09-05-2014 BPU RPT 11 - Laserfiche WebLink

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W A T E R E N E R G Y I I F F RIVERSIDE PUBLIC UTILITIES ffil W& Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: September 5, 2014 ITEM NO: 11 SUBJECT: ASSEMBLY BILL 2514 - ENERGY STORAGE PROCUREMENT TARGET ADOPTION ISSUE: The item for Board of Public Utilities consideration is adoption of Riverside Public Utilities' Energy Storage Procurement Target (ESPT) pursuant to Assembly Bill 2514. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council adopt an Energy Storage Procurement Target per Assembly Bill 2514, of zero megawatt at this time as none of the viable applications of energy storage technologies /solutions that may benefit RPU are currently cost - effective. BACKGROUND: Assembly Bill (AB) 2514, signed into law on September 29, 2010, mandated that California electric utilities evaluate whether the procurement of various energy storage technologies would be: a) viable and b) cost effective, in its resource portfolio. The genesis of AB 2514 is to evaluate the cost - effective use of energy storage systems to: a) assist with integration of intermittent renewable resources; b) avoid or defer construction of fossil fuel - powered peaking plants (and co- benefits from reduced greenhouse gas emissions); and c) avoid or defer distribution and transmission system upgrades and /or expansions, taking into account the time - varying nature of electric generation and consumption patterns. Under AB 2514, the governing board of a Publicly Owned Utility (POU) is required to do the following: 1. To open a proceeding on or before March 1, 2012 to determine the appropriate viable and cost - effective ESPT (initiated at the February 17, 2012 Board meeting); 2. To adopt or decline to adopt specific ESPT by no later than October 1, 2014; and achieve adopted target, if any, by December 31, 2016 and December 31, 2021; and 3. To review the established ESPT at least every three years. Since late 2011, staff has evaluated various types of energy storage technologies and their cost - effective deployment to meet Riverside Public Utilities (RPU) power system operational needs. In addition, RPU has been very proactive in incentivizing specific customer installed energy storage technology (e.g., $1 million grant to UC Riverside for its Thermal Energy Storage (TES) project in 2013). Other pilot programs under consideration include; a) opportunities with local technology providers for energy storage solutions; and b) supplementing existing Power Purchase Agreements (PPA) with energy storage options for renewable integration (wind and solar projects).