{"id":13623,"date":"2016-08-18T13:28:27","date_gmt":"2016-08-18T18:28:27","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=13623"},"modified":"2016-08-19T09:53:29","modified_gmt":"2016-08-19T14:53:29","slug":"how-a-western-regional-electric-grid-can-bring-us-into-the-21st-century","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2016\/08\/18\/how-a-western-regional-electric-grid-can-bring-us-into-the-21st-century\/","title":{"rendered":"How a Western Regional Electric Grid Can Bring us into the 21st Century"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-13624 alignright\" src=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2016\/07\/WestUS-241x300.jpg\" alt=\"WestUS\" width=\"241\" height=\"300\" srcset=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2016\/07\/WestUS-241x300.jpg 241w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2016\/07\/WestUS.jpg 512w\" sizes=\"auto, (max-width: 241px) 100vw, 241px\" \/><\/p>\n<p><em>UPDATE: Since the July 2016 publication of this original blog post, California Gov. Jerry Brown <\/em><a href=\"https:\/\/www.caiso.com\/Documents\/GovernorBrownsLetterToLegislativeLeadersRegardingRegionalISOGovernance.pdf\"><em>announced<\/em><\/a><em> that he will wait until January 2017 to introduce legislation to expand California\u2019s Independent System Operator (CAISO), which manages the state\u2019s electric grid, beyond its borders.<\/em><\/p>\n<p><em>The governor\u2019s plan is good news for California and the other western states. With only a few weeks left in California\u2019s legislative session, stakeholders were still working out remaining questions about how a western regional grid can deliver the significant benefits to the West\u2019s economy and the environment (as shown in the <\/em><a href=\"https:\/\/blogs.edf.org\/energyexchange\/2015\/09\/14\/california-makes-clean-energy-history-with-passage-of-sb-350\/\"><em>SB 350<\/em><\/a><em> studies).\u00a0 <\/em><\/p>\n<p><em>Stakeholder groups, including Environmental Defense Fund (EDF), lawmakers, and regulators covered a lot of ground this session. Working together, we<\/em> <em>identified the important issues related to successfully implementing a western regional grid that should go into legislation. <\/em><\/p>\n<p><em>EDF strongly thanks the governor\u2019s office and legislative leaders for the focus and time dedicated to regionalization, and looks forward to working diligently over the next few months to help develop the benefits of a regional energy market for California and its neighbors.\u00a0<!--more--> <\/em><\/p>\n<p>Technology constantly advances, as do related industries. So, why does it seem like time stands still for the electricity industry? Compare telecommunications: Since the arrival of the telephone in the late 1870s, we\u2019ve seen consistent upgrades to phones and transmission technology, including larger and larger coverage areas. But in the West, the way we make, move, trade, and regulate electricity still involves old coverage maps and 38 difference balancing authorities. California is exploring a way to change that on a large scale.<\/p>\n<p>State lawmakers and the California Independent System Operator (CAISO), which controls much of the state\u2019s electric grid, are now considering the first steps to create an integrated, western regional energy market. This process, which many are calling \u201cregionalization,\u201d would connect grid operators throughout the West, so they can share resources more easily and efficiently \u2013 a common approach in the eastern and midwestern U.S.<\/p>\n<p>The geographic size of a regional grid would help integrate more renewable energy. Due to California\u2019s impressive clean energy leadership in the last decade, we now produce <a href=\"https:\/\/blogs.edf.org\/energyexchange\/2016\/04\/14\/were-wasting-solar-energy-because-the-grid-cant-handle-it-all-heres-a-solution\/\">so much<\/a> solar power that, at times, we cannot use it all when it\u2019s available. If California\u2019s electric grid were connected to neighboring states, California could export its excess clean energy when the sun is shining here, and buy wind from Wyoming when it isn\u2019t. This would increase our ability to rely on renewables and lower our costs.<\/p>\n<p>&nbsp;<\/p>\n<p>Final CAISO <a href=\"https:\/\/www.caiso.com\/Pages\/documentsbygroup.aspx?GroupID=4C17574F-73AE-40E3-942C-59C3A13BBDF1\">studies<\/a> released earlier this month project a West-wide system operator would lower greenhouse gas emissions considerably by 2030 and help affordably integrate the renewable energy brought online by <a href=\"https:\/\/blogs.edf.org\/energyexchange\/2015\/09\/14\/california-makes-clean-energy-history-with-passage-of-sb-350\/\">SB 350<\/a>. What\u2019s more, it can accomplish this while being designed to respect the diverse policies of each individual state.<\/p>\n<p>For these reasons, EDF, Natural Resources Defense Council (NRDC), Union of Concerned Scientists (UCS), and Center for Energy Efficiency and Renewable Technologies (CEERT) sent a <a href=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2016\/07\/FINAL-Enviro-Letter-to-Leg-072116.pdf\">letter<\/a> late last week to California legislative and gubernatorial leadership supporting regionalization, and asking them to ensure greenhouse gas reductions and local air quality benefits.<\/p>\n<p><strong>Potential benefits of a western regional energy market<\/strong><\/p>\n<p>According to the CAISO studies, a western regional grid could accomplish the following:<\/p>\n<ul>\n<li><em>Reduce harmful pollution<\/em> \u2013 Greenhouse gases that cause climate change would drop considerably in 2030.<\/li>\n<li><em>Save customers money<\/em> \u2013 California households could save $300-500 per year due to lower-cost renewables, lower energy-import costs, and other savings stemming from a larger, more integrated grid.<\/li>\n<li><em>Create more jobs <\/em>\u2013 A regional grid could create between 10,000 and 19,000 jobs each year in California between 2020 and 2030, depending on the state\u2019s choices about its Renewable Portfolio Standard (RPS). At least 13 percent of the possible 10,000 jobs and 23 percent of the possible 19,000 jobs are expected within disadvantaged communities. But the choices about the RPS\u2019s \u201cBucket System\u201d \u2013 the mechanism that categorizes types of renewable energy based on location and other factors for eligibility to meet the state\u2019s clean energy goals \u2013 affect these numbers dramatically. In fact, the studies show removing the Bucket System would cost 110,000 solar construction jobs in California between 2020 and 2030.<\/li>\n<\/ul>\n<p>With potential benefits like these, a well-designed regional grid \u2013 one that protects California\u2019s and other western states\u2019 interests \u2013 is worth pursuing.<\/p>\n<p>[Tweet &#8220;How a Western Regional Electric Grid Can Bring us into the 21st Century&#8221;]<\/p>\n<p><strong>Designing a successful regional grid<\/strong><\/p>\n<p>Specifically, the letter EDF, NRDC, CEERT, and UCS submitted to California\u2019s leadership recommends the following:<\/p>\n<ul>\n<li><em>Ensure greenhouse gas emissions benefits <\/em>\u2013 Though the studies show a long-term reduction in greenhouse gases, we understand that a regional grid is designed to be \u201cpolicy neutral,\u201d meaning it would not impose any particular policies on participating states. To understand the potential impact on California\u2019s greenhouse emissions (as well as emissions outside of California), it will be important to consistently verify greenhouse gas emissions across the region. But tracking emissions doesn\u2019t have to burden the regional market: we could use data from existing processes and states interested in greenhouse gas policies could pay the cost.<\/li>\n<li><em>Air quality measures for California communities <\/em>\u2013 Any potential impacts of a western regional grid on harmful air pollution in California\u2019s disproportionately impacted communities must be understood and fully mitigated. This could include directing the California Air Resources Board and the California Public Utilities Commission to work together to authorize clean energy resources that reduce reliance on natural gas in these areas and directly benefit these communities.<\/li>\n<li><em>Fair processes for all <\/em>\u2013 The market should include a stakeholder process that provides opportunities for meaningful public participation. Part of that participation should guarantee access to data underlying decisions and the chance to propose alternatives. Importantly, the process should include representatives from a wide variety of interests, including utility and distributed clean energy representatives, customers, and environmental groups.<\/li>\n<li><em>State autonomy <\/em>\u2013 California and other states can and must retain control over the ability to develop their own energy policies. In order to achieve this, the regional grid\u2019s governance must acknowledge and respect the rights of all states to oversee how their utilities procure electricity.<\/li>\n<\/ul>\n<p><strong>A regional energy market is worth it<\/strong><\/p>\n<p>It is worth creating a regional grid that truly works for California and the West. In doing so, the grid can undoubtedly accommodate even higher levels of clean, renewable resources while reducing pollution and protecting each state\u2019s energy policy autonomy. While regionalization is a complicated process, there is significant experience the west can draw from, as many states outside the region are already successfully participating in multi-state energy markets. By implementing the steps above, California can play an important role in taking the first big step toward a 21<sup>st<\/sup> century grid for the West.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UPDATE: Since the July 2016 publication of this original blog post, California Gov. Jerry Brown announced that he will wait until January 2017 to introduce legislation to expand California\u2019s Independent System Operator (CAISO), which manages the state\u2019s electric grid, beyond its borders. The governor\u2019s plan is good news for California and the other western states. &#8230;<\/p>\n","protected":false},"author":3073,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27598,84830],"tags":[],"coauthors":[],"class_list":["post-13623","post","type-post","status-publish","format-standard","hentry","category-energy-innovation-series","category-grid-modernization"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How a Western Regional Electric Grid Can Bring us into the 21st Century - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2016\/08\/18\/how-a-western-regional-electric-grid-can-bring-us-into-the-21st-century\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How a Western Regional Electric Grid Can Bring us into the 21st Century - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"UPDATE: Since the July 2016 publication of this original blog post, California Gov. 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