New California ISO policy will spur greater distributed generation - Clean Coalition

New California ISO policy will spur greater distributed generation

After 18 months of advocating for improvements, the Clean Coalition is pleased to see CAISO recognizing and supporting the true value of DG through an innovative policy.

Craig Lewis

The California Independent System Operators’ (CAISO) new Deliverability forDistributed Generation methodology removes an unnecessary barrier to the deployment of clean local energy by streamlining wholesale distributed generation (WDG) projects fordeliverability.

shutterstock_94317997 2Energy generators with deliverability can guarantee delivery of power at all times, which means their energy counts towards CAISO’s Resource Adequacy (RA) requirements. RA requirements mandate that CAISO contract adequate generator resource capacity to meet demand at all times – including peak periods – and that contracted energy can not only be generated but also delivered. Projects that fail to receive deliverability do not qualify for preferred Time of Delivery rates, which reduces the energy value by up to 30%. This lost revenue is significant enough to ruin the economics of many valuable WDG projects.The new CAISO policy levels the playing field for deliverability. Previously, all new WDG projects were subjected to a similar deliverability study process as large-scale energy facilities, which are expensive and time consuming. These studies generally took at least 1.5 years and required substantial costs – $10,000 for the application fee, plus engineering work and legal fees that could bring the total cost to $50,000 – and constituted a major roadblock for many WDG projects. Under the new policy, CAISO will now publish annual study results that identify the amount of unassigned deliverability available without upgrade costs. This data will assist in siting WDG projects that make use of existing grid infrastructure and keep costs down for all ratepayers. The available deliverability capacity will be annually allocated for WDG projects and immediately assigned. Any unused capacity will be set aside for future allocation throughout the year.

After 18 months of advocating for these improvements to the deliverability allocation process, the Clean Coalition is very pleased to see CAISO recognizing and supporting the true value of DG through this innovative policy.

Craig Lewis

Founder and Executive Director

Craig founded the Clean Coalition in 2009 and has over 30 years of experience in policy and technology innovation, including the proliferation of Solar Microgrids and Community Microgrids. Prior to founding the Clean Coalition, Craig held numerous positions in the wireless, semiconductor, banking, and renewable energy industries. Previously VP of Government Relations at GreenVolts, he was the first to successfully navigate a solar project through California’s Renewable Portfolio Standard solicitation process. Craig was energy policy lead on Steve Westly’s 2006 California gubernatorial campaign. His resume includes senior government relations, corporate development, and marketing positions at leading wireless, semiconductor, and banking companies such as Qualcomm, Ericsson, and Barclays Bank. Craig received an MBA and MSEE from the University of Southern California and a BSEE from the University of California, Berkeley.