Making Clean Local Energy Accessible Now 26 September 2013 Craig Lewis Executive Director Clean Coalition mobile Buildings of 2030 Vision driving Demonstrations, Certifications, Standards, and Codes

Making Clean Local Energy Accessible Now 2 Clean Coalition – Mission and Advisors Board of Advisors Jeff Anderson Co-founder and Former ED, Clean Economy Network Josh Becker General Partner and Co-founder, New Cycle Capital Pat Burt CEO, Palo Alto Tech Group; Councilman & Former Mayor, City of Palo Alto Jeff Brothers CEO, Sol Orchard Jeffrey Byron Vice Chairman National Board of Directors, Cleantech Open; Former Commissioner, CEC Rick DeGolia Senior Business Advisor, InVisM, Inc. John Geesman Former Commissioner, CEC Eric Gimon Independent Energy Expert Patricia Glaza Principal, Arsenal Venture Partners Dan Kammen Director of the Renewable and Appropriate Energy Laboratory at UC Berkeley; Former Chief Technical Specialist for RE & EE, World Bank Fred Keeley Treasurer, Santa Cruz County, and Former Speaker pro Tempore of the California State Assembly Felix Kramer Founder, California Cars Initiative Amory B. Lovins Chairman and Chief Scientist, Rocky Mountain Institute L. Hunter Lovins President, Natural Capitalism Solutions Ramamoorthy Ramesh Founding Director, DOE SunShot Initiative Governor Bill Ritter Director, Colorado State University’s Center for the New Energy Economy, and Former Colorado Governor Terry Tamminen Former Secretary of the California EPA and Special Advisor to CA Governor Arnold Schwarzenegger Jim Weldon Technology Executive R. James Woolsey Chairman, Foundation for the Defense of Democracies; Former Director of Central Intelligence ( ) Kurt Yeager Vice Chairman, Galvin Electricity Initiative; Former CEO, Electric Power Research Institute Mission Mission To accelerate the transition to local energy systems through innovative policies and programs that deliver cost-effective renewable energy, strengthen local economies, foster environmental sustainability, and provide energy resilience

Making Clean Local Energy Accessible Now 3 Clean Coalition Vision = Clean Local Energy

Making Clean Local Energy Accessible Now 4 Clean Coalition Overarching Objectives From 2020 onward, at least 50% of all new electricity generation in the United States will be from local sources. Locally generated electricity does not travel over high voltage transmission lines to get from the location it is generated to the area it is consumed. From 2020 onward, at least 80% of all new electricity generation in the United States will be from renewable sources. By 2020, policies and programs are well established for ensuring successful fulfillment of the other two objectives. Policies reflect the full value of local renewable energy. Programs prove the superiority of local energy systems in terms of economics, environment, and resilience.

Making Clean Local Energy Accessible Now 5 Zero Net Energy is Key Vision-driver for Buildings

Making Clean Local Energy Accessible Now 6 Vision drives Demos, Certs, Standards & Codes

Making Clean Local Energy Accessible Now 7 Buildings of 2030 Must Fit with Cities of Future

Making Clean Local Energy Accessible Now 8 Expect EV Chargers Everywhere EVs provide the CLEAN Bridge between Energy, Buildings, Cities and Transportation

Making Clean Local Energy Accessible Now 9 Plan for Renewables Everywhere within D-grid Distribution Grid Transmission Grid Project Size Wholesale DG Serves Local Loads Behind the Meter

Making Clean Local Energy Accessible Now 10 WDG is Key Market Segment with Superior Value The most cost-effective solar is large WDG, not central station due to significant hidden T&D costs Distribution GridT-Grid PV Project size and type 100kW roof 500kW roof 1 MW roof 1 MW ground 5 MW ground 50 MW ground Required PPA Rate 16¢15¢13¢9-11¢8-10¢7-9¢ T&D costs0¢ 2-4¢ Ratepayer cost per kWh 16¢15¢13¢9-11¢8-10¢9-13¢ Sources: CAISO, CEC, and Clean Coalition, Nov2012; see full original analysis from Jul2011 at Total Ratepayer Cost of Solar

Making Clean Local Energy Accessible Now 11 WDG Delivers Scale & Cost-Effectiveness Fast Solar Markets: Germany vs California (RPS + CSI + other) Germany has deployed 12 times more solar than California in the last decade despite California’s 70% better solar resource!!! Sources: CPUC, CEC, SEIA and German equivalents. Cumulative MW

Making Clean Local Energy Accessible Now 12 German Solar Pricing Translates to 5 cents/kWh Project SizeEuros/kWhUSD/kWh California Effective Rate $/kWh Under 10 kW kW to 40 kW kW to 1 MW MW to 10 MW Conversion rate for Euros to Dollars is €1:$1.309 California’s effective rate is reduced 40% due to tax incentives and then an additional 33% due to the superior solar resource Source: 10 September 2013 Replicating German scale and efficiencies would yield rooftop solar at only between 5 and 7 cents/kWh to California ratepayers

Making Clean Local Energy Accessible Now 13 German Solar Capacity is Small WDG (Rooftops) Source: Paul Gipe, March 2011 Germany’s solar deployments are almost entirely sub-2 MW projects on built- environments and interconnected to the distribution grid (not behind-the-meter) 22.5% 26% 23.25% 9.25% 19%

Making Clean Local Energy Accessible Now 14 US has Far Better Solar Resource than Germany

Making Clean Local Energy Accessible Now 15 Deployment Volume Drives Learning Curves Si learning curve Solar pricing is reduced by 20% for every doubling of deployed volume New technology learning curve Efficiency innovation

Making Clean Local Energy Accessible Now 16 DG+IG Initiative = Proving Feasibility of High DG Work with five utilities across the US to deploy a DG+IG demonstration project at each by yearend-2015 Prove viability of Distributed Generation (DG) providing at least 25% of total electric energy consumed within a single substation grid area Integrate Intelligent Grid (IG) solutions to ensure that grid reliability is maintained or improved from original level IG solutions include diversity and Energy Storage for sure, and potentially, advanced inverters, forecasting & curtailment, and/or Demand Response

Making Clean Local Energy Accessible Now 17 Benefits of DG+IG Power Quality, Reliability & Resilience benefits Increased customer satisfaction Improved equipment longevity Sustained vital services in otherwise complete blackout scenarios Avoided transmission & central generation vulnerabilities Economic benefits Significant private-sector investment Substantial local job creation Fixed electricity prices for 20+ years Localized energy spending Avoided inefficiencies of central generation & transmission Environmental benefits Avoiding dirty power generation, including nasty peaker plants that are often sited in underserved communities Utilizing built-environments and disturbed lands for generation projects Preserving pristine environments from transmission lines and other infrastructure

Making Clean Local Energy Accessible Now 18 Hunters Point = DG+IG Showcase BVHP has a long history of environmental degradation. Houses one third of San Francisco’s hazardous waste sites. Was downwind from California's dirtiest peaker power plant until community activism forced its closure in % of BVHP children suffer from asthma, and other chronic illnesses, 4x CA average BVHP has one of the highest poverty rates in San Francisco, with 30% of families earning less that $10,000 per year, and a median household income of $29,640 annually, as compared to $65,000 for white San Franciscans and a $55,221 average citywide. An overwhelming 72% of the African Americans in BVHP have incomes below the federal poverty level. Sources: Hunters Point Family and Grid Alternatives.

Making Clean Local Energy Accessible Now 19 Comparison of New Construction & Retrofit Hunters Point Substation serves Major Redevelopment Area & Continuing Urban Neighborhoods (30% & 70% of projected load respectively)

Making Clean Local Energy Accessible Now 20 Scope of Complete Hunters Point DG+IG Project Coordinating collaborative partners Providing redevelopment plans (SF Agencies) Providing full set of Distribution Grid (D-grid) details and loads (PG&E) Identifying prospective sites for Distributed Generation (DG) Establishing Modeling Platform Simulating existing D-grid scenario and DG+IG iterations for opitimized recommendations Defining Intelligent Grid (IG) performance requirements Identifying prospective sites for IG Solutions Assessing DG+IG benefits in terms of economics, environment, and grid efficiency, reliability & resilience Designing interconnection and procurement processes and procedures to stage for DG+IG deployments

Making Clean Local Energy Accessible Now 21 Replacing SONGS with DG+IG Huntington Beach 290 MVars (minus line losses = 261 MVars) Huntington Beach 290 MVars (minus line losses = 261 MVars) vs 570 MW of local solar with advanced inverters, oversized by 10% set at 0.9 Power Factor = 261 MVArs Local solar configured with advanced inverters alone can replace SONGS

Making Clean Local Energy Accessible Now 22 PV Potential of Top 25 Roofs in LA is Over 75 MW 100+ GW of Built-Environment Solar Potential in California vs 60 GW of Peak Load

Making Clean Local Energy Accessible Now 23 Back-Up Slides

Making Clean Local Energy Accessible Now 24 Renewables are Reliable Country Percent of electrical generation in 2007 from non-hydro renewables 2007 SAIDI – outage duration (minutes) 2007 SAIFI – outage frequency (number of outage events) Denmark29.4%230.5 Germany12%240.5 United States2.8% Sources: Galvin Electricity Initiative, Electric Reliability: Problems, Progress and Policy Solutions, February 2011 U.S. Energy Information Administration, International Energy Statistics, 2011

Making Clean Local Energy Accessible Now 25 DG+IG Keeps Power in Balance DR, ES shifts load ES, Auto-DR, curtail for steep ramp

Making Clean Local Energy Accessible Now 26 Replace SONGS – Energy Storage Potential Targets proposed by CPUC include 745 MW storage in Southern California

Making Clean Local Energy Accessible Now 27 DG+IG Projects Begin with Grid Modeling & Simulation

Making Clean Local Energy Accessible Now 28 DG+IG Policy Innovations Required Integrate Grid Planning Transparent and public T&D planning processes Proactively evaluate DG+IG alternatives to new transmission investments Necessary to meet goals re: renewables, EVs, costs, local job creation, resilience Implement Full Cost & Value Accounting Investments should reflect the full spectrum of rate impacts, economic growth, health, safety, and environmental sustainability Prevent bias against DG+IG (e.g. hidden transmission costs) Monetize DG+IG Grid Services Establishing markets that compensate at full value of grid services is fundamental to optimizing value for ratepayers Prioritize DG+IG Development in High Value Locations Identify preferred locations on the grid based on transparent cost & value criteria Set “Local Portfolio Standard” targets Update Technical Standards: Update national technical standards (IEEE/ UL) to allow DG+IG to provide grid services to the fullest potential