Western Renewable Energy Zone WREZ Concept as of 112707

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Western Renewable Energy Zone (WREZ) Concept(as
of 11/27/07)
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Outline of Presentation

• How the Western Interconnection-wide REZ idea
  evolved
• Status of efforts to brainstorm a work plan
• Rough outline of the work plan
• Larsons observations on
• Applicability of WREZ work to Action 4, 5, 10
• Connection with yesterdays idea on
• Using 3Tier data to map and characterize NW wind
  areas
• Compare areas with transmission expansion plans

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How Idea Evolved

• Several individual states undertaking analysis of
  renewable resources and transmission needed to
  move power to loads
• Texas pioneering concept under name of
  Competitive Renewable Energy Zones (CREZ)
• Colorado identifying zones as required by state
  law
• California launched RETI
• Arizona utilities contracted for study
• Nevada Governor established committee
• Sub-regional work such as the NW wind integration
  work
• September 28-29 WGA renewables/transmission
  summit in Ft. Collins
• WREZ idea recommended as a next step
• Small team formed to explore feasibility of a
  WREZ project
• October 19 WGA meeting with DOE Asst Secretary
  Karsner and DOE Office of Electricity
• November 5 briefing and review by WIEB/CREPC
• November 7 briefing and review by WGA Staff
  Council
• November 7 to today developing a rough work
  plan to be more broadly vetted

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1. Why do we need a Western REZ initiative?

• Supplement state-by-state assessments to provide
  a picture of potentially lower cost regional
  renewable generation alternatives
• Identification of WREZs will enable all parties
  to make more informed decisions about
• The cost of renewable power
• Optimal transmission to move renewables
• Potential partners in developing transmission
• Where developers should site generation to access
  transmission and minimize environmental impacts

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2. What are the other benefits of a Western REZ
initiative?

• WREZ process would lay factual foundation for
  interstate collaboration on
• Transmission and generation planning
• Regulatory reviews of proposed transmission
  facilities
• Cost allocation
• Needs assessments

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Outline of Rough Work Plan

• Phase 1
• Identify commercial potential, aggregate into
  zones, estimate bus bar price and delivered price
  of power
• Maximize consistency with state and sub-regional
  work
• Ground truth data through a stakeholder process
  complete 9/07
• Phase 2
• Have sub-regional planning groups and WECC
  develop conceptual transmission plans to deliver
  power from highest ranking REZs
• Phase 3
• Report to Governors on remaining obstacles to
  transmission to move renewables
• Investigate reasons for LSEs not procuring
  renewables
• Phase 4
• Identify institutional options for coordinated
  permitting and cost recovery

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Organization of Effort

• Steering Committee (Govs, PUCs, CEOs of LSE,
  renewable generators and environmental groups)
• Technical Committee
• Diverse geography, diverse organizations
  (states/provinces, generation developers,
  transmission developers, environmental groups,
  etc.)
• Executive Committee for day-to-day management

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Potential Organization of WREZ Effort
Steering Committee (Govs, LSE CEOs, Env group
CEOs)
Technical Committee (Geographically and
organizationally diverse)
Executive Committee (to manage day-to-day
activities)
Work groups
Work groups
Work groups
Project support staff WGA/WIEB
secretariat Outreach coordinator/
facilitators National labs
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Proposed Approach

• Zone development
• Update resource assessment data (wind, solar,
  geothermal, biomass)
• Input from stakeholders on promising resource
  areas (based on production value, exclusion
  areas, land ownership, etc)
• Define preliminary zones
• Develop supply cost curves
• Transmission corridor development
• Develop crayon-level transmission corridors that
  connects zones and load centers
• Input from stakeholders on promising transmission
  corridors (based on resources, exclusion areas,
  land, etc)
• Optimization of transmission corridors to zones

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Larsons Observations (1)

• Connections to NWIAP items 4, 5, 10
• 4. NTAC work on a methodology would be helpful
  and if completed by Sept 08 can provide a
  template for other areas
• 5. Columbia Grid and NTTG work on applying a
  methodology would be helpful.
• WREZs should be identified by 9/08
• TEPPC 2007 modeling should be complete before
  9/08
• 10. NTAC/Columbia Grid/NTTG work on upgrades to
  deliver wind from MT
• This would be useful work

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Larsons Observations (2)

• 3Tier data to map/characterize NW wind resource
  areas and compare with transmission proposals
• Seems to be exactly in line with WREZ game plan
• Needs to be coordinated with WREZ work