Four Community Choice Aggregators (CCAs) in California have finalized agreements for 393.5MW of solar PV capacity and 171MW (684MWh) of battery energy storage within the state.
This week, Central Coast Community Energy (3CE), the Clean Power Alliance (CPA), Peninsula Clean Energy (PCE), and Silicon Valley Clean Energy (SVCE) from California sealed agreements with Clearway Energy Group, the project developer and owner. These contracts are set to last for 15 years.
CCAs are entities that consolidate the purchasing influence of local organizations and energy users within a specific region to obtain energy supply agreements independent of large-scale energy utility companies.
The solar PV capacity originates from the Arica solar project and the Victory Pass solar-plus-storage project located in Riverside County, California. Together, these sites boast a total nameplate capacity of 463MW for PV and 186MW for energy storage. Clearway Energy has made substantial investments in California’s solar and storage industry, having recently obtained $700 million in construction funding to bolster a collection of solar and energy storage initiatives within the state.
In a collective announcement, the CCAs declared that similar groups have secured 14GW of fresh, environmentally friendly capacity in California thus far, amounting to signed contracts worth $25 billion.
According to Leuwam Tesfai, the deputy executive director of the California Public Utilities Commission (CPUC), “In order to meet California’s renewable energy objectives, the CPUC directed load-serving entities such as Central Coast Community Energy and Peninsula Clean Energy to introduce more than 18,000MW of new, sustainable resources by 2028.”
“Initiatives like the Arica and Victory Pass solar and storage project showcase the progress being made towards California’s ambitious carbon reduction objectives.”
CPUC policy changes
In recent months, the CPUC has introduced and approved a series of policies that have diminished the incentives for deploying small-scale, distributed solar resources, which are frequently independent of significant energy utility companies. These rulings have consistently faced backlash from players within the solar industry.
In March, a Proposed Decision (PD) to alter California’s regulations regarding community solar was labeled a “major misstep” by a director at the Coalition for Community Solar Access. The proposed changes were put forward by utilities.
Governor Gavin Newsom recently supported a CPUC ruling that prohibits schools and apartment buildings from utilizing electricity generated by solar photovoltaic systems installed on their premises. A representative from the industry association Advanced Energy United remarked, “California is overlooking a significant chance to assist schools in reducing their energy expenses” by endorsing this decision.
In November 2023, the CPUC modified the virtual net energy metering (VNEM) program for multi-meter properties, significantly reducing the compensation for utilizing solar energy produced on-site. Bernadette Del Chiaro, the Executive Director of the California Solar and Storage Association (CALSSA), remarked, “The primary beneficiaries in this scenario are the large utilities and their shareholders.”
The CPUC and Governor Newsom have offered several justifications for the alterations to California’s solar regulations. Newsom stated that rejecting the CPUC’s suggestion for schools and apartment buildings “would raise costs for the majority of customers to subsidize specific customers, including public schools, who install solar PV systems on their premises.”
California is renowned for its “duck curve,” a phenomenon where solar power generation peaks during the midday, causing electricity prices to plummet close to zero. Prices then surge as the sun sets and power demand reaches its peak. This dynamic places strain on the grid and the financial performance of energy utilities, contributing to the CPUC’s decision to modify its residential net metering policy last year.
