Gov. Hickenlooper announces Colorado Climate Plan

DENVER — Wednesday, Sept. 16, 2015 — Gov. John Hickenlooper, business and industry leaders and department directors today released the Colorado Climate Plan, a statewide strategy of policy recommendations and actions to mitigate greenhouse gas emissions and to increase Colorado’s level of preparedness. “Colorado is facing a potential increase in both the number and severity of extreme weather events,” said Hickenlooper. “We’ve seen what Mother Nature can do, and additional risks present a considerable set of challenges for the state, our residents, and our way of life. This comprehensive plan puts forth our commitment from the state and sets the groundwork for the collaboration needed to make sure Colorado is prepared.” Colorado has warmed substantially in the last 30 years and even more in the last 50 years, with projected temperatures rising an additional 2.5 degrees by 2050, as reported by Climate Change in Colorado: A Synthesis to Support Water Resources Management and Adaptation. Rising temperatures pose many challenges to Colorado’s environment, health, economy and infrastructure. In response to these risks, the state developed a plan for mitigating and adapting to a broad range of possible impacts from multiple sectors. The Colorado Climate Plan focuses on seven main sectors including water, public health, energy, transportation, agriculture, tourism and recreation, and ecosystems. The plan also includes a chapter highlighting ways local governments and businesses are playing a significant role. Some of the plan’s key recommendations include: Water: Promote and encourage drought preparedness through comprehensive drought planning mitigation implementation; incorporate climate variability and change into Colorado's Water Plan. Public Health: Coordinate with the Colorado Department of Public Health and Environment, Public Utilities Commission, the Colorado Energy Office, and additional stakeholders to develop and implement a Colorado-specific plan to substantially reduce carbon dioxide emissions from fossil fuel fired EGUs, in accordance with the EPA's Clean Power Plan; continue to assess potential correlations between vector-borne diseases and climate factors. Energy: Assure the timely and complete attainment of the state's RES 2020 goals; assist all utilities (investor-owned, municipal, and cooperative) in identifying and implementing best practices for integrating cost-effective renewable resources, both utility-scale and distributed; increase access to capital for commercial, residential, agricultural, and industrial customers seeking to improve the energy performance of their facilities. Transportation: Promote and encourage fuel-efficient vehicle technologies and programs to reduce vehicle emissions; provide guidance to local governments on land use planning strategies to promote efficient use of public resources and reduce GHG emissions through compact, transit-oriented development that utilizes smart growth practices and complete streets. Agriculture: Partner with research institutions and federal agencies to support producer's efforts to mitigate and adapt to climate change through improved irrigation and efficiency and enhanced tillage practices. Moving forward, the Colorado Climate Plan will serve as a roadmap for state agencies to confront some of the worst effects of climate change and identify priority actions. The state will work to ensure the plan complements other relevant efforts, including the Climate Change in Colorado Report, and the Colorado Climate Change Vulnerability Study. Dr. Larry Wolk, executive director and chief medical officer of the Colorado Department of Public Health and Environment, said, "​The Climate Plan helps develop our strategies for protecting public health as our climate changes. It also demonstrates our commitment to reducing greenhouse gas emissions through EPA’s Clean Power Plan and Colorado’s own initiatives.” "This plan outlines many steps state agencies can take - and are taking - to both reduce the emissions that affect our climate and prepare for the potential impacts that temperature and weather changes may have on our economy and lifestyle in Colorado,” said Mike King, executive director of the Department of Natural Resources. Contributing agencies include the Colorado Department of Natural Resources, the Colorado Department of Public Health and Environment, the Colorado Energy Office, the Colorado Department of Transportation, the Colorado Department of Agriculture, the Office of Economic Development and International Trade, Colorado Tourism Office and the Department of Local Affairs, along with input from key stakeholders. "This plan highlights the results to date of Colorado's leadership in innovative energy production and efficient energy consumption,” said Jeffrey Ackermann, director of the Colorado Energy Office. “Our continued progress is reinforced by forward-thinking policies like the renewable energy standard, strong public-private partnerships and creative strategies to foster new market development." Public and private sector organizations also contributed to the plan including Apt Environmental, Colorado Municipal League, Colorado Solar Energy Industries Association, Colorado State University/ Colorado Water Institute, Denver Water, Fort Collins Sustainability Group, Rocky Mountain Climate Organization, Rocky Mountain Institute, The Nature Conservancy, Western Water Assessment/ CIRES/ University of Colorado, Southwest Energy Efficiency Project, Xcel Energy and 360 Colorado. The plan, developed to meet the requirements of HB 13-1293, lays out many of the ways the state is working to find solutions. Each state agency that helped develop the plan will hold public engagement sessions specific to their agency throughout the coming year. The Colorado Climate Plan, along with additional information related to the state’s response to climate change is available at http://cwcb.state.co.us/environment/climate-change/Pages/main.aspx.

Negative RECs for community solar: Market failure or utility opportunity?

Solar advocates say the Colorado Public Utilities Commission opened the door to a significant market failure when it declined to reconsider a decision allowing Xcel Energy to accept negative Renewable Energy Credits (REC) bids for community solar projects. In states like Colorado with a renewable energy mandate, utilities are required to accumulate a certain number of RECs each year from developers when they contract for mandated renewables generation. The credits normally add a small premium to the price paid by utilities, creating an added incentive for developers. For the first time this summer, Xcel began accepting bids for negative REC prices for community solar arrays in a recent Request for Proposals (RFP). Installers, who say the negative RECs are illegal and are driving a “race to the bottom” in shared solar, filed a complaint with regulators. But the Colorado Public Utilities Commission (CPUC) saw nothing wrong with negative RECs on their face. In response to the complaint from the Colorado Solar Energy Industries Association (CoSEIA), the CPUC agreed with Xcel that its RFP that included the negative RECS “does not violate any statute or Commission rule.” The commission, however, did not comment on whether negative RECs fit into the intent of the state’s community solar law, opening up further debate between Xcel and the installers. The ruling allowed the utility to use its market leverage to drive bids down in pursuit of the best deal for its entire customer base, but developers say the negative RECs limit their ability to serve the full range of potential community solar customers. How negative RECs came about In 2013, bidding on community solar projects took REC prices to $0.00. That pushed SunShare SunShare CEO David Amster-Olszewski to first raise the question in 2014 of whether regulators should exercise authority over the competitive bidding process and establish a REC floor price. That, he and other solar advocates argued, could help prevent a utility from taking advantage of its natural monopoly to drive down prices. The commission declined to act on the question, based on proceeding technicalities. It has subsequently stood by its decision in response to more recent filings from CoSEIA and Western Resource Advocates requesting reconsideration. Xcel is compelled by a 2014 Colorado PUC order to construct between 6.5 MW and 30 MW of community solar. When the commission declined to clarify whether it was in keeping with the mandate’s intent for Xcel to let REC prices go negative, the utility naturally seized that opportunity to take the lowest possible bids. In response to its most recent RFP, Xcel accepted bids for 29.5 MW in Colorado projects from SunShare, CEC, and Community Energy Solar, thereby meeting almost the maximum amount of mandated community solar. The REC policy debate Bound by non-disclosure agreements, the utility and the developers cannot specify what REC prices were accepted. Xcel confirmed to Utility Dive that it did, in fact, accept negative REC offers in the bidding. Solar installers say the negative RECs do more than cut into their revenues — they make customers pay more. “The bids are not for the power price. That is set by pre-established tariffs,” explained SunShare CEO David Amster-Olszewski. “When the REC price is positive, the utility pays the customer, but when the REC price becomes negative, the customer pays the utility for the utility to meet its mandate.” Xcel says that lower REC costs mean just the opposite — that they save customers money and allow the utility to invest elsewhere. “The acquisition of the REC, for the purposes of meeting the Colorado Renewable Energy Standard, is recovered from all customers through the Renewable Energy Standard Adjustment,” Xcel Rates and Regulatory Affairs VP Alice Jackson said. “The lower cost of the REC from developers benefits our customers directly and allows for those dollars to potentially be spent on other renewable projects.” In a reply to the Colorado SEIA filing, Xcel argued that “bidders are free to bid whatever prices they wish.” “[I]f your members believe that a negative bid price is too low,” it wrote in its filing, taking aim at the solar industry group, “they do not need to offer such a price.” “We will continue to offer a market for vendors to bid to build projects to provide our customers with an additional solar choice,” Jackson said. “The price at which those vendors elect to bid is entirely at their discretion.” Solar installers say they will push forward with new bids and attempt to continue the debate over RECs. “While this makes the 2015 RFP process more difficult, we expect there will be the opportunity to discuss this further with Xcel and the other stakeholders.” said Tom Hunt, VP of corporate development for Clean Energy Collective, a community solar developer. Implications of negative RECs The hopes of those who see community arrays increasing solar access for low and middle income residential utility customers without solar-suitable roofs could be stymied if negative REC bidding continues and/or spreads to other states. Negative REC pricing, SunShare’s Karen Gados told Utility Dive, would likely drive her company and other community solar developers to focus their customer acquisition on the commercial and industrial rate class and bypass lower and middle income residential customers. Clean Energy Collective's Hunt agreed. “We share the concern that negative RECs are not good for the market because they distort mechanisms put in place to get low and middle income residential customers involved." While Colorado wrestles with its negative REC issues, community solar is taking off across the nation. A recently released National Renewable Energy Labs study reported that at least 49% of U.S. households and 48% of businesses do not have solar-suitable rooftops. “By opening the market to these customers, shared solar could represent 32%–49% of the distributed PV market in 2020,” NREL wrote, “thereby leading to growing cumulative PV deployment growth in 2015–2020 of 5.5–11.0 GW, and representing $8.2–$16.3 billion of cumulative investment.” The U.S. community shared solar market will add 115 MW in 2015, a roughly 500% year-on-year increase in growth over the 21 MW added in 2014, and almost twice the 66 MW cumulative installed capacity at the end of last year, according GTM Research’s "Community Solar Outlook 2015-2020." GTM Research forecasts 59% annual growth for community solar over the next five years to reach an annual capacity addition of 500 MW and a cumulative installed capacity of 1,800 MW in 2020. Some 29 developers are now working in community shared solar development, with sector leaders Clean Energy Collective (CEC) and SunShare accounting for 32% of the capacity now online.

Battlement Mesa solar array to switch on this month

1,422 solar panels to power Metro District’s water treatment plant The large solar array that will power the Battlement Mesa Metro District water treatment plant is expected to go live on the Xcel Energy grid later this month, says Katherine Rushton, commercial sales manager for Sunsense Solar. The 1,422 solar panels in the array are rated to generate nearly 700,000 kilowatt-hours per year, comparable to the electricity used by about 100 homes. The array is sized to power 100 percent of the treatment plant’s annual electrical demand. Sunsense Solar of Carbondale built the array for the Metro District using third-party financing, so the upfront cost to the district was $2,500. By locking in the cost of electricity with a financed solar array, the district is expected to save about $3,000 in the first year of operation, and about $200,000 over the coming 20 years. The project came about through a workshop in April 2014 hosted by CLEER, Sunsense Solar and Garfield Clean Energy. Steve Rippy, general manager of the Metro District, was among the local government officials learning about the financing mechanism. Further conversations between Sunsense and the Metro District board, with energy consulting from Matt Shmigelsky of CLEER, brought the project from an idea to a plan of action. “Steve Rippy and the Metro District Board of Directors were very open to learning about how to implement solar through a power purchase agreement,” said Rushton. “Once they understood the concept, they were eager to move forward.” Rushton noted that during the construction, from May 11 to Aug. 20, Water Plant Superintendent Roger Bulla served as the liaison between the Metro District and the construction team. A Sunsense crew of seven solar installers and five assistants built the racks and installed the solar panels, along with 16 inverters that convert direct current (DC) produced by the panels to alternating current (AC) used by the electric grid. Also on the job were three subcontractors. SGM of Glenwood Springs handled structural engineering for the foundation. Lyons Fencing of Silt carried out excavation on the two-acre site and built the concrete foundation and perimeter fencing. Expert Electric of Rifle wired the AC side of the array. “This was a challenging place to build, due to the river rock throughout the site,” Rushton said. “The Sunsense install crew worked closely with Lyons Fencing to remove some very large rocks.” The Battlement Mesa array joins a robust list of government-owned solar arrays across Garfield County. A total of 27 arrays from Battlement Mesa to Carbondale have a total generating capacity of 4.6 megawatts, and produce about 8.4 gigawatt-hours of clean electricity per year.

Aspen, Colorado, Just Became the Third U.S. City to Reach 100 Percent Renewable Energy

Aspen, Colorado, is the third city in the country to have reached 100 percent renewable energy use, including wind, solar and geothermal heat. Burlington, Vermont, and Greensburg, Kansas, were the first two cities to claim their respective titles. “It was a very forward-thinking goal and truly remarkable achievement,” David Hornbacher, director of Aspen’s city utilities and environmental initiatives, told the Aspen Times. “This means we are powered by the forces of nature, predominately water and wind with a touch of solar and landfill gas.” Hornbacher said the milestone is the result of a “decades-plus” city goal. The 100 percent goal was reached once the city signed a contract with Municipal Energy Agency of Nebraska, a wholesale electric energy provider. Before its contract with MEAN, the city was using anywhere from 75-80 percent renewable energy sources. But the city planned had planned for this day to come much sooner – about 10 years sooner. Despite challenges along the way, however, Hornbacher applauded the “small, progressive community” for working together to “demonstrate that it is possible.” “Realistically, we hope we can inspire others to achieve these higher goals,” Hornbacher said.

Top 10 Solar States Have Strong Renewable Energy Policies

Solar electric power tripled in the U.S. between 2012 and 2014, with 10 states responsible for 86% of the nation's solar electricity capacity, according to a new report by the Environment America Research & Policy Center. Solar policies are closely correlated with solar ranking, the report says. All of the top 10 states in the report for solar capacity per capita - Hawaii, Arizona, Nevada, California, New Jersey, New Mexico, Vermont, Massachusetts, North Carolina and Colorado - have some combination of policies that directly contribute to the growth of solar capacity, the report found. Policies among the top 10 states include the following: Nine have strong net-metering policies and, in most, consumers are compensated at the full retail rate for the excess electricity they supply to the grid; Nine have strong statewide solar interconnection policies; All have renewable portfolio standards (RPS) and eight have carve-outs that set specific targets for solar; Nine allow creative financing options, such as third-party power purchase agreements; and Nine allow property assessed clean energy (PACE) financing. "Our analysis shows that policy choices are a key driver of solar energy growth," says Gideon Weissman of Frontier Group, co-author of the report. "State and local government policy leadership is closely aligned with success in growing solar energy." Rhone Resch, president and CEO of the Solar Energy Industries Association, says that over the last five years, the solar sector has become one of the fastest-growing industries in the U.S., with an estimated annual value of $18 billion and currently employing 174,000 workers. However, for this growth to continue, he says, stable and effective state and federal public policies, such as the federal investment tax credit, state RPS, PACE financing and net energy metering, need to be extended and even expanded. "Environment America’s new report correctly points out that smart public policies and the development of clean, affordable solar energy go hand in hand," Resch says.

Fossil Fuels Losing Cost Advantage Over Solar and Wind

The cost of producing electricity from renewable sources such as solar and wind has dropped significantly over the past five years, narrowing the gap with power generated from fossil fuels and nuclear reactors, according to the International Energy Agency. “The costs of renewable technologies – in particular solar photovoltaic – have declined significantly over the past five years,” the Paris-based IEA said in a report called Projected Costs of Generating Electricity. “These technologies are no longer cost outliers.” The median cost of producing so-called baseload power that is available all the time from natural gas, coal and atomic plants was about $100 a megawatt-hour for 2015 compared with about $200 for solar, which dropped from $500 in 2010. Those costs take into account investment, fuel, maintenance and dismantling of the installations over their lifetimes and vary widely between countries and plants. For instance, commercial rooftop solar installations generate power for $311.77 a megawatt-hour in Belgium and $166.70 in sunnier Spain, the findings show. The IEA findings come as more than 190 nations prepare to broker a new climate agreement in Paris in December to limit carbon emissions from burning fossil fuels. Based on figures from 181 power plants in 22 countries, the study concludes that no single technology is the cheapest under all circumstances and costs depend “highly” on available resources, labor costs and local regulations. Cost Increases The median costs of power generation from gas and coal rose over the five-year period, the agency said. For atomic energy, the findings indicate that costs are “roughly on par” with those reported in 2010, “thus undermining the growing narrative that nuclear costs continue to increase globally.” The costs are expected to change considerably in the coming decades as new technologies are deployed. Coal plants will become as much as 70 percent more expensive if they include equipment to capture carbon emissions while offshore wind and solar costs are expected to fall, the IEA study showed. New utility-size solar installations could produce power for less than $100 a megawatt-hour before 2025 in the sunniest regions while panels on rooftops could reach that level five years later. In Europe, governments have set targets for lowering carbon emissions and producing power from renewables such as solar and wind. The U.K. is in the process of making a final decision on developing costly nuclear plants while Germany has increased generation from coal, the dirtiest fossil fuel, following a phase out of atomic plants after the Japanese disaster at Fukushima in 2011.

Colorado Solar Victory on Net Metering

The Public Utilities Commission majority decided this morning that no immediate changes are needed to net metering in Colorado. In a discussion, Chairman Joshua Epel and commissioner Pam Patton agreed there is no rush to change the key policy of giving solar rooftop owners retail credit for the energy they produce. Commissioner Glenn Vaad earlier said he thinks the credit is too high. While a written order will provide greater clarification, this appears to be the outcome we have been working towards in more than a year of work on this docket that has included four workshops and numerous written filings. We have worked in full collaboration with other members of the solar industry and this represents a tremendous amount of hard work from many people. Citing political battles around the nation on net metering, Epel said, ` It is in our interests to continue net metering and not referee a philosophical dispute - that's not the Colorado way...I see no need to change the policy on one to one retail rate credit.'' He also reiterated that all parties agree that if solar customers meet requirements, utilities must allow interconnection. Commissioner Pam Patton said, ``We do not have an immediate problem that needs to be fixed.'' The commission is closing the proceeding, and members suggested policy changes would be up to the legislature, although some issues could be brought up in a later proceeding such as a rate case.

Solar Beats Gas in Colorado

“For the first time, the company received bids for utility-scale solar PV resources that are cost-effective head to head with natural-gas fired generation,” Public Service of Colorado said in the report. SunEdison Inc., the biggest clean-energy developer, began construction on a Colorado solar farm that will be the largest in the state and comes out ahead in direct competition with natural gas. The 156-megawatt Comanche solar farm will deliver power to Excel Energy Inc.’s Public Service of Colorado utility under a 25-year agreement, Maryland Heights, Missouri-based SunEdison said in a statement Thursday. The utility awarded the contract through an open solicitation, with the solar farm beating out other power sources including gas, SunEdison said. The deal shows that renewable energy is increasingly able to compete on price with fossil fuels. Utilities that are planning for future demand growth are looking more carefully at solar panels and wind turbines, which will be cheaper to operate over the next few decades in part because they have no fuel costs, said Julie Blunden, chief strategy officer at SunEdison. “We actually can offer solar and wind that’s cheaper than gas,” Blunden said in a phone interview Thursday. “It’s such an important inflection point. We can sell power without any fuel-price risk.” State Policy Buying power from Comanche will also help Public Service of Colorado meet state policies that require investor-owned utilities to get 30 percent of their power from renewable sources by 2020, according to the Database of State Incentives for Renewables & Efficiency, operated by North Carolina State University. Public Service of Colorado told regulators in a 2013 report it had received proposals for solar photovoltaic power that was competitive with gas priced at $5.90 per million British thermal units over a 20-year period. Another project was competitive with gas at $5.96 over 25 years. While the redacted report doesn’t identify the solar farms, Blunden said Comanche was one of the power plants that received contracts through the 2013 solicitation process. Natural gas for delivery on Friday to the Denver area was $2.55 per million British thermal units, according to data from Intercontinental Exchange Inc. Rising demand as new gas plants come online over the next few years will likely increase that price. The utility’s base gas forecast shows prices exceeding $6 by about 2020. “For the first time, the company received bids for utility-scale solar PV resources that are cost-effective head to head with natural-gas fired generation,” Public Service of Colorado said in the report.

Colorado Energy Office awards $1.2 million grant funding to GRID Alternatives for low-income solar project

The Colorado Energy Office is awarding $1.2 million in grant funding to GRID Alternatives, a nonprofit organization, to implement a solar demonstration project for low-income communities in Colorado. Building on Colorado’s national leadership in community solar, the project will focus on the state’s low-income electric energy burden, making solar more accessible and affordable. “This project will give us the opportunity to demonstrate how solar generation can be a sustainable solution to reduce electric bills for Coloradans who carry the greatest energy burden,” said Jeffrey Ackermann, director of the Colorado Energy Office. “And it will assist Colorado’s electric utilities in diversifying their electricity portfolios.” The demonstration project will involve the development of 5 to 12 community solar systems, ranging in size from 50 kW to 500 kW, solely for low-income shareholders. Cumulatively, the demonstration project will provide more than 1 MW of solar generation. Each system will be developed in partnership with utilities focused predominantly in the rural areas. Once complete, a minimum of 300 low-income households throughout the state will have access to community solar priced at an affordable rate. Approximately 30 percent of Colorado’s households are considered energy burdened, many of which are located in rural parts of the state. Of that 30 percent, 11 percent are considered energy impoverished, paying more than 10 percent of their income on utility bills. Energy burdened households are those that pay more than 4 percent of their annual income on utility bills. “Colorado has been effective in helping to reduce heating costs for low-income households through utility bill assistance and the state’s weatherization assistance program,” said Joseph Pereira, director of the Colorado Energy Office’s weatherization assistance program. “To address Colorado’s low-income energy burden more comprehensively, we have to continue to find ways to reduce electric costs.” The demonstration project aligns with a new initiative launched by the White House, which is designed to increase solar access for all Americans. The initiative includes actions to scale up solar access and cut energy bills in communities across America.

How renewable energy can save utilities money

A number of national policymakers, utilities, and industry groups have repeatedly claimed President Obama’s Clean Power Plan regulations for existing power plants will raise utility costs and sacrifice reliable electricity service. But Colorado tells a very different story, where renewable energy is replacing coal power plants and driving down the cost of electricity service without sacrificing reliability. Consider the 10th U.S. Circuit Court of Appeals recent rejection of a lawsuit claiming the state’s renewable energy standard was illegal and raised consumer utility bills because it limits out-of-state coal plants from selling electricity. In 2004, Colorado voters passed Amendment 37, the nation’s first renewable energy standard adopted by popular ballot. The original standard was 10% renewables by 2015, since increased twice by the state legislature to 30% by 2020. The first promise of the ballot measure was to “save consumers and businesses money." The latest utility bids for new renewable energy in Colorado show the promise to voters — renewable energy would grow up to save consumers’ money — has been kept. Every four years, Colorado’s regulated electric utilities develop a plan to buy or build new generation to meet future electricity demand. Those plans are submitted to the Public Utilities Commission, which approves a portfolio of resources to be put out for bids. Once the bids are evaluated, utilities submit their recommended portfolio of projects for approval and then negotiate contracts with the winning bidders. In 2011, Public Service Company of Colorado (PSCo) embarked on its scheduled planning, bidding, and contracting process after a decision to close 903 megawatts (MW) of coal-fired generation to comply with EPA ozone standards in the Denver air basin. While new natural gas plants replaced most of the early-retired coal, some of the early-retired coal was temporarily converted to run on natural gas, until the 2011 planning case could reveal better options – with surprising results. PSCo received bids for more than 6,200 MW of new generation in response to its RFP, about seven times the amount sought. Early in the evaluation process, PSCo revealed some wind and solar bids appeared to be lower than the cost of generation from its existing fleet. In December 2013, the PUC approved the utility’s acquisition of 450 MW of wind and 170 MW of solar generation along with some new natural gas capacity. Importantly, the prices bid for these renewable resources were lower than system average generation cost. In other words, the new wind and solar resources will reduce costs and save consumers money. Based on PSCo’s bid evaluations, we know the economics of solar and wind cannot be analyzed in a vacuum. Colorado enjoys terrific wind and solar resources that can be mobilized at low cost. Results might differ where resources are less productive or industry is less mature. Solar and wind investment and production tax credits also improve the economics of these resources. And new financing methods have brought down solar costs, providing lower cost investment funding and reducing energy prices. But other factors worked against these resources. Wind plants had to cover their own transmission costs to reach sometimes-distant points of interconnection with the utility. No carbon costs were considered in the analysis, even though zero-carbon resources like wind and solar reduce the utility’s carbon footprint. With new wind and solar below system average costs, interesting questions arise: Which additional fossil plants should be considered for early retirement? How can utility financial concerns about early retirement be addressed? If this trend of lower renewable costs continues, how will utilities need to change grid operations to accommodate more variable generation? Finally, what incentives could be provided to utilities to move more quickly toward lower-cost clean energy? Several approaches set out in America’s Power Plan can help policymakers answer these tough questions. Drawn from the expertise of over 150 electricity industry experts, the policy recommendations from America’s Power Plan provide a roadmap to a high renewables future without sacrificing affordability or reliability. One of the plan’s main recommendations, moving toward performance-based regulation of utilities to reward shifting to a cleaner and more reliable grid, is already being explored in Colorado. Smart regulation combined with rapidly improving economics of solar and wind are making Colorado’s electricity system more affordable and cleaner. PSCo’s experience shows wind and solar at utility scale can reduce consumer costs when included in a balanced generation portfolio. As wind and solar markets expand, these lower costs will benefit customers in additional states, facilitating the transition to a clean, affordable, reliable electricity system.

Colorado reaction to Obama's 'Clean Power Plan'

President Barack Obama’s “Clean Power Plan” — designed to slash the nation’s carbon dioxide production by 32 percent by 2030, compared to 2005 levels — drew responses from across the spectrum in Colorado. Colorado Senate President Bill Cadman, R-Colorado Springs, said that the Senate Republicans were “disappointed" in the rules and pledged that his Republican colleagues in the Senate would propose a bill in January 2016 that requires the Colorado Public Utilities Commission to hold public hearings on the state’s compliance plan. Cadman said he’ll also seek to have the commission approve the state’s plan "before any state agency adopts rules to implement this costly electric power generation mandate in Colorado.” On the other end of the spectrum, Bob Keefe, the executive director of Environmental Entrepreneurs (E2) — a national community of business leaders — said the now final rule is “the most significant environmental policy we’ve seen in recent years, and also a huge catalyst for economic growth.” The Denver Business Journal's story about the plan is here. Read on for a roundup of what folks around the state are saying: Colorado Senate President Bill Cadma n (R-Colorado Springs): “Senate Republicans are disappointed by the EPA rules rolled out today by the Obama administration. I can promise that Senate Republicans will offer legislation in January to require full PUC public hearings and PUC approval before any state agency adopts rules to implement this costly electric power generation mandate in Colorado. This President continues to show complete disdain for Congress with another end-run around the legislative process. The liberal extremists are conspiring with the White House to eviscerate federalism, the separation of powers and state’s rights.” U.S. Rep. Diana DeGette(D-Denver) "We are already experiencing disruptions due to climate change, and the overwhelming scientific consensus says that such problems will only get worse. In Colorado, that has meant severe drought, wildfires, unprecedented floods and many other severe events that cost our communities dearly. If we can take steps to reduce the odds of such disasters in the future, we have an obligation to do so. Fortunately, our experience in Colorado shows that we can take meaningful action that breathes new vitality into our economy at the same time. The Clean Power Plan will push states to transition to cleaner power sources, reducing the emissions from the sector that currently produces more carbon pollution than any other. Colorado has already taken important steps towards using renewable energy, and we have seen clean new businesses, industry sectors and our broader economy flourish as new clean and renewable energy options come to market." Jill Ryan , Eagle County Commissioner “Ski resorts are already feeling the impacts of a warmer climate on the length and quality of ski seasons, and climate change could threaten their very existence. It doesn’t take much to undermine our tourism economy. Only a 1 percent dip in tourists to Colorado ski resorts would cost more than $375 million and 4,500 jobs. The Clean Power Plan represents an opportunity for Colorado to craft a plan to continue its leadership in reducing carbon emissions. It is a necessary but flexible step to effectively address climate change and keep visitors from across the world coming to Colorado for world-class skiing.” Chris Brown, President of Vestas-American Wind Technology, Inc. “The Clean Power Plan is a significant step in the right direction. It’s not something that will alter our market potential in the short run but if the plan is adopted, it will create a more stable U.S. market for renewable energy in the long run. ... The Clean Power Plan is definitely achievable, and wind energy is the quickest and most cost effective way for states to meet the reductions. Wind is already helping states meet their clean energy needs and can do more while creating new jobs and benefiting local economies. More wind can be integrated into the grid reliably; many states and regions are adding large quantities of wind to the electricity mix while maintaining grid stability.” Ben Fowke, chairman, president and CEO of Xcel Energy Inc. “Implementing clean energy is familiar ground for Xcel Energy. We have worked for years with our states to increase the use of renewable resources, to help customers save energy and to modernize and retire our coal plants – all at a reasonable cost. This approach has put our company on a sound course to achieve a 30 percent reduction in carbon dioxide by 2020. “We appreciate the EPA’s willingness to work with stakeholders in developing this groundbreaking and complex set of regulations. It will take time to thoroughly review and assess the full impact of the rules. While we expect the Clean Power Plan does not provide everything we hoped for in terms of fully recognizing the early actions of proactive states and utilities, Xcel Energy is ready to move ahead. We look forward to working with our states in the best interest of our customers, ensuring we continue to meet their expectations for clean, reliable and affordable power.” Joel Serface, managing director of Brightman Energy, a renewable energy development company. “The Clean Power Plan is a huge opportunity for Colorado’s economy. By tackling the rising economic costs of climate change, we can modernize our energy infrastructure, stimulate innovation and help create thousands of good, new Colorado jobs in high-growth sectors like wind and solar.” State Sen. John B. Cooke(R-Weld County): “The Governor needs to commit himself to a true public process, including a rigorous review by the people’s representatives in the Colorado General Assembly, before giving a green light to Colorado’s implementation of this new federal mandate. These rules are being challenged in federal court by sixteen states, and I hope that Colorado’s Attorney General will join that lawsuit now that the EPA rules are final. The fact is, the Clean Air Act passed by Congress does not authorize these costly dictates, and there is a good chance the US Supreme Court will block these rules for that reason.” Kim Tyrrell, Air Quality Programs Manager, American Lung Association in Colorado “Nationwide, the Clean Power Plan will prevent up to 90,000 asthma attacks and 3,600 premature deaths each year starting in 2030. That’s important for Colorado’s more than 135,790 children with asthma who face greater health risks from air pollution and climate change. Undeniable evidence tells us that our warming climate threatens public health and safety. Right here in Colorado, we see the impacts firsthand: in our air quality, where our ozone is worse than it should be; where we have more particle pollution from more wildfires and drought; and where we face more extreme weather events, including heat waves and flooding." Jonathan Lockwood, executive director for Advancing Colorado, which advocates for free markets “This very strict, and extreme, so-called power plan is dirty, expensive and unnecessary. What we are seeing is a job-killing ideological push that will increase energy costs on Colorado families. This is a costly crusade that hurts our families and communities, and we need to speak out against politicians like Sen. Michael Bennet and Gov. John Hickenlooper who praise and bow down to this plan.” Rebecca Cantwell, Executive Director, Colorado Solar Energy Industries Association “Colorado’s solar industry looks forward to playing a leading role in achieving Clean Power Plan targets while driving down the long-term cost of power, increasing reliability and providing thousands of jobs across our state.” Tim Gaudette, Colorado Outreach Manager for Small Business Majority "Energy expenses can adversely impact small businesses’ bottom lines and cut into their profits. That’s why small employers want sound policies — like the Clean Power Plan — that transition the U.S. to a clean energy economy so they can spend less on utility bills and have more cash available to invest in and expand their companies."

Massive Energy Shift Taking Place

Speakers at the opening plenary of the IEEE’s Power and Energy Society international conference in Denver on Monday talked about big, sweeping changes now underway in how we produce, distribute, and consume electricity. Solar and wind soon will be competitive with fossil fuels without the need for subsidies. They’re being integrated into existing systems at volumes thought impossible a decade ago. They talked about game changers, return on investment, and the need for policies that Dan Arvizu, director of the National Renewable Energy Laboratory, says are needed to spur capital markets to invest in new technology and infrastructure. It’s clear, said Arvizu, that the resources are available to create electricity while severely reducing greenhouse gas emissions. But new business models are needed to make it happen. “We’re in the midst of a massive transformation, not just domestically but globally,” he said in opening the plenary. In 2013, he explained, the amount of new generating sources from alternative energy surpassed new generation from conventional fossil fuels. Within a decade, he predicted, three-quarters of all new energy coming on line will be from renewables, mostly wind and solar. In the United States, 13 percent of electricity comes from renewable sources, about half hydro and the other half wind, solar, and other renewables. Arvizu also predicted disruptive technologies on multiple fronts. Solar today has 200 gigawatts of capacity globally. About one-tenth of that is in the United States. “We’re now looking at power-purchase agreements globally that are less than 5 cents a kilowatt-hour,” he said. That’s competitive with and in some cases lower than electricity from coal and natural gas. Photovoltaic, he said, will not provide the technology for the big jump, however. “It is not the technology that will get us from gigawatt scale to terawatt scale.” Instead, he explained high-efficiency thin films that will boost commercial module efficiency to 16 percent. Tandem cells have the potential to improve efficiency from 10 percent to over 30 percent. “Very shortly, these technologies will be available in the marketplace without any subsidies (needed),” he said. Integrating renewables into the electrical system will require changes, but not necessarily giant infrastructure investment. He cited an NREL study that found the grid in the Western states can absorb up to 35 percent renewable energy. “This can be done, and it can be done now,” he said. “It requires we do some things differently. It requires that we do it in a different way. But it can be done.” Wind technologies, he went on to say, are now delivering electricity at 3 cents per kilowatt hour “and progress continues to be made.” More is coming, he added. “There are lots and lots of technology opportunities in this space.” Arvizu also talked about the energy systems integration in a new major laboratory at the NREL campus in Golden as well as 16 other national labs. The national programs are spending roughly $200 million in grid modernization. The labs seek to fundamentally redefine how renewables and demand-side management strategies are integrated into homes and businesses, a shift from the centralized power plants of the 20th century that sought to simply—and wastefully—always have power whenever anybody turned on a switch. At the NREL campus, for example, scientists are studying how electric cars provide home-based battery storage. Local storage is, in some ways, a game changer, in Arvizu’s view. And that was also the view Mark McGranaghan, the vice president of power delivery and utilization for the Electric Power Research Institute, the research and development arm of the utility industry. But he said utilities have to be in the middle of the storage. But like Arvizu, he also sees the maturing of solar technology such that subsidies are no longer needed. David Sun, senior fellow and chief scientist at Alstom Grid, emphasized the fundamental shift to engage consumers into choices. “I am no longer a passive consumer of kilowatt hours. I have many choices,” he said. “I am not speaking of a centralized market. I am talking about a free market place where we have choices.” Electrical providers going forward can’t just be suppliers but must find ways to provide “valued services,” he said. The next panel had representatives of Colorado’s two largest electrical providers. Xcel Energy delivers power to roughly 60 percent of Colorado customers through its subsidiary, Public Service Co. of Colorado, and it has gained a name for itself as the nation’s largest developer of wind energy, at least partly the result of voter and legislative mandates in Colorado beginning in 2004, as well as those in other states. A decade later, the results have been almost shocking. On Nov. 1 last year, at midnight, 61.1 percent of all electricity delivered by the Public Service Co. of Colorado came from wind power, reported Teresa Mogensen, senior vice president of transmission for Xcel. Admittedly, she added, it was a time of low demand. But forecasting is a large part of being able to add on substantial amounts of renewables, she said, “so we continue to grow in capability there.” Integration of renewables can be done, but “it just takes time.” But Mogensen also emphasized the need for cost recovery of investments. There is much misunderstanding and many misconceptions about what it takes to drive change, she said and described communication of that as a major challenge. The most skeptical speaker in talking about changes was Joel Bladow, senior vice president of transmission for Tri-State Generation & Transmission Association. Tri-State is the wholesale provider for 44 cooperatives in a four-state region. The service territory is as large as all of California, Bladow said, but with one-10th the load. That means Tri-State’s 1.5 million customers are widely dispersed, with just four meters per mile, on average, unlike the more densely and hence economically serviced cities and suburbs. While Tri-State has added substantial amounts of wind and solar generation to its portfolio in the last 10 years, Bladow struck a cautious and conservative tone. “At the end of the day, affordability and reliability is what we focus on,” he said. He also cautioned about studies with sweeping and optimistic results. A lot of times, you need to go to the appendixes to study the assumptions upon which those projections are based. And it comes down to money. “One thing I have learned over my career is that there were a lot of great ideas that are not economical.” Some great ideas of just 10 to 15 years ago have disappeared, he added. As for developing future renewables, Bladow talked about the difficulty of siting transmission lines. He used the example of Colorado’s San Luis Valley, where Tri-State and Xcel proposed to partner on development of the vast solar potential. To get it to consumers, the utilities proposed a high-voltage transmission line across the Sangre de Cristo Range, using a corridor over La Veta Pass and the ranch of billionaire hedge-fund manager Louis Bacon. Bacon successfully rebuffed the transmission line, and the defeat obviously still stings. “And the governor (Bill Ritter) did not issue one public statement in support of building that transmission,” he said. “Ultimately, it died.” In response to a question, Arvizu shifted the discussion from technology to policy. If it’s really 80 percent carbon education that we need, he said, then it’s not just a matter of technology. “It’s now understood that we have available resources that are abundant, and we can do a lot more.” But the right policies are needed to stimulate the private market to make changes, he added. He did not identify the policies he thinks are needed. He called the renewable portfolio stand and feed-in tariffs “blunt tools” that have been effective in creating markets, but are not the policy tools “that we need to get us to the objectives.… Ultimately, those policy tools will need to change.” “The capital markets must be the ones making the trillion dollar investments that are required for transformation over the next 20 years. The capital markets will need to be engaged.” Was Joel Bladow wrong in his caution and Dan Arvizu right in his optimism? We’ll know in another decade.

And the Cheapest Electricity in America Is … Solar

A Nevada utility and a solar developer have just struck a deal for solar electricity at a price that stands out compared not just to other solar deals, but also to just about any other option for new electricity. Here’s what it and other recent deals say about the future of solar. Costs for large-scale solar projects dropped by 7 percent last year, and are down by way more than half since 2009. Photo credit: John Rogers Costs for large-scale solar projects dropped by 7 percent last year, and are down by way more than half since 2009. Photo credit: John Rogers Bloomberg’s story on the Nevada deal opens with this (emphasis added): Warren Buffet’s Nevada utility has lined up what may be the cheapest electricity in the U.S., and it’s from a solar farm. “Cheapest” and “solar” aren’t words some folks might expect to see together in something coming out of a financial outfit like Bloomberg. But folks who have been paying attention to solar’s incredible recent price drops in recent years know that the times they are a-changin’. Best deal in town NV Energy, part of Buffet’s Berkshire Hathaway company, is buying output from a project being developed by solar photovoltaic (PV) manufacturer First Solar at a price of 3.87 cents per kilowatt-hour (kWh). That’s probably a lower price than you’d get from just about any other source out there, except for wind or energy efficiency. No doubt about it: this power purchase agreement (PPA) is a deal. A utility analyst at Bloomberg says it’s “probably the cheapest PPA I’ve ever seen in the U.S.” Note the lack of qualifiers: no “solar,” no “renewable energy.” Just “cheapest.” And it’s clear that this deal, for 100 megawatts (enough for more than 15,000 households’ worth of electricity), isn’t a one-off. It’s part of a suite of recent deals that testify to how far solar prices have dropped: Another 100-megawatt NV Energy agreement in the same utility proposal, involving a project developed by PV manufacturer SunPower, came in at 4.6 cents/kWh. Just a week earlier, Austin Energy signed a deal for solar at under 4 cents/kWh. On the solar resource issue, you can remind the naysayers that solar is actually much more widespread than they might think. Some might dismiss these deals by pointing to the sunniness of the states in question or the incentives (federal or state) that are buying down the cost. Don’t let ‘em. On incentives, you can invite them to do the math on what it would cost even without the federal tax credit, for example (still under 6 cents for the lowest-cost ones). And have them look to see what solar is achieving elsewhere—5.85 cents/kWh in Dubai, for example. Or just get them to do the math on what fossil fuels like coal really cost. Keep making it happen And, while the sun might not be getting brighter, the future of solar certainly is. Costs for large-scale solar projects dropped by 7 percent last year, and are down by way more than half since 2009. Even more importantly, maybe, is the fact that a big chunk of cost reductions depend not on dropping the costs of solar panels (which are way down already), but on building up local capacity to install (or approve) such systems. That build-up comes only with experience and installations. That price trajectory could lead some to think about waiting till prices come down even more, but that would be a mistake. Solar may keep getting better, but it’s a good deal now, and even more drops in costs aren’t guaranteed. (Neither is the future of the very successful federal tax credit.) We also need utility leaders to keep signing the contracts that keep getting us to ever-greater scales and ever-lower prices. These contracts are a driving force for the fierce competition in the solar industry. So go forth—sign, build, thrive. And then repeat, repeat, repeat.

FERC Removes Obstacles that Limit Distributed Renewable Energy in Colorado

In a July 1 ruling FERC (the Federal Energy Regulatory Commission) cleared the way for Colorado’s Delta-Montrose Electric Association (DMEA), along with other electric co-ops, to step outside the bounds of a 40-year power supply contract with Tri-State Generation & Transmission Association and tap into local renewable energy supplies. FERC's ruling, which was unanimous, clarifies what had been deemed unclear wording in PURPA (Public Utilities Regulatory Policies Act), as well as Tri-State's regulatory status. The contract DMEA and 43 other electric co-ops had signed with Tristate in 2001 required them to purchase 95 percent of their electricity from Tri-state. In short, FERC ruled that as per PURPA DMEA not only had the right but the obligation to purchase electricity directly from “Qualifying Facilities” (QFs) over and above the five percent cap it's limited to in its contract with Tri-State. With the ruling, FERC opened the door for DMEA and other Tri-State electric co-op members to tap into cost-competitive renewable energy resources right in their backyards. DMEA intends to move forward and contract for electricity from a small-scale hydropower facility to be built on a local irrigation canal proposed by Percheron, DMEA's Manager of Member Relations and Human Resources Virginia Harman said. Greater Use Of Local Renewable Power Enacted in 1978 as part of the National Energy Act, PURPA promotes development of cost-effective small-scale hydropower and other renewable energy resources, as well as energy conservation and energy efficiency, FERC explained on its website. Under PURPA, public utilities are obligated to purchase electricity generated by certified QF as long as they total no more 80-MW of electrical power capacity. PURPA QFs receive special rates and regulatory treatment. "Community support for DMEA was overwhelming," Harman pointed out. More than 70 individuals and organizations, including coal companies, as well as the NRDC (Natural Resources Defense Council) and the Aspen Skiing Company, supported DMEA's FERC petition. DMEA CEO Jasen Bronec said that FERC's ruling “is a victory not just for DMEA and its members, but for people and communities throughout Delta and Montrose counties. Purchasing local renewable power will further DMEA's long-term strategic goal of diversifying our power supply, which means more stable rates to our members and lesser impacts from any future power rate increases. He added that the ruling “could also mean serious local economic development, as renewable facilities locate to the area to take advantage of our abundant renewable resources in Delta and Montrose counties." Good News FERC's green light “is clearly good news for the renewable energy world,” University of Denver Sturm College of Law Professor K.K. DuVivier commented in an interview. While FERC came down in favor of DMEA's petition on two of three counts, it essentially sidestepped the issue of whether or not Tri-State should be regulated as a public utility and hence subject to direct oversight by FERC, which it is not at present, she pointed out. The decision gives DMEA and other Tri-State electric co-op members much more flexibility to adapt to changing conditions and meet consumer and community needs by purchasing more electricity from renewable power producers, DuVivier noted. Its broader impact will be limited as there are very few co-ops as large as Tri-State nationwide, however. Energy policy and regulatory oversight in the U.S. is moving renewable energy forward in some cases while holding it back in others, added Jack Jacobs, managing partner at Cleantech Law Partners. “It's certainly a big part of what's happening now with energy in the U.S.” The lack of a strong, persistent commitment promoting renewable energy by federal lawmakers in particular remains an obstacle to growth and development, Jacobs continued. Vacillating Congressional support for renewable energy incentives, such as the wind power production and solar power investment tax credits, have resulted in stop-and-go development binges and hampered what would could have been even more rapid renewable energy development and growth, Jacobs said. Nevertheless the DMEA FERC ruling is one step in the right direction.

A Push For Solar In Colorado's North Fork Valley

A crew of six is working to install mounts for solar panels on a residential rooftop in Delta County. This home sits atop a mesa that overlooks the North Fork Valley. And, it’s the first to get a sun-powered system through a local pro-solar campaign. "Solarize North Fork Valley is a program that was put together by SEI that looks at how we can boost the local solar economy in an effort to create jobs in the industry here," said Kristen O’Brien, an AmeriCorps VISTA with Solar Energy International. The Paonia-based educational nonprofit is spearheading the initiative. "I think the figure is in 2014, over 31,000 jobs were created in the solar industry nationally," said O’Brien. She said SEI hopes to bring some of that success to its local community, an area affected by the downturn in the coal industry. How It Works People who sign up get a free remote site assessment from SEI and an energy audit through the local electric cooperative. O’Brien said the audit tells people how much energy they are using and ways to reduce that consumption. "And, what the remote site assessment does is it looks at your electrical usage history, the space you have available on your roof and your budget for the project," she said. "And, we put that all together and are able to spit out a free estimate for you of how much solar you can fit on your roof, how much of your electrical usage it would offset, and around how much it would cost you." O'Brien said after that process the next step is passing on a person’s information to a solar installer. "Based on the amount of contracts that our installers are able to sign as a result of the leads that we provide them through the program they offer rebates to everyone who participates," she said. O’Brien said an average family in the U.S. would use a 4-6 kilowatt system. The goal for Solarize North Fork Valley is to get 100 kilowatts of solar sold. "That’s [about] 25 new solar systems and 25 new homes in the valley that would be powered by renewables," she said. Bill Bishop, Sarah Bishop Bill Bishop and Sarah Bishop were the first to sign up for Solarize North Fork Valley. Mrs. Bishop is on SEI's board. Credit Laura Palmisano / KVNF Bill Bishop and his wife Sarah, who’s on SEI’s board, were the first to sign up for the program and purchase a system. "We had already been thinking about it for 10 years," said Bishop. "And, so when the cost was shown to us at the SEI meeting we just said 'oh, we can do that'." The Bishops plan on taking advantage of a 30 percent federal tax credit for solar and the rebate offered through the program. "We will pay off the investment in about 12 years," he said. "About 70 percent of our electric will be taken care of by the solar system." Jeff Tobe is with Empowered Energy Systems, a locally-based solar installer. The company he works for got the contract for the Bishop’s house through the Solarize program. "It’s created a real boost in the interest for solar in the valley," said Tobe. "I mean that is very evident. I think it’s also increasing the amount of installations that we are going to do this year by quite a bit. I wouldn’t be surprised if we double the amount of installations." Empowered Energy also hired four workers to help with jobs it landed through the initiative. O’Brien said she’s inspired by another Solarize program that happened last year in La Plata County. "They were really successful," she said. "I think they contracted 100 new systems and that’s not 100 new kilowatts, which is our goal." O’Brien said they’re halfway to that target. The campaign lasts through the end of this month.

Colorado power cooperative looks again at rates after jump in solar customers

The Intermountain Rural Electric Association (IREA) is taking another look at raising its electricity rates — changes that could mean an additional charge of about $20 to $24 per month for new residential customers and existing residential customers who add solar power panels to their homes. If approved, the new rates would take effect December 30, 2015. It would affect new residential customers joining the cooperative after that date as well as residential customers who get a new meter after that date as part of a new solar array being installed on their roofs. IREA officials say they’re worried about the cooperative’s ability to cover its costs when more customers get their power from the sun and get credit off their monthly bills for excess power sold into the grid. IREA’s board is expected to take up the matter at its October meeting. Representatives of the solar power industry say they're still reviewing the proposal, but are concerned that IREA's proposal could put a damper on the appetite for adding solar arrays in the cooperative's territory. The cooperative has seen a big jump this year in the number of residential customers getting solar power systems on their rooftops. “It’s not a large problem at this point, but we’re trying to plan ahead and anticipate the growth of rooftop solar and saying let’s address this deficit and cost recovery before it becomes an issue,” IREA spokesman Josh Liss said Wednesday.

Guest commentary: In Colorado, more jobs, less carbon

Earlier this month, a new report titled "Winds of Change" highlighted the major positive impact Colorado's booming wind energy industry is having on our economy. The report, which was rolled out by the national nonpartisan business group Environmental Entrepreneurs (E2) at the Alliance Center in Denver, found that Colorado is home to nearly 10 percent of the entire nation's wind energy workforce, with more than 2,500 jobs announced in the state's wind sector the past three years alone. These are good jobs at 22 manufacturing plants and nearly 30 wind farms. They're jobs at wind turbine servicing companies like the Boulder-based business that I co-founded. They're jobs running financial analyses to maximize private-sector profits. Jobs like these have led to nearly $5 billion in investments in the state, and they help generate nearly $8 million in annual lease payments for Colorado farmers and ranchers who increasingly think of wind energy as a new cash crop. But the 6,000-plus wind jobs aren't here in Colorado by accident. They're here because we have some of the most sensible energy policies anywhere in the United States. Recently, for example, Gov. John Hickenlooper signed into law a bill giving "enterprise zone" tax credits for renewable energy. This bill is expected to increase clean energy investments and expand rural Colorado's tax base. And our pioneering Renewable Portfolio Standard (RPS) was one of the first such standards in the nation when it was enacted in 2004. The RPS has created jobs by ensuring Colorado's investor-owned utilities get 30 percent of their electricity from renewable sources like the wind and sun by 2020. We're on track to meet this standard, but it's scheduled to expire in five years. So it only makes sense to plan ahead by extending and expanding the RPS. The sooner we establish a firmer, long-term policy, the sooner our state's leaders can give clean energy job creators the market certainty they need to keep their investment capital flowing far into the future. Another policy poised to help grow our state's economy is the federal Clean Power Plan. By mid-summer, this plan will set the first-ever carbon pollution standards for power plants. Colorado is expected to be required to curb power-sector carbon emissions by 35 percent, helping drive an increase in the development of clean, renewable energy projects across our state while creating thousands of jobs along the way. The Clean Power Plan will also drive more investments in energy efficiency — which lowers our electric bills by cutting energy waste — and again, creates more jobs. Despite the obvious economic and environmental benefits of policies like the Clean Power Plan, a few powerful politicians want to hold Colorado and the rest of the country back from moving forward on clean energy. Last month, for instance, Senate Majority Leader Mitch McConnell urged governors across the country — including Gov. Hickenlooper — to ignore the Clean Power Plan. In a response letter to Sen. McConnell, Gov. Hickenlooper criticized the suggestion, saying it would be "irresponsible to ignore federal law." Since Gov. Hickenlooper is chair of the National Governors Association, the letter sent a powerful message. As someone who's been in the clean energy business for more than two decades, I have witnessed the private sector's ability to innovate. Technological advances in the wind and solar industries, corresponding cost declines and financing mechanisms like community solar projects and power-purchase agreements for wind farms have all led to a major increase in clean energy projects in Colorado and beyond. Last year, 47 percent of all the new electricity-generating capacity installed in the U.S. was powered by the wind and sun. Over the past three years — 2012, 2013 and 2014 — more than 40 percent of all new electricity-generating capacity that's come online nationwide is from wind turbines and solar panels. During the first four months of this year, those two sources provided more than 80 percent of our new capacity to generate electricity. And in April, all our new electricity-generating capacity came from wind and solar power. None of this surprises me. My career has spanned the wide range of opportunities in our industry — including working in wind turbine manufacturing, at the trade association of investor-owned electric utilities, in power marketing and trading, as a project developer, and now in my current role providing operations and maintenance services. I've seen first-hand how the private sector is ready and willing to innovate and to create jobs to help meet an expanded RPS and the Clean Power Plan's standards. Michael Rucker is president of Boulder-based Harvest Energy Services and a director of the Rocky Mountain Chapter of Environmental Entrepreneurs (E2), a national nonpartisan business group that advocates for policies that are good for the economy and good for the environment.

UBS Analysts: Solar Will Become the ‘Default Technology of the Future’

According to a new report from the Solar Energy Industry Association and GTM Research, more solar panels were installed on American rooftops this year than ever before. There were also more residential solar panels installed than natural gas power plants. Forbes reports that while this growth is definitely large in comparison to previous years, it is only just getting started. Based on a new analysis from the investment bank UBS and reported on by Green Tech Media, Solar photovoltaics could account for 10 percent of electricity supplied globally in the next decade. The conclusion of this analysis found that the global installed solar capacity will more than triple between now and 2025. This trend will also continue between 2025 and 2050. UBS estimated that nearly 3,000 gigawatts of solar may be installed worldwide by the middle of the century. To put this into perspective, one gigawatt is essentially equivalent to one large coal or natural gas plant. The future truly is looking brighter for solar energy panels and renewable energy solutions. As UBS predicts in an article for Utility Drive, it seems that solar will eventually become the default technology of the future. “We believe solar will eventually replace nuclear and coal, and [be] establish[ed] as the default technology of the future to generate and supply electricity,” wrote the analysts.

Colorado dispute over solar power reflects national trend

A rate dispute between an electricity cooperative that serves a large swath of Colorado and its residential solar power customers is part of a national conflict between the utilities and the solar industry. The Intermountain Rural Electric Cooperative has agreed to review its proposal to cut residential credits for solar energy. The co-op serves a large swath of Colorado from the Eastern Plans to the central mountains. The review comes after customers complained about cutting the credit and adding new charge based on peak demand. Among them is Tim Edmonson, who said he thought he'd save money when he added solar panels to a new home in Castle Rock. "It completely changes the economics (of solar panels)," said Edmonson, 35, who moved to Colorado from Minnesota in July. IREA officials insist that the current rate structure would lead to a huge subsidy to solar-equipped homes. "A solar grows, it becomes unsustainable," IREA general manager Patrick Mooney said of the rate cuts. Still, after criticism from customers, the IREA board is slated to meet before the end of the month to consider changes to its proposal — including exempting current solar homes from the new rates. The battle is part of a larger war going on across the nation between utilities and the solar industry. "There are cases in 30 states where utilities are challenging distributed solar," said Rick Gilliam, regulatory policy director for Vote Solar, an advocacy group. "It is an industrywide effort." The Colorado Public Utilities Commission has also been holding meetings on the net-metering costs for Xcel Energy, the state's biggest utility. Xcel executives have said that net-metering credits overstate the value of rooftop solar to the system. IREA's Mooney said the cooperative's proposed rate changes are aimed at keeping the system viable and the books balanced. "We do have a business to run, and we are struggling just like everyone else," Mooney told solar homeowners at an IREA board meeting Tuesday. The cooperative's solar homeowners are not convinced. "IREA makes it hard," Edmonson said. "They don't offer any incentives. When I spoke to solar installers and they heard I was in IREA, there were moans and groans." The IREA board will have a working session this month to go over possible changes, Mooney said. The next official board meeting is in July. In the meantime, SolarCity has put on hold all solar projects in IREA territory, such as the one Greg Sorge was set to have installed at his home in Bennett. Sorge, 47, has three big horses and two miniature horses and was hoping to use the panels to help heat the barn and stock tank. "We have some huge electric payments in the winter, up to $350, and we were hoping the solar panels would help even it out," Sorge said. "But now I don't know what's going to happen. It is frustrating."

Energy Access Innovation Out of Grand Junction, Colorado

Over the next two days, Grand Valley Power (GVP), an electric cooperative utility, and GRID Alternatives, the nation’s largest non-profit solar installer, will complete installation of the country’s first utility-sponsored community solar array serving low-income households. The 29-kilowatt array will provide low-cost solar power to eight hardworking families in GVP’s service area and serve as a national model for clean energy access. The installation, which broke ground in March, is being completed during GRID Alternatives Colorado’s Community Solarthon event with help from over 100 community volunteers and job trainees. “GRID is also able to deliver community solar projects with a substantial return on investment. There is a 4-6 year payback in energy savings for the families participating in this program for every dollar invested by Grand Valley Power and our community partners.” “Why are we doing this?” says Tom Walch, GVP’s General Manager. “We believe that solar powered generation is an idea whose time has come. Community solar is the best way to harness this developing technology. Unfortunately, many consumers don’t have access to this kind of clean renewable energy resource, even though they help fund its development for others. Our partnership with GRID reverses the flow of subsidies and incentives. With this project, assistance will flow to folks who need it most.” Each of the eight participating families will see a utility bill reduction of around 50 percent. They will contribute 16 hours of sweat equity to support the project’s development, and pay a small per kilowatt hour fee to help support future projects. With this unique model, subscribers will be able to experience the on-bill savings whether they own their home or rent – no roof space is required. The array is expected to generate over $100,000 in electricity bill savings for participants over the next 20 years, helping families in need while helping the utility meet its renewable energy goals. “When planning to meet Colorado’s renewable energy goals, it is important to keep underserved communities a main part of the conversation,” shares Chuck Watkins, GRID Alternatives Colorado Executive Director. “GRID is also able to deliver community solar projects with a substantial return on investment. There is a 4-6 year payback in energy savings for the families participating in this program for every dollar invested by Grand Valley Power and our community partners.” The model has generated interest from utilities and policy-makers across the country, and Grand Valley Power and GRID Alternatives were invited by United States Congressman Jared Polis to brief a congressional working group on Innovation in Alternative Energies on May 6. GRID Alternatives Colorado is providing the materials, design and program development expertise to build the solar array, with equipment donations from SunEdison, Enphase and IronRidge. Grand Valley Power is providing the site, interconnection facilities and administrative support for the project. Other partners and sponsors include Housing Resources of Western Colorado, which helped identify consumers most in need of assistance, Alpine Bank, NREL, Atlasta Solar, Whitewater Building Materials, and SunPower Corp.

Calling all Volunteers! Community Solarthon Opportunities Available

On May 29th and 30th, GRID Alternatives and Grand Valley Power will continue their strong and unprecedented partnership while installing the first-ever community solar array dedicated 100% to low-income subscribers. Community Solar projects are large scale, ground-mounted photovoltaic system brought about through partnerships with local utility companies. By increasing the size of the solar systems GRID volunteers install, we will better be able to serve greater numbers of clients by reducing qualifications and increasing energy output. To ensure this projects success, we are calling upon you to join us on site! GRID has set aside a limited number of volunteer shifts with no donation required for community members and solar advocates- to reserve your spot on this exciting project, sign up through the Volunteer Portal. These opportunities will be posted directly to the Volunteer Portal on Wednesday, May 6th at exactly 10:00AM. GRID is currently seeking both Event and Construction Volunteers to assist during the two day installation. Community Solarthon Event Information: Install will take place at GVP's existing Solar Garden located in Grand Junction, CO The 29kW ground-mounted array will serve 7 to 10 GRID Alternatives' Clients 100% of the array's output will be dedicated to low-income subscribers Each Install day is broken into 2 shifts: AM shift- 7:30am to 11:30pm PM shift- 12:30pm to 4:30pm Volunteers, community members, clients, businesses, and anyone interested are invited to attend the Solarthon Celebration Lunch taking place on Saturday, May 30th 11:30am- 12:30pm If you have not yet volunteered with GRID but are interested in participating in Community Solarthon, call Bobby as soon as possible to schedule a volunteer orientation! Questions? Please call Bobby at (303) 968-1327 or email rkirby@gridalternatives.org

Nation's First Solar Garden Helping Low-Income Families

There are dozens of solar gardens scattered through Colorado. Grand Junction is soon going to be considered part of that list. However with an exception, as the nation’s first community solar gardens helping low-income families save up to almost 90 percent on their electricity bill. This is a partnership with Grand Valley Power, GRID Alternatives and Housing Resources of Western Colorado. These organizations will be installing a 29kW array or row of solar panels; able to help six to 10 low-income families. This is a four-phase project and Brenda Lange and Herbert Sanders is the first family to sign up for the program hoping to save money. “I’ve checked into solar and it was 15 grand for this house,” said Lange. Sanders owned two companies, however that soon changed. “We based on our revenue on national and international clients and after 9/11 they stopped spending money and after three years of trying to save two companies didn’t work,” said Sanders. After calculating his savings; Sanders says he will probably say $60.00 to $70.00 on his electricity bill, which they will use to fuel their vehicles. The second phase once approved is to install another 29kW array able to power another 33 homes in the Grand Valley. Next year, Grid Alternatives is hoping to expand this low-income program to develop a 1-mega watt of solar electricity capacity able to serve 330 customers. Recently, Grand Valley Power met with other solar and electric energy leaders in Washington D.C. to speak about the program. “So often projects like this just get lost in bureaucracy and one of the things I asked them to do is to consider providing block grants to the states so the states can administer projects like this,” said Grand Valley Power general manager Tom Walch. Organizers will be putting up the solar panels on May 29 and 30 expecting to have 100 volunteers helping. Grid Alternatives is having a Community Solarthon on May 30 at the site located at 714 29 Road Grand Junction. A Solarthon tours will be given from 7:30 a.m. to 4:30 p.m. and from 11:30 a.m. to 12:30 p.m. there will be a community celebration lunch.

Commercial-scale solar doing well in Colorado county, officials say

LAMOSA — Commercial-scale solar farms want to keep growing in Alamosa County, with companies hoping to beat a December 2016 deadline for a federal tax credit that has been driving substantial solar development in recent years. The Alamosa County Land Use Department has held meetings about expansion with Iberdrola Renewables, First Solar and Next Era, said Rachel Baird, the department's deputy administrator. That's in addition to the multiple phone calls received from other major developers in the last few months, Baird said. Together, the facilities generate 87 megawatts of electricity, which is enough to power more than 15,000 homes in Colorado and generate more than $500,000 in tax benefits. In Colorado, it only takes six to nine months to obtain a permit, compared with up to two years in other states, the Alamosa Valley Courier reported. In addition to encouraging development, the county needs to pay for extra services to help the solar companies, Alamosa County Chairman Darius Allen said. Bringing the facilities to the county is a difficult task, requiring extra staff hours to complete the permit process, officials said. Utility-scale solar projects have been generating reliable, clean energy with a stable fuel price for more than two decades, officials said. What distinguishes utility-scale solar is the fact that the electricity is sold to wholesale utility buyers, not consumers. Utility-scale solar plants provide electricity during periods of peak demand when electricity from fossil fuels is the most expensive, supporters of solar energy said.

Colorado Energy Expo

Colorado's second annual Energy Expo is set for Wednesday at Sports Authority Field at Mile High. The expo consists of 3,000 to 5,000 energy-industry leaders, the general public and students. More than 650 students from high schools all over the Front Range are attending some forums where they will learn about a variety of energy careers and pathways to those careers. The energy industry is an incredible driver of our state's economy. In 2014, the Colorado energy industry accounted for more than 250,000 direct and indirect jobs, with a $15.6 billion economic impact. Colorado is No. 1 state in the nation for wind-energy manufacturing, with over 3,000 Vestas manufacturing jobs alone. Colorado is No. 3 nationally for overall wind-energy employment, with nearly 7,000 jobs. Colorado is a national leader in renewable energy installed capacity, ranking seventh in installed solar and 10th in installed wind. Colorado is a national leader in renewable energy installed capacity, ranking seventh in installed solar and 10th in installed wind. In 2014, Colorado produced an estimated 94 million barrels of oil, which is a new state record and a 45% increase over 2013. In 2013, Colorado ranked eighth in oil production with 64 million barrels, and ranked sixth in natural gas production with 1.5 tcf. Colorado is No. 9 in fossil fuel employment concentration and No. 6 national in cleantech employment concentration. The fossil fuel average salary is $102,470 and the cleantech average salary is $77,350.

The North Fork Valley makes big moves to grow the solar industry

PAONIA, Colo. Solar Energy International launches a project to grow a new energy production industry in the North Fork Valley. The “Solarize the North Fork Valley” campaign aims to convince residents of Paonia, Hotchkiss, and Crawford to power their homes entirely through solar panel technology. By creating of a demand for solar panel installations throughout the area, Solar Energy International believes they can create local job opportunitiesfor this struggling economy. Tara Miller and her husband are experienced solar users and will serve as ambassadors for the campaign. “The sun is going to keep shining, the installation takes labor,” says Tara Miller. The launch of the education program has already created seven positions at Solar Energy International and they hope to see this trend carry over into the installation sector. Residents interested in going solar can sign up for the “Solarize the North Fork Valley” campaign at the Western Colorado Climate Challenge and Solar Fair in Paonia or contact Solar Energy International directly at (970) 527-7657. Other solar campaigns such as the Switch 2020 Contract will also be presented at the solar fair.

WESTERN COLORADO CLIMATE CHALLENGE & SOLAR FAIR, Paonia, CO

The Western Colorado Climate Challenge is a forum where people can learn, engage, devise and take steps to solve local issues related to the climate crisis.No longer can we stand-by without taking responsibility. Neither can we wait until policy and legislation catches up with our circumstances.This is truly the time when the people must lead. The day has arrived when each of us can be responsible for how we energize our lives, how we reduce our own consumption, lessen our own footprint. YOUR IDEAS ARE GOING TO PAVE THE WAY TO REAL CHANGE IN COLORADO! We are bringing a diverse group of people together from all over Western Colorado. We are going to meet, focus on our challenges and hash out a firm action plan to change the course our future. We look forward to you joining us! Friday Solar Fair – Free & Open to Public at SEI ●Hosted by Solar Energy International and launching SEI’s long-awaited Solarize North Fork project ●Exhibits from area businesses and organizations ●Light refreshments, cash bar with local beer, wine, hard cider and organic juices ●Live Music: featuring Brodie Kinder & The Killer Bees and other Special Guests Friday Program (@ Solar Fair) ●Welcome & About the Climate Challenge Weekend – Pete Kolbenschlag, Mountain West Strategies ●Switch 2020 & Colorado Climate Summit – Robert Castellino with Climate Colorado and Switch 2020 ●SEI – Solarize North Fork Valley – Kristen O’Brien with Solar Energy International/Solarize North Fork project ●Western Colorado Climate Challenge – Re-Cap & Introducing the Challenges – Robert, Kristen, Pete Saturday Program: ●Panel Discussion: Breaking Barriers, Creating Collaboration for Local Power Generation Led by John Gavan, Delta Montrose Electric Assoc. with Del Worley, Holy Cross Electric Assoc; Mona Newton, Community Office for Resource Efficiency; ●Presentation: Water, Western Colorado and Climate Change By Dr. Gigi Richard, The Water Center at Colorado Mesa University Saturday Breakouts (4 challenges) ●Switch 2020: Moving Colorado to Renewables and Minimizing Water Use – Climate Colorado Leader: Robert Castellino, Colorado Climate Summit Issue: The Climate Crisis requires decisive and immediate action, which often seems too large and unworkable to address. Challenge: How to motivate individuals, businesses, and governments to make commitments to move toward net zero and drastic reduction in water use? What are the actions and deliverables needed to engage communities across Colorado for these changes to occur within the next ten years? ●Rural Solarization – Solar Energy International Leader: Kristen O’ Brien, Solarize North Fork Project; Ed Marston, Board President Solar Energy International Issue: Rural solarization is impeded by isolated, often economically disadvantaged populations, outdated policy, and a public unaware of available programs and/or financing that makes sense. Challenge: Maximizing opportunities to promote and implement solarization in small, economically diverse, and dispersed rural communities. ●Regional Collaboration for Local Generation – ‘Community Challenge’ Leader:John Gaven, DMEA Board Member Issue: Opportunities abound for local power generation, but outdated federal, state and utility policies, lack of project financing, and other obstacles seem to block development, local innovation and installation. Challenge: What collaborations make local power generation feasible and gets more installed? ●Rivers & People Need Water- Gunnison River & Water Management in the Drying West Leader: Sarah Sauter, Western Slope Conservation Center Issue:In a drying American West, the Gunnison River is a major tributary to an over-allocated resource: the Colorado River. It is also a critical environmental and human resource – already part of the Colorado River Storage Project (Aspinall Unit) and utilized extensively for local irrigation, it also provides recreation, abundant agricultural return, and downstream flows for fish, wildlife and other users. Challenge:How can water users and residents in the Gunnison Basin implement changes to conserve and secure our water resources? http://climatecolorado.org/western-slope-climate-challenge-2015/

Colorado Developer Puts “World’s Largest Planned Microgrid” on the Market

Colorado’s 662-MW Niobrara Energy Park, which calls itself the world’s largest planned microgrid, is now shovel-ready and seeking buyers. Cushman & Wakefield announced early Wednesday that it is acting as exclusive agent for the sale of the northern Colorado project, under development for five years by Colorado land and resouce broker, Craig Harrison. Dubbed NED for short, the project stands apart in the microgrid world because of its sheer size and complexity. While most microgrids serve a handful of buildings, at best, and manage a couple of generation sources, NED has secured permits for 52 data centers, a 200-MW gas-fired plant, a 50-MW solar farm, 50 MW of fuel cells, other energy sources, and a range of energy storage technologies: compressed air, batteries, fly wheel, thermal and hydrogen storage, super capacitators and super conductors. “This opportunity is highly unique in its size, scale and scope,” said Jeffrey Cole of Cushman & Wakefield’s Irvine, California office. “We will be marketing this property to investors on a national and international basis, targeting everyone from data center investors, to users that would require cloud computing, to power company investors, telecom centers, local developers, green energy providers, and even certain Wall Street infrastructure funds.” The developer envisions the microgrid managing retail power within the project’s borders and selling any excess power into the wholesale market. The electricity would transfer at the Ault substation, 22 miles to the south, and be sold at one of Colorado’s busiest interconnects. “It’s an energy park, with the ability to provide its own microgrid,” said Cole. “The on-site energy sources include natural gas and a major electrical infrastructure, and plans call for a multitude of renewable energy sources. It also has its own water rights, as well as transcontinental fiber connection with access to 21 fiber carriers or providers. The project includes within its borders triple 230-kV power lines with dual feed direction from four substations, triple natural gas lines, a fiber-optic backbone with diverse carriers and a private 100 million gallons per year water supply. “With special approvals from the state and county in place, it is very rare to have a property of this size with zoning and energy sources already on-site,” Cole said. NED is named after the Niobrara gas and oil shale formation in northeast Colorado. Niobrara also means running water — which has been found under the site. The project is zoned for the 52 energy and data center uses, as well as Cloud data centers, energy-consuming manufacturing, natural gas power plants, solar, wind, and energy storage, with environmental waivers. Energy-related zoning includes up to 50 MW of solar, geothermal and wind, and unlimited energy storage, as well as up to 650 MW of natural gas plants and fuel cell power plants, and more, according to Cushman & Wakefield. It is located near I-25 and US 85 between urban areas of Northern Colorado and Southern Wyoming. “NED represents a unique opportunity to acquire a strategically located shovel-ready site with extraordinary energy and fiber infrastructure along with entitlements and zoning for a broad range of industrial and energy-related development,” said Jeff Cushman, executive managing director, Cushman & Wakefield. “It offers multiple revenue pathways for an investor along with speed to market. There is nothing else like it in the country.

Colorado PUC Considers Distributed Energy Storage Challenges and Opportunities

Against the backdrop of speculation concerning Tesla’s upcoming announcement which is widely anticipated to be a distributed energy storage product, and with continuing industry reports of a burgeoning domestic and international market for both grid-connected and behind the meter energy storage, on April 23, 2015 the Colorado Public Utilities Commission (CPUC) spent the afternoon hearing from a wide variety of stakeholders about the challenges and opportunities presented by distributed energy storage. The discussion came in the context of the CPUC’s ongoing proceedings related to retail renewable distributed generation and net metering (Proceeding No. 14M-0235E). Beginning in June, 2014, the CPUC has held a series of panel discussions focused on different aspects of the distributed energy resource and net metering issue. In addition to discussing distribution system design and ancillary benefits associated with solar photovoltaic systems, solar PV system sizing and panel orientation, and minimum billing issues, the CPUC’s most recent panel discussion delved into the current costs and economics of energy storage for residential, commercial and industrial customers, the anticipated growth rate for distributed energy storage in Colorado, the relationship between energy storage and net metering, and the regulatory changes needed to encourage energy storage projects. Ben Kaun, Senior Project Manager in the Electric Power Research Institute’s (EPRI) Energy Storage Program, provided an overview of the varying roles energy storage systems can play including functioning as a capacity resource, supporting the grid through flexible ramping, voltage control, and renewable integration, and providing grid reliability and resiliency services. Mr. Kaun emphasized that that traditional metric of the Levelized Cost of Energy (LCOE) is not suitable when evaluating energy storage applications; rather, a lifetime net present value approach should be employed to consider the full range of costs and benefits associated with energy storage. Mr. Kaun explained that when evaluating behind-the-meter energy storage it is important to consider the perspective of both the customer and the utility or grid operator since the incentives for energy storage and the potential uses and benefits of storage systems may differ between these two perspectives. A customer whose primary interest is using a storage system to take advantage of time-of-use rates may not be aligned with a utility that is interested in using aggregated energy storage systems to manage overall load. From EPRI’s perspective, the tools needed to understand the value of energy storage and its grid impacts are still under development; however, ongoing industry efforts, including California’s substantial commitment to energy storage deployment, should lead to rapid maturation of energy storage applications over the next five years. Ryan Hanley of SolarCity spoke on behalf of several distributed solar stakeholders. Mr. Hanley updated the Commissioners on the general trend toward declining battery prices which is expected to continue for the foreseeable future. Describing SolarCity as bullish on energy storage, Mr. Hanley stated that the company expects that by 2020 all of its solar PV installations will include a storage component. Mr. Hanley emphasized, however, that policies are needed which recognize the full range of benefits distributed storage can provide and allow participants to realize the revenues associated with those benefits. Furthermore, widespread deployment of smart inverters is needed to fully recognize the multiple benefits of distributed storage. While focused primarily on the potential of distributed generation paired with distributed storage, Mr. Hanley agreed that there is no one “sweet spot” in terms of energy storage system size, location, and technology; rather, a diverse portfolio of distributed and grid-level storage is needed and should be considered as part of utilities’ planning processes. Commissioner Glenn Vaad asked the question that many people seemed interested in, especially given the context of the proceeding in which this discussion was taking place — isn’t distributed energy storage the anti-thesis of net energy metering? Mr. Hanley acknowledged that customer-sited storage could result in no distributed generation being sent to the grid and, therefore, no need for net metering; however, he opined that storage simply provides another set of flexible benefits in addition to the potential load modification benefits of distributed solar PV. Sky Stanfield spoke on behalf of the Interstate Renewable Energy Council (IREC) and presented specific regulatory recommendations from IREC’s February, 2015 report, “Deploying Distributed Energy Storage: Near-Term Regulatory Considerations to Maximize Benefits.” IREC recommended that the CPUC consider appropriate rate designs, including time of use rates and demand charges, to incentivize customer behavior related to energy storage. Consistent with comments from other speakers, Ms. Stanfield explained the importance of energy storage “benefit stacking” and the need to open-up markets for demand response and ancillary services that can be provided by aggregated energy storage systems. This, however, is a particular challenge in Colorado where there is no ISO or RTO to facilitate such market participation. IREC also recommended that the CPUC ensure that both interconnection and net metering policies and standards are clear and make sense when applied to distributed energy storage systems. Similar to a point made by Mr. Hanley, Ms. Stanfield encouraged the CPUC to integrate consideration of energy storage into the broader utility distribution system planning process. IREC’s final recommendation focused on the importance of a coordinated approach to safety in the context of industry codes and standards for energy storage. throughout the discussion, the CPUC Commissioners probed into the various policy and practical considerations associated with distributed energy storage and its potential applications in Colorado. While Colorado presently lacks the legislative mandate that is driving the deployment of energy storage in California, the Commissioners seemed most interested in identifying how regulatory initiatives could help build Colorado’s experience base related to energy storage. Chairman Joshua Epel framed the challenge as how best to “leap-frog” distributed energy storage in Colorado? Based on the panel discussion, it appears the answer will be a combination of regulatory incentives, creative approaches to realizing the system and monetary benefits associated with energy storage, and patience as technologies mature and utilities, customers, and storage providers gain more experience with deployed energy storage

Colorado’s Solar-Friendly Communities Go National

The thousands of solar installers in Colorado – as in many other states – have a hard time developing energy regulation. As with most other green businesses, they are often small shops in a nascent industry. Since the rules about rooftop solar are local (decided by towns or counties), more than half the cost of installation are now the “soft costs” of permitting and inspection, said Rebecca Cantwell, executive director of the Colorado Solar Energy Industries Association (COSEIA). But COSEIA’s Solar Communities program has made strides so far in streamlining the installation process, offering a $500 discount for customers of participating companies. The organization now hopes to expand its program to the rest of the country. Solar Communities is a program sponsored by a Department of Energy grant through the Sunshot Initiative and managed by COSEIA, which works directly with local governments to help them implement 12 best practices for rooftop solar. So far, Solar Communities has certified 16 communities in Colorado as “solar-friendly” cities, ranging from Denver to Lyons. This covers over half the population of the state. “Solar is growing incredibly fast,” said Cantwell. “Cities might not have the resources to deal with them, and companies (working in different towns) might have to learn 50 different ways of doing business. “Right now, putting solar panels on your roof is almost as complicated as a whole custom-home addition,” she continued. “But it should be as easy as getting a new furnace. It should almost be plug and play.” COSEIA’s staff has done a great deal of outreach to local governments in order to make this happen: In some cities, the city council took action, while some towns in Colorado learned about the program from each other. “In each case, it took a champion,” she said. The form is easy to look at online, and towns can start getting recognized by following the first three of the best practices the team developed. COSEIA’s 12 Best Practices for Local Governments (important enough to list all of them!) Provide a checklist of all requirements for rooftop solar photovoltaics and solar thermal permitting in a single online location Offer a standard permit form that is eligible for streamlined review for standard residential or small commercial rooftop flush-mounted systems Offer electronic or over-the-counter submittal and review options for standard systems Issue permits within a specified time frame Charge actual costs for permits and inspections with a cap on the total Replace community-specific solar licenses, if required, with standard certification for installers Provide inspection checklist that explains unique requirements beyond applicable codes Specify a narrow time window for system inspection For efficiency, require only one inspection for standard rooftop systems on existing homes or businesses Adopt ordinances that encourage distributed solar generation and protect solar rights and access including reasonable roof setback requirements Educate residents on solar energy by providing information on financing options and projected economic benefit Show your commitment to being a solar-friendly community by tracking community solar development and provide tools showing solar access in your community Some of the best practices may not seem like a big deal (they wouldn’t list fixing your website if there wasn’t a need), but what they really affect is time. “For installers, time is money,” as Cantwell said, but in this case, time is also the temperature of the planet.