As California and other states have required utilities to buy more renewable power, demand for the RECs has skyrocketed. So has their price, from $15 to $75 a megawatt-hour in the last two years
Philippines-based Sogod Energy has been approved by the municipality of Medellin to build a state-of-the-art solar power generation facility capable of producing more than 730 MWp annually
As California works towards its ambitious clean energy vision, an almost counterintuitive challenge has emerged: The state is, at times, generating more solar than it can handle.
At the end of 2023, California had a total of 46,874 MW of solar capacity installed, enough to power 13.9 million homes in the state. California ranked as the highest solar power generating state in the nation, with solar power providing for 28% of the state''s electricity generation. [2]
From January to mid-July of this year, zero-carbon, renewable energy exceeded demand in California for 945 hours during 146 days — equivalent to a month-and-a-half of 100% fossil-fuel-free electricity, according to the California Energy Commission, the state agency tasked with carrying out the clean energy mandates.
The CEC estimates that in 2020, 34.5 percent of the state''s retail electricity sales were served by Renewables Portfolio Standard (RPS)-eligible sources such as solar and wind. When sources of zero-carbon energy such as large hydroelectric generation and nuclear are included, 59 percent of the state''s retail electricity sales came from non-fossil fuel sources in 2020.
In 2019, over 60 percent of the state''s electricity came from renewable and zero-carbon sources. The decrease in 2020 is due to decline in hydroelectric generation caused by severe drought, as well as pandemic-related delays to new renewable energy projects.
"California is fully committed to achieving 100% clean electricity" said CEC Chair David Hochschild, "The cost reduction and innovation happening in the renewable energy industry have created the conditions where renewables are mainstream and fossil fuels are now becoming the alternative energy."
Senate Bill 100 (2018) accelerates the RPS goal to 60 percent by 2030. The landmark policy also requires RPS-eligible sources and zero-carbon resources to supply 100 percent of California''s electricity retail sales and electricity procured to serve state agencies by 2045.
Governor Gavin Newsom''s 2022-23 budget proposal includes nearly $2 billion to spur additional innovation and deployment of clean energy technologies to support the state''s transition to 100 percent clean electricity. This includes funding for long-duration storage and planning for offshore wind, two critical resources that can help cover the gap that occurs at the end of the day when renewable generation such as solar drops and demand for power rises.
The data shows the 2020 decrease is primarily due to a nearly 20 percent decline in large hydroelectric generation compared to 2019. The small decrease in the amount of RPS-eligible renewables is mostly due to decreased production from small hydroelectric facilities which dropped by just over 40 percent compared to 2019. Additionally, pandemic-related delays to new clean energy projects contributed to a 50 percent drop in new in-state RPS generation.
For more information on the state''s progress towards 100 percent clean electricity for all, download the 2021 Annual California Clean Energy Almanac on the CEC''s Energy Almanac page.
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