ISO New England



Distributed Generation Forecast Working Group Meeting MinutesDecember 16, 2016Holyoke, MassachusettsOverviewOn December 16, 2016, representatives from each of the New England states presented to the Distributed Generation Forecast Working Group (DGFWG) on matters that could potentially affect the forecast including: state renewable policies, solar PV penetration and future expectations for solar PV growth. Their presentations are available here. At this meeting, the ISO reviewed its latest PV survey results (through August 31, 2016), which reflect statewide aggregated solar data provided to the ISO by distribution companies. The ISO also provided a tentative 2017 schedule for the DGFWG. For your convenience, a list of people participating at this meeting is included at the conclusion of these minutes. State Updates on Distributed Generation (DG) Policy DevelopmentsRepresentatives from state energy offices and utility commissions provided updates on distributed generation policies, DG penetration, and the availability of data. Brief overviews of each presentation including links to the presentations are below. Massachusetts UpdateBrian Ritzinger, Massachusetts Department of Public Utilities (presentation available here) Ritzinger provided an overview of recent state policy developments involving distributed generation. His presentation included the following chart which illustrates how installed on-site generation facilities (OSGF) have grown significantly in Massachusetts since 2008. The chart illustrates that the vast majority of the new on-site distributed generation built over the last decade has been solar. In 2016, the legislature passed two significant net metering related bills: (1) the Solar Energy Act passed in April 2016 increased net metering caps and requires the establishment of market-based net metering credits; and (2) the Energy Diversity Act passed in August 2016 allows small hydro to be net-metered. Currently there are more than 1,250 MWDC of installed solar renewable energy certificate (SREC) project capacity in Massachusetts, and in terms of applications received, the 1,600 MWDC cap was reached in February 2016. The current program has been extended while the Department of Energy Resources develops the market-based net metering credit program required pursuant to the 2016 Solar Energy Act. The extension of the existing program is expected to yield as much as 400 MW of additional solar projects. DOER is proposing a tariff-based incentive program and the formal regulatory process for the creation of the program is expected to begin in January 2017. The electric distribution companies in Massachusetts are required to register distributed generators as settlement only generators and money earned through the wholesale markets are to be used to help shield distribution companies from revenues lost from net-metered customers. Vermont UpdateEd McNamara, Vermont Department of Public Service (presentation available here)McNamara explained that most of what will govern distributed generation development in Vermont is a result of the Rrenewable Eenergy Sstandard (RES) that passed into law a few years back and goes into effect in 2017. The renewable standard is 55% in 2017 increasing to 75% in 2032. The renewable energy standardRES includes a distributed generation carve out which is intended to encourage the use of distributed generation to support the reliability of the state’s electric system, reduce line losses, diversify resources and mitigate and defer transmission and distribution level improvements. Under conservative assumptions, tThe DG carve out will is expected to require at least 25 MW of solar be added each year to meet the requirement and to include development supported by the Standard Offer and net metering programs (described below). The Standard Offer program was created in 2009 and provides incentives for generation units using renewable technology. From 2009 through 2012 solar rates varied from $0.24 to $0.30 per kWh. For 2013 through 2015, competitive solicitations were held and 9 PV projects were selected with costs significantly lower than the earlier fixed rates for 2009-2012. The competitive solicitations for 2013-15 ranged from $0.11 to $0.14 per kWh for solar. For the 2016 competitive solicitation, 2 solar projects were selected: a 2.16 MW project at $0.075/kWh and a 2.2 MW project at $0.1087/kWh. Going forward, the expectation is that solar will continue to be developed to satisfy the standard offer program requirements. Initially net metering caps were set at 2% of peak demand, then increased to 4%, and then to 15%, and now are set at 15% of a utility company’s peak demandthere is no longer a cap on net metered projects. Net metered projects are mainly PV. The previous 15% minimum requirement has been reached by nearly all utilities, and about 95% of net-metered projects are solar.. Effective January 1, 2017, each net-metered kWh generated is credited at retail rate with adjusters:+ $0.03/kWh if RECs provided to utility - $0.03/kWh if customer keeps RECs + $0.01/kWh for projects up to 150 kW on a preferred site - $0.01/kWh for projects over 150 kW on a preferred site - $0.03/kWh for projects 15 kW to 150 kW not on a preferred siteRhode Island UpdateShauna Beland, Rhode Island Office of Energy Resources (presentation available here) Beland explained that there were a handful of energy related policy changes implemented in 2016, including:The Renewable Energy Fund program (REF) extended until December 31, 2022The Renewable Energy Standard program extended and expanded to 38.5% renewable procurement by 2035Local property tax exemptions for residential and manufacturing for renewable energy systemsThird-Party Financing now allowed with the Net-Metering programChange in the eligible net-metered megawatt system size per site from 5 to 10 MWProgrammatic improvements (shared solar facilities, community residential) to the renewable energy growth (REG) program. . There will be 40 MW available in the 2017 program year for the renewable energy growth program, including almost 7 MW for small solar, 3 MW for medium solar, 5 MW for commercial, 3 MW for community, 15 MW for large and large community solar. The proposed ceiling prices for these solar projects range from $0.15/kWh to $0.35/kWh.In 2016 there were 224 small scale solar project applications received and 104 have been interconnected and 100 are under development. Similarly, there were 36 commercial scale applications received for over 33 MW of projects, of which 7 gave been interconnected for 113 kW and several large projects ranging in size from 2 to 3 MW under development. New Hampshire UpdateKaren Cramton, New Hampshire Public Utilities Commission (presentation available here)Cramton suggested that the two most significant policies that promote growth in distributed generation in New Hampshire include the rebates and grants associated with the state’s renewable portfolio standard and net metering opportunities. The most notable change over the past year was a net metering bill that passed at the end of the 2016 legislative session. In May 2016, HB 1116 passed into law. This legislation doubled the net metering limit from 50 MW to 100 MW. The additional 50 MW are allocated among Public Service of New Hampshire (Eversource), Unitil and Liberty Utilities. Of those 50 additional MW, 40 MW will be comprised of projects less than or equal to 100 kW and the remaining 10 MW will be larger projects greater than 100 kW but less than or equal to 1 MW. The chart immediately below notes net energy metering allocation by utility for the original 50 MW as well as the newly authorized additional 50 MW.Additionally there are almost a dozen distributed generation related bills that have been introduced for the 2017 legislative session. These bills focus on renewable portfolio standards and net metering. Maine UpdateDenis Bergeron, Maine Public Utilities Commission (presentation available here)Bergeron noted that there has been significant growth in net metering installations since 2009. Maine’s incentive mechanism for solar is currently limited to a net metering program, and solar PV makes up 78% of reported net metering capacity and is the fastest growing component of the net metering program. The current net metering rules require the Maine Public Utilities Commission to review net energy billing when it represents over 1% of utility peak demand. As this number was getting approached for Central Maine Power and Bangor Hydro, the PUC began reviewing improvements to the program. Accordingly, the PUC has developed a proposed rule that has yet to be finalized. Among other things, the proposed rule: increases size of generation eligibility from 0.66 MW to 1 MW; gradually reduces amount of energy subject to net energy billing arrangement; grandfathers existing net metering for 15 years; and adds consumer protection provisions to leasing arrangements.Connecticut UpdateMarcos Quispe, CT Department of Energy and Environmental Protection (presentation available here)Quispe detailed the many existing and new program in Connecticut which are responsible for recent and expected growth in distributed generation in the state. Among other things, these programs allow the Green Bank to install up to 300 MW of residential PV and allow DEEP to procure clean energy through competitive solicitations. The chart below illustrates the state’s cumulative annual existing and expected behind-the-meter and grid-side distributed generation installations for 2013 through 2021. August 2016 Distributed Generation Survey ResultsPatricio Silva and Victoria Rojo, ISO New EnglandSilva and Rojo presented the distributed generation survey results. The August 2016 survey results are shown in the table below and reflect statewide aggregated solar data provided to the ISO by electric distribution companies throughout the region. State Installed Capacity (MWac )Connecticut 246.45Massachusetts 1,173.56Maine 19.83New Hampshire 43.77Rhode Island 32.21Vermont 151.22New England 1,667.04Tentative DGFWG 2017 ScheduleThe tentative DGFWG 2017 schedule was released at the December 16 meeting. The working group will meet in February 2017 to discuss the 2017 draft PV forecast and the final forecast will be discussed in April and included in the 2017 Capacity, Energy Load, and Transmission (CELT) Report to be released and posted in May. Attendee ListFirstLastAffiliationFirstLastAffiliationJonBlackISO New EnglandLeslie MaloneAcadia CenterDorothyCapraNESCOEVictoriaRojoISO New EnglandMolly ConnorsISO New England BrianRitzingerMA Dept. of Public UtilitiesMichaelGiaimoISO New EnglandPatricioSilvaISO New EnglandMichaelHendersonISO New EnglandCarolWendelISO New EnglandJeffIafratiCustomized Energy SolutionsEricWinklerISO New EnglandParticipating By Call ListFirstLastAffiliationFirstLastAffiliationKaren CramtonNH Public Utility CommissionEdwardMcNamaraVT Dept. of Public ServiceJerryElmerConservation Law FoundationPaulPetersonSynapse Energy EconomicsScottEnglanderLongwood EnergySeylaPriceConnecticut Green BankJannyDongNational GridChrisRowsherSun RunJoe GredderNational GridMonicaGonzalezISO New EnglandBrian ThompsonMMWECBruceHoNatural Resources Defense Council ................
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