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Exploration of resource and transmission expansion decisions in the Western Renewable Energy Zone initiative

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  • Mills, Andrew
  • Phadke, Amol
  • Wiser, Ryan

Abstract

The Western Renewable Energy Zone (WREZ) initiative brings together a diverse set of voices to develop data, tools, and a unique forum for coordinating transmission expansion in the Western Interconnection. In this paper we use a new tool developed in the WREZ initiative to evaluate possible renewable resource selection and transmission expansion decisions. We evaluate these decisions under a number of alternative future scenarios centered on meeting 33% of the annual load in the Western Interconnection with new renewable resources located within WREZ-identified resource hubs. Our analysis finds that wind energy is the largest source of renewable energy procured to meet the 33% RE target across nearly all scenarios analyzed (38-65%). Solar energy is almost always the second largest source (14-41%). We find several load zones where wind energy is the least cost resource under a wide range of sensitivity scenarios. Load zones in the Southwest, on the other hand, are found to switch between wind and solar, and therefore to vary transmission expansion decisions, depending on uncertainties and policies that affect the relative economics of each renewable option. Further, we find that even with total transmission expenditures of $17-34 billion these costs still represent just 10-19% of the total delivered cost of renewable energy.

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  • Mills, Andrew & Phadke, Amol & Wiser, Ryan, 2011. "Exploration of resource and transmission expansion decisions in the Western Renewable Energy Zone initiative," Energy Policy, Elsevier, vol. 39(3), pages 1732-1745, March.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:3:p:1732-1745
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    Cited by:

    1. Abbas Mardani & Ahmad Jusoh & Edmundas Kazimieras Zavadskas & Fausto Cavallaro & Zainab Khalifah, 2015. "Sustainable and Renewable Energy: An Overview of the Application of Multiple Criteria Decision Making Techniques and Approaches," Sustainability, MDPI, vol. 7(10), pages 1-38, October.
    2. Li, Cunfang & Li, Danping & Zhang, Xiaoxu, 2019. "Why can China's coal resource-exhausted enterprises cross the district to transfer?," Resources Policy, Elsevier, vol. 60(C), pages 94-105.
    3. Li, Cunfang & Zhang, Bo & Lai, Yongzeng & Dong, Mei & Li, Danping, 2019. "Does the trans-regional transfer of resource-oriented enterprises generate a stress effect?," Resources Policy, Elsevier, vol. 64(C).
    4. Köberle, Alexandre C. & Gernaat, David E.H.J. & van Vuuren, Detlef P., 2015. "Assessing current and future techno-economic potential of concentrated solar power and photovoltaic electricity generation," Energy, Elsevier, vol. 89(C), pages 739-756.
    5. Schroeder, Andreas & Oei, Pao-Yu & Sander, Aram & Hankel, Lisa & Laurisch, Lilian Charlotte, 2013. "The integration of renewable energies into the German transmission grid—A scenario comparison," Energy Policy, Elsevier, vol. 61(C), pages 140-150.
    6. Demetriou, E. & Hadjistassou, C., 2021. "Can China decarbonize its electricity sector?," Energy Policy, Elsevier, vol. 148(PB).
    7. Gorman, Will & Mills, Andrew & Wiser, Ryan, 2019. "Improving estimates of transmission capital costs for utility-scale wind and solar projects to inform renewable energy policy," Energy Policy, Elsevier, vol. 135(C).
    8. Phillips, Benjamin R. & Middleton, Richard S., 2012. "SimWIND: A geospatial infrastructure model for optimizing wind power generation and transmission," Energy Policy, Elsevier, vol. 43(C), pages 291-302.
    9. Miguel Pérez de Arce and Enzo Sauma, 2016. "Comparison of Incentive Policies for Renewable Energy in an Oligopolistic Market with Price-Responsive Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    10. McDonald, Paul, 2024. "Interrelationships of renewable energy zones in Queensland: localised effects on capacity value and congestion," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 818-833.
    11. Francisco Munoz & Enzo Sauma & Benjamin Hobbs, 2013. "Approximations in power transmission planning: implications for the cost and performance of renewable portfolio standards," Journal of Regulatory Economics, Springer, vol. 43(3), pages 305-338, June.
    12. McDonald, Paul, 2023. "Locational and market value of Renewable Energy Zones in Queensland," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 198-213.
    13. Francisco Munoz & Jean-Paul Watson, 2015. "A scalable solution framework for stochastic transmission and generation planning problems," Computational Management Science, Springer, vol. 12(4), pages 491-518, October.

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