The PIER Program and California's Renewable Energy Future Renewable Energy Future 2011 UC Solar Research symposium U C Merced U.C. Merced December 9, 2011 Prab Sethi Senior Project Manager California Energy Commission Sacramento
PIER • IOU ratepayer funded program that was started in 1997 by AB1890 • Does research that is in the public interest that the private sector may not cover • Each residential customer pays approximately $2.30 a year. 2
PIER Funding • $678 million funding used through the end of 2010 • • $62 5 million per year used for electric research $62.5 million per year used for electric research • Expanded in 2005 by CPUC rule to include $12M per year ($24M by 2009) of natural gas research. PIER Funding by Research Category PIER Renewable Investments by Development Stage (1996 ‐ 2010) Energy Efficiency and Demand Response p 4% 4% Renewables 8% 33% 13% Advanced Electricity Generation Transmission and 19% D i ib Dsitribution i 23% Climate/Environmental Transportation Source: California Energy Commission 3
PIER Funding • PIER funding approved until December 31, 2011. • CPUC is holding hearing for Order Instituting Rulemaking to determine impact on public benefits • Decision for Phase I on November 15, 2011 • Phase II hearing continuing 4
PIER Benefits Responsible for more than 5,500 jobs during 1 st quarter of 2011 according to IMPLAN model. • – 2,128 active jobs, 1,250 indirect jobs, and 2,180 induced jobs leading to the estimated collection of $2.3 million in state taxes $2 3 illi i t t t • During 2010, PIER investment of $21 million in research funding was matched with more than $500 million in Federal stimulus from the American Recovery and Reinvestment Act (ARRA). It also leveraged more than $900 million in private venture funding – bringing in 70 dollars for every $1 that California more than $900 million in private venture funding – bringing in 70 dollars for every $1 that California invested in its future energy future. • Approximately $700 million spent in energy research, has attracted $510 million in match funding, not including ARRA including ARRA • Energy Innovation Small Grants (EISG) has attracted $40 of private investment for every $1 of PIER funds, with a total of $1.3 billion of follow ‐ on private investment since 1999. EISG, which has received 5% of PIER’s funding, has generated an estimated 10,000 direct jobs and 20,000 indirect and induced jobs over g g j j its lifespan. • PIER contributions to the 2008 Building Efficiency Standards, the 2010 Appliance Efficiency Standards, and the 2007 Appliance Efficiency Standards are expected to save the state multi ‐ million dollars per year when fully implemented. • A number of companies have been started based on initial funding from PIER programs, such as Clean 5 Energy Systems and Primus Power
California Energy Policies 2010 2016 2020 Reduce GHG emissions to 1990 levels (~25% reduction from BAU) (2020) ( % ) ( ) AB ‐ 32 All emissions from new baseload generation must be at or below emissions from a natural gas combined cycle plant (2020) Accelerated RPS Renewables Renewables (from SB 1078/ IEPR / (f SB 1078/ IEPR / 20% of Generation % f i 33% of Generation % f i EAP / Governor’s Order (~56,000 GWh) (~104,000 GWh) S ‐ 14 ‐ 08 & S ‐ 21 ‐ 09) 20% of RPS from biopower 20% of RPS from biopower (~11,000 GWh) (~20,000 GWh) State Bioenergy Goal (Executive Order (E ti O d S ‐ 06 ‐ 06) 20% biofuels produced in 40% biofuels produced in California California New Roof ‐ top Solar PV 3,000 MW SB ‐ 1 and California (~5,000 GWh 1 ) (2016) 1 Solar Initiative All new residential zero net 2007 IEPR energy 20,000 MW Additional Governor Brown’s Renewables (12,000 MW DG) Clean Energy Jobs Plan (8,000 MW Utility Scale) 6
California’s Energy Policies • AB ‐ 32 – Reduce GHG emissions to 1990 levels by 2020 – By 2020 all emissions from new baseload generation must be at or below that of a natural gas By 2020 all emissions from new baseload generation must be at or below that of a natural gas combined cycle plant. • Accelerated RPS (from SB 107/ IEPR / EAP / Governor’s Order S ‐ 21 ‐ 09) – By 2010 renewables must make up 20% of California’s electricity generation(~56,000 GWh) – – By 2020 renewables must make up 33% of California’s electricity generation(~104 000 GWh) By 2020 renewables must make up 33% of California s electricity generation( 104,000 GWh) • State Bioenergy Goal(Executive Order S ‐ 06 ‐ 06) – By 2010 biopower must make up 20% of the RPS – By 2010 20% of biofuels used must be produced in California, by 2020 this increases to 40% • SB ‐ 1 and California Solar Initiative – 3,000 MW(~5,000 GWh) of roof ‐ top PV installed by 2016 • IEPR – By 2020 all new residential buildings that are constructed must be zero net energy. y g gy • California Energy Efficiency Strategic Plan – All new commercial construction in California will be zero net energy by 2030 and 50% of existing buildings will be equivalent to zero net energy by 2030. – 40% reduction in energy consumption for existing homes (2008 baseline) by 2020 40% reduction in energy consumption for existing homes (2008 baseline) by 2020 • Governor’s Clean Energy Job Plan – 12,000 MW of new distributed generation, including Combined Cooling Heat and Power by 2020 7 – 8,000 MW of new utility scale renewables
PIER Structure PIER is made up of three different offices: d f h d ff ff – Energy Efficiency Research Office – Energy Generation Research Office – Energy Generation Research Office – Energy Systems Research Office 8
Energy Efficiency Research Office Office • Industrial, Agriculture, and Waste Management ‐ Conduct research, development and demonstration projects to help the industrial, agriculture, and water sectors: • Reduce energy use and costs and increase energy efficiency • Meet environmental challenges while maintaining or enhancing energy efficiency • Enhance ability to cope effectively with energy demand & reliability issues • • Advance electricity technologies that reduce or eliminate consumption of water or other Advance electricity technologies that reduce or eliminate consumption of water or other finite resources or increase use of renewable energy • Maintain or increase productivity • Building Energy End ‐ use Efficiency g gy y ‐ Advance efficient technologies, design tools, and operations ‐ Demonstrate affordable, comfortable, and energy efficient buildings ‐ Improve information resources for sharing results 9
Energy Generation Research Office Office • Renewable Energy Research and Advanced Generation Research ‐ Demonstrate and reduce the technological barriers to the integration of renewable energy at the utility, community, and building scales. ‐ Increase renewable storage options, increase access to renewable energy, and improve renewable energy forecasting. ‐ Develop advanced generation technologies that focus on increasing reliability, efficiency, and affordability, and reducing emissions ff • Environmental Research ‐ Develop cost ‐ effective approaches to evaluating and resolving environmental effects of Develop cost effective approaches to evaluating and resolving environmental effects of energy production, delivery and use in California; and explore how energy technologies can solve/mitigate environmental problems. ‐ Complement national and international research efforts by producing California specific products that also inform policy formulation, in four areas of research: climate change, air quality, aquatic resources, terrestrial resources. • Transportation Research ‐ Reduce carbon emissions reliance on fossil fuels and the need for vehicle travel ‐ Reduce carbon emissions, reliance on fossil fuels, and the need for vehicle travel ‐ Improve the infrastructure capacity, reliability, and sustainability ‐ Increase the use of alternative and renewable fuels 10
Energy Systems Research Office Office • Energy Technology Systems Integration ‐ Lower overall system costs, increase system reliability, and provide ratepayer benefits ‐ Enable integration of renewables, distributed generation, demand response, and storage ‐ Improve capacity, utilization, and performance of transmission and distribution systems • Energy Innovation Small Grants Program ‐ The EISG program’s mission is to assist innovative thinkers by supporting the early development of promising new energy technology concepts and recommending successful ones to other funding sources for further development. • WESTCARB Program ‐ Exploring opportunities in seven western states and Canadian province for removing carbon dioxide from the atmosphere by terrestrial sequestration and carbon dioxide capture and storage and storage. ‐ Results obtained from these efforts will provide the foundation for CCS technology commercialization throughout the United States. • • Division Program Support Unit Division Program Support Unit ‐ To Support Crosscutting Activities such as: planning, implementation, benefits analysis, technology transfer, and public outreach. 11
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