- Author: Gareth J Mayhead
SB489 – Modification of Net Energy Metering (NEM)
This bill which would open up NEM tariffs to include renewables other than wind, solar, biogas, and fuel cell generation. NEM allows a customer-generator to receive a financial credit for power generated by their onsite system and fed back to the utility. The credit is used to offset the customer's electricity bill. Up until now biomass to electricity facilities were not eligible for the tariffs.
According to KQED News “It won significant bipartisan support as it moved through various committees in both the Senate and the Assembly. The next hurdle will be a full Assembly vote and another full Senate vote to reconcile some small changes. Senate sponsor Lois Wolk (D-Stockton) says Governor Jerry Brown has been supportive of the bill and that if it gets to his desk before the end of the legislative year on September 9th, he’s likely to sign it.”
If the bill becomes law this could be a great opportunity for small scale biomass (less than 1 MW) to electricity projects including those using gasification.
CPUC NEM page
Around The Capitol information on SB 489
Check back soon for the next post on proposed changes to Feed-in Tariffs in California.
You can subscribe to the Woody Biomass Blog to be kept up to date on further developments with these and other programs relevant to biomass to electricity in California.
- Author: Gareth J Mayhead
There are a number of changes either approved or proposed for some of the California Public Utilities Commission (CPUC) renewable energy programs that may be beneficial for biomass to electricity projects. This post will briefly look at the Renewable Auction Mechanism rules that have been adopted recently. Follow-up posts will cover a proposal to modify Net Energy Metering and potential changes to Feed-in Tariffs.
Renewable Auction Mechanism (RAM)
These rules adopted on August 18 2011 by the CPUC allow a simplified market based mechanism for the procurement of renewable distributed generation projects within the service territories of the three investor owned utilities (IOUs) in California (Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric). The RAM will run for two years with two reverse auctions by each utility (lowest priced bidders win) per year. Auction winners will be awarded a standard power purchase agreement (PPA) for either a 10, 15 or 20 year period. The IOUs are authorized to procure up to 1000 MW of projects from 1-20 MW through the RAM. Projects that apply can be pre-existing or new facilities. Applicants will need to meet several criteria in order to apply:
- Site control (lease or ownership)
- Previous experience with similar projects
- Use of commercialized technology
- Interconnection application filed with California Independent System Operator (CAISO)
The IOUs need to hold the first auctions by November 15 2011 and the second by May 31 2012.
The RAM applies to renewables including biomass based projects and may be an opportunity for project developers. It will be interesting to observe the outcomes of the first auction and the electricity sales prices that are determined through this process.
CPUC Resolution E-4414 outlines RAM (pdf document). The CPUC RAM page also has information on this program.
The policy environment seems fluid at present and a number of other changes are proposed. Check back soon for the next two posts on proposed changes to Net Energy Metering and Feed-in Tariffs.
You can subscribe to the Woody Biomass Blog to be kept up to date on further developments with these and other programs relevant to biomass to electricity in California.
