Renewable Energy Update - December 2018 #2

Allen Matkins
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Focus

Behind-the-meter solar PV and energy storage set to shift California time-of-use rates

MICROGRID KNOWLEDGE - Dec 12 A new white paper from Enel X explores how behind-the-meter solar PV and energy storage are aligning to shift the state’s historic time-of-use (TOU) rates. According to the U.S. Energy Information Administration, from 2007-2017, utility-scale solar power generation in California grew from 557 gigawatt-hours to 24,353. Solar production, like peak hours for the utilities, increases in the late morning hours and peaks around noon, before decreasing in the late afternoon. This cuts down on demand for natural gas during peak hours, eroding revenue for utilities. According to the study, California’s utilities have begun adjusting their TOU rate schedules to account for this so-called duck curve. Under the new TOU rate schedules, peak production for a solar PV system will occur largely during the new off-peak hours at midday. As a result, the value of stand-alone solar PV will drop, since its power to minimize costs during on-peak hours will diminish, thus impacting the business case for stand-alone energy storage.

Washington clean energy proposal would phase out coal by 2025

UTILITY DIVE - Dec 11 Washington Governor Jay Inslee on Monday released a new clean energy proposal that would reduce the state's greenhouse gas emissions 25 percent below 1990 levels by 2035, eliminating over 80 million metric tons of carbon. The package of legislation addresses five policy goals: 100 percent clean energy by 2045, transitioning to electric transportation, adding a clean fuel standard, constructing energy efficient buildings, and eliminating hydrofluorocarbon. The 100 percent clean energy goal will require completely phasing out coal-fired generation by 2025 and eliminating all fossil fuels by 2045. The proposed measures come after a carbon tax ballot initiative was rejected by Washington voters for a third time in November.

Reports show technology investments are increasing growth of wind industry

GREENTECH MEDIA - Dec 11 Technology investments will help the wind industry add more than 680 gigawatts of capacity worldwide in the next decade, according to two reports released this month. The studies, from the analyst firm Wood Mackenzie Power & Renewables, show how the industry could easily more than double the 539 gigawatts of capacity installed worldwide at the end of 2017, based on World Wind Energy Association figures. In the U.S., offshore wind capacity is expected to top 10 gigawatts by the end of 2027. This will represent about 15 percent of all new wind capacity additions in the country, which is only expected to see modest growth onshore.

J.P. Morgan buys into 10.7-GW solar-plus-storage pipeline

ENERGY STORAGE NEWS - Dec 12 8minutenergy Renewables, J.P. Morgan Asset Management, and an affiliate of Upper Bay Infrastructure Partners have entered into a joint venture that will provide equity capital for 8minutenergy’s 10.7-gigawatt portfolio of utility PV and storage projects. This joint venture, along with investment from 8minutenergy CEO, Tom Buttgenbach, provides over $200 million in capital commitments.

Projects

Hundreds of wind turbines proposed for San Luis Obispo County

THE TRIBUNE - Dec 11 The U.S. Bureau of Ocean Energy Management will host a meeting in San Luis Obispo this week to share information on the possibility of offshore wind developments along the California coast. This includes plans to add hundreds of 700-foot-tall floating turbines on sites off Diablo Canyon and Piedras Blancas. Likely to be a topic of discussion will be Morro Bay’s recent agreement with Castle Wind LLC, to support the company’s plans to generate approximately 1,000 megawatts of renewable energy with an offshore wind project off San Simeon. The agreement, approved by the Morro Bay City Council on November 29, grants an exclusive option to Castle Wind to lease the city’s outflow tunnel to set up a grid connection at the Morro Bay substation.

Avista Utilities commissions 28-MW solar array in Spokane, Washington

SOLAR POWER WORLD - Dec 11 Spokane, Washington-based Avista has commissioned the Adams Nielson solar array located in Lind, Washington. The 28-megawatt array generates enough electricity to supply approximately 4,000 homes annually.

Guzman Energy seeking wind and solar for Rocky Mountain region

WINDPOWER ENGINEERING - Dec 10 Guzman Energy, a wholesale power provider based in Colorado, is seeking cost-competitive bids for 200 megawatts of wind and 50 megawatts of solar power to serve the company’s expanding load portfolio in the Rocky Mountain region. Guzman Energy has also obtained a $200 million capital commitment to help facilitate implementing the additional renewable energy.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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