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New SV Clean Energy
PowerPoint Template
Study Session
PRESENTATION
Study Session
PRESENTATION
(D SVCE & The Market
CAISO is the energy market through which SVCE buys and sells energy.
Supply from our resources does not match our customer demand in all hours.
SVCE (and all other suppliers)
bid energy into the market CAISO selects least cost SVCE buys energy on behalf resource mix to meet demand of its customers
SVCE is both a supplier and source of demand for the CAISO market 2 Study Session
PRESENTATION
All current requirements use annual and attributional methodologies.
Regulatory Mechanisms Today
Legislation
AB 1110
SB 100
SB 350
Regulation
Power
Content
Label
IRP
RPS Plans/
IRP
Methodology
Annual
emissions
reported on lb
CO2/MWh
Projected
annual portfolio
emissions
Percentage of
retail sales
Challenges/ Issues
Allows LSEs with excess energy to “push”
dirty power off their PCL resulting in
unaccounted for dirty energy
Forecasted, not actual. CEC still
finalizing metrics, tools and pathways
for compliance.
Ignores value of non-RPS clean
energy.
3 Study Session
PRESENTATION
MWhs
Where SVCE is today
SVCE is on track to meet SB100/ SB 350 RPS obligations while maintaining 100% carbon free on an annual basis.
LT RPS ST RPS Purchases VAMO Carbon Free
RPS Agency Target SB100 Target SVCE Clean Target
Difference between RPS and
load is met with carbon free
resources (hydro and
nuclear)*
*Diablo Canyon Power Plant operating
life is now expected to be extended
through at least 2030; allocation of
attributes is still being considered by 4
regulators.
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PRESENTATION
O Power Content Label (PCL)
Standardized accounting for all Load
Serving Entities (LSEs)
Resource Loading Order Issues:
Allow LSEs to effectively “remove” gas
their sales
Can push RPS off LSEs PCL due to loading
order
AB 1110 altered rules required resource
specific emissions
Coso Geothermal
(clean, reliable energy +
capacity)
2022 POWER SOURCE DISCLOSURE ANNUAL REPORT
SCHEDULE 3: POWER CONTENT LABEL DATA
For the Year Ending December 31, 2022
SILICON VALLEY CLEAN ENERGY
GREEN START
Instructions: No data input is needed on this schedule. Retail suppliers should use these auto-populated calculations to fill out their Power Content Labels.
Adjusted Net
Procured (MWhJ
Percent of Total
Retail Sales
Renewable Procurements 1,618,503 449%
Biomass & Biowaste 51,509 1.4%
Geothermal 889,027 24.7%
Eligible Hydroelectric 11,373 0.3%
Solar 542,353 15.0%
Wind 124,240 3.4%
Coal - 0.0%
Large Hydroelectric 1.111.912 30.8%
Natural gas - 0.0%
Nuclear 875,506 24.3%
Other - 0.0%
Unspecified Power - 0.0%
Total 3,605,920 100.0%
I Total Retail Sales (MWhJ 3,605,920 |
^^^^^^^^nsTTensity (converted to lbs CO2e/MWh) 72 |
0.9% Percentage of Retail Sales Covered by Retired
Unbundled RECs 5
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CD Clean Energy Choices
t
GreenStart
100% Clean annually
RPS: 45-55% now
Rate discount to
PG&E
SVCE's standard
product
Opt Out X
Return to PG&E
Annual Clean level
will vary
Minimum state RPS
$ GreenPrime
SVCE's opt-up product
100% Clean annually
100% RPS
Green-e certified
Rate premium over
GreenStart
Custom products available for large commercial customers, such as GreenPrime Direct 24x7 and EcoInvest 6
3. PG&E allocations of carbon-free resources uncertain
Study Session
PRESENTATION
Clean Product Challenges
1. Tight market for RPS products —> cost to procure two to three times higher than 2022
2. Green-e certified RPS products even harder to find
4. Small emissions associated with some renewables,
make messaging a challenge
5. PCL accounting rules not reflective of actual energy portfolio mix
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PRESENTATION
CD Clean Standard Pathways
While regulatory structures will continue to change, SVCE can shape its own clean trajectory going forward.
As standardized hourly accounting mechanisms are developed and adopted the state may also move to an hourly framework.
Annual
Renewable Portfolio Standards
Power Content Label
Hourly
24x7 -Portfolio level supply and demand matching
Carbon Free Energy (CFE) Score - Portfolio + grid emissions accounting Clean System Power - Portfolio + grid emissions forecasting 8 •
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(?) 24x7
There is increasing interest from the private sector and LSEs in pursuing “24x7” clean. In its strictest sense, this requires supply and demand matching each hour, without regard to the system at that time.
Hard to optimize portfolio perfectly -
especially across full year -likely
resulting in overbuild in many hours
Actual resource dispatch is hard to
predict
Battery dispatch by CAISO unlikely
to fit portfolio need
SB 1158 (Becker) will require LSEs to
report their 24x7 progress; but does not
set any specific requirement
Illustrative Example 9
𝑀𝑊ℎ𝑔𝑒𝑛 + [(𝑀𝑊ℎ𝑙𝑜𝑎𝑑 − 𝑀𝑊ℎ𝑔𝑒𝑛) ∗ 𝐹𝑜𝑟𝑒𝑐𝑎𝑠𝑡𝑒𝑑 𝐻𝑜𝑢𝑟𝑙𝑦 𝐺𝑟𝑖𝑑 𝐶𝐹𝐸 𝑆𝑐𝑜𝑟𝑒] 𝑀𝑊ℎ𝑙𝑜𝑎𝑑
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PRESENTATION
Google CFE - A Goldilocks Solution?
Google’s CFE methodology benefits from considering the grid’s cleanliness at the time the clean portfolio is dispatching. In doing so it encourages an entity to buy resources which help fill the dirtiest system hours, helping reduce total system emissions more efficiently.
Entity's
Carbon Free
Supply
i 1
Entity's net load
(e.g. system energy utilization) System Emissions Score Example: entity has 90 MW of renewables online in an hour with100 MW of demand; system is 65% clean in the hour:
90 + [(100-90) * .65] = 90% CFE
100
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Next Steps for SVCE
SVCE staff is currently working to develop a pathways study to understand the portfolio implications of several clean energy targets.
Likely Scenarios:
BAU: 100% carbon free with state-wide RPS goals and requirements met CFE analysis (exact score(s) TBD)
24x7 analysis (expected share of hours TBD)
With Consideration For:
Cost
Financial Risk
Regulatory Risk
Portfolio Management Best Practices
Target delivery of initial draft paper Q4 2023 11
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Back up slides
12 Study Session
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CD Agenda
Objectives of Workshop: Participants have improved understanding of Clean metrics and accounting methodologies
Item Time
Introduction 5 minutes
Level Setting on Clean Energy Metrics 15 minutes
Discussion 40 minutes
13 Study Session
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Resource Attributes for a Cleaner Grid
To Achieve a 24x7 grid - or anything close to it-we need an increasing amount of clean, firm and dispatchable resources.
Resource Clean Firm Dispatchable Energy Source Affordable Solar/Wind X
Storage
Depends on Source Energy
net
X
loss ~15%
Fossil X
Geothermal
May be emitting Potentially $$
Biomass Emitting but often
considered neutral Potentially
Hydrogen
Depends on Source Energy $$$
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How to Measure Clean?
Attributional (commonly used) Examples Notes
Definition: Emission accounting
associated with purchased energy
Calculating annual renewable
energy as share of total retail
load (%)
Requires “clean tags” to be
tracked; current widely-used
systems set up for annual, not
hourly accounting
Often does not consider
system cleanliness/ build
optimization
Calculating Average Annual
Emissions by CO2 output (lbs)
Calculating hourly emissions from
portfolio
Consequential (uncommon) Examples
Definition: Estimated change in
system emissions from purchased
energy
Estimated system emissions
reduction due to adding
geothermal contract
Requires estimated counter
factual
May have higher emissions
impact per $ spent
May consider marginal or
average system impact