PG&E Corporate Responsibility and Sustainability Report 2017

Clean Energy

PG&E delivers some of the nation’s cleanest energy, with goals that are in step with California’s evolving clean energy policy and standards. We continue to take an integrated approach in our efforts to reduce greenhouse gas emissions, provide safe and reliable energy, and help grow California’s economy, all while keeping service affordable for customers.

Our Approach

California has one of the highest renewable energy targets in the nation, guided by California’s Energy Action Plan. This plan establishes a “loading order” that prioritizes energy efficiency, demand response and renewable energy over using fossil fuels to meet customer demand.

Senate Bill (SB) 350 increases California’s Renewables Portfolio Standard (RPS) to 50 percent by 2030 and doubles state energy efficiency goals. These targets guide our programs, tools and network investments as well as advance discussions around electric vehicles, private renewable energy installations and smart grid infrastructure.

Reflecting California’s changing energy landscape, PG&E announced a Joint Proposal with labor and leading environmental organizations in June 2016 that would increase PG&E’s investment in energy efficiency and renewables beyond current state mandates while phasing out PG&E’s production of nuclear power in California by 2025. Reflecting this change, PG&E committed to a 55 percent renewable energy target by 2031, an unprecedented voluntary commitment by a major U.S. energy company.

PG&E continues to invest in energy storage technology as well. In 2016, we completed a technology demonstration project exploring battery storage systems. The two-year project measured the results of a 2 MW battery storage system located at our Vaca-Dixon substation and a 4 MW system located in San Jose. Future systems will benefit from the lessons learned from these demonstration systems.

Measuring Progress

By the end of 2016, nearly 33 percent of the electricity that we delivered to customers came from Renewable Portfolio Standard-eligible resources. The chart below shows our overall electricity supply mix for 2016, which included both the energy that PG&E generated and the energy that PG&E purchased from third parties on behalf of customers.

PG&E’s 2016 Electric Power Mix Delivered to Retail Customers
Eligible Renewable (see accompanying breakdown) 33%
Natural Gas 17%
Nuclear 24%
Large Hydroelectric 12%
Coal Footnote 1 0%
Unspecified Power Footnote 2 14%
  • 1. Refers to PG&E electricity generated under contracts with third parties.
  • 2. Refers to electricity from transactions that are not traceable to specific generation sources.
Breakdown: Composition of PG&E’s 2016 Total Eligible Renewable Resources Footnote 1
Solar 13%
Wind 8%
Geothermal 5%
Biomass and Waste 4%
Eligible Hydroelectric 3%
  • 1. As defined in Senate Bill 1078, which created California’s Renewable Portfolio Standard, an eligible renewable resource includes geothermal facilities, hydroelectric facilities with a capacity rating of 30 MW or less, biomass, selected municipal solid waste facilities, solar facilities and wind facilities. These figures are preliminary and will not be finalized until verified by the California Energy Commission.

Looking Ahead

By setting aggressive clean energy goals, PG&E is setting an example of how energy companies can reduce emissions, improve reliability and do what’s best for our customers, communities and the environment.