California’s electric grid operator will release in May a procurement schedule for the first two grid expansion projects totaling $4.1 billion needed to connect the federally approved floating offshore wind development in a 206-square-mile deepwater area off the coast, he said in announcing the expansion. April 1 program.
The plan, developed by the state’s independent system operator known as CAISO, along with two state energy agencies, is the main component of $6.1 billion in infrastructure investment in 26 announced transmission projects. These would provide an additional 85 GW of generation capacity needed to meet state load growth and greenhouse gas reduction targets by 2035, CAISO said.
According to CAISO, the expected generation capacity is significantly increased with respect to the amounts of the base portfolio that were the basis of last year’s transmission plan.
The application will include two major transmission projects: a 500 kV substation with a 500 kV line that will cost $2.7 billion and a second 500 kV line that will cost $1.4 billion, CAISO said. These will connect the power expected to be generated from approved projects in Northern California’s Humboldt Bay.
The new transmission will also link approved projects in Morro Bay in central California.
“This is very, very good news for the offshore wind industry and will be seen as a signal that transmission operators understand that offshore wind is part of a set of technologies to meet state targets,” said Jim Lanard, CEO of Magellan Wind, to ENR. The company partnered with developer Copenhagen Infrastructure Partners, which won a federal lease in the Humboldt area and has since acquired Magellan’s portion of the project.
“It will be seen as a big step forward for offshore wind,” Lanard said.
Changing the feed mix
The Humboldt area has strong wind capacity but little development and no transmission to move new power to the major load centers of San Francisco and Los Angeles.
“This proposal begins to address that,” Lanard said, noting that he expects more offshore wind development in Northern California.
Two companies are currently being awarded federal leases in the Humboldt area. Three companies also hold federal leases in the Central Coast Wind Development Area off Morro Bay, totaling 3.1 GW.
Much of the transmission needed for Morro Bay capacity will come from the retirement of natural gas-fired power plants, CAISO said, but another 5.3 GW would also be needed by 2035. The added transmission could become available, depending on Diablo retirement plans that still work. Canyon Nuclear Power Plant.
The need for additional power generation in the next 10 years has expanded rapidly in California as it transitions to a carbon-free power grid required by new clean energy mandates, CAISO said.
The latest plan builds on the strategic approach of the plan launched last year, but is more proactive and based on a 10-year projection to add about 7,000 MW of capacity annually, the operator added.
Transmission projects recommended for approval are phased in with delivery times of up to eight to 10 years, which are reasonable for some to complete, CAISO noted.
In addition to the planned new offshore wind, the generation capacity now required by the 26 new transmission projects also includes more than 38 GW of solar across the state, southern Nevada and western Arizona; as well as 3 GW of onshore wind, 21 GW of geothermal development, 5.8 GW of off-state onshore wind and added battery storage.
