posted on Tuesday, October 16, 2007 2:16 PM by Gunnar Birgisson

Initiatives Provide Transmission for Renewable Power

The California Energy Commission has initiated a Renewable Energy Transmission Initiative (RETI) to identify transmission projects needed to help the state meet its renewable energy development goals.  In a process similar to that already adopted in Texas, the RETI process entails identifying Competitive Renewable Energy Zones (CREZs) from which renewable energy could be brought to California consumers.  Not surprisingly for the power-importing state, CREZs could be outside as well as inside California, although designation of external CREZs to serve California may not be well received in neighboring states.

The RETI process should complement the California Independent System Operator’s (CAISO) development of transmission financing rules.  The CAISO’s FERC-approved trunkline proposal provides for sharing of costs between interconnecting renewable generators, together with subsidies from other transmission customers.  The CAISO is now working on a tariff proposal for the inelegantly named “Location Constrained Resource Interconnection” rules, and is expected to submit the proposal to FERC by the end of October. 

On the national stage, Senator Harry Reid, the Majority Leader from Nevada, has introduced a bill to promote renewable energy development.  The bill, S.2076, would require establishment of renewable energy zones and direct federal power administrations to identify the transmission needed to access renewable energy in the zones.  The prospects of the bill becoming law are uncertain.  At minimum, however, the bill signals increased awareness by senior policymakers of the need to foster transmission development to connect the nation’s vast renewable energy potential with the load centers in need of energy.