Panel
2016 CA Summit - Building a Renewable California
Milken InstituteMark Chediak, Caroline Choi, Wade Crowfoot, Robert Greene, Brad Heavner, Maureen Stapleton, Hania Sadat
- Future droughts in California are projected to become longer and more severe due to warmer winters, reduced snowpacks, drier soils, and increased evaporation, signaling a permanent shift away from traditional rainfall models.
- The energy storage market, specifically for homes and businesses, is expected to expand as software companies deploy control systems capable of learning building behaviors to manage rooftop solar and grid consumption.
- California intends to export expertise in electricity coordination and energy storage management globally once these solutions are fully developed.
- The water industry is anticipated to face fundamental innovation requirements similar to the energy sector to address evolving climate challenges.
- Future water supply strategies will prioritize increased recycling, with property owners needing to evaluate financial benefits for returning water to the system.
- Utility rate stabilization funds will continue to be utilized during drought years to prevent extreme rate fluctuations despite significantly reduced water usage.
- San Diego plans to make potable reuse, involving the blending of treated wastewater to drinking standards, a primary regional focus in collaboration with the State Water Board.
- The region is expected to adapt to the "one water" concept, normalizing reused water as a standard component of the supply chain.
- The utility holds a mandate to acquire a specific volume of energy storage by 2020.
- The utility anticipates receiving approximately 5,000 monthly applications from customers to connect rooftop solar systems to the grid.
- A tension exists between customer desires to conserve and generate power and the utility's need to maintain funds for a distribution system that guarantees 100% reliability when distributed resources are unavailable.
- Continued investment in technology, data, and communication devices is required to seamlessly integrate customer technologies such as solar systems and plug-in vehicles.
- Employee capabilities and skill sets must be developed to support a "plug-and-play grid" for all customers as distributed technology adoption grows.
- System optimization will be necessary to ensure all customers can rely on the distribution system as more customers adopt distributed technologies.
- The utility will continue to process solar applications rapidly to meet customer demand for cost savings, despite the associated integration costs.
- A debate is expected regarding the reliance on distributed resources versus maintaining a backup system capable of providing 100% power availability at all times.
- Investments are necessary to accommodate customer technology needs, including solar systems and plug-in vehicles, acknowledging the associated costs.
- State law mandating a 40% reduction in greenhouse gas emissions between 2020 and 2030 requires measures beyond utility-scale solar and rooftop projections.
- Conservation efforts will primarily rely on coordinating usage to prevent simultaneous high electricity demand across users.
- Telecommunications capabilities are predicted to be crucial for the water-energy nexus, enabling the coordination of electricity usage across many users.
- Ensuring reliable 24-7 renewable energy, including solar, wind, battery storage, and geothermal, is necessary to meet state energy needs.
- Utilities will face ongoing challenges balancing revenue needs with customer bill reductions driven by decreased usage or self-generation.
- Utilities and governments must address the expectation that ratepayers will pay more while consuming less, a dynamic described as difficult to satisfy.
- Massive education campaigns are needed to shift customer perception of water provision from volume-based to service-based models similar to cable TV.
- Pricing structures may shift to higher fixed charges to reflect technological changes and infrastructure cost requirements.
- The transition from a four-tier to a two-tier electricity rate structure aims to reduce the disproportionate impact on low-income customers while retaining conservation signals.
- A small fixed charge, estimated at $5 or $7, is expected for the minimum bill of residential solar customers, though the solar industry prefers price signals that allow for full bill elimination.
- Smart meter data and technical innovations will improve the analysis and forecasting of electricity needs to balance reduced infrastructure costs.
- Despite better data, predicting electricity needs to build the correct amount of infrastructure will remain a difficult challenge.
- The state needs to create better water markets to allow water to move from northern rights holders to southern users rather than populations moving to water sources.
- The current water transfer market is described as brittle, with approvals taking weeks or months, and a transfer with the Imperial Valley taking over eight years to complete.
- Creating desalination plants may lead to coastal development in pristine areas, creating a conflict between moving water, creating water, or moving people.
- The Hyperion wastewater treatment system could potentially address up to two-thirds of Los Angeles's water demand if treated to drinking standards, though this involves significant energy costs for pumping.
- A major earthquake on the Delta fault poses a risk of breaching levees and disrupting state water supplies for weeks or months.
- Modernization of large conveyance infrastructure, including the Delta, has been prioritized by Governor Brown despite debates over specific proposals.
- An aggressive program is expected to replace aging electrical grid infrastructure with latest technology, including remote fault indicators to enhance situational awareness.
- The City of Los Angeles faces a simultaneous need to replace water and electric infrastructure, requiring rate increases that are difficult for ratepayers to accept.
- Customers require ample time to understand rate increases and revenue usage during the transition to cover infrastructure costs.
- The state economy is expected to grow while transitioning to a post-carbon energy system, with the primary conversation focusing on the disruption to the current energy provision model.