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FERC hears support for transmission rule targeting renewable energy-rich zones

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FERC hears support for transmission rule targeting renewable energy-rich zones

  • Author Zack Hale
  • Theme Energy

A panel of experts on Nov. 15 expressed support for a potential requirement for electric transmission providers to identify renewable energy-rich zones as part of the Federal Energy Regulatory Commission's sweeping rulemaking aimed at speeding a U.S. grid build-out.

Launched in July, FERC's advanced notice of proposed rulemaking (RM21-17) sought comment on the steps grids officials are taking to plan for the rapid growth of renewable energy generation. The notice, which addressed a host of obstacles to transmission development, specifically sought feedback on whether FERC should require the identification of geographic zones with high renewable energy potential.

The state of Texas has already unlocked huge amounts of wind and solar generation through its nearly $7 billion Competitive Renewable Energy Zones initiative, or CREZ, FERC observed in its request for comments.

Several attempts to replicate the CREZ model have occurred since the Texas effort concluded, David Hurlbut, a former economist at the Texas Public Utilities Commission, noted during a Nov. 15 technical conference hosted by FERC staff.

"Unfortunately, most of those attempts began from a misunderstanding of what we did," said Hurlbut, now a senior analyst at the National Renewable Energy Laboratory. "Many seem to think it's enough to simply draw zones on a map and wait for the magic to happen. To be crystal clear, the idea was never, 'If you build it, they will come.'"

Hurlbut stressed that renewable energy zones must be linked to areas of demand with a high commercial and industrial appetite for electricity. The senior analyst noted that some potential zones in Texas were never finalized as part of the CREZ process because "there simply weren't sufficient demonstrations of commercial interest to keep them on the table."

Antoine Lucas, vice president of engineering at the Southwest Power Pool Inc., said the 14-state grid operator sees "a lot of merit" in identifying renewables-rich zones, assuming that the appropriate stakeholders are included in the process.

"The value is there. That's not debatable," Lucas said. "The part that is always debated is whether or not the costs that are allocated associated with the transmission is equitable."

Lucas said a requirement for grid operators and other transmission planners to identify renewable energy zones could force SPP to revisit its cost allocation policies, which are heavily influenced by state regulators on its regional state committee.

Neil Millar, vice president of transmission planning and infrastructure development at the California ISO, noted that the single-state grid operator has traditionally relied on close coordination among state agencies to identify its own renewable energy zones. Millar insisted that any final requirement from FERC addressing renewable energy zones should give grid operators "the flexibility to do what works for your area."

Judy Jagdmann, a commissioner on the Virginia State Corporate Commission, reminded conference participants that most transmission projects ultimately require a certificate of public need from state regulators. "We need to bear in mind that holistic planning will be a benefit if you're showing the need for transmission on the siting side," Jagdmann said.

John Lewis, managing director of Native American energy at Avant Energy Inc., stressed that tribal concerns must be accounted for in identifying renewable energy zones. Tribal lands, especially in the U.S. West, are "more often than not" situated next to federal lands," Lewis said.

"Even if a project is not directly on tribal land ... there are indirect impacts that must be discussed and considered," Lewis said. "The only time tribes come into the conservation is when a developer proposes a project and transmission is contemplated. I think it needs to be more future-looking."