connecting clean energy in the west transmission and clean energy in the western us dave olsen...

Connecting Clean Energy in the West

Transmission and Clean Energy in the Western US

Dave OlsenGovernors Wind Energy Coalition

November 3, 2011

Seattle • Salt Lake City • Denver • Helena • Phoenix • Sacramento • Portland • Las Vegas


Agenda

• Regional Cooperation– WREZ Development Zones– Renewable Energy Exports-Imports– Regional Transmission Expansion Plan– Importance for Governors

• Clean Energy Vision for the West

• System Planning and Public Consent

2


Western Grid Group

• 200 years state regulatory experienceFormer chairmen, staff of 8 western PSCs

• 50 years experience as wind, solar, geothermal, hydroelectric power developers

• Non-profit NGO; works with Governors, utilities, regulators, agencies, advocates

• Formed 2003 to develop policies to accelerate transition to sustainable electricity, win transmission access for clean resources

Connecting Clean Energy in the West4

Moves Toward Regional Cooperation


Limitations on Transmission Development

• RPS-driven procurement• Projects target coastal markets

– One-way flow to West coast– CA >50% western demand; limits imports

• In-state only energy development– Every state wants economic benefits– States reluctant to import—even lower cost power– Narrow view of opportunities


But: Regional Cooperation Opportunities

• Develop renewables in zones– Western Renewable Energy Zones (WREZ)

• Retire coal, use freed-up transmission for renewables

• Every state an exporter and importer• Coordinate system operation to

reduce costs, improve reliability– Optimize siting to reduce variability


WREZ• WGA initiative, funded by DOE• Zone development minimizes transmission

need, economic and environmental cost• Zones of common interest to utilities • Facilitates transmission development

– Combined procurement justifies interstate tx– Basis for cost allocation decisions– Planners discount remote, lower-cost power

because transmission development uncertain


WREZ areas of highest renewable resource supply potential


Add: New Ways to Optimize Wind Siting

• Reduce aggregate variability, integration costs; maximize output– Northrop Grumman-MORE Power; LS Power

• Dispersed renewables help keep system balanced

• Smart from the Start environmental siting• Every state an exporter and importer• Requires new transmission infrastructure


Exports from All Regions

Retiring old coal creates new demand

Supports project, supply chain investments across the region

=> Regional transmission topology


Regional Cooperation Priorities

• Energy Imbalance Market• Balancing Area coordination• Faster schedules, dispatch• Improved forecasting• WECC Regional Transmission

Expansion Plan (RTEP)• Regional markets


Importance for Governors

• Regional development creates larger markets, to economic benefit of all states

• Improved reliability• Lower costs

– Shared reserves– Most efficient units run more, less efficient less– Least-cost system balancing


Clean Energy Vision for the West


Western Grid 2050• Compare Business as Usual (BAU) and

Clean Energy Vision (CEV) trajectories

• $200 billion investment next 20 years

• Choices today determine infrastructure in 2030, 2050

• Begin west-wide discussion of goals for electric system performance


Clean Energy Economy Goals for Electric System Performance

• Drive job creation, economic development, competitiveness

• More secure, sustainable

• More reliable

• Less expensive

• Reduce emissions, water use

• Improve public and ecosystem health


Modernizing Electric Service

• More reliable– More diverse, much more decentralized– Wind, solar higher mechanical availabilities– Modern communications, control technologies

• Less expensive– No/low fuel costs pay back investment in

clean resources, reduce system cost

• More secure, lower risk, higher quality


Sustained, Orderly Transition• Build on Energy Efficiency, Renewables

policies now in place

• Add Distributed Generation, Demand Resources to decentralize, diversify

• Schedule coal retirement years ahead• Don’t invest in upgrading old plants

• Compensate remaining book value

• Incentives for utilities to diversify; use freed-up transmission for renewables

• Regional markets and cooperation


Earning Public Consent: New Principles for System

Planning


Earning Public Consent• Infrastructure development contentious

– History of major planning failures by experts– Skepticism re: social need vs. private interests

• Address public concerns:– Jobs, economic development– Security; Health; Local, environmental impacts

• Key to better-planned projects, faster approvals, less litigation

• Builds broader appreciation of benefits


System Planning Principles

• Planning the system, not just transmission• Expands NWCC 2004 Transmission

Planning Principles• Builds on FERC Orders 890, 1000

– Stakeholder involvement produces better plans

– Planning identifies project beneficiaries, builds record cost recovery can be based on


New Planning MetricsEconomics• Job creation; economic development• Protection from fuel price risk, volatility• Efficient utilization of existing grid• Comparable treatment of demand and supply resourcesLocal and Environmental Concerns• Emissions; Water Use• Protection of Wildlife, Habitat and Ecosystem Integrity• Robust Stakeholder Participation

Energy Security• System vulnerabilities, risks

– Reliance on indigenous, inexhaustible resources

– Vehicle electrification


Planning Principles—Next Steps

• Can public interest System Planning Principles facilitate wind project siting, transmission development?

• Are they politically feasible?

• What entities should sponsor discussions to develop and promulgate them?


Dave [email protected]

(805) 653-6881

Clean Energy Vision Report, MaterialsWestern Clean Energy Advocates,

Western Grid Group, at:

www.westerngrid.net

Seattle • Salt Lake City • Denver • Helena • Phoenix • Sacramento • Portland • Las Vegas

mailto:[email protected]

http://www.westerngrid.net/

connecting clean energy in the west transmission and clean energy in the western us dave olsen...

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