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Cost-Effectiveness of Distributed Generation Technologies (GHG) reduction goals.6 This statewide commitment to continued growth in DG resources is also reflected in California’s Clean Energy Future. Developed jointly by the California Public Utilities Commission (CPUC), the CEC, the California Environmental Protection Agency (CalEPA), and the California Independent System Operator Corporation (CAISO), this report targets deployment of 5,000 MW of new renewable DG statewide by 2020 at the right locations on the power grid to support reliability and provide economic value.7 Renewable DG resources are also likely to play a strong role in meeting California’s Renewables Portfolio Standard (RPS). In 2009, California established an RPS goal via the Governor’s Executive Order dictating that California’s electrical utilities procure 33% of their electricity needs from renewable resources by 2020.8 A recent study on implementation of the 33% RPS has indicated that significant growth in renewable DG resources may be needed if the state is to meet the goal.9 California’s commitment to future growth in DG is also reflected in state incentive programs that are using ratepayer monies to develop DG resources within California. Two notable efforts are the Self-Generation Incentive Program (SGIP) and the California Solar Initiative (CSI). Established in 2001, the SGIP has provided over $623 million in California ratepayer funds to help install 1,343 DG projects representing over 360 MW of generating capacity.10 With a 10- year budget of over $2.1 billion, the CSI has the goal of developing 1,940 MW of new distributed solar capacity by the end of 2016.11 By the end of 2010, nearly 41,000 solar PV systems accounting for over 440 MW of new solar generating capacity were installed under the CSI.12 In addition to the SGIP and CSI, the CEC oversees the New Solar Homes Partnership (NSHP) and the Emerging Renewables Program (ERP), two complementary programs to the SGIP and CSI. 2.2 Costs and Benefits of DG Technologies There is a wide variety of DG technologies and a commensurately broad assortment of costs and benefits. Costs generally include capital and financing costs; fuel purchases; and operating and 6 2009, pg. 236. California Energy Commission, 2009 Integrated Energy Policy Report, CEC-100-2009-03-CMF, December 7 8 9 Preliminary Results, June 2009, pg. 2. 10 https://energycenter.org/index.php/incentive-programs/self-generation-incentive-program/sgip-documents/sgip- documents 11 CPUC website, http://www.cpuc.ca.gov/PUC/energy/Solar/aboutsolar.htm, December 2010. 12 California Solar Statistics: http://www.californiasolarstatistics.ca.gov/reports/agency_stats/ http://www.cpuc.ca.gov/PUC/energy/Climate+Change/future.htm Governor Schwarzenegger Executive Order (EO) S-21-09, September 15, 2009. California Public Utilities Commission, 33% Renewables Portfolio Standard: Implementation Analysis Itron, Inc. 2-2 Introduction and BackgroundPDF Image | Cost-Effectiveness of Distributed Generation Technologies
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