CAISO Could Save $2.6 Billion Thanks (In Part) To Solar

By Frank Andorka, Senior Correspondent

What Happened:Thanks in part to solar penetration in Pacific Gas & Electric (PG&E) and San Diego Gas & Electric (SDG&E) territories, the California Independent System Operator (CAISO) proposed canceling $2.6 billion in transmission projects.

  • The 39 cancelled projects in the two utilities’ service areas include transmission projects rendered unnecessary in part because of solar’s increased penetration in those areas.
  • The 2017-2018 plan also includes special studies on the impact of a 50% renewable resources policy, the early retirement risks of the gas fleet and updates to previous studies on the benefits of large-scale storage. C

SolarWakeup’s View:  One of my favorite songs from the musical Cabaret is called “Money,” in which Liza Minnelli and Joel Grey sing passionately about how money makes the world go around (or as Grey pronounces it “vorld go around.”). If that’s true, then at least in California the Earth is spinning off its axis thanks to the potential savings solar (in part) will provide the CAISO.

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In its 2017-2018 Transmission Plan, the electrical grid operator for the state has recommended canceling at least 39 transmission projects that it says will avoid long-term costs to the tune of $2.6 billion, due to energy efficiency programs and increased solar penetration in PG&E and SDG&E service territories.

That kind of money, even in the form of savings, talks. And with residential solar expansion in the state continuing, those savings only stand to go up. So look for these savings to become a central argument in California solar advocates’ continued push for residential solar policies.

Additionally, CAISO also requested a study on the long-term effects of a 50% RPS (although that ship may be sailing if the state’s legislature has its way in producing a 100% RPS in the near future) and updates to studies on large-scale energy storage.

The good news for California’s solar industry continues apace, and the rest of the country best be paying attention.

More:

CAISO Board approves 2017-18 Transmission Plan, CRR rule changes

Bonus (you’re welcome):

Illinois Is Coming For You, Minnesota

By Frank Andorka, Senior Correspondent

What Happened:Illinois is inching closer to finalizing its Long-Term Renewable Resources Procurement Plan next month as the Illinois Commerce Commission (ICC) begins its final deliberations.

  • Environmental Defense Fund (EDF) Manager for Clean Energy Regulatory Implementation Christie Hicks says could jumpstart renewable energy in the state.
  • The Long-Term Renewable Resources Procurement Plan arose out of the Future Energy Jobs Act of 2016.
  • Currently before the ICC, the final plan should be approved on April 3.

SolarWakeup’s View:  When Illinois lawmakers, utilities and clean energy advocates joined forces in 2016 to sign the Future Energy Jobs Act into law, they knew the end goal – jump-starting the Land of Lincoln’s renewable energy industry – wasn’t going to arrive overnight. But now, two years into the process, an overarching roadmap for the state to reach 25% renewable energy by 2025 is slightly more than 10 days away from being finalized.

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Called the Long-Term Renewable Resources Procurement Plan, it is currently before the ICC – Illinois’ public utilities regulatory body – and is scheduled to be approved on April 3. “The Plan,” as it’s known among Illinois clean energy insiders, has been the result of two years of input from all involved stakeholders and is one that is almost universally supported.

Hicks does offer one small caution, however. In the final round of briefs in the case, a group known as the “Joint Solar Parties” (a coalition of trade organizations) called for changes to the lottery process by which projects are selected for pricing blocks in the Adjustable Block Program. They argued instead for guaranteed Block 2 pricing for all projects that submit within the initial 14-day opening of the Program, and reduced penalties for projects that receive “small subscriber” adders but fail to meet their small subscriber obligations. Hicks writes that these changes, if adopted, might put a damper on the Plan’s overall success, but she hopes the ICC has the wisdom to adopt the process suggested by the IPA.

As the Midwest has moved – often glacially – toward its own solar future, most observers have pegged Minnesota as the early leader that has stood clearly head and shoulders above all the other states in the region. But I believe that as the Plan moves forward that it won’t be long before Minnesota is looking over its shoulder to see Illinois quickly approaching.

This article was updated at 7:19 pm on 3/26/18 to add information to the paragraph describing Hicks’ cautionary note. We thank Hicks for the clarification

More:

Illinois is about to release its plan to kick-start new renewables. Here’s what you need to know.

New Colorado Law Encourages Energy Storage

By Frank Andorka, Senior Correspondent

What Happened: Colorado Governor John Hickenlooper signed into law Senate Bill (SB) 9, which explicitly provides the state’s citizens the right to install energy storage.

  • It also calls on utilities to streamline the interconnection processes for adding storage to existing net-metered systems.
  • It instructs the Colorado Public Utilities Commission (CPUC) to create a regulatory framework surrounding such installations.
  • Under the new legislation, Colorado utilities can’t require the installation of new meters to monitor energy storage.
  • The law will go into effect 90 days after the legislature adjourns, which is expected to be on or about August 8.

SolarWakeup’s View:  Colorado now joins four other states in their decisions to increase support for energy storage.

As might be expected, Colorado Governor John Hickenlooper’s decision to sign SB 9 into law won widespread praise from the Solar Energy Industries Association as well as Colorado SEIA.

“This new law cements Colorado’s status as one of our nation’s renewable energy leaders,” said Sean Gallagher, SEIA’s Vice President of State Affairs. “Pairing energy storage with solar will allow consumers to have the cleanest, most reliable and most affordable electricity. The solar industry thanks Governor Hickenlooper and the Legislature for continuing to support the state’s solar market by taking this important step on storage.”

“Energy storage paired with solar energy gives consumers and businesses a way to be truly energy independent, and we commend our state’s leaders for declaring that citizens have a right to use this exciting technology,” said Rebecca Cantwell, COSEIA’s Executive Director. “We believe that this new law will spark more interest in going solar and will pave the way towards adding storage to many projects.”

The most interesting implication of this legislation, however, is the fact that the ability to install energy storage is now a legal right, something only a handful of other states have done to date. While many states are exploring ways to increase the amount of energy storage their states can install, there’s something particularly poignant about making energy storage installation a right.

I join SEIA and COSEIA in saluting Governor Hickelooper – it’s a nice-time Friday story that’s a great way to start off the weekend.

More:

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Oregon Solar Installers Back Legend’s Customers

By Frank Andorka, Senior Correspondent

What Happened: Oregon solar installers are rallying around the their state’s Legend Solar customers, who could have faced an uncertain future after Utah-based Legend tumbled into financial freefall.

  • Among the companies and organizations coming to the rescue are the Energy Trust of Oregon, the Oregon Solar Energy Industries Association and Elemental Energy.
  • The state’s installers have rushed in to make sure the entire solar industry doesn’t get a black eye from this high-profile bankruptcy.

SolarWakeup’s View:  When one solar company stumbles, it’s up to the rest of us to make sure it doesn’t take the rest of the industry down with it.

And so it has come to pass that Oregon solar installers have sprung into action to keep Legend Solar’s customers from falling through the cracks as the Utah-based installer started struggling financially, so severely in fact that its executives actually wrote a blog post entitled “Extreme Cashflow Problems,” according to the Salt Lake Tribune.

Legend Solar is currently doing business in three states: Utah, Nevada and Oregon. It was listed No. 167 on Solar Power World’s Top 500 Contractors List in 2017 and was the sixth largest contractor in Utah according to the same survey.

None of which matters, of course, if you’re a customer in Oregon, Nevada or Legend’s home state of Utah if you’d taken out loans to get solar installed and are now in danger of having the whole enterprise go belly up. That’s why the Oregon solar installers have leapt into the breach to make these Legend customers whole.

I’d write more, but Laurel Hamilton of Elemental Energy in Oregon (and, I should note, a protégé of California solar legend Jim Jenal), said it better than I ever could:

My company has stepped up to fulfill the orders left in the lurch by the out-of-state solar company [that] went bankrupt. We are doing this at a loss because we believe in supporting the solar industry in Oregon and in making sure people still get their systems as promised.

My team is working overtime every single day to get these systems in by the deadline to get clients their tax credit [Editor’s Note: The deadline is April 1]. Once they do, they’ll have beautiful solar systems providing their homes with 100% clean renewable energy from the sun for more than 25 years. So we’re exhausted but it’s worth it. This is what working in solar and working for a positive company, doing this for the right reasons, is all about. We don’t want the news to scare people into not trusting solar contractors.

Thank you, Laurel, for all that you and your fellow Oregon solar installers are doing to make sure as few customers as possible will be harmed by Legend’s financial tragedy. You and your team – and all the others that are helping – are what the solar industry is all about. Thank you.

EDITED: Laurel has asked me to also thank Oregon installer A&R Solar for also honoring Legend’s contracts. She also wanted to give a shoutout to SunPower and Platt Electric, both of whom are supporting Elemental and A&R’s efforts to make sure Legend’s clients aren’t left without the solar arrays for which they contracted.

More:

Customers in three states left hanging as Utah-based Legend Solar shows signs of an ‘extreme cashflow problem’

Part 2: Industry Steps In To Help Legend Solar Customers

The Energy Trust Of Oregon

Oregon Solar Energy Industries Association

Elemental Energy

A&R Solar

SunPower Corp.

Platt Electric