california electricity consumption

Recent study finds only small “learning‑by‑doing” benefits from policies. We develop and maintain a number of state-of-the-art models and analytical tools. “A Retrospective Analysis of the Benefits and Impacts of U.S. Renewable Portfolio Standards.” Lawrence Berkeley National Laboratory and National Renewable Energy Laboratory. Household Energy Use. If California passes the legislation it will sit alongside Hawaii as the only two states that will require 100% renewable energy use by 2045. Rates vary among LSEs. Electricity Sector Primary Driver of GHG Emission Reductions. “Back‑of‑the‑envelope” calculations suggests program reducing emissions at moderate direct cost (about $60 to $70 per ton). The General Market Program stopped accepting applications for incentives in 2016. Overview of Electric Grid. California. It is expected to reach 55 million by 2050. We offer a number of grant and loan programs that support integrated water management activities. Generation from natural gas, large hydroelectric, and unspecified sources have all varied over this time period. “Learning‑by‑Doing in Solar Photovoltaic Installations.” Working paper, April 3 version. Using unique micro data, we document the role that household demographics and ideology play in determining electricity demand. These changes also reduce the amount of the cost‑shift to nonsolar customers. These include: Research Shows Potential for Significant Resource Shuffling, but Not Much Retrospective Evaluation. According to Dell, its energy intensive Alienware consumes 63 kWH a year when idle, but it can use 563 kWh when the CPU is stressed. CERS has been transitioning operating responsibility back to the utilities and has a planned sunset of 2022. In response to state legislation, CPUC made some changes to the NEM program in 2016. Market prices for allowances suggest the marginal costs for emission reductions encouraged by the program have been less than $20 per ton, but the overall amount of emission reductions from electricity generation attributable to the program are unclear. Overall Generation Relatively Steady, but GHG Intensity Has Declined Substantially. (2014). State's electricity use per capita per year is around 12,614. In 2018, IOUs provided about 55 percent of electricity to California customers, POUs provided about 25 percent, and CCAs and ESPs provided about 10 percent each. As shown in the figure, the electricity sector has been the major source of absolute emission reductions over the last decade. Under NEM, the utility effectively pays solar customers (through a bill credit) for the excess electricity they generate that is exported back to the grid. The research on the effects of distributed solar on distribution costs is somewhat limited but shows mixed results. Some version of NEM has been in place since 1996, but has been modified several times since then. We did not identify any retrospective empirical research that identified the degree to which SB 1368 contributed to this decline. The key mechanism by which NEM provides financial incentives for customers to install distributed generation is through shifting fixed costs from solar customers to nonsolar customers. It is also worth noting that we relied on total system generation data from the CEC to estimate renewable generation. figure 1: California per Capita electricity Consumption vs. rest of the nation 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Most notably, the cost report includes an estimate of what energy expenditures would have been without the RPS. DWR established the California Energy Resources Scheduling division (CERS) to buy and sell electricity on behalf of big utilities and to purchase the remaining energy requirements (“net short”) for their retail customers. These include: In this section, we summarize our understanding of the major effects of California’s policies to reduce electricity emissions. As emissions targets become more ambitious in future years, cap‑and‑trade could result in significantly higher costs and emissions reductions associated with electricity generation. In addition, Chapter 312 of 2018 (SB 100, de León) establishes a state policy of 100 percent zero carbon electricity by 2045. The State Water Project (SWP), operated by DWR, is both a major producer and consumer of electricity. In the future, the Legislature might want to consider relying more heavily on the most cost‑effective programs, such as cap‑and‑trade. Working Paper 25087. Likely a contributing factor to the global decline in solar prices. The standard prohibited LSEs from building new generation or signing new long‑term contracts with generation sources that emit more than 1,100 pounds of carbon dioxide per megawatt hour. Users can generate reports showing the amount of energy consumed by geographical area, sector (residential, commercial, industrial) classifications. To the degree this occurs, the reduction in the carbon intensity of California’s electricity supply would not actually reflect a net reduction in low‑carbon generation. However, based on findings from a recent working paper, electricity rates in California are more than twice as much as the marginal social costs of providing electricity in California, even after accounting for environmental damages. Roughly 70 percent of electricity consumed in California is generated in‑state and the remaining 30 percent is generated out of state but imported into California through transmission lines. While it is clear such advantages might exist, the magnitude of these benefits—and the degree to which state policies might be needed to help promote these actions—are unclear. And the situation was actually worse than that. According to CEC estimates, 34 percent of statewide retail sales in 2018 were met by RPS eligible resources. The statewide budget for these programs was $3.3 billion over a ten year period—from 2006 to 2016—with about $2.7 billion going to the CSI. Based on conversations with stakeholders and researchers, the effect on electricity sector emissions is generally thought to have been relatively modest compared to other policies, such as RPS. LG launches an enormous 325-inch TV with an eye-watering £1.2... Just three percent of prehistoric humans mated with their family compared to TEN PERCENT of today's global... Alienware Aurora Gaming Desktop with AMD Ryzen 5000 Series Processors | Dell USA, Dell won't ship energy-hungry PCs to California and five other US states due to power regulations • The Register, Dell Can't Sell This Gaming PC in California Because It Uses Too Much Power. For cap‑and‑trade, the level of costs is clearer than the level of emission reductions. Solar panels produce energy at DWR’s Pearblossom Pumping Plant in Pearblossom, Calif. DWR/2018. Second, we released Assessing California’s Climate Policies—Transportation, which applied that framework to the various state programs designed to reduce GHG emissions from the transportation sector. The 1976 Warren-Miller Lifeline Act established the baseline statute (CAL PUC Code § 739) in response to the . To maintain these licenses, DWR must comply with the terms and conditions to protect, mitigate and enhance beneficial public uses of hydropower projects. Although more difficult to estimate, these costs—particularly the integration costs—could be a substantial part of the overall costs of implementing RPS in future years. 'Once certified, manufacturers are required to submit their documentation and data to the CEC to be uploaded into the agency's online [database].'. Load serving entities provide electricity to end users. Allowance prices are an indicator of the marginal costs for emission reductions encouraged by the cap‑and‑trade program. In this section, we discuss some of the key issues for the Legislature to consider going forward as the state modifies and adopts policies to achieve its GHG goals. State Policies Likely a Substantial Driver of Reductions . Based on our review of the available information, there has been substantial differences in the costs of reducing emissions between cap‑and‑trade (marginal cost that are currently less than $20 per ton), RPS (average costs of about $60 to $70 per ton or more), and distributed solar policies (average costs of roughly $150 to $200 per ton). CSI Increased Adoption of Rooftop Solar, but Significant Portion of Rebates Went to “Free‑Riders.” As discussed earlier, total distributed solar PV generation reduced annual emissions by up to 6 MMT in 2018. For example, state policies that reduce emissions from sources that are covered by the cap‑and‑trade program—such as electricity sector policies that reduce emissions from in‑state generators and importers—might simply free up allowances for other sources to emit more. In addition, the current RPS reporting requirements do not require CPUC to estimate the GHG emission reductions associated with the program. The electricity crisis in California is so bad that the state will pay some power customers to use backup power generators and ignore their carbon emissions targets. California Solar Initiative (CSI). The difference in cost could be due to a variety of factors, including higher installation costs per unit for rooftop solar due to economies of scale and greater ability to install utility‑scale solar in locations that have the most sunlight to maximize generation. Qualifying renewables include solar, wind, biomass, geothermal, and small hydroelectric. “Lazard’s Levelized Cost of Energy Analysis—Version 13.0.”. These contracts were more expensive than recent wind and solar contracts. Even with the most sophisticated modeling tools available, it is unclear whether it would be possible to precisely estimate the total effect of California policies. Finally, by making high‑carbon electricity more expensive relative to low‑carbon electricity, cap‑and‑trade likely reduced the GHG intensity of electricity purchased by California LSEs. DSOD regulates more than 1200 dams to prevent failure, safeguard life, and protect property. However, these policies generally were a more expensive method for reducing emissions than policies focused on utility‑scale renewables. Distributed generation, such as rooftop solar PV (photovoltaic), technically can qualify. During this same period, there was a net increase of more than 5 MMT from other sources of emissions. As discussed above, many of the emission reductions in the electricity sector have come through reduced emissions intensity of imports. For example, high rates might make it more expensive for a business to produce valuable goods and services in California. California's top energy bosses . Our work in statewide flood forecasting and flood operations help reduce flood risk. . If there are learning spillovers—where, for example, one firm learns how to install solar more efficiently but other firms also learn from that experience—then there could be an economic rationale for government policies that encourage greater deployment of new technologies. Peak times may vary by rate and/or energy provider but are generally defined as the hours between 4 to 9PM. Cullenward, D. (2014). This is because procurement costs for renewable energy are likely to be much lower in the future due to declining renewable prices, but this could be at least partially offset by higher integration costs. California's energy infrastructure routinely encounters in comparison with the probable impacts. The California ISO manages the flow of electricity on high-voltage power lines, operates a wholesale energy market, and oversees infrastructure planning. View current and historical data for demand, net-demand, supply, renewables, CO2 emissions and wholesale energy prices. However, other factors—such as declines in natural gas prices and cap‑and‑trade—were also likely important. Sergici, S., Y. Yang, M. Castaner and A. Faruqui (2019). Drought is a reoccurring feature of California’s climate. Many of these reductions are likely attributable to the RPS. DWR has been proactively responding to the evolving power market by reducing reliance on fossil fuel energy resources, assisting in maintaining grid reliability, and controlling energy costs for water customers. Costs of emission reductions under CSI (roughly $150 to $200 per ton) likely significantly higher than RPS. Much of the information on the effects of the RPS was based on multiple reports that were required from CPUC on an annual basis. In the early morning just as we start our day and start using energy, California taps into a . The exact path to 100% zero-carbon electricity is unknown but must assure safety, reliability, resiliency and affordability. Different Potential Mechanisms for Resource Shuffling or Leakage. Figure 14 summarizes the key findings from our review of the effects of the state’s major climate policies affecting the mix of electricity generation. 3.1. The comments below have not been moderated. In 2020, hydro-produced electricity used by California totaled nearly 21,414 gigawatt-hours (GWh),or 11.22 percent of California's in-state generation portfolio. Because of DWR’s expertise as a water and power utility, Governor Newsom’s emergency proclamation issued on July 30, 2021 directed DWR to work with the California Energy Commission (CEC) to develop projects to expand energy and supply storage to respond to energy shortages caused by climate change. The restrictions stem from the idea that California is the most populous state in the nation, has the largest economy, and is second only to Texas in total energy consumption. Policies likely substantial driver of emission reductions, but actual magnitude is unclear. The energy produced—which is highly variable due to changes in annual hydrologic conditions—averages around 6 billion kilowatt-hours (kWh) a year. Although this estimate is imperfect, it provides a rough sense of the RPS’s higher generation costs. With these details in mind, California officials began releasing a different list of restrictions every few years with Tier I restrictions  rolling out January 2019, which allowed no more than 50, 80 or 100 kWh a year for systems made from then up until July 2021. Rooftop Solar Much More Costly Than Utility‑Scale Solar. More recently, other types of nonutility LSEs are providing an increasing share of electricity to customers. Resource shuffling occurs when, in response to California climate policies, the mix of existing electricity supplies changes so that more low‑carbon electricity is sent to California while more high‑carbon electricity is sent to other states. As discussed above, our back‑of‑the‑envelope calculations suggest large‑scale renewables reduced emissions by roughly 24 MMT annually between 2009 and 2018. Program includes other emitters outside of the electricity sector, and entities can buy and sell allowances. Find definitions of key terms and concepts related to our work. Decisions by households and businesses about whether or not to adopt these alternative technologies depend, in part, on electricity rates. (Unspecified imports are imported electricity where it is not possible to identify the specific generation sources used to produce the electricity.) Availability of Clean Energy. Additional information on these costs could help inform future legislative decisions about potential changes to the program. 9PM to 6AM. Pursuant to California's landmark legislation, AB802, every utility in California is required, as of January 1, 2017, to provide a year's worth of monthly energy consumption for an entire building to an owner (or owner's agent) upon request, provided that building consists of three or more commercial utility accounts or five or more accounts . We protect life and property from catastrophic events such as flood, drought, and infrastructure fai ... We work with communities and emergency responders to prepare for flood season. For example, using other state funding sources would require a reduction in funding for other state programs and/or additional revenue collected from taxpayers. The Alienware Aurora R12 Gaming Desktop without the 11th Gen Intel Core Processor is the only model that can be shipped to all 50 states, the other three systems with the powerful chip, which range in price for $1,099 to $2,409.99, cannot. The database also provides easy downloading of energy consumption data into the comma-separated values (CSV) file format. There are some other areas where rooftop solar has clear advantages over utility‑scale solar. Our assessment is based on a review of academic studies and various reports; our own analysis of data from government agencies and researchers; and conversations with various stakeholders, agencies, and researchers. RPS Reports Might Be Guide for Other Climate Programs With Potential for Some Improvements. It's as simple as shifting when you use energy. Key Issues for Legislative Consideration. There are 3,412 Btu in each kilowatt-hour of electricity. Assessing California's Climate Policies—Electricity Generation, Major Policies to Reduce Electricity Sector Emissions, Electricity Sector Is Primary Source of State Emission Reductions, Policies Likely Substantial Drivers of Emission Reductions, but Actual Magnitude Unclear, RPS Likely a Significant Driver of Reductions At Moderate Costs Per Ton, Rooftop Solar Policies Generally More Costly, Resource Shuffling Potentially Offsets Some of the Emissions Reductions, Mix of Policies Likely Not Most Cost‑Effective Way to Reduce GHGs, High Electricity Prices Could Be Barrier to Future Emission Reductions, Changing mix of resources used to generate. These include: No Rigorous Analysis of Overall Effects of State Policies. Such an analysis would likely require complex statistical modeling to estimate the effect of state policies. Figure ES-3. And some plants are being closed decades earlier than planned. Direct compliance costs for investor‑owned utilities (IOUs) likely over $1 billion annually, or 5 percent of total electricity costs. July tends to be the hottest month of the year. RPS Likely a Substantial Driver of Emission Reductions at Moderate Cost Per Ton. Bollinger, B. and K. Gillingham (2019). In the next sections, we review the effects of the RPS, rooftop solar policies, SB 1368, and cap‑and‑trade. As described above—and similar to findings in our 2018 report on transportation policies—we found a lack of rigorous retrospective evaluations of the major effects of some of the state’s climate policies related to electricity generation. Some of the key changes included charging new NEM customers a one‑time interconnection fee and a requirement that new NEM residential customers use time‑of‑use (TOU) rates. In addition, some allowances are given away for free. The program had a declining incentives structure. Independent Emissions Market Advisory Committee (2018). In 2018, we issued two reports in fulfillment of this requirement. Higher electricity rates could discourage some adoption of these lower‑carbon technologies. The increased costs for higher‑carbon electricity are also intended to provide an incentive for customers to reduce their consumption. Maximum pumping is scheduled during off-peak periods (nights, solar hours, weekends and holidays) when power costs are cheaper. However, below we provide a back‑of‑the‑envelope calculation to provide a rough sense of the costs per ton—focusing on only the estimated differences in procurement costs. These reports provide helpful information on the past and current effects of the program. Play it now. Some of the key areas where the Legislature might want to consider additional reporting requirements and/or funding for research efforts include: As the state’s GHG goals become more stringent, the overall costs to reduce emissions is likely to grow. OVERVIEW OF ELECTRICITY SECTOR EMISSIONS Electricity Sector Background Overview of Electric Grid. These include community choice aggregators (CCAs), which are local government‑run entities that buy electricity for customers but use IOU distribution to deliver the electricity, and electric service providers (ESPs), which are private entities that sell electricity directly to commercial customers in IOU territories. Our work aims to protect natural ecosystems’ abilities to meet the needs of future generations. Residential consumption has increased nationwide, but the sharpest rises have been in New England, Illinois, and California. (This is similar to the justification for governments funding research and development to create knowledge that is publicly available.) By making a few small changes to your routine you can help create a big change for California. “Leakage in California’s carbon market.” Electricity Journal 27(9): 36‑48. Cohen, M.A., B.A. Similarly, households might avoid electricity consumption that is valuable to them, such as setting the home thermostat at a more comfortable temperature. Some stakeholders argue that rooftop solar reduces a utility’s costs associated with building out its distribution network. The renewable generation in these states has been driven by such things as lower unsubsidized costs for renewable generation (especially wind) and federal tax credits. Level of Cap‑and‑Trade Costs More Clear Than Level of Emission Reductions. California's power grid operator has issued a statewide alert urging residents to cut back electricity use Wednesday due to higher-than-normal temperatures expected in Northern California and . Over the past couple of decades, the state has implemented a variety of policies intended to reduce GHG emissions from electricity generation. Other Future Reporting and Research Priorities. The revenue from these sales helps keep the net cost of water deliveries more affordable. County *. Sector *. The price you pay for electricity depends on numerous factors including (but not limited to) your location, time of year, consumption, and market changes/disruptions. In 2018, California's energy consumption was second-highest among the states, but its per capita energy consumption was the fourth-lowest due in part to its mild climate and its energy efficiency programs. The only empirical research we are aware of is a working paper that found emissions decreased by 12 million tons annually in California and increased by about 8.5 million tons in other parts of the western United States after cap‑and‑trade was implemented. While there are significant challenges associated with evaluating the overall effects of state policies in the electricity sector, there is some information available about the effects of specific policies. 3.9. Every electric utility in California making energy sales to consumers must collect and remit to the state the amount of surcharge . State policies likely a substantial driver of reductions, but a wide variety of other factors also likely influence emissions. These issues include program evaluation, cost‑effectiveness, and how high electricity rates could potentially serve as a barrier to long‑term GHG reductions. The biggest program used to achieve this goal was the CSI, which provided financial incentives to install rooftop solar on businesses and existing homes in IOU territories. The state projects that electric vehicles will consume 5.4% of the state's electricity, or 17,000 gigawatt-hours, by 2030. The Legislature might want to require more reporting on RPS related to these costs. Energy consumption calculation. Climate change can have a profound impact on California’s water resources. Future program costs could be much different than past costs. As of 2018, per capita consumption was the fourth-lowest in the United States partially because of the mild climate and energy efficiency programs. The SWP has one of the cleanest power portfolios of all major utilities in California. In other words, consider how policies in one sector—such as electricity—affect emissions in other sectors—such as transportation fuels and fuels for home appliances. Figure 10 compares the growth in non‑hydroelectric renewable generation in different regions of the United States to the minimum growth required by state RPS policies in each region. If direct procurement costs are about $1.1 billion higher, then the program is reducing emissions at a cost of roughly $60 to $70 per ton. Academic studies consistently find that the CSI rebates offered for solar installations were mostly or fully passed through to consumers in the form of lower prices for the solar installations, rather than increasing profit for businesses selling the units. 24756. The Legislature might want to consider actions that encourage LSEs to adopt retail electricity rates that more closely reflect the marginal costs of providing the electricity. Wiser, R., G. Barbose, J. Heeter, T. Mai, L. Bird, M. Bolinger, A. Carpenter, G. Heath, D. Keyser, J. Macknick, A. Another focuses on the costs associated with RPS procurement. This water storage and delivery system provides water to almost 27 million Californians and 750,000 ... We assist agencies and individuals with agricultural and urban water conservation. Most Declines Have Come From Imported Electricity. Search for current and historical weekly data on refinery production and output in California. . California passed new energy restrictions on consumer goods in 2016, but the standards did not take effect until 2019. https://doi.org/10.17605/OSF.IO/FE25W. In the following section, we identify and discuss key issues for future legislative consideration. 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