Solar and The Power GridSolar and The Power Grid

Chairman Jon Chairman Jon WellinghoffWellinghoff

Federal Energy Regulatory Federal Energy Regulatory CommissionCommission

April 24, 2009April 24, 2009Jack Morton Auditorium Jack Morton Auditorium

Washington, D.C.Washington, D.C.

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U.S Google Energy Plan / U.S Google Energy Plan / 20302030

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U.S. Renewable Energy U.S. Renewable Energy ResourcesResources

Geothermal

Biomass

Wind

Solar CSP

Solar PV

Source: National Renewable Energy Laboratory

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Concentrating Solar PowerConcentrating Solar Power

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Nellis ProjectNellis ProjectNellis Air force Base 14 MW Solar Power SystemNellis Air force Base 14 MW Solar Power System

66

Solar PV on a HomeSolar PV on a Home

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Existing High Voltage Existing High Voltage TransmissionTransmission

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““While at the Commission, I While at the Commission, I intend to concentrate on three intend to concentrate on three issue areas that I believe will issue areas that I believe will bolster our commitment to bolster our commitment to ensuring that consumers ensuring that consumers receive reliable power at just receive reliable power at just and reasonable rates. These and reasonable rates. These areas [include] … opening areas [include] … opening wholesale markets to wholesale markets to renewable and distributed renewable and distributed resources.”resources.”

FERC Commissioner Jon WellinghoffFERC Commissioner Jon WellinghoffSeptember 21, 2006September 21, 2006

FERC Action on Renewable FERC Action on Renewable EnergyEnergy

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Order No. 890 (February 2007)Order No. 890 (February 2007) Conditional Firm ServiceConditional Firm Service Energy Imbalance and Generator Imbalance ExemptionsEnergy Imbalance and Generator Imbalance Exemptions Transmission PlanningTransmission Planning

CAISO Location-Constrained Resources Proposal CAISO Location-Constrained Resources Proposal (April 2007)(April 2007)Interconnection Queue Processing (March 2008)Interconnection Queue Processing (March 2008)

Merchant Transmission Financing Flexibility Merchant Transmission Financing Flexibility (February 2009)(February 2009)

Smart Grid Proposed Policy Statement (March 2009)Smart Grid Proposed Policy Statement (March 2009) Transmission Investment Rate IncentivesTransmission Investment Rate Incentives

FERC Action on Renewable FERC Action on Renewable EnergyEnergy

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Transmission PlanningTransmission Planning Transmission planning increasingly must look Transmission planning increasingly must look

beyond the needs of a single utility or even a beyond the needs of a single utility or even a single state to examine requirements of an single state to examine requirements of an entire region.entire region.

Order No. 890 Order No. 890 Requires transmission planning on regional, open, Requires transmission planning on regional, open,

transparent, coordinated basistransparent, coordinated basisApplies to all jurisdictional transmission providersApplies to all jurisdictional transmission providersNon-public utility transmission providers also Non-public utility transmission providers also

expected to participate in regional planning expected to participate in regional planning processesprocesses

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Transmission PlanningTransmission Planning FERC examining adequacy of transmission FERC examining adequacy of transmission

planning processes:planning processes:

March 2009 technical conference begins series on March 2009 technical conference begins series on challenges/solutions to integrating renewable challenges/solutions to integrating renewable energy.energy.

FERC Staff to hold regional technical conferences FERC Staff to hold regional technical conferences later this year to evaluate Order No. 890 later this year to evaluate Order No. 890 transmission planning and areas that need transmission planning and areas that need improvement. improvement.

Focus of Senate, House legislation.Focus of Senate, House legislation.

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Transmission ReliabilityTransmission ReliabilityFederal Power Act Section 215 (EPAct Federal Power Act Section 215 (EPAct

2005)2005)Bulk Power SystemBulk Power SystemMandatory, Enforceable RulesMandatory, Enforceable RulesERO (NERC), Regional EntitiesERO (NERC), Regional Entities

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Necessary Factors for Solar Necessary Factors for Solar DevelopmentDevelopment

Transmission Transmission PlanningPlanningSitingSitingCost AllocationCost Allocation

DR For IntegrationDR For Integration

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Thank Thank YouYou