Data Source: California Energy Commission.
Analysis by Beacon Economics
Highlight
- Electricity generation from RPS-eligible renewables exceeded 100,000 gigawatt-hours (GWh) for the first time in 2022. The increase in total RPS percentage is primarily due to the increase in solar and small hydro, as well as a decrease in generation from all other non-RPS eligible sources.124 The total RPS-eligible renewables consist of 131,473 GWh, which is 3.9 percent lower than in 2019 and 6.9 percent lower than in 2018. Solar and wind are the largest renewable sources, making up 17.0 percent and 10.8 percent, respectively, of the state’s total power mix. From 2021 to 2022, solar energy as percent of total power mix increased by 2.8 percent, while wind energy’s contribution to the power mix experienced a decrease of 0.5 percent. This is due to a small increase in new wind additions capacity added (+1.1% from 2021 to 2022) combined with load growth in California.
124 Non-RPS eligible sources include fossil energy, coal, natural gas, other unspecific sources and large hydro.
Challenge
- Generation from biomass, geothermal remain stagnant. Electricity generation from these sources, which totaled 19,481 GWh in 2022, was 23.5 percent lower than the total in 2002 (25,468 GWh), the inception year of California’s RPS program, despite upticks in generation from large and small hydro in 2022.
Opportunity
- Governor Newsom signed a set of laws in September 2022 that are projected to create 4 million jobs, reduce the state’s oil use by 91 percent, cut air pollution by 60 percent, protect communities from oil drilling, and accelerate the state’s transition to clean energy.125 Among these pivotal steps, Governor Newsom also signed the Community Renewable Energy Bill,126 solidifying the commitment to a sustainable energy future. In September 2023, Governor Newsom signed into law a slate of bills to accelerate critical infrastructure projects across California to help build a 100 percent clean electric grid, ensure safe drinking water, boost the state’s water supply, and modernize our transportation system.127 On October 9, 2023, AB 1373 was signed into law, which enables the Department of Water Resources (DWR) to serve as a central procurement entity.128 The bill is aimed at facilitating the buildout of offshore wind and geothermal, and it addresses various aspects of energy policy in California—aiming to enhance renewable energy integration, offshore wind development, resource procurement, and transmission project evaluation.
125 Office of Governor. Governor Newsom Signs Sweeping Climate Measures, Ushering in New Era of World-Leading Climate Action. Released Sep 16, 2022. Assessed Aug 25, 2023. Available at: https://www.gov.ca.gov/2022/09/16/governor-newsom-signs-sweeping-climate-measures-ushering-in-new-era-of-world-leading-climate-action/
126 California Legislative Information. AB-2316 Public Utilities Commission: customer renewable energy subscription programs and the community renewable energy program. Release Sep 19,2022. Assessed Aug 25, 2023. Available at: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2316
127 Office of Governor. Governor Newsom Signs Infrastructure & Budget Legislation to Build More, Faster. Released July 10, 2023. Assessed Aug 25, 2023. Available at: https://www.gov.ca.gov/2023/07/10/governor-newsom-signs-infrastructure-budget-legislation-to-build-more-faster/
128 “AB 1373: Vital to Meeting CA’s Energy Goals Reliably and Affordably.” NRDC, September 6, 2023. Available at: https://www.nrdc.org/bio/mohit-chhabra/ab-1373-vital-meeting-cas-energy-goals-reliably-and-affordably
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