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Silicon Valley Power ready for California's green energy goals
The day after Governor Schwarzenegger signed an executive order increasing California's Renewable Energy Standard to 33 percent by 2020, the Santa Clara City Council approved a similar increase in its own renewable energy goals. What might have looked like a copycat move actually showed the municipality and its utility, Silicon Valley Power (SVP), to be ahead of the curve—as usual. "Renewable energy standards for a utility aren't something you can change overnight," SVP Customer Services Manager Larry Owens pointed out. "The city sets its own goals, and our utility has been discussing this change for some time." At first glance, meeting the higher goal may not seem like much of a challenge for SVP. Geothermal, wind, solar and small hydro resources already comprise 28.5 percent of the utility's portfolio. But demand keeps growing and the output from some of SVP's older geothermal fields is expected to decline. Also, the new state mandate may have the effect of driving up renewable energy prices as investor-owned utilities scramble to comply. "Increasingly, SVP has had to compete for the generation from renewable projects," acknowledged Owens. Green power veteranBut Santa Clara is nothing if not a forward-thinking city. SVP plans to add as much as 50 MW of renewable energy over the next 12 years, some on its own land. "In the '70s and '80s, the city invested in land parcels in the wind-rich areas of Benecia and Loyalton, Calif., so we will be able to develop projects there," Owens said. "Loyalton may turn out to be a better location for solar in the long run," he added. Solar has been an important part of Santa Clara's portfolio since launching the nation's first solar utility with its solar hot-water leasing program 35 years ago. Today, residents can add as little as $5 to their monthly bills to support photovoltaic projects through the Neighborhood Solar program. The money customers contribute is matched by SVP and funds the installation of solar power systems on non-profit facilities in the city. Business and residential customers have been able to purchase wind and solar power through the Santa Clara Green Power offering since 2004. For an average of about $7.50 per month (1.5 cents per kWh), subscribers can cover 100 percent of their electricity needs with Green-e certified energy credits. In 2007, Santa Clara joined the EPA Green Power Partnership by purchasing over 1 million kilowatt-hours of green power for its own facilities. The city council then set an ambitious goal to get 10 percent of utility customers to join them in choosing green power. Enrollment reached 8.5 percent by Jan. 1, 2008, and new sign-ups come in every week, despite the current economic climate. The community effort earned the city the title of second largest Green Power Community in the country. Diversifying with waste-to-energyWind and solar power aren't the only resources SVP will be tapping to keep up with customers' demand for clean power. "For municipalities that want to do something about the climate crisis, waste-stream conversion is a great opportunity," said Owens. Waste-to-energy facilities add diversity to utility portfolios with base-load power, while reducing the municipal waste stream and the accompanying emissions. SVP is working with Northern California Power Agency, a joint power agency and with neighboring cities to develop waste-to-energy and other renewable projects. One potential project on the horizon is a water pollution control plant partly owned by the city of Santa Clara. The plant could maximize methane recovery to power a generator, and also divert the CO2 emissions into producing algae for biodiesel. "It has the necessary land and water supply to make growing algae feasible," Owens explained. "First fuel" for home, industryEnergy efficiency is a critical part of SVP's portfolio, as it is for most utilities in the state that leads the nation for using the "first fuel" to grow its economy. The utility's extensive program offers incentives for installing efficient lighting and exit signs, heating and cooling systems, motors, chillers and washing machines. Rebates that promote energy-efficient new construction and customer-tailored efficiency improvements round out the package. "Our energy-efficiency program saved about 26,000 MWh in 2007, and the 2008 figures look about the same," Owens said. Forecasting energy savings can be difficult with so many data centers located in SVP's service territory. "Some of our biggest savings come from data centers implementing cooling measures, but those projects don't occur regularly," he noted. "That results in 'lumpy' savings figures." According to a 2006 report from DOE's Office of Energy Efficiency and Renewable Energy (EERE), data centers represent about 1.5 percent of total U.S. electricity consumption—enough electricity to power 5.8 million average households. Business as usual could double that use by 2011, but luckily, the industry is recognizing the need for energy efficiency. Sun Microsystems' Silicon Valley facility participated in a Berkeley Laboratory study in 2006 on potential energy savings from powering servers with direct current. Owens said that area data center operators are forming a user group on best energy practices and achieving remarkable success. An active participant in DOE's Industrial Technology Program (ITP), SVP will be ready to help those business customers remain economically—and environmentally—healthy. When it comes to providing reliable service that protects the environment, too, the city of Santa Clara doesn't have to follow the leader. It is the leader. |
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ResourcesNorthern California Power Agency EERE Report to Congress on Server and Data Center Energy Efficiency Berkeley Laboratory report: DC Power for Data Centers of the Future
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