POWER January 2013 - 53

FUTURE POWER
Distributed Generation:
California's Future
Once you synthesize all the elements of the Golden State's clean energy strategy
and extrapolate current trends, it's easy to see that an impending break with
the traditional power generation paradigm is coming, intended or not.
By Jason Makansi, Pearl Street Inc.
I
magine that you've spent several years
digging into California's multi-faceted
clean energy policies. All the pieces of
the puzzle are in place. Suddenly, you realize
the finished puzzle looks a little different
than the one on the cover of the box.
When you sift through all the policy papers,
presentations, and regulations, it's clear
that California is pursuing what is arguably
the most ambitious clean energy strategy in
the country, perhaps the world. When you
read between the lines, it's also clear that
the state is embracing a distributed power
paradigm-something quite different from
the familiar central station generating paradigm.
Perhaps the scariest thing of all is that
no one entity is in charge of implementing
the strategy. According to a California Energy
Commission (CEC) presentation this
past summer, " multiple agencies have independent
authority to act on portions of the
puzzle, but not the entirety of it. "
If you're thinking this has nothing to do
with you, think again. It is striking to compare
California's energy aspirations and the
energy strategy pursued by the Obama administration,
at least until the super majority
in the Senate got erased and the party in
power was humbled with a big loss in the
House of Representatives after the midterm
elections in 2010. In 2009 a national renewable
portfolio standard (RPS) was a real
possibility, carbon cap and trade had even
won the backing of major utility executives
and passage in the Senate, a preference for
working the demand side rather than the supply
side permeated the stimulus funding and
Department of Energy (DOE) programs, and
the gauntlet around coal was being tightened.
These are, coincidentally, all elements of the
California strategy.
It may seem like ancient history, but it
was less than three years ago. Today, with
a Democratic Party super-majority in both
houses of the California legislature supporting
Democratic Governor Jerry Brown, impeding
the ambitious clean energy agenda
is far less likely. And to be fair, many of the
January 2013 | POWER
programs and policies were also advanced
under Republican governors as well.
Chiseling at the Paradigm
First, a little history is in order. Since the
dawn of modern day electricity supply and
delivery, the prevailing paradigm has been
" big iron, " economies of scale from larger
and larger power stations, longer and longer
transmission lines, a diversity of energy
sources, and in effect socializing the costs
among all ratepayers in a service territory under
a regulated rate of return business model.
The Public Utility Regulatory Policies Act
(PURPA) of 1978 was the first crack in that
paradigm. However, it did not break open the
" big iron " paradigm as much as it broke open
the regulated and vertically integrated electric
utility business model.
Over the past decade and a half, there has
been a drive to lower the industry's carbon
footprint, displace coal with natural gas, add
renewable energy, and get more out of the existing
nuclear fleet. But once again, solar and
wind energy facilities and gas-fired plants
got bigger and more centralized, not smaller
and more distributed. In the past five years,
thanks to massive government expenditures,
intelligent grid technologies have been deployed
as a propellant to make conservation,
energy efficiency, and demand side management
the equal of supply side options.
Since the 1970s, the industry has seen
small waves of distributed energy systems:
total energy systems (that is, cogeneration,
in the early 1970s), packaged cogeneration
units (early 1980s), microturbine generators
(late 1990s), and fuel cell units and rooftop
solar photovoltaic systems (the past decade).
With the exception of rooftop solar, whose
wave is still advancing, these waves hit shore
and quietly receded.
Ultimately, the centralized " big iron " paradigm
prevailed.
California Is Different
A key element of California's clean energy
strategy is a target of 12,000 MW of distribwww.powermag.com
uted
generation (DG)-localized generation
close to consumer loads (Figure 1)-as part
of a 20,000-MW renewable energy buildout
included in the state's 33% RPS law. Approximately
3,000 MW of DG already exist in
California, and an additional 6,000 MW are
under development or authorized. The obvious
regulatory preference for DG is indicated
by the fact that it is 60% of the total new renewable
capacity expected to be added.
Interestingly, California includes individual
system size up to 20 MW in its DG planning.
Supporting the solar portion of DG are
the incentives provided in Senate Bill (SB)
1 and the feed-in tariffs in SB 32. Projects
based on gas-fired small turbines and engines
need not apply for those perks.
Large-scale renewable facilities represent
the other 8,000 MW in the RPS that is supposed
to be met by 2020. Geographic and
permitting realities in the state suggest that
the large-scale facilities must be accompa1.
Ambitious planning. Distributed
generation is planned for deployment based
on, among other things, unemployment
characteristics and where low- to moderateincome
households are located. Source: California
Energy Commission
PacifiCorp
SPP
PG&E
SMUD
Silicon
Valley
Power
Mountain
Utilities
DG projects (MW)
1-173
174-466
467-948
949-3006
IOUs
POUs
Counties
LADWP
SCE
LADWP
Anaheim PUD
SDG&E
IID
Bear Valley
Electric
53
http://www.powermag.com

POWER January 2013

Table of Contents for the Digital Edition of POWER January 2013

Contents
POWER January 2013 - Cover1
POWER January 2013 - Cover2
POWER January 2013 - Contents
POWER January 2013 - 2
POWER January 2013 - 3
POWER January 2013 - 4
POWER January 2013 - 5
POWER January 2013 - 6
POWER January 2013 - 7
POWER January 2013 - 8
POWER January 2013 - 9
POWER January 2013 - 10
POWER January 2013 - 11
POWER January 2013 - 12
POWER January 2013 - 13
POWER January 2013 - 14
POWER January 2013 - 15
POWER January 2013 - 16
POWER January 2013 - 17
POWER January 2013 - 18
POWER January 2013 - 19
POWER January 2013 - 20
POWER January 2013 - 21
POWER January 2013 - 22
POWER January 2013 - 23
POWER January 2013 - 24
POWER January 2013 - 25
POWER January 2013 - 26
POWER January 2013 - 27
POWER January 2013 - 28
POWER January 2013 - 29
POWER January 2013 - 30
POWER January 2013 - 31
POWER January 2013 - 32
POWER January 2013 - 33
POWER January 2013 - 34
POWER January 2013 - 35
POWER January 2013 - 36
POWER January 2013 - 37
POWER January 2013 - 38
POWER January 2013 - 39
POWER January 2013 - 40
POWER January 2013 - 41
POWER January 2013 - 42
POWER January 2013 - 43
POWER January 2013 - 44
POWER January 2013 - 45
POWER January 2013 - 46
POWER January 2013 - 47
POWER January 2013 - 48
POWER January 2013 - 49
POWER January 2013 - 50
POWER January 2013 - 51
POWER January 2013 - 52
POWER January 2013 - 53
POWER January 2013 - 54
POWER January 2013 - 55
POWER January 2013 - 56
POWER January 2013 - 57
POWER January 2013 - 58
POWER January 2013 - 59
POWER January 2013 - 60
POWER January 2013 - 61
POWER January 2013 - 62
POWER January 2013 - 63
POWER January 2013 - 64
POWER January 2013 - Cover3
POWER January 2013 - Cover4
https://www.nxtbook.com/accessintelligence/POWER/pwr_march-2024
https://www.nxtbook.com/accessintelligence/POWER/pwr_february-2024
https://www.nxtbook.com/accessintelligence/POWER/pwr_january-2024
https://www.nxtbook.com/accessintelligence/POWER/pwr_december-2023
https://www.nxtbook.com/accessintelligence/POWER/pwr_november-2023
https://www.nxtbook.com/accessintelligence/POWER/power-october-2023
https://www.nxtbook.com/accessintelligence/POWER/re-tech-supp-to-power-september-2023
https://www.nxtbook.com/accessintelligence/POWER/power-september-2023
https://www.nxtbook.com/accessintelligence/POWER/power-and-re-tech-supp-september-2023
https://www.nxtbook.com/accessintelligence/POWER/power-august-2023
https://www.nxtbook.com/accessintelligence/POWER/power-july-2023
https://www.nxtbook.com/accessintelligence/POWER/power-june-2023
https://www.nxtbook.com/accessintelligence/POWER/power-may-2023
https://www.nxtbook.com/accessintelligence/POWER/power-april-2023
https://www.nxtbook.com/accessintelligence/POWER/power-march-2023
https://www.nxtbook.com/accessintelligence/POWER/power-february-2023
https://www.nxtbook.com/accessintelligence/POWER/power-january-2023
https://www.nxtbook.com/accessintelligence/POWER/power-december-2022
https://www.nxtbook.com/accessintelligence/POWER/power-november-2022
https://www.nxtbook.com/accessintelligence/POWER/Power-October-2022-140th-Anniversary-Supp
https://www.nxtbook.com/accessintelligence/POWER/Power-October-2022-and-Anniversary-Supp
https://www.nxtbook.com/accessintelligence/POWER/power-and-re-tech-supp-september-2022
https://www.nxtbook.com/accessintelligence/POWER/power-september-2022
https://www.nxtbook.com/accessintelligence/POWER/power-august-2022
https://www.nxtbook.com/accessintelligence/POWER/Power-July-2022-Intl
https://www.nxtbook.com/accessintelligence/POWER/power-july-2022
https://www.nxtbook.com/accessintelligence/POWER/power-june-2022-intl
https://www.nxtbook.com/accessintelligence/POWER/power-june-2022
https://www.nxtbook.com/accessintelligence/POWER/power-may-2022
https://www.nxtbook.com/accessintelligence/POWER/power-may-2022-intl
https://www.nxtbook.com/accessintelligence/POWER/power-april-2022
https://www.nxtbook.com/accessintelligence/POWER/Power-April-2022-Intl
https://www.nxtbook.com/accessintelligence/POWER/power-march-2022
https://www.nxtbook.com/accessintelligence/POWER/power-february-2022
https://www.nxtbook.com/accessintelligence/POWER/power-january-2022
https://www.nxtbook.com/accessintelligence/POWER/power-december-2021
https://www.nxtbook.com/accessintelligence/POWER/power-top-plants-supp-december-2021
https://www.nxtbook.com/accessintelligence/POWER/power-november-2021
https://www.nxtbook.com/accessintelligence/POWER/power-october-2021
https://www.nxtbook.com/accessintelligence/POWER/power-september-2021
https://www.nxtbook.com/accessintelligence/POWER/power-august-2021
https://www.nxtbook.com/accessintelligence/POWER/power-july-2021
https://www.nxtbook.com/accessintelligence/POWER/power-june-2021
https://www.nxtbook.com/accessintelligence/POWER/power-may-2021
https://www.nxtbook.com/accessintelligence/POWER/power-april-2021
https://www.nxtbook.com/accessintelligence/POWER/power-march-2021
https://www.nxtbook.com/accessintelligence/POWER/power-february-2021
https://www.nxtbook.com/accessintelligence/POWER/power-january-2021
https://www.nxtbook.com/accessintelligence/POWER/power-december-2020
https://www.nxtbook.com/accessintelligence/POWER/power-november-2020
https://www.nxtbook.com/accessintelligence/POWER/power-october-2020
https://www.nxtbook.com/accessintelligence/POWER/power-september-2020
https://www.nxtbook.com/accessintelligence/POWER/power-august-2020
https://www.nxtbook.com/accessintelligence/POWER/power-july-2020
https://www.nxtbook.com/accessintelligence/POWER/power-june-2020
https://www.nxtbook.com/accessintelligence/POWER/power-may-2020
https://www.nxtbook.com/accessintelligence/POWER/power-april-2020
https://www.nxtbook.com/accessintelligence/POWER/power-march-2020
https://www.nxtbook.com/accessintelligence/POWER/power-february-2020
https://www.nxtbook.com/accessintelligence/POWER/power-january-2020
https://www.nxtbook.com/accessintelligence/POWER/power-december-2019
https://www.nxtbook.com/accessintelligence/POWER/power-november-2019
https://www.nxtbook.com/accessintelligence/POWER/power-october-2019
https://www.nxtbook.com/accessintelligence/POWER/power-september-2019
https://www.nxtbook.com/accessintelligence/POWER/power-august-2019
https://www.nxtbook.com/accessintelligence/POWER/power-july-2019
https://www.nxtbook.com/accessintelligence/POWER/power-june-2019
https://www.nxtbook.com/accessintelligence/POWER/power-may-2019
https://www.nxtbook.com/accessintelligence/POWER/power-april-2019
https://www.nxtbook.com/accessintelligence/POWER/power-march-2019
https://www.nxtbook.com/accessintelligence/POWER/power-february-2019
https://www.nxtbook.com/accessintelligence/POWER/power-january-2019
https://www.nxtbook.com/accessintelligence/POWER/power-december-2018
https://www.nxtbook.com/accessintelligence/POWER/power-november-2018
https://www.nxtbook.com/accessintelligence/POWER/power-october-2018
https://www.nxtbook.com/accessintelligence/POWER/power-september-2018
https://www.nxtbook.com/accessintelligence/POWER/power-august-2018
https://www.nxtbook.com/accessintelligence/POWER/power-july-2018
https://www.nxtbook.com/accessintelligence/POWER/power-june-2018
https://www.nxtbook.com/accessintelligence/POWER/power-may-2018
https://www.nxtbook.com/accessintelligence/POWER/power-april-2018
https://www.nxtbook.com/accessintelligence/POWER/power-march-2018
https://www.nxtbook.com/accessintelligence/POWER/power-february-2018
https://www.nxtbook.com/accessintelligence/POWER/power-january-2018
https://www.nxtbook.com/accessintelligence/POWER/power-december-2017
https://www.nxtbook.com/accessintelligence/POWER/power-november-2017
https://www.nxtbook.com/accessintelligence/POWER/power-october-2017
https://www.nxtbook.com/accessintelligence/POWER/power-september-2017
https://www.nxtbook.com/accessintelligence/POWER/power-august-2017
https://www.nxtbook.com/accessintelligence/POWER/power-july-2017
https://www.nxtbook.com/accessintelligence/POWER/power-june-2017
https://www.nxtbook.com/accessintelligence/POWER/power-may-2017
https://www.nxtbook.com/accessintelligence/POWER/power-april-2017
https://www.nxtbook.com/accessintelligence/POWER/power-march-2017
https://www.nxtbook.com/accessintelligence/POWER/power-february-2017
https://www.nxtbook.com/accessintelligence/POWER/power-january-2017
https://www.nxtbook.com/accessintelligence/POWER/power-december-2016
https://www.nxtbook.com/accessintelligence/POWER/power-november-2016
https://www.nxtbook.com/accessintelligence/POWER/power-october-2016
https://www.nxtbook.com/accessintelligence/POWER/power-september-2016
https://www.nxtbook.com/accessintelligence/POWER/power-august-2016
https://www.nxtbook.com/accessintelligence/POWER/power-july-2016
https://www.nxtbook.com/accessintelligence/POWER/power-june-2016
https://www.nxtbook.com/accessintelligence/POWER/power-may-2016
https://www.nxtbook.com/accessintelligence/POWER/power-april-2016
https://www.nxtbook.com/accessintelligence/POWER/power-march-2016
https://www.nxtbook.com/accessintelligence/POWER/power-february-2016
https://www.nxtbook.com/accessintelligence/POWER/power-january-2016
https://www.nxtbook.com/accessintelligence/POWER/power-december-2015
https://www.nxtbook.com/accessintelligence/POWER/power-november-2015
https://www.nxtbook.com/accessintelligence/POWER/power-october-2015
https://www.nxtbook.com/accessintelligence/POWER/power-september-2015
https://www.nxtbook.com/accessintelligence/POWER/power-august-2015
https://www.nxtbook.com/accessintelligence/POWER/power-july-2015
https://www.nxtbook.com/accessintelligence/POWER/power-june-2015
https://www.nxtbook.com/accessintelligence/POWER/power-may-2015
https://www.nxtbook.com/accessintelligence/POWER/power-april-2015
https://www.nxtbook.com/accessintelligence/POWER/power-march-2015
https://www.nxtbook.com/accessintelligence/POWER/power-february-2015
https://www.nxtbook.com/accessintelligence/POWER/power-january-2015
https://www.nxtbook.com/accessintelligence/POWER/power-december-2014
https://www.nxtbook.com/accessintelligence/POWER/power-november-2014
https://www.nxtbook.com/accessintelligence/POWER/power-october-2014
https://www.nxtbook.com/accessintelligence/POWER/power-september-2014
https://www.nxtbook.com/accessintelligence/POWER/power-august-2014
https://www.nxtbook.com/accessintelligence/POWER/power-july-2014
https://www.nxtbook.com/accessintelligence/POWER/power-june-2014
https://www.nxtbook.com/accessintelligence/POWER/power-may-2014
https://www.nxtbook.com/accessintelligence/POWER/power-april-2014
https://www.nxtbook.com/accessintelligence/POWER/power-march-2014
https://www.nxtbook.com/accessintelligence/POWER/power-february-2014
https://www.nxtbook.com/accessintelligence/POWER/power-january-2014
https://www.nxtbook.com/accessintelligence/POWER/power-december-2013
https://www.nxtbook.com/accessintelligence/POWER/power-november-2013
https://www.nxtbook.com/accessintelligence/POWER/power-october-2013
https://www.nxtbook.com/accessintelligence/POWER/power-september-2013
https://www.nxtbook.com/accessintelligence/POWER/power-august-2013
https://www.nxtbook.com/accessintelligence/POWER/power-july-2013
https://www.nxtbook.com/accessintelligence/POWER/power-june-2013
https://www.nxtbook.com/accessintelligence/POWER/power-may-2013
https://www.nxtbook.com/accessintelligence/POWER/power-april-2013
https://www.nxtbook.com/accessintelligence/POWER/power-march-2013
https://www.nxtbook.com/accessintelligence/POWER/power-february-2013
https://www.nxtbook.com/accessintelligence/POWER/power-january-2013
https://www.nxtbook.com/accessintelligence/POWER/power-december-2012
https://www.nxtbook.com/accessintelligence/POWER/power-november-2012
https://www.nxtbook.com/accessintelligence/POWER/power-october-2012
https://www.nxtbook.com/accessintelligence/POWER/power-september-2012
https://www.nxtbook.com/accessintelligence/POWER/power-august-2012
https://www.nxtbook.com/accessintelligence/POWER/power-july-2012
https://www.nxtbook.com/accessintelligence/POWER/power-june-2012
https://www.nxtbook.com/accessintelligence/POWER/power-may-2012
https://www.nxtbook.com/accessintelligence/POWER/power-april-2012
https://www.nxtbook.com/accessintelligence/POWER/power-march-2012
https://www.nxtbook.com/accessintelligence/POWER/power-february-2012
https://www.nxtbook.com/accessintelligence/POWER/power-january-2012
https://www.nxtbook.com/accessintelligence/POWER/power-november-2011
https://www.nxtbook.com/accessintelligence/POWER/power-october-2011
https://www.nxtbook.com/accessintelligence/POWER/power-september-2011
https://www.nxtbook.com/accessintelligence/POWER/power-august-2011
https://www.nxtbook.com/accessintelligence/POWER/power-july-2011
https://www.nxtbook.com/accessintelligence/POWER/power-june-2011
https://www.nxtbook.com/accessintelligence/POWER/power-may-2011
https://www.nxtbook.com/accessintelligence/POWER/power-april-2011
https://www.nxtbook.com/accessintelligence/POWER/power-march-2011
https://www.nxtbook.com/accessintelligence/POWER/power-february-2011
https://www.nxtbook.com/accessintelligence/POWER/power-january-2011
https://www.nxtbook.com/accessintelligence/POWER/power-december-2010
https://www.nxtbook.com/accessintelligence/POWER/power-november-2010
https://www.nxtbook.com/accessintelligence/POWER/power-october-2010
https://www.nxtbook.com/accessintelligence/POWER/power-september-2010
https://www.nxtbook.com/accessintelligence/POWER/power-august-2010
https://www.nxtbook.com/accessintelligence/POWER/power-july-2010
https://www.nxtbook.com/accessintelligence/POWER/power-june-2010
https://www.nxtbook.com/accessintelligence/POWER/power-may-2010
https://www.nxtbookmedia.com