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Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

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Page 1: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Salt River ProjectAssessment of Renewable Energy Resources using the

Western Renewable Energy Zones (WREZ) Model

January 2011

Page - 1

Page 2: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

How to use this Presentation

This presentation is designed to provide a succinct review of results while allowing users to access more guidance if necessary

Navigation (must be in full-screen mode)

Hyperlink – Link to additional information resources

– Click to get more information on assumptions and methodology for a specific slide (if available)

– Click to return to the last viewed slidePage - 2

Guide

Guide

Run the presentation in slide-show mode (Press F5) to use navigation buttons

Page 3: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Organization of Material in this Presentation

1. Introduction

2. Renewable Energy Demand

3. Identification of Most Economic WREZ Resources

4. Comparison to Local Resources

5. Maps of Top WREZ Resource Areas for SRP

6. Slide by Slide Guide

Page - 3

Guide

Page 4: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

IntroductionIntroduction

Page - 4

Page 5: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Overview of WREZ Initiative The WREZ initiative has identified “hubs” composed of environmentally preferred, high

quality renewable resources sufficient to justify building new high-voltage transmission in the Western Interconnection

WREZ resource data was developed by the Zone Identification and Technology Assessment (ZITA) workgroup. A discussion of the resources and zone identification process may be found at: www.nrel.gov/docs/fy10osti/46877.pdf (8 MB)

A Generation and Transmission Model (GTM) was developed

Transparent and user-friendly model for load-serving entities (LSEs), regulators and others to evaluate the delivered cost of energy coming from renewable energy hubs

Focus is on renewable resources that may be more distant from loads, but local resources can be added by users for comparison

Available at:http://www.westgov.org/index.php?option=com_content&view=article&catid=102%3Ainitiatives&id=220%3Awrez-transmission-model-page&Itemid=81

Both ZITA and GTM were stakeholder-led processes with consensus from western utilities and industry stakeholders

Page - 5

Guide

Page 6: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

WREZ and the Generation and Transmission Model Can Assist with Key Questions

Which resources might be economically attractive for meeting renewable portfolio standard (RPS) targets in the West?

What new transmission is needed to access those resources?

Which LSEs may be potential partners for coordinated procurement and transmission?

How do local options compare to more distant resources?

Page - 6

Purpose of this presentation is to address these key questions for SRP using “base case” (default) assumptions for the GTM.

Guide

Page 7: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Important Considerations

The WREZ GTM was run with a common set of assumptions across all the Western Interconnection

For example, all incremental transmission, 50 percent line utilization

The model is available to download and customize as users would like

The results provide a consistent basis to compare utilities, but they are likely different from the utilities’ current resource priorities.

Focus is on potential resources. No evaluation of existing resources.

The model was run independently for 25 utilities. The same potential resources were modeled for all utilities. Multiple utilities could identify the same resource as being economic for their portfolio. Utilities may compete or collaborate for these better resources. This slide indicates resource overlap.

Projections were made to 2030 with high RPS targets. This is to encourage long range thinking.

The intent is for this information to stimulate conversation about long range resource planning

Page - 7

Guide

Page 8: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Renewable Energy DemandRenewable Energy Demand

Page - 8

Page 9: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Modeled Renewable Energy Demand (GWh/yr)

Page - 9

Notes –Load forecast values obtained from survey performed by LBNL.

Guide

RenewableDemand Scenario

Load in Goal Year

Gross Renewables

Demand

Existing Resources*

Net Renewables

Demand

7% by 2020 35,658 2,496 Not included 2,496

33% by 2030 47,154 15,718 Not included 15,718

*Generation from existing plants and plants currently under construction. Not included at this time.

Page 10: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Identification of Most Economic WREZ Resources

Identification of Most Economic WREZ Resources

Page - 10

Page 11: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Page - 11

Busbar Cost

Transmission Cost

Integration Cost

+

+

Energy Value

Capacity Value

-

-

Adjusted Delivered Cost

GTM Resource Cost DeterminationAdjusted Delivered Cost of Energy Resource cost information provided by

model:

Busbar cost: “raw” cost of generation

Delivered cost: cost to transmit energy to load zone

Adjusted delivered cost: the value of a resource to a load zone, taking into consideration the energy and capacity benefit delivered by the resource

Additional information on specific approach and assumptions in accompanying guide slides

GuideD

elivered Cost

Page 12: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

WREZ Resources

Page - 12

Guide

The Zone Identification and Technical Analysis (ZITA) workgroup identified potential renewable resource hubs

Hubs are meant to represent the highest quality resources in the Western Interconnect

The size of the hub is proportional to its energy potential (GWh/yr)

Each hub can have multiple resources depending on what is available

Hub names provide the following information on state and relative location in the state. Examples:

NV_WE: Nevada West

BC_WC: British Columbia West Central

NM_EA: New Mexico East

AB_EA

AB_EC

AB_NO

AB_SE

AZ_NE

AZ_NW

AZ_SO

AZ_WE

BC_CT

BC_EA

BC_NE

BC_NO

BC_NW

BC_SE

BC_SO

BC_SW

BC_WC

BC_WE

BJ_NO

BJ_SO

CA_CT

CA_EA

CA_NE

CA_SO

CA_WE

CO_EA

CO_NE

CO_SECO_SO

ID_EA

ID_SW

MT_CT

MT_NEMT_NW

NM_CT NM_EA

NM_SENM_SONM_SW

NV_EA

NV_NO

NV_SW

NV_WE

OR_NE

OR_SO

OR_WE

TX

UT_WE

WA_SO

WY_EAWY_EC

WY_NO

WY_SO

Page 13: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

AZ_NEAZ_NEAZ_NWAZ_NW

BJ_NOBJ_NO

BJ_SOBJ_SO

CA_CTCA_CT

CA_EACA_EA

CA_NECA_NE

CA_SOCA_SO

CA_WECA_WE

NM_EANM_EA

NV_SWNV_SW

NV_WENV_WE UT_WEUT_WE

Most Economic WREZResources

Page - 13

Resource Key

HydroWindBiomass Solar PVSolar ThermalGeothermal

HydroWindBiomass Solar PVSolar ThermalGeothermal

HydroWindBiomass Solar PVSolar ThermalGeothermal

HydroWindBiomass Solar PVSolar ThermalGeothermal

Note: Color represents the dominant resource in the Hub.

The GTM model was run with “base case” assumptions to identify the most economic resources to meet SRP’s renewable demand

These are shown as the colored circles at right (“Hubs”)

Additional detail provided in the following slides

Guide

Page 14: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

0 10 20 30 40 50 60 70 80 90 100

2020

RPS

Goa

l

33%

by

2030

0

20

40

60

80

100

Adju

sted

Del

iver

ed C

ost o

f Ene

rgy,

$/M

Wh

Cumulative Annual Generation Potential, TWh

Geothermal

Solar

Wind

Biomass

Hydro

0 500 1000 1500 17500

100

200

300

Supply Curves of All WREZ Resources and Top 100 TWh of Resources*

Page - 14

Guide

Page - 14

All WREZ in WECC

Most economic resources, detailed on next slide * Supply curves do not include local, non-WREZ resources

Page 15: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Most Economic Resources Identified to Meet Renewables Demand: Individual Resources, Sorted by Cost

Guide

Page - 15

Note: Under cumulative, the generation column (GWh/yr) is the running total of the resources identified as most economic; the next column shows the  corresponding percentage of 2030 load.

Rank Type LocationCapacity,

MWResource, GWh/yr GWh/yr

% of 2030 load

Busbar Cost

Tx Cost with

LossesIntegra-tion Cost

Energy Value

Capacity Value Total

1 Wind Class 7 Arizona Northeast 1.2 0.0 0 <1% $61 $9 $5 ($64) ($10) $22 Wind Class 6 Arizona Northeast 14.1 51.7 52 <1% $67 $9 $5 ($64) ($10) $83 Wind Class 7 California South 12.4 50.0 102 <1% $61 $14 $5 ($62) ($10) $84 Wind Class 7 California East 0.2 0.6 102 <1% $61 $11 $5 ($64) ($4) $95 Wind Class 6 Arizona Northwest 0.6 2.0 104 <1% $67 $11 $5 ($64) ($8) $126 Wind Class 5 Arizona Northeast 42.0 143.3 248 <1% $72 $9 $5 ($64) ($10) $137 Wind Class 6 California South 59.8 219.8 467 <1% $67 $14 $5 ($62) ($10) $148 Wind Class 7 Nevada Southwest 0.1 0.2 468 <1% $61 $22 $5 ($64) ($10) $149 Wind Class 6 California East 1.0 3.7 471 <1% $67 $11 $5 ($64) ($4) $1410 Geothermal Utah West 81.0 638.6 1,110 2% $72 $26 $0 ($64) ($18) $1611 Wind Class 7 California Central 2.8 11.1 1,121 2% $61 $24 $5 ($63) ($10) $1712 Wind Class 5 Arizona Northwest 1.2 3.9 1,125 2% $72 $11 $5 ($64) ($8) $1713 Wind Class 7 Baja North 157.4 634.3 1,759 4% $65 $19 $5 ($62) ($10) $1714 Hydro California South 1.6 7.7 1,767 4% $87 $15 $0 ($64) ($19) $1815 Wind Class 7 Nevada West 1.2 4.6 1,772 4% $61 $30 $5 ($65) ($14) $1916 Wind Class 5 California South 56.6 193.2 1,965 4% $72 $14 $5 ($62) ($10) $1917 Wind Class 4 Arizona Northeast 136.4 430.0 2,395 5% $78 $10 $5 ($64) ($10) $1918 Wind Class 5 California East 3.4 11.4 2,406 5% $72 $11 $5 ($64) ($4) $2019 Wind Class 6 Nevada Southwest 2.3 8.3 2,414 5% $67 $22 $5 ($64) ($10) $2020 Wind Class 7 Utah West 3.1 12.5 2,427 5% $62 $26 $5 ($63) ($10) $2021 Wind Class 7 California West 104.3 420.1 2,847 6% $60 $31 $5 ($64) ($11) $2122 Wind Class 6 California Central 12.6 46.4 2,893 6% $67 $24 $5 ($63) ($10) $2323 Wind Class 4 Arizona Northwest 7.0 21.9 2,915 6% $78 $11 $5 ($64) ($8) $2324 Wind Class 6 Baja North 371.3 1,365.9 4,281 9% $71 $19 $5 ($62) ($10) $2425 Wind Class 6 Nevada West 4.5 16.4 4,298 9% $67 $31 $5 ($65) ($14) $25

Generation Adjusted Delivered Cost of Energy $/MWhCumulative*

Page 16: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Most Economic Resources Identified to Meet Renewables Demand: Individual Resources, Sorted by Cost (cont.)

Guide

Page - 16

Note: Under cumulative, the generation column (GWh/yr) is the running total of the resources identified as most economic; the next column shows the  corresponding percentage of 2030 load.

Rank Type LocationCapacity,

MWResource, GWh/yr GWh/yr

% of 2030 load

Busbar Cost

Tx Cost with

LossesIntegra-tion Cost

Energy Value

Capacity Value Total

26 Wind Class 4 California South 138.5 436.8 4,734 10% $78 $14 $5 ($62) ($10) $2527 Wind Class 7 Baja South 30.0 120.7 4,855 10% $65 $28 $5 ($62) ($10) $2628 Wind Class 5 Nevada Southwest 3.5 12.0 4,867 10% $72 $22 $5 ($64) ($10) $2629 Wind Class 4 California East 19.7 62.1 4,929 10% $78 $11 $5 ($64) ($4) $2630 Wind Class 6 Utah West 7.8 28.7 4,958 11% $68 $26 $5 ($63) ($10) $2731 Wind Class 6 California West 329.5 1,212.1 6,170 13% $66 $31 $5 ($64) ($11) $2732 Wind Class 5 California Central 26.0 88.8 6,259 13% $72 $24 $5 ($63) ($10) $2833 Wind Class 5 Baja North 397.2 1,356.8 7,616 16% $77 $19 $5 ($62) ($10) $2934 Wind Class 6 California Northeast 0.5 1.8 7,617 16% $67 $27 $5 ($64) ($5) $2935 Wind Class 5 Nevada West 6.2 21.2 7,639 16% $72 $31 $5 ($65) ($14) $3036 Wind Class 7 New Mexico East 0.5 2.0 7,641 16% $61 $34 $5 ($63) ($6) $3037 Geothermal California South 1,170.0 9,224.3 16,865 36% $98 $15 $0 ($64) ($18) $31

Generation Adjusted Delivered Cost of Energy $/MWhCumulative*

Page 17: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Most Economic Resources Identified to Meet Renewables Demand: Summary by Area, Sorted by Cost

Page - 17

Click here for Maps of Each Area

*This column shows the Adjusted Delivered Cost of Energy weighted by the energy share of each resource in the resource area (e.g. share of wind Class 7 in California West). Only resources identified as most economic are included in the calculation.

Guide

Area Biomass Solar Geothermal HydroWind

Class 3Wind Class

4Wind Class

5+Total Capacity,

MW

Total Generation,

GWh/yr

Energy Weighted Adjusted

Cost ($/MWh)*

Utah West 81 11 92 680 16

Arizona Northeast 136 57 194 625 17Arizona Northwest 7 2 9 28 21Nevada Southwest 6 6 20 23California East 20 5 24 78 24Baja North 926 926 3357 25California Central 41 41 146 25Baja South 30 30 121 26California West 434 434 1632 26Nevada West 12 12 42 27California Northeast 1 1 2 29California South 1170 2 139 129 1439 10132 30New Mexico East 1 1 2 30

Capacity by Resource Type, MW

Page 18: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Resource Area PG

&E

SM

UD

LA

DW

P

SC

E

SD

GE

IID

AP

S

SR

P

TE

P

NV

En

erg

y

PN

M

El

Pas

o

Tri

-Sta

te G

&T

CS

U

Xce

l (C

O)

Pac

ific

orp

(U

T)

Pac

ific

orp

(O

R)

Pac

ific

orp

(W

A)

PG

E

EW

EB

Avi

sta

PS

E

SC

L

Tac

om

a

Idah

o P

ow

er

BC

Hyd

ro

No

rth

wes

tern

Utilities That May be Interested in Similar Resource AreasGreater Potential Interest Indicated by Filled Circles

GuidePercentage of Hub Energy Identified as “Most Economic” for a Given Utility

>90%

66.7 - 90%

33.3 - 66.7%

10 - 33.3%

>0% - <10%

Arizona Northeast

Arizona Northwest

Arizona South

Arizona West

California Central

California East

California Northeast

California South

California West

Colorado East

Colorado Northeast

Colorado Southeast

Colorado South

Idaho East

Idaho Southwest

Montana Central

Montana Northeast

Montana Northwest

New Mexico Central

New Mexico East

New Mexico Southeast

New Mexico South

New Mexico Southwest

Nevada East

Nevada North

Nevada Southwest

Nevada West

Page 19: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Utilities That May be Interested in Similar Resource AreasGreater Potential Interest Indicated by Filled Circles (cont.)

Guide

Resource Area PG

&E

SM

UD

LA

DW

P

SC

E

SD

GE

IID

AP

S

SR

P

TE

P

NV

En

erg

y

PN

M

El

Pas

o

Tri

-Sta

te G

&T

CS

U

Xce

l (C

O)

Pac

ific

orp

(U

T)

Pac

ific

orp

(O

R)

Pac

ific

orp

(W

A)

PG

E

EW

EB

Avi

sta

PS

E

SC

L

Tac

om

a

Idah

o P

ow

er

BC

Hyd

ro

No

rth

wes

tern

Percentage of Hub Energy Identified as “Most Economic” for a Given Utility

>90%

66.7 - 90%

33.3 - 66.7%

10 - 33.3%

<10%

Page - 19

Oregon Northeast

Oregon South

Oregon West

Texas

Utah West

Washington South

Wyoming East

Wyoming East Central

Wyoming North

Wyoming South

Alberta East

Alberta East Central

Alberta North

Alberta Southeast

British Columbia Central

British Columbia East

British Columbia Northeast

British Columbia North

British Columbia Northwest

Birtish Columbia Southeast

Birtish Columbia South

British Columbia Southwest

British Columbia West Central

British Columbia West

Baja North

Baja South

>90%

66.7 - 90%

33.3 - 66.7%

10 - 33.3%

>0% - <10%

Page 20: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Annual Average Hourly Profiles in WREZ With Most Generation From That Resource

Page - 20

Guide

Baja North Wind 41% Avg

California South Geothermal 90% Avg

Energy Price $64/MWh Avg

$-

$10

$20

$30

$40

$50

$60

$70

$80

$90

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

En

erg

y P

ric

e ($

/MW

h)

Ca

pa

cit

y F

ac

tor (

%)

Hour Beginning

Page 21: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Comparison to Local ResourcesComparison to Local Resources

Page - 21

Page 22: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Potential Resources in SRP Service Territory

Transmission LinesExist-

ingFounda-

tionalPoten-

tialSize (kV)

230-499

500

DC

Page - 22

LSE Service Areas

Guide

Legend Symbols not to Scale

Page 23: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Potential Wind and Solar PV Resources in SRP Territory

Page - 23

Guide

See guide for important notes and assumptions

Local Wind and Solar PV Resources Potential Capacity (MW)

WindClass 3 0Class 4 0Class 5+ 0

Solar PV1% of service territory 2,866

Page 24: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

0 10 20 30 40 50 60 70 80 90 100

2020

RPS

Goa

l

33%

by

2030

0

20

40

60

80

100

Adju

sted

Del

iver

ed C

ost o

f Ene

rgy,

$/M

Wh

Cumulative Annual Generation Potential, TWh

Geothermal

Solar

Wind

Biomass

Hydro

Generic Comparative Local Resource

Busbar Cost

Tx Cost Int. CostEnergy Value

Capacity Value

Total Without Tx Cost

Solar PV $137 Varies $2.5 ($68) ($28) $44Wind Class 3 - Varies $5.0 - - -Wind Class 4 - Varies $5.0 - - -Wind Class 5 - Varies $5.0 - - -Wind Class 6 - Varies $5.0 - - -Wind Class 7 - Varies $5.0 - - -

Adjusted Delivered Cost of Energy, $/MWh

Economic Analysis of Local Resources in Service Territory

Page - 24

Guide

WREZ Resources (Previous Supply Curve)Economics of Local Resources

Page 25: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Maps of Top WREZ Resource Areas for SRP

Maps of Top WREZ Resource Areas for SRP

Page - 25

Page 26: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Nevada West Potential Resources

0 50 100 150 200MILES

Sierra Pacific Power Company

PG&E

PG&E

SCE

SCE

Nevada Power Company

Sierra Pacific Power Company

LADWP

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

Guide

Page 27: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Utah West Potential Resources

0 50 100 150 200MILES

Pacifi-Corp

PacifiCorp

PacifiCorp

PacifiCorp

PacifiCorp

PacifiCorp Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

Guide

Page 28: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Nevada Southwest Potential Resources

0 50 100 150 200MILES

Sierra Pacific Power Company

SCE

SCE

SCE

PG&E

SCE

SCE

Pacifi-Corp

Pacifi-Corp

NevadaPower Co.

APS

LADWP

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

Guide

Page 29: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

California West Potential Resources

0 50 100 150 200MILES

LADWP

PG&E

SDGE

SCE

SCE

SCE

SCE

SCE

SCE

SCESCE Imperial

Irrigation District

SCETransmission Lines

Exist-ing

Founda-tional

Poten-tial

230-499

500

DC

Size (kV)

LSE Service Areas

CA Renewable Energy Transmission Initiative (RETI) Competitive Renewable Energy Zones in vicinity• Tehachapi• Fairmont • Kramer

Guide

Page 30: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

California Central Potential Resources

0 50 100 150 200MILES

PG&E

LADWP

SCE

LADWP

SCE

SCE

SCE

SCE

SCE

APS

SCE

SCE

SDGE

Imperial

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service AreasCA Renewable Energy Transmission Initiative (RETI) Competitive Renewable Energy Zones in vicinity• Pisgah• Victorville• Twentynine Palms• San Bernardino Lucerne• Barstow

Guide

Page 31: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

California Northeast Potential Resources

0 50 100 150 200MILES

SDGE

SCE SCE

SCE

SCE

Southern California Edison (SCE)

Imperial

Arizona Public Service Co.

Arizona Public Service Co. (APS)

APS

APS

APS

Nevada Power

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

CA Renewable Energy Transmission Initiative (RETI) Competitive Renewable Energy Zones in vicinity• Iron Mountain

Guide

Page 32: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

California East Potential Resources

0 50 100 150 200MILES

Arizona Public Service Co.

APS

APS

APS

San Diego Gas &

Electric

SCE

SCE

SCE

SCE

APS

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

CA Renewable Energy Transmission Initiative (RETI) Competitive Renewable Energy Zones in vicinity• Riverside East

Guide

Page 33: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

California South Potential Resources

0 50 100 150 200MILES

San Diego Gas &

Electric

SCE

SCE

SCE

Imperial Irrigation District

Arizona Public Service Co. (APS)APS

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

CA Renewable Energy Transmission Initiative (RETI) Competitive Renewable Energy Zones in vicinity• San Diego South• Imperial North• Imperial East• Imperial South

Guide

Page 34: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Baja North Potential Resources

0 50 100 150 200MILES

San Diego Gas &

Electric

Imperial

APS

APS

APSSCE

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

Guide

Page 35: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Baja South Potential Resources

0 50 100 150 200MILES

Guide

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

Page 36: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Arizona Northwest Potential Resources

0 50 100 150 200MILES

Imperial

SCE

Arizona Public Service Co.

SCE

SCE

SCE

Nevada Power

Guide

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

Page 37: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Arizona Northeast Potential Resources

0 50 100 150 200MILES

SRP

Arizona Public Service Co

Guide

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

Page 38: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

New Mexico East Potential Resources

Guide

Transmission LinesExist-

ingFounda-

tionalPoten-

tial

230-499

500

DC

Size (kV)

LSE Service Areas

0 50 100 150 200MILES

PSC of NM

Page 39: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Slide-by-Slide Guide

Page - 39

Page 40: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: Renewables Demand

Renewables demand is generally determined for two scenarios

RPS goals in 2020

33% renewables in 2030*

The gross renewables demand is calculated by the renewable percentage times the relevant load forecast (based on public information)

If existing and under-construction renewables are quantified, these are subtracted from the gross demand to determine the net renewables demand

Net renewables demand is used as a “mile-marker” to indicate the rough renewables needed for the utility

The 33% by 2030 scenario is used as the basis for the analysis in the presentation (tables, charts, etc.)

Page - 40

Guide

This slide shows a table which roughly indicates how much renewable energy the utility might be interested in under future scenarios.

*For California utilities, 2030 total demand is shown

Page 41: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: GTM Resource Cost Determination

Busbar Cost – levelized cost of energy considering capital cost, O&M, fuel costs, heat rate (biomass), incentives, net plant output, gen-tie costs, capacity factor, economic life, discount rate, inflation, and financing costs.

Detailed ZITA resource assumptions: www.nrel.gov/docs/fy10osti/46877.pdf (8MB)

Transmission Cost – levelized cost of delivering the energy from the resource to load area including losses. For the purposes of this model, all resources are assumed to require new transmission, costs for which are estimated based on a 500 kV single-circuit ac line operating at 50% utilization

Integration Cost – Indirect operation cost to the transmission system to accommodate the generation from the project into the grid. Starting point assumptions are provided in the model, but a user can change the integration cost for each technology.

Wind - $5/MWh, solar thermal - $2.50/MWh, solar photovoltaic - $2.50/MWh, all others - $0/MWh

Energy Value – represents the value of a resource’s hourly output to the load zone – i.e. the load zone’s marginal cost. Energy values were developed by Black & Veatch based on 2015 market forecast ($2009) using the ProMod production cost model.

Capacity Value – capacity value represents the fractional avoided carrying costs of simple cycle combustion turbine. A capacity credit fraction is calculated for each project based on its operation during peak periods (top 10% of load hours).

Page - 41

Guide

Click here for full description of methodology and assumptions: http://www.westgov.org/wga/initiatives/wrez/gtm/documents/GTM%20V%202.0%20Method%20Assumptions.pdf

Page 42: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

AB_EA

AB_EC

AB_NO

AB_SE

AZ_NE

AZ_NW

AZ_SO

AZ_WE

BC_CT

BC_EA

BC_NE

BC_NO

BC_NW

BC_SE

BC_SO

BC_SW

BC_WC

BC_WE

BJ_NO

BJ_SO

CA_CT

CA_EA

CA_NE

CA_SO

CA_WE

CO_EA

CO_NE

CO_SECO_SO

ID_EA

ID_SW

MT_CT

MT_NEMT_NW

NM_CT NM_EA

NM_SENM_SONM_SW

NV_EA

NV_NO

NV_SW

NV_WE

OR_NE

OR_SO

OR_WE

TX

UT_WE

WA_SO

WY_EAWY_EC

WY_NO

WY_SO

Guide: WREZ Resources

Page - 42

Guide

Environmental exclusions

Example resource

Transmission

Resource Hub

Page 43: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: Supply Curve of WREZ Resources

Page - 43

Guide

This slide shows all of the WREZ resources in the Western Interconnection (upper right hand corner), sorted from lowest to highest adjusted delivered cost. The top 100 TWh of resources are shown in the large supply curve. Two demand lines are shown on this chart (dashed red lines). One for a 2020 RPS target (if applicable), and a second representing 33% of 2030 load (total load for California utilities). The resources to the left of the lines represent the most economic resources for that scenario.

Page 44: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: Most Economic Resource Tables

Page - 44

Guide

This slide lists all of the individual WREZ resources identified as most economic to meet a 33 percent renewable energy target. Each resource represents a “step” in the supply curve shown on the previous page. The resources are listed in ascending order from lowest to highest cost. Generation is tracked on a cumulative basis so that the renewable penetration running total can be tracked.

This slide summarizes the information in the previous table by technology and by resource area. The resources are listed in ascending order from lowest to highest cost.

Page 45: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Page - 45

Guide

Guide: Utility Comparison Matrix

Resource Area PG

&E

SM

UD

LA

DW

P

SC

E

SD

GE

IID

AP

S

SR

P

TE

P

NV

En

erg

y

PN

M

El

Pas

o

Tri

-Sta

te G

&T

CS

U

Xce

l (C

O)

Pac

ific

orp

(U

T)

Pac

ific

orp

(O

R)

Pac

ific

orp

(W

A)

PG

E

EW

EB

Avi

sta

PS

E

SC

L

Tac

om

a

Idah

o P

ow

er

BC

Hyd

ro

No

rth

wes

tern

Arizona Northeast

Arizona Northwest

Arizona South

Arizona West

California Central

California East

California Northeast

California South

California West

Colorado East

Colorado Northeast

Colorado Southeast

Colorado South

Idaho East

Idaho Southwest

Montana Central

Montana Northeast

Montana Northwest

New Mexico Central

New Mexico East

New Mexico Southeast

New Mexico South

New Mexico Southwest

Nevada East

Nevada North

Nevada Southwest

Nevada West

Percentage of Hub Energy Identified as “Most Economic” for a Given Utility

>90%

66.7 - 90%

33.3 - 66.7%

10 - 33.3%

<10%

While other utilities may be interested in this zone, it is most economic for APS

All California utilities may be interested in this zone, including some with significant interest. This indicates potential for competition and/or collaboration

This zone is common to APS and SRP. A shared transmission solution may be economic

This slide compares the most economic resource areas for all utilities. The symbols represent the potential “interest”* level of a utility in an area. This is measured by the percentage of the resource area’s total resources that are identified as economic for a utility. Greater potential interest is indicated by filled circles. For example, 9,700 GWh of California West resources are identified as being economic resources to meet PG&E renewable targets. The total potential resources in California West are 59,000 GWh/yr, meaning PG&E’s interest is 16%. Per the key, the quarter-filled circle is displayed.

This slide allows a quick comparison of potential transmission collaboration or resource competition. Some examples are shown below.

*For the purposes of this discussion, “interest” means that the resource has been identified bythe model as being potentially economic. It does not imply actual interest by the utility.

Page 46: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: Annual Average Hourly Profiles

Page - 46

Guide

California West Wind 36% Avg

Oregon West Geothermal

90% Avg

Energy Price $71/MWh Avg

0

10

20

30

40

50

60

70

80

90

100

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

En

erg

y P

ric

e ($

/MW

h)

Ca

pa

cit

y F

ac

tor (

%)

Hour Beginning

This slide shows the output profiles of the largest WREZs (by generation) identified as economic for the 33% by 2030 scenario. The profiles are compared to the energy price profile for the utility. Average annual diurnal profiles are provided for price and capacity factor.

The purpose of this chart is to be able to compare the relative “fit” between the output of the resources and the need (as expressed by energy value) of the utility. In the example below, the flash-based geothermal project provides a baseload resource available 24 hours a day. The wind resource is more variable, but still peaks near when energy prices are highest. It is important to note that there are seasonal variations in these data as well, not shown below. The GTM model considers a 12 month by 24 hour profile when making energy and capacity value calculations (more detailed GTM methodology and assumptions provided here).

Page 47: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: Utility Service Area Map Showing Local ResourcesMaps are provided for the utility service area to show local and nearby WREZ renewable resources (if any). The maps show the renewable resources in relation to other features, including land exclusions, other utility service areas, and transmission lines. Key features of the maps are identified below.

Page - 47

Resource legend

Transmission line types

Wind resources

Geothermal resource

Solar resources

Hydro resources

Exclusions: lands removed from consideration for development due to environmental restrictions (e.g., wilderness area), or other land use constraints (urban areas)

Potential transmission line

Existing transmission line

Guide

Page 48: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: Potential Local Resources

General Assumptions

The estimates represent total potential and do not account for existing resources that have already been developed.

Estimates do not consider constraints on the transmission or distribution system.

Local resources were quantified in a manner consistent with the evaluation of larger WREZ resources:

Wind: quantified Class 3 and higher wind on land that has not been excluded for environmental or other land use reasons. Only included land outside of WREZ hubs. Assumed 25% of the resulting land could be developed. Assumed 5 MW/km2 development density.

Solar: Estimate is just a rough indication of potential based on the geographic size of the utility service territory. Quantified total area of utility service territory. Assumed 1% of this land could be developed. Assumed 38 MW/km2 development density. Unlike wind, did not account for environmental exclusions or larger WREZ resources.

Page - 48

Guide

This slide quantifies potential local resources (solar PV and wind), based on a high-level GIS analysis. Utilities may supplement this with their own knowledge about other resources, including biomass, hydro and geothermal. The intent is to show how local resources might complement or compete with more distant resources.

Page 49: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: Local Resource Economics

General Assumptions

Costs are based on utility-scale local resources (>20 MW) and consider generic performance typical for the service territory.

Wind assumptions:

$2,200/kW capital cost

Capacity factor is based on the wind class, as quantified on the previous slide.

Class 3 (32%), class 4 (36%), class 5 (39%), class 6 (42%), class 7 (46%).

Solar PV assumptions:

Thin film, fixed tilt technology

$3800/kW capital cost (ac basis)

capacity factor determined based on location

Page - 49

Guide

This slide compares the economics of potential local solar and wind resources (table on left) to the WREZ resources previously identified (supply curve on right). The intent is to show how local resources might complement or compete with more distant resources. Quantities of local resources are not definitive, so this chart just indicates where the relative cost of local resources lies compared to distant resources. An important caveat is that the local resources do not include the cost of transmission and distribution upgrades, which are unknown. As such, the economics shown here should be considered a best case scenario for local resources.

Page 50: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: WREZ Resource MapsMaps are provided for each WREZ resource area identified as having high economic potential. The maps show the renewable resources in relation to other features, including land exclusions, utility service areas, and transmission lines. Key features of the maps are identified below.

Page - 50

Mini-map showing selected hub and surrounding areas

Resource legend

Transmission line types

For California areas, any overlapping Competitive Renewable Energy Zones (CREZs) from the Renewable Energy Transmission Initiative are identified (map).

Wind resources

Geothermal resources

Solar resources

WREZ area of interest

Exclusions: lands removed from consideration for development due to environmental restrictions (e.g., wilderness area), or other land use constraints (urban areas)

Example foundational transmission line

Guide

Page 51: Salt River Project Assessment of Renewable Energy Resources using the Western Renewable Energy Zones (WREZ) Model January 2011 Page - 1

Guide: Transmission Line Types

Existing: Operating lines 230 kV and higher

Foundational: transmission projects that have a very high probability of being in service in a 10-year timeframe and are an assumed input into WECC’s 2011 10-year transmission plan

Potential: transmission projects that have been identified in WECC Subregional Planning Group 10-year plans but do not meet the foundational transmission project criteria

Page - 51

Existing Foundational Potential

230-499

500

DC

Size (kV)

Guide