Posted by: jbarnesca | July 26, 2010

Proposed Ruling on SDG&E’s IPP Solar Program

On July 13 the CPUC published the proposed ruling on the third IPP program of the big three IOUs from California, the SDG&E program. The IPP portion will be 26MWp max with sizes of 1-2MWp max.

As is usual in this ruling SDG&E states that the present RPS soliciation process has produced no solar projects in the ~1-3MWp range since the start of the RPS program.  In other words the RPS solicitation does not work for distributed generation solar programs.  This of course is obvious to all who have looked at the results. 

 

“The RPS program provides contracting opportunities to qualifying renewable projects of all sizes, but as SDG&E’s testimony states, since the start of the RPS program in 2002, “no renewable projects within the market segment addressed by SDG&E’s Solar Energy Project (1-2 MW) have been built as a result of the SDG&E’s RPS RFOs.”

“The fact that, despite the eligibility to participate in the RPS, no small-scale PV project has been completed as a result of SDG&E’s RPS solicitation supports a conclusion that existing programs have not worked well in encouraging the development of 1-2 MW renewable projects.” 

 

 

This ruling is considerably more involved and complicated that the prior decisions, partially because of the specific initial requests from SDG&E regarding tracker and other test facilities as part of their part of the program. 

Regarding the important cost allowances in this program, there was considerable reference to the SCE SPVP rooftop program that is the first of the big three’s program.  The proposed cost that SDG&E wanted be able to spend of up to $7 per Wp was reduced toward the SCE max number of $3.50/Wp.  They are allowed to allocated an annual O&M cost of $25/kW-yr for their projects. 

Ok, this is another reverse auction, but what would a maximum allowed winning bid be anyhow?  It is the total rate of $0.235/Kwh which will be derated for a TOU schedule, I suspect just as the SCE program was earlier.

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