State Policy Update: SEIA NY Market - Log into your Online...

State Policy Update: SEIA NY Market

Tina Palmero, Rudy Stegemoeller, Marco Padula, New York Department of

Public Service

David Sandbank, Marci Brunner, Maureen Leddy, NYSERDA

Rick Umoff, Solar Energy Industries Association

New York Market: A Deep

Dive

Rick Umoff, Counsel and Regulatory

Affairs Manager, State Affairs

New York Electricity Market Overview

Petroleum-Fired

Natural Gas-Fired

Coal-Fired

Nuclear

Hydroelectric

Other Renewables

0 500 1000 1500 2000 2500 3000 3500 4000

Electric Generation by Source (EIA)

GWh

June 17, 2015 © 2014 Solar Energy Industries Association® 3

Market Overview Cont’d

• In 2013, NY had the fourth highest average electricity prices in the US (EIA)

• In 2011, NY was the eighth largest energy consumer among the 50 states, but

had the second lowest energy consumption (EIA)


0 5 10 15 20 25

Residential

Commercial

Industrial

Transportation

All Sectors

Avg. Retail Price of Electricity (EIA)

Mar-14

Mar-15

Market Overview Cont’d

• NY Market is Restructured

– Retail Electricity Market

• Retail competition introduced in 1996

• Goal: Increase choice; reduce costs; improve service

• Utilities (Central Hudson; Con Ed; NYSEG; National Grid; LIPA):

– Own and operate distribution system

– Responsible for purchasing enough E to meet customer needs

• Energy Service Companies (ESCOs)

– Purchase bulk power for sale to retail customers (3rd party

competition)

– Wholesale Electricity Market

• Est 1996 to create structured wholesale market for E

• Markets: Energy; Ancillary; Capacity; Financial

• Managed by New York Independent System Operator (NYISO)


New York Solar Market

• NY ranks 7th nationally in installed solar capacity

• 456 MW of solar capacity installed (as of 2014)

• 545 solar companies employ 7300 people in NY


Solar Market Cont’d

Residential46%

Commercial41%

Utility13%

MARKET SEGMENTS

Residential Commercial Utility


Bedrock Solar Policies

Renewable Portfolio Standard

• 30% by 2015

• NYSERDA procures RE for the RPS

• Two Tiers: Main Tier (LSR); Customer-Sited Tier (DER)

• Voluntary Market Set Aside: 1% of RPS

Net Metering (PSL 66-j)

• Capped at 6% of 2005 peak electric demand

• First come first serve

• System size caps: 25 kW for residential, 100 kW for farms, 2 MW for non-residential

NY-Sun

• PV Incentive Program: Residential; C&I

• Loan Program: Residential; Small Biz; Non-Profit

• Solar Thermal Incentive and Loan Programs

Other Policies

• Tax Credits: Residential Solar Tax; Others

• Sales Tax Exemptions: Residential sales; Non-residential sales; TPO systems


Regulatory Reforms

• Clean Energy Fund

• Green Bank

• Reforming the Energy Vision (REV)

Market Transformation

Initiatives

• Net Metering

• MW Block Program

• Community Net Metering

• DER Oversight

Customer Sited Tier/DG Solar

• LSR ProceedingMain Tier/Large

Scale Renewables


Where we are engaged…Proceeding Summary Status Key Dates

MW Block Program PV Incentive Program SEIA engaged in

program design

Ongoing

Net Metering NEM Caps; Remote Net Metering;

Successor Tariff

SEIA monitoring caps;

Engaged in dialogue

w/staff on future of NEM;

Engaged on RNM

modifications

Ongoing

REV – Track Two Implementation of REV policy

framework

Track 1 Order Issue;

Awaiting T2 Straw

7/1/15

REV – Large Scale Reform of Main Tier (Large Scale RE) Staff paper issued for

comment

7/22/15

REV - DSIPs Utility REV implementation plans Awaiting staff guidance

and utility filing

8/1/15; 1/15/16

REV – DER

Oversight

Guidelines for Oversight of DER

Providers

Engaging w/staff; Straw

expected in July

7/1/15

Community NEM Community solar program based on

RNM rules

SEIA filed comments;

Order expected this

summer

Summer 2015

Interconnection

Standards

Utilities to update interconnection

standards for DER

Utilities file status reports;

SEIA likely to comment

7/1/15

Clean Energy Fund Next iteration of RE and EE programs

after 2015

SEIA monitoring and

engaging as needed

OngoingJune 17, 2015 © 2014 Solar Energy Industries Association® 10

NYS Solar Market

SEIA NY Market WebinarPresented by the Department of

Public Service June 17, 2015

Mission Statement

• The primary mission of the New York State Department of Public Service is to ensure affordable, safe, secure, and reliable access to electric, gas, steam, telecommunications, and water services for New York State’s residential and business consumers, while protecting the natural environment. The Department also seeks to stimulate effective competitive markets that benefit New York consumers through strategic investments, as well as product and service innovations.

12

Public Service Commission (PSC) and

the Department of Pubic Service (DPS)

13

Chair•Head of the Commission •Designated by the Governor•Chief Executive Officer of the Department of Pubic Service (DPS)

Public Service Commission •Five member decision making body appointed by the Governor and approved by the legislature •Regulates electric, natural gas , steam ,telecommunications and water utilities . •Written decisions by Order •Standards for PSC Decisions include safe and adequate services; just and reasonable rates; good public policy

Department of Public Service •Serves as the Staff of the PSC by providing technical assistance and recommends specific actions.•Serves to represent the pubic interest•Serves to carry out the Commission’s legal mandates(rules, regulations and orders) •Comprised of Offices with professional staff (accountants, economists; engineers, environmental , attorneys, RE/EE specialists; consumer services)

PSC on-going proceedings to support Solar PV

- Renewable Portfolio Standard (RPS)

- Clean Energy Fund (CEF)

- Large Scale Renewables (LSR)

- Community Distributed Generation (CDG)

- Reforming the Energy Vision (REV)

14

Renewable Portfolio Standard (RPS)03-E-0188

The PSC, by Order, established the RPS in 2004– Key components of Order:

• Established targets and objectives; program structure and eligibility of resources (Main Tier and Customer-Sited Tier).

• Created an RPS surcharge applied to the delivery portion of electric customer utility bills.

• Designated NYSERDA as the program administrator.• Required utilities to transfer collections to NYSERDA.

– Since 2004, PSC has issued over 50 orders in the RPS Case.• Many authorizing additional funding for CST solar PV program.

– Order of April 24, 2014 – The PSC authorized nearly $1 billion for the continuation of solar PV programs beyond 2015 and approved design criteria for the MW Block approach and approved $13 million for LMI customer intervention.

– The remainder of the RPS programs will reach their terminus at the end of 2015.

15

Clean Energy Fund 14-M-0094

• May 2014, the Commission initiated the Clean Energy Fund (CEF) proceeding to address post 2015 terminus of RE and EE programs.

• NYSERDA submitted its CEF Proposal in September 2014.

• Subsequently, the Commission issued a notice soliciting comments and providing a schedule for a supplemental CEF filing. A Technical Conference was held January 2015.

• DPS Staff continues to engage with NYSERDA in the development of the CEF. A new plan is scheduled to be filed on June 25, 2015.

16

Large Scale Renewables 15-E-0302

• The Commission instructed DPS Staff to work with NYSERDA to prepare an LSR options paper to be issued for public comment (aka Main Tier resources).

• The report - Large Scale Renewable Energy Development in New York: Options and Assessment, was filed with the Secretary to the Commission on June 1, 2015.

• Simultaneously with the filing of the LSR Options Paper, the Secretary issued a notice and a set of questions developed by Staff, intended to focus public comment.

• A Technical Conference is scheduled for July 8, 2015.

• Initial Comments due July 22, 2015.

17

Community Distributed Generation 15-E-0082

• February 2015, the Commission instituted a proceeding notice soliciting comments on a proposed Staff community distributed generation (Net Metering) straw proposal that outlined a framework for the implementation of a Community DG program.

• The objective of the proceeding is to make possible clean energy technology solutions available to customers who may not be able to site DG at their site/meter.

• Staff convened with Stakeholders on March 6, 2015 to get input on straw proposal. Written comments also received.

• DPS Staff working with NYSERDA and stakeholders to refine proposed program rules (draft straw) to bring to the Commission for action this summer.

18

Thank You

20

New York State Energy Research and Development Authority

NY Market Overview

June 17, 2015

22


What is NYSERDA?• A nationally recognized leader in the development, commercialization, and

implementation of advanced energy technologies

• A public benefit corporation helping

New York State meet its goals to:

– Reduce energy consumption and increase

energy efficiency

– Create a clean energy economy

– Grow diverse, renewable energy supplies

– Protect the environment

– Provide experienced leadership

in planning and policy

23


What does NYSERDA do?NYSERDA offers:

• objective information and analysis

• innovative programs

• technical expertise

• funding

NYSERDA helps New Yorkers:

• increase energy efficiency

• save money

• use renewable energy

• reduce their reliance on fossil fuels

24


Key NYSERDA PV Programs

• NY-Sun Initiative– Governor Cuomo’s $1 Billion initiative supporting between 3GW to 5GW

of customer-sited solar installations through 2023

– MW Block structure offers a ratchet down approach to a self sustaining

solar industry while giving transparency and stability

• RPS Main Tier– Production incentives for utility scale renewable electricity generation;

periodic competitive procurement, 20-yr max contract duration

– Governor Cuomo committed $160M to RPS Main Tier for 2015-2016

– Future Large Scale Renewables Program is under development

25


Overview of

Current NY-Sun

Programs

26


NY-Sun Programs

• NY-Sun Incentive Programs

– <200 kW Residential/Small Commercial

– >200 kW Commercial/Industrial

• Lowering Balance of System Costs

– Community Solar

– K-Solar

– PV Trainers Network

• Financial Support

– Low –moderate income

– Green jobs Green NY

27


Residential/Small Commercial

•Participation through Eligible Installers/Contractors who submit

all of the paperwork to NYSERDA

•Purchases, leases, PPAs (power purchase agreements) are all

eligible

•Systems sized up to 110% of annual usage

•Site is defined as a utility meter

•Incentives paid directly to contractor/developer

28


Residential/Small Commercial

•Three regions

Long Island (PSEG-LI)

ConEd

Rest of state (ROS)

•Each region’s MW targets are broken into blocks by sector to

which incentives are assigned

Residential (up to 25 kW)

Small non-residential (up to 200 kW)

29


>200kW Commercial/Industrial

• Performance based incentives

Initial incentive payment at commercial operation (25%)

Three annual incentive payments based on production

• 20% multiplier on base incentive for utility strategic locations

• Add up to $50,000 for integrating energy storage

• Add up to $50,000 for integrating energy efficiency

• System size limited to one host meter per application

30


>200kW Commercial/Industrial

Two Incentive Regions1. ConEd Service Territory2. Rest of State (ROS), except Long Island

ROS is one region with two incentive rates• Volumetric Incentive – Net Metering Crediting on a kWh basis • Monetary Incentive – Remote Net Metering Crediting on a monetary basis,

available through grandfathering (prior to June 1, 2015)

31


MW Block Incentive Dashboardhttps://www.powerclerk.com/nysuninitiative/dashboard.aspx

https://www.powerclerk.com/nysuninitiative/dashboard.aspx

32


Tracking Progress

• Megawatt (MW) Block Dashboard provides real time information

on block status and incentive levels by sector and region

• Block status updated as applications are submitted

• When block is full (submitted capacity equals/exceeds stated

capacity), next block incentive level automatically applied to

subsequent applications

33


Balance of System (BOS) Cost Reduction

•Customer aggregation (Solarize, K-Solar) and education

•Online finance and customer acquisition platforms

•Streamlined permitting process

•Training for local fire, code, and zoning officials

•Interconnection process

34


Community Solar NY & K-Solar

• Work with local governments, schools, and other community partners to make solar more accessible and affordable through group purchasing and other strategies

• “Solarize” campaigns to aggregate demand for solar: more than 30 underway

• K-SolarPartnership between NYPA, NYSERDA, and State Education Department.Free solar assessment and project management services for schools installing solarSchool serve as hubs for community education and solar projects

35


Financial Support

36


Financial Support• Green jobs Green New York• Low –moderate income

37


Contact

[email protected]

Questions

Please type your questions into the lower left corner

of the window.

Click the “send” button to submit.

If you have additional questions about the

State Policy Update: SEIA NY Market webinar

Please contact Rick Umoff at [email protected]


mailto:[email protected]

Thank You!

Thank you for joining today’s webinar.

Register for upcoming

SEIA webinars at www.seia.org/webinars

If you have questions about the

State Policy Update: SEIA NY Market webinar

Please contact Rick Umoff at [email protected]

For membership inquiries contact SEIA’s

Membership Team at [email protected]


http://www.seia.org/webinars



State Policy Update: SEIA NY Market - Log into your Online...

Documents

Transcript of State Policy Update: SEIA NY Market - Log into your Online...