California ISO Board Approves $2.9 Billion Transmission Plan to Advance Clean Energy

California Independent System Operator Board of Governors on March 17 approved the grid operator’s 10-year transmission plan, which identified 23 projects estimated to cost $2.9 billion. The plan aims to boost grid reliability through system expansions, upgrades, and reinforcements required to enhance reliability and to achieve the state’s clean energy goals in an efficient and cost-effective manner.

With the expected increase in energy demand over the next decade, new transmission development is expected to accelerate during the current and future planning cycles, said the agency. Over the 10-year planning horizon, the transmission plan for 2020-2021 called for the addition of approximately 1,000 megawatts of new resources per year, whereas the plan for next year looks to include over 4,000 megawatts of new resources per year. In the 2021-2022 transmission plan, new resources are estimated at about 2,700 megawatts per year, which indicates a significant step forward in the effort to meet the emerging grid challenges but recognizes that further expansion will be necessary for the future.

As a result of the rapid growth of renewable energy generation and load forecasts, the transmission requirement is rising. The grid operator’s plan includes 16 projects totaling $1.412 billion that address reliability issues resulting from growth in load and evolving grid conditions. Further, to meet the requirements for renewable generation, the ISO identified a need for six policy-driven transmission projects with a total value of $1.512 billion.

For the first time, the ISO has put forth a 20-year outlook besides its annual plan. The 10-year plan, required under the grid operator’s federal tariff, details specific projects for deployment, whereas the longer outlook presents a framework and a vision for future transmission needs without specific recommendations for approval. Both of these will help scope the short-term, intermediate, and long-term milestones to advance the state’s clean-energy transition, thereby facilitating robust and efficient planning coordination to pave the way for cost-effective and durable infrastructure.