Renewable Portfolio Standard Updates

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Renewable Portfolio Standard Updates

Glendale Water & Power Commission

June 7, 2021

• California’s Renewable Portfolio Standard Program Was Established in 2002 and Based on Percentage of Electricity Retail Sales Served By Renewable Resources

• California Energy Commission is Responsible For the Certification of Eligible Renewable Energy Resources and Adopting Enforcement Regulations

SB1078 (2002): 20% By 2017

SB350 (2015): 50% By 2030; Interim 3-Year Target Compliance Periods; 65% of RPS Procurement Derived from Long-Term Contracts of 10 or More Years

SB100 (2018): 60% By 2030; 100% Carbon-Free Resources By 2045

Renewable Portfolio Standard and Clean Energy Overview

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svcleanenergy.org

RPS Compliance Periods

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City of GlendalePower Content and RPS Compliance

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CP3 Compliance Reports Due by July 1, 2021

2020* - Estimated Power Content Label

2030, 60.00%

2045, 100.00%

0%

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90%

100%

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% R

enew

able

Current RPS Position (with Scholl LFG)

GWP Renewables Scholl LFG (Planned) ZeroCarb CA Renewable Target CA Zero Carbon Target

Renewable and Clean Resources

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• Value of Layered Long-Term Agreement

• Room for Changing Prices and Technologies

• Scholl Canyon Project Contribution

1. Meet Compliance Period Soft Targets

2. Meet Integrated Resource Plan (IRP) Goals

3. Enter Into Long-Term Renewable and Clean Energy Agreements– Executed Projects

– Future Projects (Type of Resource)

4. Manage Excess RECs

5. Utilize PowerSimm Modeling Tool

6. Continual Portfolio Analysis and Studies

7. Virtual Power Plant

Mitigation and Compliance Strategy

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• Regulatory Changes and Maintaining Culture of Compliance

• Excess Procurement Unused• Substitute Energy Uncertainty• Transmission Limitations/Lack of• Retail Load Uncertainty• Over/Under Renewable/Clean Energy Procurement

(Cost/Penalties)– $50 Per Out of Compliance REC; $250K Penalty For 5000 MWh Shortfall

• Clean Energy Programs Intermittency • Scholl Canyon Renewable Project Completion Rate

Risks and Concerns

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100% Clean by 2030 Study

60% 59%72% 72% 80% 80% 86% 87% 89%

0%

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50%

75%

100%

125%

150%

2022 2023 2024 2025 2026 2027 2028 2029 2030

Perc

enta

ge o

f R

etai

l Lo

ad

Clean Energy Serving Load

Clean Energy Sales

Clean Energy Curtailment

Full Retail Load

GWP can plausibly reach 89% clean energy around-the-

clock by 2030 with some big investments

Curtailments and sales increase substantially as more renewables come online

Over one-third of clean energy generation is curtailed or sold in 2030

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Portfolio Changes

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Nam

ep

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acit

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han

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MW

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Geothermal**

Wind**TeslaBattery

Future Solar*

RICEUnits*

IPP Coal

IPP Natural Gas

Solar**

Battery**

Wind**

Grayson Units 1-8

Highwinds & Pebble Springs

Pleasant Valley

Sunrun*

Scholl*

* Indicates projects under negotiation** Indicates hypothetical projects

Clean energy model relied on aggressive assumptions• Continuation of the Clean Energy RFP acquisitions

• Commercial roof-top solar and storage

• Additional geothermal, wind and hybrid solar resources outside of Glendale

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Clean Energy Beyond 2030• Technological change is likely going to play a significant

role in the path to 100%

• Potential future resources beneficial to GWP include – Renewable natural gas

• Carbon neutral fuels to replace natural gas

• Still in development

– Green Hydrogen• Hydrogen production from renewable sources for use in natural gas plants

• Currently planned for IPP starting in 2025 (30% Hydrogen mixed with 70% Natural Gas)

• Hydrogen would account for 10% of energy generation from IPP

• Ratio would increase over time to reach 100% Hydrogen by 2045

– Long duration storage• Energy storage with duration measured in days

• Pilot project are planned for projects with 200 hours of storage duration