California Solar Initiative Adds Performance Based Incentive in 2007

Beginning January 1, 2007, a ruling by the California PUC establishes performance-based incentives (PBI) of up to 50 cents/kilowatt-hour over five years for solar energy systems greater than 100 kilowatts in size installed in businesses and other large facilities. For systems smaller than 100 kilowatts, incentives will be based on each system's estimated future performance although projects can opt-in for PBI payments.

The August 24th decision implements the first phase of the California Solar Initiative, which was adopted by the Public Utilities Commission in January 2006 [see previous story in Democratic Energy]. The goal of the Solar Initiative is to increase the amount of installed solar capacity in California by 3,000 megawatts by 2017.

Beginning Jan. 1, 2007, residential and small commercial systems will receive upfront incentives of $2.50 per watt and will be eligible for additional federal tax credits (although any system can opt in to the performance based rates if they think they will get more financial benefit). Government and non-profit organizations will receive $3.25 per watt to compensate for their lack of access to the federal tax credit. For systems larger than 100 kilowatts, incentive payments over the first five years of operation will be $0.39 per kilowatt-hour of output for taxable entities and $0.50 per kilowatt-hour of output for government/non-profit organizations.

The level of performance based incentives (PBI) and the upfront payments will decline in 10 steps based on how much solar power is added to the state's electricity system. The performance-based incentives schedule looks like this:

More

SF Development Project Aims to use 100 Percent Green Power

The San Francisco Public Utilities Commission (SFPUC) has announced a plan to create San Francisco’s first neighborhood powered entirely by clean, renewable energy. The community would be on a 93-acre parcel at a site of the former Hunters Point Naval Shipyard, where Lennar/BVHP is about to begin construction of more than 1,600 new residential units and 300,000 square feet of commercial and retail space.

In a press release, Mayor Gavin Newsome said, “A new Green Power Community at Hunters Point is at the core of San Francisco’s clean energy vision and leadership.”

The SFPUC has formally notified Pacific Gas & Electric – the owner of the City’s electric distribution network – of its intention to serve as the primary provider of power to the Hunters Point development. Though the SFPUC must still negotiate terms of distributing SFPUC-generated clean power through the private utility’s transmission system, PG&E is obligated to accept the application. Upon completion of an agreement, the SFPUC would coordinate with Lennar/BVHP to lay the required new water, sewer and electrical infrastructure into the development as well.

The SFPUC currently provides electricity to many of San Francisco’s most vital public services and facilities primarily from a hydropower project in Yosemite National Park. Recently, the SFPUC has also been a leader in solar development, operating and maintaining the nation’s largest municipal rooftop solar facility in the nation at Moscone Convention Center, along with projects in operation or in the works at the Southeast Wastewater Treatment Plant, Norcal Recycling Facility at Pier 96, the San Francisco International Airport and more under development.

Delivering power directly to residential and businesses would represent a new direction for SFPUC and would require a bit of reorganization for the agency. Not unexpectedly, the incumbent utility, Pacific Gas and Electric, has asked the Mayor to consider dropping the plan and said that it would compete to become the electricity provider for Lennar/BVHP.

More

New York Seeks Proposals to Convert Fleet Vehicles to Plug-in Hybrids

The New York State Energy Research and Development Authority (NYSERDA) has issued guidelines for vendors to obtain funding under the New York State Plug-in Hybrid Electric Vehicle (PHEV) Technology Initiative. The goal of the program is to accelerate the conversion of the state's hybrid vehicle fleet (500-600 vehicles) into plug-in hybrids.

NYSERDA's Program Opportunity Notice (PON) 1088 seeks proposals to provide funding for businesses to develop, test, demonstrate, and ultimately supply to selected state government fleets the hardware and services necessary to convert existing state-owned hybrid electric passenger cars and light trucks to plug-in hybrid (PHEV) operation.

Proposals are for a two stage project. Stage 1 will encompass work to develop and deliver a prototype vehicle for demonstration and testing. Stage 2 will encompass the conversion of all or a segment of a selected NYS government fleet of existing hybrid electric vehicles. The total available NYSERDA funding is $10,000,000. It is anticipated that multiple awards up to $100,000 each will be available for Stage 1 activities, with the balance of funds available for one or more subsequent Stage 2 awards.

Successful proposals from individual companies or teams must be led by a business entity capable of commercializing the PHEV technology. A very nice feature of this initiative is that proposers must present a viable plan to manufacture all, or a significant portion of the PHEV conversion system in New York State, or otherwise generate significant economic activity in the State.

Democratic Energy would suggest that marrying this initiative with another NYSERDA initiative titled, New York State Bio-Fuel Station Initiative: Driving Energy Independence for the Empire State, would be a perfect way to marry PHEV development with biofuels.

More

Moving London Toward Climate Neutral Development

London Mayor, Ken Livingstone, wants there to be at least one carbon neutral development project in each of the city's 32 boroughs by 2010. To that end, the London Energy Partnership has released an instructive paper titled, Toward Zero Carbon Developments - Supportive Information for Boroughs, that will provide the advice necessary to make it easier for the goal to be met and exceeded.

The report includes practical advice about how local authorities can use their powers to encourage zero carbon development and offers information about likely site characteristics, example text for zoning regulations, an overview of key arguments to use in discussion with developers, and lessons learned and pitfalls to avoid.

The strategy emphasizes the importance of on-site renewable energy generation and locally-sited combined heat and power projects combined with energy efficiency as the way to meet a zero carbon target.

The Greater London Authority estimates that some 35,400 new homes are needed each year in the region. These development pressures will create demand for major new developments to provide new places of work, shopping and related social and cultural facilities. The Mayor’s Energy Strategy shows that, by influencing built development, there is significant potential to reduce London’s overall carbon emissions.

The report notes, "The construction of zero carbon developments across London would increase the pace with which both the planning system and the construction industry embrace sustainability as a fundamental design criterion. The Mayor’s Sustainable Design and Construction Supplementary Planning Guidance, May 2006, also includes zero carbon developments as part of the Mayor’s preferred standard for energy."

More