World-Gen Nov/Dec 2016

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WORLD-GENERATION NOVEMBER/DECEMBER 2016 15
Two studies released recently by
California’s energy agencies chronicle the
challenges for the state’s energy future.
The first is known as RETI 2.0, a multi-
agency effort to identify where
transmission should be built to ensure
renewable resources will fulfill goals the
state has set. This work has been ongoing
for about ten years.
The second study was released by the
California Independent System Operator in
response to state legislation, SB 350, and is
controversial to say the least. In it, CAISO
outlines the feasibility of a west-wide
system operator that would allow Wyoming,
Utah, Idaho, Arizona, New Mexico, Oregon
and Washington to trade power – both
renewable and fossil-fueled – with
California. The major controversy is over
whether states will be allowed to control
their own governance over resource
planning.
Finally, Southern California Edison is
planning for the future power grid in its
service territory as more and more
customers install roof-top solar systems and
other distributed energy technologies. It is
working to design a local power grid that
will be a plug-and-play platform that
integrates DER technologies. Is this
beginning to sound like the transformation
the telecom industry went through a
decade ago?
THE FUTURE FOR RENEWABLE
DEVELOPMENT
The California Energy Commission has
published an updated report on the
Renewable Energy Transmission Initiative,
known as RETI 2.0, that concludes that the
current aggressive procurement of
renewable resources by California utilities
has reduced or delayed the need for
procuring sizable amounts of new
resources until 2030 goals need to be met.
At that time California utilities will require
twice as much renewable resources as
other Western states combined.
The absence of available transmission
to bring capacity into California is seen as
the biggest issue limiting out-of-state
renewable resource development. The
report lists some 14 transmission lines
already in or near advanced development.
They would be built starting in New
Mexico, Utah. Wyoming, Idaho, or Arizona
and terminate in California, Nevada,
Arizona or Utah. The detailed list of
transmission projects in development can
be found in the report, found at http://
www.energy.ca.gov/reti/.
The report also reviews the potential
for developers to build renewable resources
in the Western States within range of
transmission lines and markets. California
is seen as the primary RPS-driven market
opportunity by developers.
Another constraint, in addition to lack
of available transmission capacity, is that of
export constraints for California’s excess
renewable energy generation. The report
says the Southwest may find themselves in
a similar position within five to ten years.
The work that produced the report is
based on outreach to Western states and
stakeholders outside of California asking
for input on the availability of renewable
energy and electric transmission that could
contribute to meeting California’s
renewable energy and GHG objectives.
The CEC collaborated with the
California Public Utilities Commission, the
California Independent System Operator,
the California office of the US Bureau of
Land Management and the California
Natural Resource Agency to sponsor the
work.
Renewable resources supply has
become increasingly competitive on an
economic basis due to the impact of
technology improvements, cost declines
and federal tax incentives, says the report.
It goes on to say power purchase
agreement prices are falling as a result and
“there are thousands of MWs of renewable
energy in development across the West
eager to sign such agreements with off-
takers.”
The supply, in some instances, aligns
closely with coal plant retirements, but
otherwise is geographically and
technologically diverse.
Stakeholders have suggested, says the
report, that the Energy Imbalance Market
operated by Cal ISO and the potential
regional market can provide solutions for
the excess renewable generation.
TRANSFORMING CAISO INTO A REGIONAL
GRID OPERATOR
In October, 2015 Governor Jerry
Brown signed into law SB350, the Clean
Energy and Pollution Reduction Act. It
establishes new clean energy, clean air and
greenhouse gas reduction goals for 2030
and beyond. It calls for examining barriers
to and opportunities for renewable energy
generation, and barriers for low-income
residents to energy efficiency and
weatherization investments and to zero-
emission and near-zero -emission
transportation options.
The law also calls for transforming
CAISO into a regional organization,
contingent upon approval from the
legislature. CAISO drew up “Proposed
Principles for Governance of a Regional
ISO” and revised them in time for a CEC
workshop in July. The document is
available on CAISO’s website: http://www.
RevisedProposedPrinciples-RegionalIS. Its
major purpose was to determine whether a
policy initiative would materially diminish
REDEFINING CALIFORNIA’S POWER GRID
BY LYN CORUM,CLASS OF 2003
(continued page 20)
CALIFORNIA NEWS