The Power of the Sun: PUC Explores Solar Resource Value in Oregon
Posted on December 16, 2015 by Nadine Hanhan
Tags, Energy
In 2013, the Oregon legislature passed House Bill 2893, which tasked the Oregon Public Utility Commission (PUC) to investigate the resource value of solar. The resource value of solar is essentially the value that solar energy brings to the electric grid. So, for example, if homeowners install solar panels on their roofs, they will consume some of the energy they produce. The energy they consume from their solar system is energy they will not consume from the grid. Because they are consuming energy directly from the source (e.g., their home), this means that they do not consume as much power from a coal plant or a natural gas plant far away. This is one example of an avoided cost to the system, and part of what could eventually be considered part of the resource value of solar.
All of the “elements” of the resource value of solar (such as the avoided costs explained above) have gone through a rigorous discussion process among Oregon stakeholders. Currently, this investigation is being held under docket UM 1716. On July 20th of this year, CUB submitted comments about what we think should be used to determine solar resource value. Among the components we believe should be considered are avoided costs (these might include, but are not limited to fuel costs, plant maintenance costs, and capital costs of alternative resources that solar energy displaces), avoided carbon costs, and currently regulated environmental pollutant costs (such as NOx and SO2 emissions). Our full list of elements can be read here.
Keep in mind that although CUB thinks these elements should be included, the jury is still out on what will actually be included in the resource value of solar. Ultimately, the PUC issued an order allowing PUC Staff to use a third-party consultant to identify the elements and methodology about Oregon solar resource value. CUB is excited about this idea and looks forward to future developments in the analysis.
Though Oregon stakeholders have been participating in this process for over a year now, there is still a ways to go. We still have a number of workshops planned, as well as more analysis and testimony. The resource value of solar is an exciting topic that will determine the benefits of solar energy to the electric grid, so stay tuned for future updates!
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12/27/16 | 0 Comments | The Power of the Sun: PUC Explores Solar Resource Value in Oregon