The January 24, 2014 meeting of the CLFP Energy Resources Committee (committee) was held at the new site housing California’s Independent System Operator (CAISO). The CAISO oversees the operation of California's bulk electric power system, transmission lines, and electricity market generated and transmitted by its member utilities. Following the meeting, CAISO personnel provided committee members with a tour of the new Folsom, California facility and an opportunity to view their state-of-the-art control room that is the most advanced grid control system in the world.
CAISO staff provided committee members an overview of what is required to manage the grid and to coordinate with the surrounding states – the members of the Western Electricity Coordinating Council (WECC). The WECC region encompasses the entire Western Interconnection, which comprises the states of Washington, Oregon, California, Idaho, Nevada, Utah, Arizona, Colorado, Wyoming, portions of Montana, South Dakota, New Mexico and Texas in the United States, the Provinces of British Columbia and Alberta in Canada, and a portion of the Mexican system in Baja California.
One of the challenges facing CAISO is the increasing use of renewable energy to satisfy California’s growing electricity demand. Under the Renewable Portfolio Standard, California is mandated to obtain 33 percent of its retail electricity from renewable power by 2020. However, coupled with the loss of the SONGS nuclear generation plant in southern California and the push by green advocates to further green the grid by replacing the conventional generation with additional renewable power, grid reliability is further threatened.
In order to manage the grid under these green policy directives from the state Legislature, CAISO presenters urged CLFP members to consider the installation of Combined Heat and Power (CHP) where workable. CAISO needs flexible resources with specific operational characteristics at specific locations to maintain grid reliability – essentially load following capability - something that the preferred renewable resources can’t currently provide. Therefore, CAISO is actively working with the industry and lawmakers to support the development of these types of flexible resources.
If you are interested in learning more or your company is considering investment in CHP, please contact John Larrea at CLFP at john@clfp.com.
By John Larrea, Government Affairs Director, California League of Food Processors
California League Of Food Producers