1. Regional Expansion NRDC Perspectives
Technology
Cost of solar down 80%, wind down 30% in last 5 years
Wind has dropped by half in 8 years, and will continue to go down
Grid will no longer be a static delivery system: becoming an intelligent web that can optimize across many variables
Optimization = smaller footprint = fewer conflicts = fewer impacts and faster RE penetration

2. Program Outline
The Grid must change
Advantages of regionalization
Outstanding issues
Timeline

3. The Grid we have today will not be the grid of the future.
"Most people who don't see this high renewables future possible are thinking about the current grid and adding in a small amount of renewables. But the grid we want is one where we deploy energy efficiency first, then renewables, and then back them up with storage and back that up with natural gas.“
-- Dan Kammen, UC Berkeley

4. Revolution in Grid Operations
There is wide recognition that current grid operation is inefficient, wasteful, and prejudiced in favor of traditional baseload generation sources. Work by NREL, WGA, WECC, Western Grid Group, and consultants like E3, as well as operating changes being required of PMAs by DOE and new rule changes by FERC show the benefits of change can no longer be ignored.
Add E3 to this list.

6. Advantages of Regionalization
Operational and Management Efficiency
Scheduling, control consolidation, technology, sharing reserves
Efficient Markets for energy and grid services
Favors renewable generation
Geographic Diversity and Uncorrelated Variability

7. NREL recommendations

8. NREL Recommendations, Continued

9. Outstanding issues Regional Governance GhG Accounting Role of States
Sovereignty
Transmission Access Charges
Resource Adequacy
Procurement authority
Management costs

10. Timeline Develop governance legislation
Through November 2016
Legislative consideration and adoption
January –June or September 2017
GhG accounting for EIM (ISO + ARB)
By 12/31/2016
For Day-Ahead?
Through May 2017?
TAC/RA stakeholder processes
December 2016?

11. Questions

12. For more information:
Carl Zichella Director of Western Transmission Natural Resources Defense Council 111 Sutter Street, 21st Floor San Francisco, CA (916) Read my blog here: Follow me on