2022 INTEGRATED
RESOURCE PLAN
San José City Council
October 25, 2022
Lori Mitchell, Director
Jeanne Solé, Deputy Director
Cara Koepf, Senior Power Resources Specialist
WHAT IS AN INTEGRATED RESOURCE PLAN (IRP)?
• Long-term planning tool to meet
regulatory requirements and local
policy goals
• Evaluates electricity supply and
demand then identifies resource
options to deliver low carbon, reliable,
and cost-effective energy to customers
• IRP must be filed every two years with
CPUC
• Requires City Council approval
2 • IRPs outline how to meet
• State emission reduction
targets
• State Renewable Portfolio
Standards
• System reliability
• IRPs also
• Guide statewide procurement
decisions, policy making, and
transmission planning
REGULATORY REQUIREMENTS
Source: SB 100 Joint Agency Report, 2020
3 LOCAL CLEAN ENERGY POLICIES
• IRP process helps SJCE achieve the City’s
clean energy goals
• Carbon neutral by 2030
• SJCE supplies the clean energy to support
Climate Smart electrification efforts and
pathway to carbon neutrality
• CCAs are locally-controlled
• Decisions are made to benefit
our community and advance access to clean
energy
4 SJCE RENEWABLE
INVESTMENTS
Since 2019, SJCE has contracted for
nearly 500 MW of new renewable
energy and storage resources
• 62 MW solar + storage in Kern County;
fixed delivery from 6 a.m.-10 p.m.
every day (online)
• 225 MW wind in New Mexico (online)
• 200 MW of solar & 10MWs of battery
storage (not yet online)
Up to 45 MW of long-duration
storage and up to 34 MW of
geothermal through joint projects with
other CCAs
2022 IRP SCHEDULE
6 April 21, 2022
Advisory
Commission
Briefing
April-August
2022
IRP Modeling
September 2022
Present to
Advisory
Commission and
Risk Oversight
Committee
October
25, 2022
City Council
meeting
November 1,
2022
File IRP with
CPUC
2022 CPUC IRP REQUIREMENTS
• CPUC requires electricity suppliers to submit at least two portfolios to meet 2030 & 2035 statewide carbon emission targets:
38 Million Metric Tons (MMT) by 2030 and 30 MMT by 2035 30 MMT by 2030 and 25 MMT by 2035
A single portfolio can be submitted if emissions are below the 25 MMT target • Forecast customer demand through 2035 including rooftop solar and EVs • Develop portfolios to meet renewable energy and carbon emission targets considering costs, availability, timeframe, and needs
• Meet state requirements for capacity, renewable, and carbon-free attributes 7 2022 IRP PORTFOLIOS
CED developed two portfolios:
1. CPUC Compliant Portfolio: Emits SJCE’s proportional share of 30 MMT of carbon emissions by 2030 and 25 MMT by 2035
2. City Carbon Neutral Portfolio: Achieve City goal to be carbon neutral by 2030
Portfolio sensitivity analysis:
Impact of varying amount of solar and storage vs wind
Wind reduces exposure to price risks mid-day and in evening cleaner
8 MODELING FINDINGS
9 0
500
1000
1500
2000
2500
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2022 SJCE IRP Resource Additions (Cumulative MWs)
SJCE Existing Resources Mid-Term Reliability Mandate Resources CPUC Compliant Portfolio Resources Additional City Carbon Neutral Portfolio Resources Both portfolios require significant additional resources
SJCE RESOURCE BUILDOUT (CUMULATIVE)
10 SJCE RESOURCE BUILDOUT (CUMULATIVE)
11 IMPORTANT OBSERVATIONS
• Both portfolios require CED to significantly increase its pace of new renewable resource procurement
• Both portfolios require CED to buy substantially more renewable capacity than its peak load
• Will require some sales in particular hours to balance resources with load
12 RELIABILITY CONSIDERATIONS
• Modeling identifies 200 MW of existing natural gas + 8 MW of storage to meet reliability requirements through 2035
• Gas plants can meet SJCE’s reliability needs with limited operation • Complement large volume of intermittent renewables
• Opportunities to reduce portfolio emissions from natural gas • Pair with storage to reduce operation of plants
• Retrofit to burn green hydrogen
• Use carbon offsets
• Monitor emerging technologies
13 RECOMMENDATION
Recommendation to Council:
• Submit the CPUC Compliant
Portfolio to the CPUC
• Use the City Carbon Neutral Portfolio
as a guide to meet City’s goal to be
carbon neutral by 2030
• Continue to work with other City
departments to achieve Climate Smart
goals and pathway to carbon neutrality
by 2030
14 Staff:
• Lori Mitchell, Director
• Jeanne Solé, Deputy Director
• Cara Koepf, Senior Power Resources
Specialist