California Asks Government to Back Grid Plan

[jpak]

http://www.renewableenergyaccess.com/rea/news/story?id=47260

The California Independent System Operator (ISO) is asking the Federal Energy Regulatory Commission (FERC) to approve a new financing plan that allows renewable generation developers in the state to begin paying their fair share for efficiently sized transmission after their generation begins operating -- as opposed to shouldering the costs up front.

According to the California ISO, as more wind, solar and geothermal generation is developed in the state, a new type of financing mechanism is needed to facilitate the development of transmission projects that reach remote locations where several companies are developing renewable energy resources.

"We don't have a choice as to where these natural resources are located," said Rich Ferguson research director for the Center for Energy Efficiency and Renewable Technologies. "If we're going to use these assets to offset less environmentally friendly types of power generation, we need to be able to build the transmission lines that reach those remote locations."

Currently, transmission lines that connect one new generator to the grid (known as "gen ties") are paid for by the generation project developer. The cost of more extensive "network facilities" is spread among the loads that benefit from the project. This transmission investment is recovered via the California ISO's Transmission Access Charge (TAC).

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