Transcript Transmission and Clean Energy in the Western US Dave Olsen Governors Wind Energy Coalition November 3, 2011 Connecting Clean Energy in the West Seattle • Salt.

Transmission and Clean
Energy in the Western US
Dave Olsen
Governors Wind Energy Coalition
November 3, 2011
Connecting Clean Energy in the West
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
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Connecting Clean Energy in the West
Western Grid Group
• 200 years state regulatory experience
Former 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 West
Moves Toward Regional
Cooperation
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Connecting Clean Energy in the West
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
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Connecting Clean Energy in the West
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
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Connecting Clean Energy in the West
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
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WREZ areas of highest renewable resource supply potential
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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
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Exports from All Regions
Retiring old coal
creates new
demand
Supports project,
supply chain
investments
across the region
=> Regional
transmission
topology
Connecting Clean Energy in the West
Regional Cooperation Priorities
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Energy Imbalance Market
Balancing Area coordination
Faster schedules, dispatch
Improved forecasting
WECC Regional Transmission
Expansion Plan (RTEP)
• Regional markets
Connecting Clean Energy in the West
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
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Connecting Clean Energy in the West
Clean Energy Vision
for the West
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Connecting Clean Energy in 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
Connecting Clean Energy in the West
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
Connecting Clean Energy in the West
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
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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 freedup transmission for renewables
• Regional markets and cooperation
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Earning Public Consent:
New Principles for System
Planning
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Connecting Clean Energy in the West
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
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Connecting Clean Energy in the West
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
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Connecting Clean Energy in the West
New Planning Metrics
Economics
• Job creation; economic development
• Protection from fuel price risk, volatility
• Efficient utilization of existing grid
• Comparable treatment of demand and supply resources
Local 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
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Connecting Clean Energy in the West
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?
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Connecting Clean Energy in the West
Dave Olsen
[email protected]
(805) 653-6881
Clean Energy Vision Report, Materials
Western Clean Energy Advocates,
Western Grid Group, at:
www.westerngrid.net
Connecting Clean Energy in the West
Seattle • Salt Lake City • Denver • Helena • Phoenix • Sacramento • Portland • Las Vegas