only market segment that is immediately scalable within California, creating near-term jobs and tax revenue; and WDG is the only market segment that can deliver enough renewable energy within the next 10 years to reach California’s mandate for 33% renewables by 2020. The REESA is designed to fulfill the 33% Renewables Portfolio Standard (RPS) evenly over the ten-year period between 2011 and 2020. The scale of this annual requirement is massive: For example, if the 33% RPS were fulfilled entirely with solar energy, then roughly 4 GW of solar would need to be deployed every year. 4 GW is about 20 times more solar than California has ever deployed in a single year and far more than the combined potential of all renewable energy programs currently operational, approved, and/or contemplated by the California Public Utilities Commission (CPUC). In other words, California has never come close to meeting the annual renewables level that is required for achieving California’s RPS mandates.
The FIT Coalition campaign is taking a multifaceted approach for passing the REESA into law. The FIT Coalition is building bipartisan support for the REESA by providing detailed analyses of its economic benefits. Results from a ratepayer impact analysis already show that the REESA will save ratepayers billions of dollars while fulfilling the entire 33% RPS mandate by 2020. Preliminary results from an additional study show that the REESA will create tens of thousands of California jobs quickly while stimulating billions in new tax revenue. The FIT Coalition is also bringing together policymakers and industry stakeholders through a series of educational and industry alignment summits. Finally, the FIT Coalition will continue to work closely with all parties, including utilities and regulators, to assure that the REESA helps meet California’s RPS goals while saving money for ratepayers.
Craig Lewis, Executive Director of the FIT Coalition, explains, “The passage of the REESA would be the most significant step California could take in transitioning to a clean energy economy in a cost-effective and timely manner. It has been proven repeatedly around the world that no other policy mechanism comes close to a well-designed Wholesale DG FIT for producing steady growth in renewable energy deployments while stimulating maximum economic benefits in terms of job creation and increased tax revenue. WDG FITs also maximize value for ratepayers, because generation that is interconnected to the distribution grid is close to loads, minimizing line losses and investments in transmission infrastructure, which is always paid for by ratepayers. Distribution upgrades, on the other hand, are paid for by developers, not ratepayers, and this fact contributes to the bargain that ratepayers receive from WDG renewables. If adopted, the REESA will be the perfect complement to the 33% RPS and attract tens of billions of dollars of private investment into California.”
Jeff Brothers, CEO of Sol Orchard, a leading solar project developer in California adds, “While California has failed badly on its 20%-by-2010 RPS mandate, 33% by 2020 can actually be achieved on time and with savings to ratepayers by enacting the REESA FIT. Most RPS programs, like California’s 20% RPS, set targets for renewables without complementary policies that result in actual projects getting deployed. The REESA legislation, with its comprehensive FIT, will create the necessary incentive to spark massive investment in the renewable energy industry here in California. I am confident that with the FIT Coalition leading the charge, the REESA will be passed into law this fall.”
Jim Metropulos, Senior Advocate of Sierra Club California, further validates the importance of the REESA FIT: “Sierra Club California and the FIT Coalition are actively collaborating on educating stakeholders and policymakers about the tremendous benefits of comprehensive FITs. The REESA FIT in particular will deliver unparalleled environmental and economic benefits to California, since it will allow California’s 33% RPS mandate to be achieved on schedule while delivering massive economic benefits to the state in the form of significant boosts to job growth and increased tax revenues. I expect that the REESA FIT will be the biggest single factor in achieving a thriving renewable energy industry in California.”
The FIT Coalition is a leading force in replicating Feed-In Tariffs and other global renewable energy best-practices throughout the United States. The FIT Coalition’s mission is to identify and advocate for policies that will accelerate the deployment of cost-effective renewable energy in the United States. The FIT Coalition believes the right policies will result in a timely transition to renewable energy while yielding tremendous economic benefits, including new job creation, increased tax revenue, and the establishment of an economic foundation that will drive growth for decades. The FIT Coalition is active at the national, state, and municipal levels.
For further information on the FIT Coalition, please visit www.FITCoalition.com.
Contact: Mircalla Wozniak (415) 448-7734
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]]>As you know, a major part of working for smart energy in California and beyond is helping inform our fellow renewable energy enthusiasts about the benefits of Feed-In Tariffs (FITs) at events and forums.
This past week the FIT Coalition presented, “Comprehensive Feed-In Tariffs: Delivering Environmental Sustainability and Economic Leadership” at a Silicon Valley Photovoltaic Society (SVPVS) event. The presentation was very well received by the audience, and we look forward to working with the SVPVS community to move the FIT Coalition policy agenda forward. Greentech Media had excellent coverage of the event, including the increasingly obvious argument that FITs are the most effective way to reach California’s goal of a 33% Renewable Portfolio Standard (RPS) by 2020. We encourage you to read and share the article with your colleagues. You can find it here.
The FIT Coalition has also been busy in the regulatory arena, fighting to unleash the Wholesale Distributed Generation (WDG) market segment. We recently submitted comments to the Federal Energy Regulatory Commission (FERC) on the integration of renewable energy onto the grid. In our comments, the FIT Coalition lays out the steps that FERC can take to create a more level playing field for all renewable energy market participants. You can review our recommendations to FERC on our website here.
The FIT Coalition also recently submitted comments to the California Air Resources Board (CARB) on their 33% Renewable Energy Standard (RES) Preliminary Draft Regulation. In our comments, the FIT Coalition strongly argues for limiting the use of unbundled Renewable Energy Credits (RECs), including out-of-state RECs, and adjusting the compliance rules to correctly reflect the enhanced value of Wholesale Distributed Generation (WDG). We hope you take a moment to review our comments here.
As we work together to get the right renewable energy policies for a cleaner, greener future, we welcome your ideas and support. One area of particular importance is funding, and the FIT Coalition welcomes introductions to entities that could help fund our ambitious agenda, which includes comprehensive efforts at the national, state, and municipal levels. Potential funding parties should contact us at development@fitcoalition.com
.
Additionally, we welcome invitations to relevant forums for presenting the benefits of Feed-In Tariffs and Wholesale Distributed Generation.
Sincerely,
Craig Lewis
Executive Director
]]>The FIT Coalition is working to get smart clean energy policies enacted in California and beyond.
Over the next two months, FIT Coalition leaders will be participating in a number of public forums and conferences speaking on the benefits of Feed-In Tariffs and wholesale distributed generation (WDG). These events offer a great way for you to learn more and to participate in renewable energy policy development.
Please join us at one of these upcoming events listed below. (Also, note early discount pricing is ending today for the Large Scale Solar Power Legislation, Regulation & Policies Conference – See below and Register today!)
Thank you,
Ted Ko, Associate Executive Director
March 15, Aspen, CO – Feed-In Tariff Forum. Come Learn about the World’s Most Effective Renewable Energy Policy hosted by the Aspen Institute. Event runs from 4:30 p.m. – 7 p.m.
Crag Lewis, FIT Coalition Executive Director, will be joined by other renewable energy experts, including Mayor Pegeen Hanrahan of Gainesville, FL. Gainesville is the first city in the nation to adopt a FIT. Presenters to discuss the benefits of Feed-In Tariffs on the local economy and wholesale distributed generation.
Event link: http://www.communityinpower.com/
March 18, Sacramento, CA – California Air Resources Board hosts public workshop to discuss a proposed regulation for a Renewable Electricity Standard. Workshop runs from 9 a.m. – noon.
Join Ted Ko, FIT Coalition Associate Executive Director, at the workshop. Ted will be on hand after the workshop to meet and answer any questions on the efforts of the FIT Coalition.
Event link: http://www.arb.ca.gov/energy/res/meetings/meetings.htm
April 8 – 9, Palo Alto, CA – Crossing the Cleantech Divide: The Road to 2020. Cleantech Leadership Summit sponsored by Silicon Valley Bank. Invitation-only.
Craig Lewis will lead a breakout session on distributed renewables.
April 28 – 29, La Jolla, CA – Community Energy Systems: The Global Rise of Local Energy. The 8th International Symposium on Distributed Energy Resources.
Craig Lewis will be presenting on FITs and WDG at this conference.
Event Link: http://www.cader.org/conference.html
May 3 – 4, San Francisco, CA – Large Scale Solar Power Legislation, Regulation & Policies Conference. Sponsored by New Solar Today.
Craig Lewis, FIT Coalition Executive Director, will be presenting on Feed-In Tariffs and their Role in Driving Solar Energy Development.
Limited Time Discount for FIT Coalition members. Use the code: LEWIS200 for a special $200 registration discount. Plus, register today by 6 p.m. PST and receive their early bird discount as well.
Event Link: http://www.newsolartoday.com/solar-power/index.shtml
]]>Quick Update #1: California Air Resources Board (CARB) February Workshop
FIT Coalition staff attended last Tuesday’s California Air Resources Board (CARB) workshop on the 33% Renewable Electricity Standard (RES). For background on the RES, check out the official website.
The FIT Coalition believes that CARB has a great opportunity with the 33% RES to help fix some of the issues that have been preventing California from meeting its renewable energy goals. Specifically, the RES should be designed to stimulate the Wholesale Distributed Generation (WDG) market and could enact a true, comprehensive FIT for California.
At the meeting, CARB officials reviewed their progress on the three main analyses they are undertaking to design the RES: Technical Feasibility, Economic, and Environmental. You can find a copy of their presentations or view the webcast here .
Based on their presentations, the FIT Coalition has identified three areas which we will submitting additional comments to the regulatory agency.
The FIT Coalition will post our full comment submissions to CARB on our website.
Thank you,
Ted Ko, Associate Executive Director
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