Investor-Owned Utility Solar Photovoltaic (PV) Programs
Background
In 2009, the Commission authorized Southern California Edison (SCE), Pacific Gas and Electric Company (PG&E), and San Diego Gas & Electric Company (SDG&E) to own and operate solar PV facilities (UOG) as well as to execute solar PV power purchase agreements with independent power producers (IPP) through a competitive solicitation process. In total, these programs were designed to yield up to 1,100 megawatts (MW) of new solar PV capacity in California over a five-year period. All energy produced under the Solar PV Programs has been RPS-eligible procurement on the utility-side of the meter, contributing to the state’s RPS goals.
Overview
Each IOU had similar, but slightly different program rules. The table below shows the differences between each program. The following sections provide updates on the status of each program.
|
Program |
Eligible Project Size |
Program Size |
Participating Buyers and Sellers |
Eligible Technologies |
|
1 – 2 MW |
500 |
91 MW UOG 125 MW IPP 250 MW Transferred to RAM |
Solar PV primarily rooftop |
|
|
1 – 20 MW |
500 |
152 MW UOG 92 MW IPP 200 MW Transferred to RAM |
Solar PV primarily ground-mount |
|
|
1 – 5 MW |
100 |
5 MW UOG 74 MW Transferred to RAM |
Solar PV primarily ground-mount |
SCE’s Solar PV Program
In 2009, Decision (D.) 09-06-049 authorized a five-year solar PV program to develop up to 500 MW of solar PV facilities in the range of 1 to 2 MW in SCE’s service area, primarily on existing commercial rooftops. Under the program, SCE was authorized to build and own 250 megawatts of utility-owned (UOG) solar photovoltaic capacity and to execute contracts up to 250 MW for generation from similar facilities owned and maintained by IPPs through a competitive solicitation process.
During the five-year program period, SCE sought, and the Commission granted several revisions of the UOG and IPP allocations including transferring a total of 284 MW to SCE’s portion of the Renewable Auction Mechanism (RAM) program, see Decision (D.) 12-02-035. In May 2013, Decision (D.) 13-05-033 finalized SCE’s total solar PV UOG allocation at 91 MW and the IPP portion at 125 MW.
By 2013, SCE had constructed and energized twenty-five solar PV UOG projects with capacity totaling 91.4 MW. From 2010 through 2015, SCE conducted five competitive solicitations for its IPP allocation, but the procurement target was not met due to a lack of offers received. In June 2016, the Commission found that SCE had met its obligations and granted its petition to formally end the solar PV program, Decision (D.) 16-06-044.
SCE continued to operate its UOG solar PV sites, however, the largest facility with 10.2 MW capacity, was decommissioned in 2019 when the building owner decided to replace the roof and SCE determined it was uneconomic to reinstall the solar assets. Following a localized rooftop fire on one of the sites in 2021, SCE performed a system-wide evaluation resulting in the de-energization of eight sites, See SCE’s Test Year 2025 General Rate Case Application (A.) 23-05-010, SCE-05, Vol 1. As of 2024, the Commission is considering the decommissioning of SCE’s remaining UOG solar PV sites as the least-cost alternative compared to repair and refurbishment needed to ensure safe and compliant operation of the facilities.
PG&E Solar PV Program
In 2010, Decision (D.)10-04-052 authorized a five-year solar PV program to develop up to 500 MW of solar PV facilities in the range of 1 to 20 MW in PG&E’s service area. Under the program, PG&E was authorized to install 250 megawatts of utility-owned (UOG) solar photovoltaic capacity at a rate of 50 MW per year and to execute contracts up to 250 MW for generation from similar facilities owned and maintained by IPPs through a competitive solicitation process.
By 2014, PG&E had developed 152 MW under the UOG portion of the solar PV program at 10 sites across its service territory and had procured 92 MW for the IPP portion of the program. Decision (D.) 14-11-026 granted PG&E’s request to close its solar PV program with the Commission finding the program had accomplished the intended goals of developing and transforming the smaller scale PV market in California. Decision (D.) 14-11-042 transferred the remaining, approximately 200 MW, capacity from PG&E’s solar PV program into its portion of the Renewable Auction Mechanism (RAM) program.
SDG&E Solar Energy Project
In 2010, D.10-09-016 authorized a five-year solar PV program to develop up to 100 MW of 1-5 MW solar PV projects in SDG&E’s service area. Twenty-six MW were to be developed by third-parties and owned by SDG&E, and SDG&E was to execute power purchase agreements for the remaining 74 MW with independent power producers (IPP).
In 2012, Decision (D.) 12-02-002 transferred the 74 MW IPP portion of SDG&E’s solar PV program to its Renewable Auction Mechanism (RAM) program. During the 2012 through 2013 timeframe, SDG&E issued a competitive solicitation for third-party solar PV development that resulted in an award for eight sites with the potential to accommodate 17 MW of solar capacity. Due to adverse geotechnical problems, higher than expected interconnection costs, and environmental permitting issues, only one of the sites ultimately moved forward through construction, achieving commercial operation in 2017. As of 2024, this 5 MW facility is still in operation, see SDG&E’s April 8, 2024, Annual Report on the Solar Energy Project.