Cost-effective Way to Meet RPS? Transmission Build-Out

摘要

Aggressive renewable portfolio standards (RPS) necessitate additional development of renewable generation sources. State regulators should pursue holistic approaches to bring new renewable generation online while minimizing ratepayer cost and grid instability. As part of this approach, regulators should evaluate whether interstate transmission build-out can meet state energy policy goals at lower cost than simply building in-state renewable generation. Although state RPS are by definition political implements enacted at the state level, the physics of power fail to respect state boundaries. The localization of the best sources of renewable generation engenders additional cost and grid stability concerns. In particular, because renewable generation sources are heavily localized, the lowest-cost renewable power necessary to satisfy a state's RPS might be outside that state.