California's 33% Renewable Energy Goal by 2020: Form or Substance? (Part II-RECs Required)
By Ulrich Decher -- August 11, 2011Part I yesterday reviewed in-state electricity generation and power imports required to meet California’s current power demand. Part II today shows how Renewable Energy Credits may be used to meet California’s aggressive renewable energy goals.
Renewable Energy Credits
Renewable Energy Credits (RECs) are the power generation credits that a distribution system can use to meet its renewable portfolio. These RECs come in two flavors—bundled and unbundled. The bundled RECs are the credits that are bought and used within the same distribution system; unbundled RECs are those bought by one distribution system but used in another. These RECs are managed by the Center for Resource Solutions, which also prevents double counting of credits.
Unbundled RECs are particularly interesting, because it means that a distribution system doesn’t need to build renewable energy power plants because the distribution system can simply buy the renewable power that is generated in another distribution system.…
Continue ReadingCalifornia's 33% Renewable Energy Goal by 2020: Form or Substance? (Part I–Current Situation)
By Ulrich Decher -- August 10, 2011California is committed to a renewable energy portfolio to provide 33 percent of its electricity by 2020 from qualifying resources such as wind, solar, geothermal, biomass, and small hydroelectric facilities.
Can this portfolio succeed? Ambitious goals take more than legislative action to have a chance for success. It takes an actual plan that can be implemented with actual engineering accomplishments.
Drastic Increase Needed
In order to determine the probability of success, we can look at California’s renewable energy sources in prior years. These are available on the Internetand are presented in the following graph.
The plot shows the actual renewable sources of electricity generated in California from 2005 to 2009 and shows the projected increase required to achieve the goal of 33 percent by 2020. Notice that the renewable contribution has been rather constant over the previous years and requires a dramatic increaseto achieve the goal.…
Continue ReadingDebt-Deal Warnings for Energy Subsidies
By Gary Hunt -- August 9, 2011[Gary Hunt, President of Scalable Growth Strategy Advisors, posts on energy issues at his website, Zap! Crackle! Pop! Disruptive Technology, Global Competition and our Energy Future.]
The drama that raised the national debt ceiling without increasing taxes is sending warning shots across the bow for many industries. The message for energy subsidies, including the tax credits and treasury tax grants for wind and solar, as well as tax credits for oil and gas companies, could not be clearer. The gravy train is ending because the Government cannot afford it, and political realities won’t tolerate it much longer.
The debt deal did not cut renewable energy subsidies. But it set up a super committee of Congress that must produce $1.3 trillion in spending cuts by Thanksgiving. This sets up a ruthless competition between all the special interest causes that now get subsidies or tax supported benefits.…
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