The law credits electricity produced from solar, wind, geothermal, biomass (including power generated from non-toxic plants, animal wastes, methane from landfills and wastewater treatment facilities), small hydropower, "recycled" electricity from waste heat, and fuel cells powered with hydrogen derived from eligible renewable energy resources.
Utilities must derive at least 12% of their retail electric sales from such sources from 2011-2014, 20% from 2015-2019, and 30% for 2020 and thereafter. The requirements apply to all utilities that provide electricity service in Colorado, with the exception of municipal utilities serving 40,000 customers or fewer. In-state power facilities receive extra credit towards the requirements.
The law also creates requirements for distributed generation from eligible renewable energy resources. The law divides this into "retail distributed generation," which includes customer-located facilities connected to the customer's side of the meter, and sized to not exceed the customer's load by more than 20%, and "wholesale distributed generation," which includes systems of 30 MW capacity or less that don't qualify as retail distributed generation. Investor-owned utilities must draw on distributed generation for at least 1% of their retail electric sales in 2011 and 2012, ratcheting up to 3% by 2020. At least half the requirement must be met with retail distributed generation.
According to the governor, that requirement will lead to at least 100,000 additional solar rooftops over the next decade. See the governor's press release and the full text of the legislation (PDF 75 KB).
Chinese Policies Could Hurt U.S. Renewable Industries
China has enacted a series of policies that have made it one of the largest renewable energy consumers in the world, but has also moved to shut out foreign participation in its renewable energy market, according to a new report commissioned by the National Foreign Trade Council (NFTC).
China's Renewable Energy Law, enacted in 2006 and strengthened in 2009, requires utilities to buy all available renewable energy and pay full price for it, while offering it at a discount to their customers. The 2007 Medium and Long-Term Development Plan for Renewable Energy in China requires large utilities to have 8% of their power provided by renewable energy by 2020. China has also implemented a $586 billion economic stimulus plan largely directed toward renewable energy, and a new program will provide a 50% subsidy for grid-connected solar systems.
While these actions have spurred rapid growth in renewable energy jobs, the nation has closed itself to outside companies through policies that require or strongly encourage purchase of domestically made goods or products based on Chinese intellectual property.
As an example, the report notes the foreign share of wind equipment has fallen from about 75% in 2004 to about 25% in 2008. In 2009, Chinese imports of U.S.-made wind turbines fell to zero, down from $15 million in 2008. Meanwhile, China has rapidly expanded solar cell production, nearly all of which is exported. Those exports have helped drive down solar PV prices, contributing to financial difficulties for non-Chinese solar cell companies. See the NFTC press release and report (PDF 703 KB).
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EREE Network News is a weekly publication of the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy (EERE).
