SVCE 2020 Integrated Resource Plan Policy Discussion September 11, - - PowerPoint PPT Presentation

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SVCE 2020 Integrated Resource Plan Policy Discussion September 11, - - PowerPoint PPT Presentation

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Item 1 PRESENTATION SVCE 2020 Integrated Resource Plan Policy Discussion September 11, 2019 Hilary Staver Manager of Regulatory & Legislative Affairs Monica Padilla Director of Power Resources 1 Item 1 Workshop Goals PRESENTATION 1.

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SVCE 2020 Integrated Resource Plan Policy Discussion

September 11, 2019 Hilary Staver Manager of Regulatory & Legislative Affairs Monica Padilla Director of Power Resources

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Item 1 PRESENTATION

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  • 1. Discuss what Integrated Resource Planning (“IRP”) is and what it

aims to achieve

  • 2. Review the 2019-2020 IRP process and timeline
  • 3. Identify key issues that SVCE staff must address in order to

prepare SVCE’s 2020 IRP

  • 4. Gather Board feedback on proposals
  • 5. Preview next steps

Workshop Goals

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Definition Process and Timeline Key Questions Issue Discussion Next Steps

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Issues for Discussion Today

  • 1. Carbon-Free Resources
  • 2. RPS Resources

Large Hydro and its Alternatives

  • a. Percentage in Portfolio
  • b. Technology Types
  • c. New & Long-term vs Existing &

Short-term

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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What is IRP: The Planning Perspective

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Out of all available resource types and quantities, what is the optimal mix of resources for achieving

  • ur institutional goals?

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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Basic Components of an IRP

Inputs Outputs

  • Need, i.e. forecasted demand
  • Existing contracts and

resource commitments

  • Future procurement constraints
  • Characteristics and availability of

resource options for filling net

  • pen position
  • Preferred mix of resources to

pursue in future procurement activities

  • Depending on techniques used,

estimates of cost, GHG impact, and/or other characteristics of hypothetical portfolio scenarios

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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What is IRP: The Regulatory Perspective

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If all LSEs procure resources according to their respective priorities, what does the resulting system-wide portfolio look like? Does it achieve

  • ur system-wide policy goals?

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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SVCE IRP Checkpoints

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SVCE Board CPUC SVCE Staff

Staff prepare the IRP and submit it to the Board

The CPUC certifies the IRP , and provides information on system- wide outcomes that impacts development of future IRPs

The Board approves the IRP , allowing submission to the CPUC

April 1, 2020

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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The Energy Landscape has Changed Since SVCE Launched

“Reliability and cost considerations are coequal goals with the GHG emissions goals in IRP, and are integral to a successful IRP.”

“Renewable and storage resources alone are not sufficient, at present, … to provide enough renewable integration services to result in electric system reliability at the system level.”

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IRP History IRP Process Issue Discussion Next Steps

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Major Areas for Consideration

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Load Forecast Carbon-Free Resources

RPS Resources Definition of “Carbon-Free” Reliability

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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Issues for Discussion Today

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  • 1. Carbon-Free Resources
  • 2. RPS Resources

Large Hydro and its Alternatives

  • 2a. Percentage in Portfolio
  • 2b. Technology Types
  • 2c. New & Long-term vs Existing &

Short-term

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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  • 1. Carbon-Free Resources: Hydro,

Nuclear and Carbon-Free Allocations

➢ 2018 IRP: Pacific Northwest (“PNW”) large hydro comprised the entirety of SVCE’s non-RPS portfolio ➢ 2020 IRP Staff Proposal: ➢ Continue to pursue large hydroelectric resources both in-state and from PNW ➢ Consider use of carbon-free options including allocation of nuclear (through 2025) and carbon offsets

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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2.a. RPS Resources: Percentage

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➢ 2018 IRP: RPS-eligible resources maintained at 50% of SVCE resource portfolio through 2030 ➢ 2020 IRP Staff Proposal: ➢ 2.a. Maintain RPS-eligible resources at 50% of portfolio through 2025 and increase to 60% by 2030 to match State requirement

Definition Process and Timeline Key Questions Issue Discussion Next Steps

Maintain RPS at 50% in perpetuity Minimum compliance RPS % Minimum compliance + X% RPS Maintain 50% RPS through 2025; achieve 60% by 2030

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2.a. RPS Resources: Percentage

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Definition Process and Timeline Key Questions Issue Discussion Next Steps

Graph not created by SVCE

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Definition Process and Timeline Key Questions Issue Discussion Next Steps

2.b. RPS Resources: Technologies

➢ 2018 IRP: After expiration of existing short-term contracts, planned RPS procurement included only wind and solar. Biomass and geothermal excluded at Board suggestion. ➢ 2020 IRP Staff Proposal: ➢ 2.b. Match CEC-eligible renewables including: small hydro, biomass, binary geothermal, conventional geothermal and biomethane in addition to wind and solar

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  • 2c. RPS Resources: New & Long-

Term vs Existing & Short-Term Contracts

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➢ 2018 IRP: Conservative approach of minimum amount of long-term (10+ years) contracting required to achieve compliance with state requirements, with remainder of open position filled with short-term contracting ➢ 2020 IRP Staff Proposal: ➢ 2.c. Pursue 40% RPS from new and long-term renewables by 2023 and balance via existing and short-term resources

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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Summary of 2020 IRP Staff Proposals

➢ Carbon-Free Resources:

  • Continue to pursue large hydroelectric resources both in-state and from

PNW.

  • Consider use of carbon-free options including allocation of nuclear (through

2025) and carbon offsets ➢ RPS Resources:

  • Maintain RPS-eligible resources at 50% of portfolio through 2025 and

increase to 60% by 2030 to match State requirement

  • Match CEC-eligible renewables including: small hydro, biomass, binary

geothermal, conventional geothermal and biomethane in addition to wind and solar

  • Pursue 40% RPS from new and long-term renewables by 2023 and balance

via existing and short-term resources

Definition Process and Timeline Key Questions Issue Discussion Next Steps

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Definition Process and Timeline Key Questions Issue Discussion Next Steps

Next Steps

➢ Board members interested in further discussion of any of these topics are encouraged to contract SVCE staff for individual meetings ➢ A second workshop or agenda item will be scheduled in October to review refined versions of these proposals and discuss further issues ➢ Fall 2019 will focus on modeling and developing portfolio scenarios ➢ Goal is to bring draft IRP to Board for review in early 2020

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Thank You

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