Portland General Electric selects new renewable energy projects to fulfill rising demand
Portland General Electric released a list of solar, battery storage and other renewable energy projects that it aims to acquire to cover rising electricity demand and make “significant progress toward Oregon’s emissions reduction targets.”But in its filing with the Oregon Public Utility Commission this week, the utility acknowledged the projects won’t be enough to fulfill its state-mandated 2030 emission reduction target.Oregon’s signature climate mandate requires the state’s two major electric companies — PGE and Pacific Power — to reduce greenhouse gas emissions associated with electricity sold in Oregon by 80% by 2030 and to reach 100% emission-free electricity sources by 2040.In addition to the climate mandates, PGE faces a growing load from data centers proliferating across Oregon as well as from customers switching to electric cars, electric home heating and cooking, among other changes. The utility is also facing pressure from customers over several rate increases in recent years, including its proposal for a bigger electric rate hike for 2025.The newly recommended energy projects were selected as part of a competitive bidding process – the company’s largest to date. The final shortlist comprises two ranked groups of projects. The first priority group includes one solar project, two solar and battery projects and one Lithium-Ion battery storage project. If negotiations to acquire those fall through, the utility would then choose from the second group, which includes five Lithium-Ion battery storage projects.PGE said it prioritized projects that would keep customer prices as low as possible and would be the least risky for the utility. If PGE is successful in acquiring all of the recommended projects from the first group, the estimated average net price impact to customers would be an increase of approximately 1.5%, spokesperson Allison Dobscha said.PGE said it declined to proceed with projects that were not mature enough in development to be cost-effective. It also rejected projects that did not have reliable transmission and interconnection access in the works.An independent evaluator who oversaw the bidding process said the utility selected projects targeted towards meeting power reliability but not towards meeting its climate obligations. The recommended projects would lead to just a slight reduction in emissions as compared to a scenario under which the utility did not acquire those projects.“This leaves the utility with large needs for renewable supply if it is to meet its emissions glidepath targets,” the evaluator, Bates White LLC, wrote. “PGE will need a large amount of renewables in the future in order to meet the emissions requirements of current legislation.”PGE said it plans to hold at least one more procurement round to acquire supply to come online by 2030.“We intend to initiate our next procurement process on an accelerated timeline to secure additional resources that help us fulfill our projected 2030 energy need and emissions reduction target,” Dobscha said.She added that PGE is also working on upgrading transmission lines and adding new transmission infrastructure, encouraging customers to install rooftop solar, home batteries and energy efficient appliances as well as to use electricity in a way that lends flexibility to the operation of the grid.Some developers have raised concerns about how competitive or fair PGE’s bidding and procurement process is and have accused PGE of favoring its own projects so that it can earn more money. The independent evaluator’s report said the current round was “reasonably competitive.” In total, PGE received bids from 19 developers offering a total of 30 projects. Among the selected projects in the priority group, two of the four would be owned by the utility and two by private developers. In the alternative group, two projects would have shared ownership, one would be developer-owned and one would be wholly owned by PGE.— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.Our journalism needs your support. Subscribe today to OregonLive.com.
Portland General Electric released a list of solar, battery storage and other renewable energy projects that it aims to acquire to cover rising electricity demand, but the projects won't make much progress toward the utility's emissions reduction targets.
Portland General Electric released a list of solar, battery storage and other renewable energy projects that it aims to acquire to cover rising electricity demand and make “significant progress toward Oregon’s emissions reduction targets.”
But in its filing with the Oregon Public Utility Commission this week, the utility acknowledged the projects won’t be enough to fulfill its state-mandated 2030 emission reduction target.
Oregon’s signature climate mandate requires the state’s two major electric companies — PGE and Pacific Power — to reduce greenhouse gas emissions associated with electricity sold in Oregon by 80% by 2030 and to reach 100% emission-free electricity sources by 2040.
In addition to the climate mandates, PGE faces a growing load from data centers proliferating across Oregon as well as from customers switching to electric cars, electric home heating and cooking, among other changes. The utility is also facing pressure from customers over several rate increases in recent years, including its proposal for a bigger electric rate hike for 2025.
The newly recommended energy projects were selected as part of a competitive bidding process – the company’s largest to date. The final shortlist comprises two ranked groups of projects. The first priority group includes one solar project, two solar and battery projects and one Lithium-Ion battery storage project. If negotiations to acquire those fall through, the utility would then choose from the second group, which includes five Lithium-Ion battery storage projects.
PGE said it prioritized projects that would keep customer prices as low as possible and would be the least risky for the utility. If PGE is successful in acquiring all of the recommended projects from the first group, the estimated average net price impact to customers would be an increase of approximately 1.5%, spokesperson Allison Dobscha said.
PGE said it declined to proceed with projects that were not mature enough in development to be cost-effective. It also rejected projects that did not have reliable transmission and interconnection access in the works.
An independent evaluator who oversaw the bidding process said the utility selected projects targeted towards meeting power reliability but not towards meeting its climate obligations. The recommended projects would lead to just a slight reduction in emissions as compared to a scenario under which the utility did not acquire those projects.
“This leaves the utility with large needs for renewable supply if it is to meet its emissions glidepath targets,” the evaluator, Bates White LLC, wrote. “PGE will need a large amount of renewables in the future in order to meet the emissions requirements of current legislation.”
PGE said it plans to hold at least one more procurement round to acquire supply to come online by 2030.
“We intend to initiate our next procurement process on an accelerated timeline to secure additional resources that help us fulfill our projected 2030 energy need and emissions reduction target,” Dobscha said.
She added that PGE is also working on upgrading transmission lines and adding new transmission infrastructure, encouraging customers to install rooftop solar, home batteries and energy efficient appliances as well as to use electricity in a way that lends flexibility to the operation of the grid.
Some developers have raised concerns about how competitive or fair PGE’s bidding and procurement process is and have accused PGE of favoring its own projects so that it can earn more money. The independent evaluator’s report said the current round was “reasonably competitive.”
In total, PGE received bids from 19 developers offering a total of 30 projects. Among the selected projects in the priority group, two of the four would be owned by the utility and two by private developers. In the alternative group, two projects would have shared ownership, one would be developer-owned and one would be wholly owned by PGE.
— Gosia Wozniacka covers environmental justice, climate change, the clean energy transition and other environmental issues. Reach her at gwozniacka@oregonian.com or 971-421-3154.
Our journalism needs your support. Subscribe today to OregonLive.com.