CALIFORNIA ENERGY COMMISSION
1992 ENERGY DEVELOPMENT REPORT



EXECUTIVE SUMMARY



PREFACE 

Public Resources Code Section 25604 requires the California
Energy Commission to publish and submit biennially to the
Governor and Legislature the Energy Development Report (EDR)
describing state energy trends, including the status of new and
existing energy technologies.  The purpose of the EDR is to
specify a technology development action plan to meet California's
future energy needs.  The report outlines energy technology
development trends, describes associated challenges and
opportunities, establishes statewide research, development and
demonstration (RD&D) priorities and provides policy
recommendations to develop opportunity technologies.

PRC Section 25604 also requires the Commission to include in the
Energy Development Report:

 a)  The Commission's determination, after generic proceedings,
     of the commercial availability of technologies for the
     generation of electrical energy or capacity, and a list of
     the issues which may affect the ability to employ these
     technologies

 b)  The Commission's determination, after generic proceedings,
     of non-generation technologies which are available to reduce
     demand . . . and the issues which may affect the ability to
     employ these technologies to reduce demand

The Commission staff prepared an Energy Technologies Status
Report (ETSR) which details their assessment of the commercial
status of such generation and non-generation technologies.  The
Commission adopted a summary of the findings in that report at
its Business Meeting of September 23, 1992.  Those findings,
contained in the Energy Technologies Status Report (P500-92-007)
are incorporated herein by reference.

The Commission also is required to specify technologies ``most
relevant to the state's needs and opportunities'' (PRC Section
25604).  Determining which technologies are in the state's best
interest requires increasing analytic rigor as the challenges
facing California become more complex and interrelated.  The
results of that effort, a list of technologies considered to be
in the state's best interest, are described in the body of this
report.

The 1992 Energy Development Report differs from past reports in
several respects.  First, this EDR provides a greater focus on
transportation technologies and the effects of the evolving
regulatory environment on their development.

Second, the 1992 EDR takes another step in the process of
determining the net value of RD&D activities.  This report
recognizes the need for a method for comparing the costs and
potential benefits of RD&D, and begins a process for developing
such a method.  Similarly, this EDR recognizes the crucial role
of commercialization  without which the benefits of technologies
emerging from successful RD&D programs will never be captured.

Finally, the 1992 EDR expands on past reports by viewing
individual technologies in the energy system context and
describing a vision of a preferred energy future for California.

The adopted Energy Development Report will be used to:
 
 1)  Direct the Commission's overall RD&D programs, including the
     Energy Technologies Advancement Program
 2)  Provide input for evaluating demonstration and other
     projects in siting cases, including the Commission's view on
     appropriate levels of demonstration "risk premia" for such
     projects
 3)  Evaluate overall direction of utility RD&D programs seeking
     funding authorization for use by the California Public
     Utilities Commission
 4)  Recommend actions for improving California's energy system
     through the development of new energy technologies,
     improvements in existing energy technologies and export of
     energy technologies and expertise


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