Project Overview
To combat climate change and to create a cleaner, greener city, the Los Angeles Department of Water and Power (LADWP) is aggressively working to increase the amount of renewable energy supplied to customers. This will reduce LADWP’s reliance on coal and other carbon-based energy sources that contribute to global warming.
Solar power, the city’s most abundant renewable energy resource, is vital to that effort. The Solar Generation Component of LADWP’s Renewable Portfolio Standard (RPS) calls for creating close to 2,485 gigawatt-hours—approximately 1,280 megawatts—of solar generation by 2020. This will be accomplished by developing publicly-owned solar facilities as well as working together with customers and private industry.
Challenge of Climate Change
Climate change is a reality, and carbon-based energy sources, particularly coal, create greenhouse gases that cause global warming. LADWP currently relies on fossil fuels for about 70 percent of the energy supplied to the city’s 4 million residents. The energy mix is dominated by coal, hovering at 44 percent of our power supplies. Natural gas, which is cleaner than coal but still emits greenhouse gases, represents 26 percent.
LADWP’s aggressive RPS goals are to increase retail sales of renewable energy to 20 percent of power supplied to customers by 2010 and 40 percent by 2020. LADWP also is mandated by AB 32, the state’s Global Warming Solutions Act of 2006, to reduce greenhouse gas emissions to 1990 levels by 2020, and 80 percent below 1990 levels by 2050. In addition, Mayor Antonio Villaraigosa’s Green LA Plan seeks to cut greenhouse gas emissions to 35 percent below 1990 levels by 2030.
Benefits of Solar
Solar power offers many benefits that make it uniquely suited for Los Angeles. Solar offsets greenhouse gas emissions, improves air quality, diversifies the energy supply, reduces the city’s dependence on imported fuels, and provides a hedge against spiking fuel prices. Solar is most available during sunny afternoons, which often coincide with peak-demand periods when higher electricity use is most expensive and puts the most strain on the infrastructure. Currently, LADWP meets this demand by firing up “peaking” natural gas generators. Solar offers a sustainable, carbon-free “peaking resource” alternative to natural gas-fired generation.
Expanding solar power for Los Angeles will help jump start the city’s economy and grow local green jobs.
Solar Generation Component
The L.A. RPS Solar Generation Component is a multi-faceted approach to build out solar power in Los Angeles through customer- and municipally owned solar systems, and in partnership with private industry. The elements include:
Utility-Built Solar: For several years now, LADWP has been installing solar panels on municipal buildings. This program, which utilizes the local workforce, will be ramped up to achieve 50 megawatts of capacity by 2010, with a goal of achieving 400 megawatts installed by 2014.
Large-Scale Power Purchase Agreements (PPA): Implemented to achieve the RPS goals, PPAs enable LADWP to purchase utility-scale renewable energy from new or existing facilities through long-term contracts. The Niland Solar Farm, located in Imperial Valley, is the first such large-scale solar power agreement and will provide 55 megawatts of solar over 30 years.
Feed-In Tariff: A new program that will enable third-party solar power providers to develop solarphotovoltaic systems on private property and sell the energy to LADWP.
SunShares: A new program for customers to own “virtual” shares of a solar power system. (Sometimes known as community solar programs.)
Solar Incentive Program: LADWP’s traditional solar incentive program provides rebates to residential and non-residential customers who install solar photovoltaic systems on their own rooftops.
Solar Goals for 2010
LADWP plans to develop 160 megawatts of solar power by the end of 2010. The majority of this generation will be achieved through the Utility- Built Solar program, PPAs, and the Solar Incentive Program. During this time, LADWP will begin planning and ramping up to launch the new elements, including Feed-In Tariff and SunShares.
Public Participation
LADWP is seeking input from ratepayers, solar industry representatives and other stakeholders through public workshops, which are being held in September 2009. Dates and locations of the workshops are posted on the Public Workshops page of this website.
Input received during the workshops will be incorporated in a summary report prepared for the Board of Water and Power Commissioners.
More Information
For more information about the L.A.RPS Solar Generation Component, please continue to watch this website for updates.