The CPUC is engaged in two additional transmission planning and wholesale market initiatives for the development of renewable generation and its transmission needs.
First, California is substantially increasing the generation it obtains from “intermittent” renewable sources, such as fluctuating wind and sunlight that are not controllable. Adjusting the design and operation of transmission, generation and market systems is essential to integrating the intermittent generation in a reliable and cost-effective manner.
The CPUC has reviewed and commented on two large studies assessing this challenge and its solutions, the large Intermittency Analysis Project managed by the California Energy Commission and the Integration of Renewable Resources report conducted by the CAISO.
This integration challenge will impact many electricity system activities going forward, including CPUC-regulated procurement of electricity supply resources. An ongoing multi-faceted process will be required to address this challenge, and the CPUC anticipates working closely with the CAISO, utilities and other stakeholders toward this end.
Alongside these projects, California’s Renewable Energy Transmission Initiative (RETI) was developed to effectively identify renewable energy areas statewide and beyond, and prioritize them for transmission development. The CPUC will promote consistency and synergies between RETI and relevant transmission planning and funding policies, including the enhanced transmission planning process that is being implemented pursuant to FERC Order No. 890, the new Location Constrained Resource Interconnection policy, and the large Generation Interconnection Procedures reform that is underway.