Utilities tend to rely on diesel-fed mobile generators for emergency service. But CCAs are demonstrating that “low- or no-carbon alternatives to mobile generation sources, such as microgrids and associated storage, are just as reliable, feasible, and cost-effective in many circumstances, and also provide a long-term solution,” said a joint filing by solar energy company Sunrun and Peninsula Clean Energy Authority (PCE), a CCA in San Mateo County. The aggregation has funded a pilot project to install small solar and storage projects at local faith organizations to support resilience locations within neighborhoods. In addition PCE is working in partnership with another CCA, East Bay Community Energy in Alameda County, to identify resilience locations in each of their territories. That project is funded by the Bay Area Air Quality Management District. PCE expects last year’s passage of SB 1339 to spur more microgrids by making clear that “customer development of microgrids is a legislative priority.” The new law requires state regulators to consider a tariff or other mechanism to support microgrid development. In 2018 the California Energy Commission (CEC) began allotting about $50 million in grants to boost commercialization of microgrids, a followup to a $26.5 million grant offering in 2014 for microgrid demonstration projects. The CEC also issued a report featuring 26 case studies of microgrids from California, North America, and other countries that make innovative business cases and rely on government support for less than 50 percent of project costs. In addition, the state is creating a microgrid roadmap to guide policy and regulation. The state’s microgrid bill (2018) requires that publicly owned electric utilities take action to support microgrids, such as creating separate electric rates and tariffs for those installed by utility customers. The bill also requires a streamlining of interconnection standards and permitting to reduce cost barriers to microgrid development. Other elements of the bill, as described in an August 31 Senate Analysis, include;
- The formation of a working group to codify standards and protocols to meet utility and grid operator microgrid requirements
- A rule that within 180 days of the first request from a customer or developer to establish a microgrid, utilities make available a process for interconnection
- A prohibition on compensation for backup generation, if separate rates and tariffs are necessary, unless the generation is used as back-up generation for a healthcare facility
- Language that makes clear nothing in the bill will discourage or prohibit the development or ownership of a microgrid by an investor-owned utility.
Supporters cited the value of microgrids in supplying power during natural disasters, such as California wildfires. They also pointed out that microgrids can help manage integration of renewable energy on the grid and help reduce greenhouse gas emissions, and increase the use of energy storage, electric vehicles and other distributed energy resources. “With all these benefits, the state needs policies to make it easier to establish microgrids. This bill does just that by simply streamlining the process for integrating microgrids into our electrical grid,” says the analysis quoting supporters. Opposing SB 1339 were the state’s three investor-owned utilities: Pacific Gas and Electric, San Diego Gas and Electric (SDG&E) and Southern California Gas. The legislation calls for the California Public Utilities Commission to act on the requirements by Dec. 1, 2020 in consultation with the CEC and the California Independent System Operator.
But the next wildfire season is just a couple of months a way. While the state is one of the most active in the US for microgrid development, it still has a long way to go before there are enough microgrids to provide serious coverage during outages. Even PG&E’s resilience zones are still in the pilot stage. So the fear is that Calfornia communities will find themselves after the fact again saying, if only…
April 9, 2019 By Microgrid Knowledge
After wildfires caused power outages in California, the tinder box state is considering more microgrids in a proceeding before state regulators.
by Fsmelo/Shutterstock.com
“Wildfires are now to California what Sandy was to New York,” said Rick Bolton, CEO of Compass Energy Platform, referencing the 2012 superstorm that spurred a government push for microgrids after eight million people in the Northeast lost power, some for weeks.
During wildfire season in California, power outages come about both accidentally and intentionally. Sometimes lines and equipment get destroyed in the flames; other times they appear to cause the fires. And in still other cases, utilities shut off power to avoid danger when conditions become ominous. The fire may be many miles away from the customers who lose power.
In the proceeding before the Calfornia Public Utilities Commission (R.18-10-007), several parties recommend microgrids as a way to keep electricity flowing locally when fires — or the threat of them — lead to service loss.
Pacific Gas & Electric (PG&E), which serves a 70,000 square-mile swath of the state, contemplates microgrids as part of resilience zones, areas with grocery stores, gas stations and other critical services. The microgrids would keep the zones energized when the grid is down.
Small businesses need microgrids too
One example is Angwin, a town in Napa County, where the utility is working with Pacific Union College to incorporate its cogeneration plant into the zone. During dangerous conditions, the utility hopes to safely energize a fire station, gas station, apartment building and a plaza.
Small Business Utility Advocates (SBUA) called for all utilities to follow PG&E’s lead and include microgrids as part of their now required fire mitigation plans.
The group wants small businesses included in microgrid service. Power outages jeopardize “health and safety” and sometimes local businesses are the only suppliers of goods and services in the area, argued the SBUA in a recent filing.
“At a minimum, these programs should reach out to hard-to-reach commercial customers,” the small business group said.
Communities take action
Community choice aggregations also are looking to develop microgrids in fire planning. Also known as municipal aggregations, CCAs are run by local governments that procure power on behalf of their citizens and businesses, while continuing to use the local utilities transmission and distribution lines.
Utilities tend to rely on diesel-fed mobile generators for emergency service. But CCAs are demonstrating that “low- or no-carbon alternatives to mobile generation sources, such as microgrids and associated storage, are just as reliable, feasible, and cost-effective in many circumstances, and also provide a long-term solution,” said a joint filing by solar energy company Sunrun and Peninsula Clean Energy Authority (PCE), a CCA in San Mateo County.
Another CCA, Redwood Coast Energy Authority in Humboldt County, is developing a microgrid to improve resilience with less diesel-fired back-up generation. Fast enough?
PCE expects last year’s passage of SB 1339 to spur more microgrids by making clear that “customer development of microgrids is a legislative priority.” The new law requires state regulators to consider a tariff or other mechanism to support microgrid development.
But the next wildfire season is just a couple of months a way. While the state is one of the most active in the US for microgrid development, it still has a long way to go before there are enough microgrids to provide serious coverage during outages. Even PG&E’s resilience zones are still in the pilot stage. So the fear is that Calfornia communities will find themselves after the fact again saying, if only…
**
California Lawmakers Approve Bill to Bolster Microgrid Development, End Lengthy Wait
California lawmakers gave a final okay late last week to a microgrid bill (SB 1339), designed to boost microgrid development and streamline what at times is a lengthy wait to interconnect projects.
By Photobank gallery/shutterstock.com
The Assembly approved the legislation in a 54-19 vote during the waning hours of the legislative session August 31. The Senate had passed the bill in a 29-8 vote in late May.
Sponsored by Sen. Henry Stern, a Democrat, the bill was born out of concern that California needs microgrids, but their development is stymied.
“Some customers have been successful in navigating the challenges, but many are just lined up at the door waiting for the energy regulators to clear the path.”
The Senate analysis of the bill says that customers show “great interest in the development of microgrids but also great frustration.” While the technology is ready, “the protocols and standards for interconnection are not. Some customers have been successful in navigating the challenges, but many are just lined up and the door waiting for the energy regulators to clear the path.” SB 1339 now awaits the signature of Gov. Jerry Brown who has been a vocal supporter of microgrids and has installed one at his ranch.
California welcoming microgrids
“We believe that moving this legislative action forward will bring more predictability to the distributed generation and microgrid markets in California.” Clark Wiedetz, Siemens
For microgrid developers and vendors, the legislation is another sign of a welcoming microgrid market in California.
“We believe that moving this legislative action forward will bring more predictability to the distributed generation and microgrid markets in California,” said Clark Wiedetz, microgrid director for Siemens Energy Management, which developed the Blue Lake Rancheria microgrid in Humboldt County, California. “The result will accelerate growth in the adoption of these technologies, which are important tools in achieving the state’s commitment to 100 percent carbon-free resources by 2045 as adopted by the Legislature in SB 100.”
SB 100, also passed last week by California lawmakers, requires that the state secure 100 percent of its electricity from clean sources by 2045.
The microgrid bill is the latest in a series of recent efforts by California to not only accelerate microgrid development in the state but also become an international leader in fostering the technology.
The California Energy Commission (CEC) this year began allotting about $50 million in grants to boost commercialization of microgrids, a followup to a $26.5 million grant offering in 2014 for microgrid demonstration projects. The CEC also this week issued a report featuring 26 case studies of microgrids from California, North America, and other countries that make innovative business cases and rely on government support for less than 50 percent of project costs. In addition, the state is creating a microgrid roadmap to guide policy and regulation.
Microgrid bill requirements
If signed into law, the microgrid bill will require that publicly owned electric utilities take action to support microgrids, such as creating separate electric rates and tariffs for those installed by utility customers.
The bill also requires a streamlining of interconnection standards and permitting to reduce cost barriers to microgrid development.
Other elements of the bill, as described in an August 31 Senate Analysis, include;
- The formation of a working group to codify standards and protocols to meet utility and grid operator microgrid requirements
- A rule that within 180 days of the first request from a customer or developer to establish a microgrid, utilities make available a process for interconnection
- A prohibition on compensation for backup generation, if separate rates and tariffs are necessary, unless the generation is used as back-up generation for a healthcare facility
- Language that makes clear nothing in the bill will discourage or prohibit the development or ownership of a microgrid by an investor-owned utility.
Supporters and opponents
Those named as supporters of the bill in the Senate analysis include: Advanced Energy Economy; Advanced Microgrid Solutions; Advanced Power and Energy Program; American Lung Association; California Solar & Storage Association; Capstone Turbine; Center for Sustainable Energy; Coalition for Clean Air; Enel; EnerNOC; Engie; EtaGen; Recurrent Energy; Rhombus; Solar Energy Industries Association; Sun Power; Sunrun; TechNet.
Supporters cited the value of microgrids in supplying power during natural disasters, such as California wildfires. They also pointed out that microgrids can help manage integration of renewable energy on the grid and help reduce greenhouse gas emissions, and increase the use of energy storage, electric vehicles and other distributed energy resources.
“With all these benefits, the state needs policies to make it easier to establish microgrids.”
“With all these benefits, the state needs policies to make it easier to establish microgrids. This bill does just that by simply streamlining the process for integrating microgrids into our electrical grid,” says the analysis quoting supporters.
Opposing SB 1339 were the state’s three investor-owned utilities: Pacific Gas and Electric, San Diego Gas and Electric (SDG&E) and Southern California Gas. SDG&E said that the bill was duplicative and could cause low and middle-income customers to subsidize costs for other customers who will benefit from the microgrid. The final bill said that any tariffs may not shift costs to non-microgrid customers.
The legislation calls for the California Public Utilities Commission to act on the requirements by Dec. 1, 2020 in consultation with the CEC and the California Independent System Operator.
