Solar’s Bright Future in Los Angeles: A Conversation with Eric Garcetti

Eric Garcetti currently serves as a Los Angeles City Councilmember, representing the 13th District. Mr. Garcetti was elected by his peers four times to serve as President of the Los Angeles City Council from 2006 to 2012.  Now, Mr. Garcetti is running for Mayor of Los Angeles – in a race that will be decided on May 21st.

Craig_Garcetti_caption

The Clean Coalition knows Mr. Garcetti to be a stalwart champion of clean local energy.  Recently, he authored legislation to establish the 100 megawatt (MW) CLEAN LA Solar Program.  According to the Los Angeles Business Council, this 100 MW of local solar will create up to 4,500 jobs, generate $500 million in economic activity and offset 2.25 million tons of carbon dioxide emissions by 2020.  Additionally, the Sierra Club officially endorsed Eric Garcetti as their candidate for Mayor due to his outstanding environmental record.

As Mayor, Mr. Garcetti is committed to significantly expanding the production of local solar power in Los Angeles – specifically setting a level of 1,200 MW by 2016.

Craig Lewis, Founder and Executive Director of the Clean Coalition, recently had the chance to talk with Mr. Garcetti about making Los Angeles a national leader in the new energy economy, as captured in the relevant dialog below.

Craig Lewis (CL): Mr. Garcetti, you are committed to deploying 1,200 MW of solar energy within the City of Los Angeles by 2016. Why are you so dedicated to this objective?

Eric Garcetti (EG): Making Los Angeles a solar energy leader will make our city healthier and more prosperous, and will help achieve my goal of a coal and nuclear-free DWP. I am 100 percent dedicated to a 1,200 MW solar goal, which would keep harmful pollution out of our atmosphere and lungs, and would inject more than $2 billion into our local economy. An aggressive commitment to solar will kick-start a new energy economy in Los Angeles, moving us away from a status quo that sees us cede leadership and spend money buying energy outside of Los Angeles. At a 1,200 MW scale, Los Angeles will approach the economies of scale enjoyed in Germany, which is currently deploying rooftop solar at an extremely competitive 7 cents per KWH — a level cheaper than any source of energy available to Angelenos today.

pull_quote4

CL: Why have you specifically committed that at least half of the 1,200 MW of local solar come from an expansion to the CLEAN LA Solar Program?

EG: I am proud to have spearheaded the creation of Los Angeles’ feed-in-tariff program, and its initial stage has delivered data and feedback from customers and solar businesses that makes for a successful model that can and should be expanded. Feed-in-tariff programs accelerate solar deployment by allowing for the utilization of a rooftop’s full solar potential, even if the site itself has only a small power demand. Until L.A.’s FiT was launched, 75 percent of our city’s rooftop market was ineligible for solar because of insufficient load or because so many buildings are non-owner occupied or multi-tenant.

CL: How can the Clean Coalition help you make the 1,200 MW of local solar a reality in Los Angeles in the most timely fashion possible?

EG: I would encourage information sharing so L.A. can get ahead of the curve by taking advantage of the lessons learned by the Clean Coalition in designing and implementing CLEAN Programs across the country, like in Long Island, Fort Collins and Palo Alto. I would also encourage the Clean Coalition to continue communicating its robust analyses on the economic benefits of solar to build greater public support. I believe the Clean Coalition’s Distributed Generation + Intelligent Grid Initiative could be leveraged here in L.A. to prove that renewables can be used to provide a significant percentage of energy requirements, while at the same time, improving grid reliability with intelligent grid solutions like demand response, electric vehicles, and energy storage.

LA-PV-View 2

CL: If elected the next Mayor of Los Angeles, which we will know on May 21st, how fast can you move on the 1,200 MW solar goal?

EG: I would move forward immediately. I have already laid the groundwork through my policy work on the council, and as a candidate, I have been meeting with solar stakeholders not just to earn their support for my campaign, but to exchange ideas so I can hit the ground running.

CL: How can other parties help you achieve 1,200 MW of local solar for Los Angeles?

EG: Tell your friends, family, co-workers to vote! And make sure they vote for Eric Garcetti!

New California ISO policy will spur greater distributed generation

A new California Independent System Operator (CAISO) policy, which will begin allocating available deliverability capacity to Wholesale Distributed Generation (WDG) projects this summer without requiring these projects to undergo lengthy and expensive individual studies, has been submitted to the Federal Energy Regulatory Commission (FERC) for final approval (Docket No. ER12-2643-001).

California solar jobsCAISO’s new Deliverability for Distributed Generation methodology will streamline WDG projects for deliverability – a key step in reducing both cost and uncertainty for potential WDG investors. After 18 months of advocating for these improvements to the deliverability allocation process, the Clean Coalition is very pleased to see CAISO recognizing and supporting the true value of distributed generation through this innovative policy.

Previously, all new DG projects were subjected to a similar deliverability study process as large-scale energy facilities, which are expensive and time consuming. These studies take at least 1.5 years and require substantial costs – $10,000 for the application fee, plus engineering work and legal fees that can bring the total cost to $50,000. As a result, deliverability studies often delayed or derailed promising WDG projects that would otherwise have taken less than a year to bring online.

This burdensome process dissuaded potential WDG investors, since the inability to obtain deliverability can adversely affect Power Purchase Agreement (PPA) rates. Projects that do not receive deliverability are unable to guarantee delivery of power during peak demand hours. Without this guarantee, projects do not qualify for preferred Time of Delivery rates, which reduces the energy value by up to 30%. This lost revenue is significant enough to ruin the economics of many valuable WDG projects.

Under the new policy, CAISO has already begun publishing annual study results that identify the amount of unassigned deliverability available without upgrade costs throughout its control area. This data will assist in siting projects to make use of existing interconnection facilities and keep costs down for all ratepayers. Part of the available capacity will be annually allocated for WDG projects and immediately assigned. Any unused capacity will be set aside for future allocation throughout the year.

The proposed annual allocation to WDG was initially constrained by very conservative planning scenarios compared to actual WDG project development.  Fortunately, the Clean Coalition secured expanded WDG allocations to match actual demand, which will result in the development of more WDG projects through this program.

In response to a FERC ruling on this policy, WDG projects in investor-owned utility service territories will be assigned deliverability on a “first come, first served” basis. Municipal utilities have the authority to assign allocated deliverability as they desire. This allows prioritization based on preferred characteristics, such as new rooftop solar installations and other local energy projects that are sited close to load and avoid the need for remote generation and associated transmission infrastructure.

2013 Sustainability Summit on April 19th in Los Angeles

sustain_event-220x220The Clean Coalition is pleased to be a supporting organization for the Los Angeles Business Council’s 7th Annual Sustainability Summit.  This event, which will take place at The Getty Center on Friday, April 19, will address clean energy investment, innovation, and implementation.

A number of distinguished individuals will speak at the summit, including California Governor Jerry Brown, California Senator Kevin de León, and Los Angeles Mayor Antonio Villaraigosa.

For additional details, including information on how to register, please visit the event website.