NEW ENERGY DELIVERY CHARGES

California ‘Green’ Transmission Lines Could Cost $15.7B; Meeting California’s proposed 33 percent renewable power mandate by 2020 will require lots of expensive – and unpopular – new transmission lines. More rooftop solar panels and other systems would reduce that need, but cost more.
Jeff St. John, August 14, 2009 (GreenTechMedia)

"[Renewable Energy Transmission Initiative] from California regulators and utilities puts a $15.7 billion price tag on the new transmission lines needed to meet the state's goal of getting one-third of its electricity from renewable sources in the next decade.

But the report notes that distributed generation – mostly rooftop solar panels – could take a bite out of those costs if it can compete economically with larger-scale wind, solar-thermal and geothermal power projects."

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"…[T]he California Public Utilities Commission said in June that it would cost about $12 billion for new transmission to meet California's proposed 33 percent renewable portfolio standard…The state already requires its major utilities to deliver 20 percent renewable energy by next year. State lawmakers are considering boosting that to 33 percent by 2020.

"But that will require a whole new set of transmission lines, marching north and south along the state's Central Valley and east and west across its mountain ranges and deserts, according to a map…[that avoids specific proposed routes due] to the political challenges that come with siting new transmission lines."

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"The Sunrise Powerlink, a transmission line meant to link San Diego to planned solar thermal plants in California's southeast desert…[remains in legal jeopardy]…[A]nother big transmission project planned for California's Central Valley was canceled…[due to] vocal opposition from environmental groups and landowners.

"California faces in microcosm the challenge facing the country as a whole as it seeks to get more power from [New enmergy]…Going for more distributed power, mostly rooftop solar but also small-scale wind and geothermal power, would reduce the need for long-range transmission…But it would also cost…about $58 billion in total statewide electricity spending by 2020, or an added 18.1 cents per kilowatt-hour in average electricity costs… But then, just sticking to a 20 percent renewable energy goal by 2020 would cost California $50.6 billion (15.8 cents per kilowatt-hour) in new electricity spending…"

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"This week's report [showed] how far along the state's biggest utilities are…Pacific Gas & Electric sold 9.8 gigawatts of renewable power in 2008, and would have to add 21.1 gigawatts by 2020… Southern California Edison sold 12.6 gigawatts in 2008, and needs 20.1 gigawatts more…And San Diego Gas & Electric sold 1 gigawatt of renewables in 2008, which is short 5.9 gigawatts of its projected 2020 goal…All in all, the state's utilities are short a collective 68.9 gigawatts of the projected share of the proposed 33-percent renewable power by 2020 mandate…"