Low-Carbon Grid

CEERT’s Low-Carbon Grid Program promotes the integration of large amounts of renewable energy on the grid by tracking and intervening in crucial proceedings at the California Independent System Operator (CAISO) and other agencies. We also seek to foster joint operating agreements between the CAISO and the state’s municipal and investor-owned utilities, and promote coordination and consolidation of the Balancing Areas in our state and region as a low-cost means of integrating renewable power. The issues are often highly technical, but have enormous impact on the price of renewable energy projects and their access to the transmission and distribution system.

Recent Developments:

Regional Grid Integration and Governance

CEERT is participating in biweekly calls organized by Advanced Energy United to share information about regional and California developments on expanding CAISO’s Energy Imbalance Market though an Extended Day-Ahead Market. Participants also strategize about overcoming political opposition in California to changing CAISO’s governance, and ways to accommodate regional interests that will not support expanding CAISO’s market functions if California’s Governor solely appoints the CAISO Board.

Because of the apparent stalemate on governance, the Western Power Pool, based in Little Rock, Arkansas, has been trying to create momentum for expanding its operations in the West through creating a day-ahead market and regional transmission operator, without California, and anchored by Bonneville and other utilities in the Pacific Northwest. While functionally, WPP’s approach would not work as well or provide as many benefits as a West-wide, fully integrated grid and market, the idea has been received with some interest because of the frustrations with California.

In late 2023, there was a convening of stakeholders around another approach, which involves separating CAISO’s balancing authority role in California from the design and establishment of the day-ahead market and other functions. This arrangement would preserve the so-called “buckets” in the California Renewable Portfolio Standard, which limit out-of-state imports that don’t directly offset existing in-state generation. As a result, organized labor is in support of this new arrangement, and it is widely seen as a breakthrough that will likely accelerate progress toward regional integration.