Sierra Club California Urges Increasing Solar PV 30 Times with FITs

April 14, 2010

By Paul Gipe

Sierra Club California has called for increasing the role of solar PV in the state more than 30 times that of today through a system of feed-in tariffs.

The environmental group's recommendation that the state develop 30 billion kilowatt-hours (30 TWh) of distributed generation, mostly with solar photovoltaics (PV), is contained in a formal filing with California's Air Resources Board on how the state can meet 33% of its electricity supply in 2020 with renewable energy as required in AB 32. The 15-page filing explains in detail how the environmental group, California's largest, believes the state can meet its renewable energy targets on schedule and at a reasonable cost.

Solar PV generated about 1 TWh or 1/3 of one percent of the state's electricity in 2009. The California Solar Initiative is limited to adding only 3,000 MW of solar PV capacity. Under California conditions, the CSI will contribute only 6 TWh per year or about 2% of supply.

The state has consistently failed to meet its Renewable Portfolio Standard (RPS) since the RPS was implemented in the first part of the decade according to the California Energy Commission.

California will need more than 100 TWh from renewable sources by 2020 to meet its obligations under AB 32. The state currently generates 38 TWh from all renewable sources.

Sierra Club California argues that distributed solar PV could meet from 50% to 75% of the need for new renewable energy capacity by using well-crafted feed-in tariffs. Such tariffs would

• Be based on the cost of generation plus a reasonable profit,
• Be differentiated by technology and size,
• Entail long-term contracts of 20 to 25 years, and
• Include simple, must take contracts.

Feed-in tariffs, says Sierra Club California, "have demonstrated that they successfully bring renewables on-line quickly, in volume, and at a lower-cost" than other procurement policies.

Sierra Club California Comments to CARB March 15, 2010

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What's New on Feed-in Tariffs

• The Guardian: Conservative manifesto plan to extend feed-in tariff in attempt to phase out the Renewables Obligation--Writing in response to inquiries from BusinessGreen.com about the finer detail of the Conservative's renewable energy policy, a spokeswoman confirmed the party would like to see the Renewable Obligation and system of Renewable Obligation Certificates (ROCs) replaced with an extended feed-in tariff scheme. . .
• Ontario Awards Feed-in Tariff Contracts for $9 Billion in Private Investment--Nearly 19% of Capacity Goes to Community and Aboriginal Groups . . . In another in a series of stunning announcements from Ontario, the provincial power authority has awarded connections and contracts for 2,500 MW of new renewable generation capacity under its precedent-setting feed-in tariff program. . .
• Globe & Mail: Ontario takes green lead with record $8-billion energy investment--Mike O?Sullivan, senior vice-president of development at NextEra [FPL], said FIT was such a well-designed program that it ?will bring in all shades and colours of money from all parts of the world.?. .
• Solar PV in Los Angeles: The Emperor Has No Clothes Says UCLA--Report Calls for Designing Feed-in Tariffs That Work . . . The blockbuster report could have profound repercussions on renewable energy policy not only in Los Angeles, but also in California. . .

This feed-in tariff news update is partially supported by the Jan & David Blittersdorf Foundation in cooperation with the Institute for Local Self Reliance. The views expressed are those of Paul Gipe and are not necessarily those of the sponsors.

Paul Gipe