fair compensation for distributed solar generation
DESCRIPTION
With more utilities calling for reform or abolition of net metering, the debate at utility commissions has centered on how to value the benefits and determine the costs of net-metered generation. Several new utility-specific studies have addressed the issue, with varying approaches for capacity, transmission and distribution, and particularly for societal benefits. Proposals for “Value of Solar Tariffs” are one result. How is that working or how might it work in the future? Jason Keyes, Keyes, Fox & Wiedman LLP, give details.TRANSCRIPT
Fair Compensation for Distributed Solar Generation
Jason Keyes Keyes, Fox & Wiedman LLP
October 21, 2014 www.irecusa.org
@IRECUSA #3iForum
Photovoltaics Installations and Pricing
Source: GTM Research/SEIA, U.S. Solar Market Insight®, 2013 Year-In-Review
< 1 % < 3 % < 5 % ≥5% Unlimited
DC
Net Metering Program Caps (percent of utility peak demand)
DC
2014 Net Metering Grades (www.freeingthegrid.org)
A B C D F N/A
DC
Valuation Highlights
• Energy value • Capacity value • Line losses • Utility environmental
Valuation Highlights, cont’d
• Ancillary benefits • Market price impacts • Societal benefits • Costs
AEE/Synapse Benefit-Cost Report
• Discussion of Societal Benefits/Costs
• Various Cost Tests • Screening and Decision Analysis Templates, ValuaDon OpDons checklist
IREC’s Regulator’s Guidebook
Distributed Solar:
• Primarily offsets combined-cycle natural gas facilities
• Should be credited with a capacity value upon interconnection
• Should include societal benefits
Addressing the “Duck Curve”: TOU rates, demand response, and storage
Credit: CAIISO’s Building a Sustainable Energy Future: 2014-16 Strategic Plan
Avoided capacity costs
Hourly Loads for CA IOUs on 9/16/14 (and what they would have been without NEM solar)
0
5000
10000
15000
20000
25000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
SCE
PG&E
SDG&E
Solar
Cumulative Loads for CA IOUs on 9/16/14
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
SCE
PG&E
Solar Capacity
SDG&E
PV narrows the peak, which could ease the ability of demand response, storage, etc. to provide capacity
0
10,000
20,000
30,000
40,000
50,000
60,000
0% 2% 6% 10%
PV Penetration and Hour
Gen
erat
ion
(MW
)
PVCTPSHydroCCImportsCoalNuclearWindGeo
Base 2% 6% 10% (no PV)
Source: NREL
NV: PUC docket 13-‐07010, E3
developed study proving NEM’s benefit to grid
VT: 2012 legislaDon directed the V PSB to complete an
evaluaDon of NEM
MN: 2013 legislaDon required development of a VOST, methodology
complete
AZ: ACC workshops to develop methodology. MulDple studies to date
CA: 2012 legislaDon required a CPUC study of costs and benefits of NEM;
LADWP considering VOS approach
CO: PUC considering Xcel cost/benefit study
of NEM
TX: AusDn Energy developed a VOST in 2012; San Antonio’s CPS will be replacing NEM with a
SunCredit tariff
NC: In docket No. E-‐100 Sub 136,
NCUC is examining avoided cost
methodology. PNNL study just released.
SC: E3 chosen to develop valuaDon methodology for
PSC
WA: Docket UE-‐131883 to discuss costs and
benefits of DG
LA: Consultant chosen to conduct benefit/cost study
OR: PUC recently held a workshop to discuss solar rates in docket UM 1452
HI: NARUC funded a NEM benefit/
cost study from E3
AL: Consultant hired by PSC in 2014 to study
costs-‐benefits of NEM
MS: ValuaDon study
completed
ME: 2014 legislaDon directed PUC to
complete VOS study
UT: Defeat of proposed solar charge, valuaDon study forthcoming
