Nevada PUC Sets Grid Guidelines To Encourage Distributed Energy Additions In Future

By Frank Andorka, Senior Correspondent

For all of Nevada’s struggles with solar energy – the inexplicable, precipitous shutdown of net metering that destroyed the rooftop industry for almost two years comes to mind – they are trying hard right now to bring about its renaissance.

First, they reinstated net metering. Now they’re on the verge of increasing the state’s renewable portfolio standard (RPS) through a well-funded, seemingly popular ballot initiative. And today, the Public Utilities Commission (NPUC) adopted a framework that will require investor-owned utilities (IOUs)to create Distribution Resource Plans (DRP), which will determine what resources and grid upgrades the utilities will need to make to meet consumer demand for electricity.

Essentially, the PUC is requiring IOUs to be thinking about how to integrate more distributed resources on to the grid in ways that they haven’t before – which means more clean energy adoption in the future because the grid will be ready for it.

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Starting in 2019, NV Energy (NVE) will be required to file these 3-year distribution plans as part of their triennial integrated resource plans, which will allow periodic opportunities for stakeholders to review, refine and determine the grid needs.

Over the past year, IREC, Vote Solar, and Western Resource Advocates participated alongside NVE, the Bureau of Consumer Protection and commission staff as part of the rulemaking to implement Senate Bill 146 – a bill that aimed to evaluate locational costs and benefits of distributed resources by adding the new DRP requirement for utilities.

The results from the collaborative effort established these principal components of the Nevada DRP process:

load and distributed energy resource (DER) forecasting;
locational net benefit analysis (LNBA) to identify high- and low-value grid locations for DER solutions;
grid needs assessment (GNA) to prioritize and screen projects that will address identified grid needs; and
hosting capacity analysis (HCA) to identify the available capacity for DER at particular points on the distribution network.

“IREC appreciates the commission’s forward-thinking approach to this process and setting forth a strong framework for Nevada’s distribution resource planning,” said IREC Regulatory Director Sara Baldwin Auck. “Nevada’s work will ensure consumer-driven clean energy resources are integrated and optimized on the grid for years to come.”

These four components will operate in tandem with the DRP. Each must function on its own as well as in conjunction with each other to ensure the DRP properly addresses identified grid needs with distributed energy resources and traditional resource solutions.

“A well-executed Distribution Resource Plan has the potential to create substantial benefits for families and businesses by leveraging solar, storage and demand response technologies in locations that will make the electric grid run more affordably and reliably,” said Ed Smeloff, director of grid integration at Vote Solar. “With the new regulations, Nevada is putting itself on the leading edge in Distribution Resource Planning.”

Nevada Comes All The Way Back, Bumps Into Net Metering Caps For First Tier

By Frank Andorka, Senior Correspondent

What’s happening in Nevada right now is frankly amazing.

If you had told most observers that Nevada would ever hit net metering caps after its Public Utilities Commission ended the program without warning at the end of 2015, they would have told you that you were crazy.

And yet, three years (and a lot of mea culpas later), here we are, with the state’s installed and applied-for solar capacity hitting the cap for what’s allowed by law at full retail net metering rates.

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What that means is that any rooftop solar installation will at this point be compensated at 88% of the retail rate in what is being referred to as Tier 2. There are currently four tiers in Nevada’s net metering program.

Nevada’s solar industry has been ping-ponging between support and opposition for the solar industry since December 2015, when the state’s Public Utilities Commission abruptly ended net metering, which compensates solar users for the excess electricity they export back to the grid. It caused several national solar installers to pull out of the state and set off a firestorm of criticism from the state’s rooftop solar industry, which cratered in response.

Obviously, the ping-ponging has come to a stop, as rooftop solar has clearly taken off under the latest round of legislation. Solar Industry has the details on what’s next:

Under A.B.405, NEM customers in the Tier II category will receive an excess energy credit of 88% of the retail rate for the net excess electricity sent back to the grid and beyond what was delivered to them by Nevada utility NV Energy over the monthly billing period (as opposed to 95% in Tier I). Customers in the Tier II category may have the opportunity to move into Tier I through attrition and until Tier I closes. Tiers III and IV have rates of 81% and 75%, respectively.

All this activity comes as a ballot initiative moves forward in the state to raise the state’s renewable portfolio standard to 50% by 2030. If the latest numbers from the PUC are any indication, Nevada and its solar industry are healthy and growing – something that should excite solar advocates everywhere.

More:

Nevada Hits Milestone For Newly Revived Rooftop Solar Market

Nevada Ballot Initiative To Increase RPS Appears To Be Headed To Voters, Reports Say

By Frank Andorka, Senior Correspondent

A report from the Reno Gazette Journal brings the heartening news that the Tom Steyer backed Nevada ballot initiative to bring Nevada’s RPS to 50% by 2030 likely has enough signatures to go to voters.

As of Monday, organizers told the paper they had nearly double the number of signatures necessary to put the initiative on the ballot. Typically, ballot initiatives need to have at least double the actual number of signatures to account for ineligible signatures being thrown out by the certification body.

The measure, backed by liberal billionaire Tom Steyer, would amend the Nevada Constitution to require electric suppliers provide at least 50 percent of their total electricity from renewable sources, like wind, solar and geothermal by the year 2030. Currently, only around 20% of Nevada’s electricity is produced by renewable sources.

As the spokesman for Nevadans For A Clean Energy Future said in a press release, referencing the 20% number:

For one of the sunniest states in the nation, that is not good enough. Currently, Nevada spends $700 million annually to import fossil fuels from out of state to power the grid.

The initiative is the latest attempt by the Silver State to get itself back into contention as one of the top solar states in the nation. Since unceremoniously ending net metering in 2015 – a policy blunder that the legislature has since reversed – Nevada has struggled to regain its place as a solar state.

Gaining enough signatures to put the issue on the ballot is a big victory for Tom Steyer, who was actively supporting similar legislation in Michigan until a deal surrounding a controversial billion-dollar natural gas plant was signed. Both DTE Energy and Consumers Energy have pledged to be coal-free by 2040 and have at least 50% of their electricity generation come from renewable resources within the same timeframe.

Recent polling suggests that if Steyer’s measure gets on the ballot, Nevadans will pass it.

Nevada Solar Soars After Legislators Got It Right (After The PUC Got It So Wrong)

By Frank Andorka, Senior Correspondent

What Happened:A recent Vote Solar note on Nevada revealed that the industry has come roaring back after legislative fixes in 2017 cleaned up the mess that lawmakers and the Public Utilities Commission created in 2016.

Most specifically, Assembly Bill (AB) 405 went into law and caused applications for NV Energy’s SolarGenerations program to spike 11-fold in just one year.

The bill also provided the right atmosphere to encourage solar installers to hire more workers, including one company that increased its workforce 300%.

Once state legislators stopped gambling with the future of solar in the state, Nevada’s industry has come roaring back.

SolarWakeup’s View: Well, better late than never, right?

After the Nevada Public Utilities Commission threw the state’s solar market into disarray with its precipitous decision to eliminate net metering in 2016, the rooftop solar industry all but stopped in the state. National companies like Vivint, Sunrun and (then) SolarCity fled the market in protest.

Two years later, advocacy group Vote Solar says legislative fixes have helped the industry rebound and thrive once again.

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As Rosalind Jackson of Vote solar writes:

(NV Energy’s) SolarGenerations applications went from 287 in 2016 to 3,308 in 2017, with most applications coming in the second half of the year, after AB405 was signed into law. This represents an 11-fold year-over-year increase and early monthly data from 2018 indicates continued growth.

Perhaps the best news from Vote Solar’s note is the reports of significant hiring in a state that needs jobs. Here’s what Larry Cohen, branch manager for Sunrun, a national solar installation firm with offices in Las Vegas, told Jackson:

Before the ink was dry on AB 405 – Nevada’s landmark Solar Bill of Rights – I started rehiring dozens of our workers who I was forced to lay off just 18 months earlier because of anti-solar net metering changes. We hope legislators across the country look to Nevada and see that there is incredible voter demand for solar choice. All states should take strong steps to protect access to clean, affordable local energy.

It’s a great thing to see the state with some of the highest insolation rates in the country getting its act together again on solar. Other states should see Nevada’s lost two years as a cautionary tale against changing solar policy recklessly without looking at all of the potential cosequences.

Like I said, better late than never – but those are two years of growth that Nevada solar industry won’t ever get back. And that’s a shame.

More:

Nevada Solar Applications Through the Roof Following Passage of Net Metering Bill