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California ISO unveils Transmission Plan, proposes $6.1 billion investment in clean energy infrastructure

4C Offshore | Chloe Emanuel
By: Chloe Emanuel 04/04/2024 CAISO

The California Independent System Operator (ISO) has unveiled its draft 2023-2024 Transmission Plan, signalling a major step forward in the state's commitment to clean energy infrastructure development. With a focus on reliability, efficiency, and sustainability, the plan recommends 26 new projects with an estimated total cost of $6.1 billion upon completion.


Among the key highlights of the draft plan is the integration of energy generated by North Coast offshore wind into the California grid, marking a significant milestone in the state's renewable energy goals. The plan emphasises a synchronised and strategic approach to infrastructure development, aligning with California's clean-energy objectives for the next decade.


Scheduled for a public stakeholder call on April 9, the draft plan invites comments from stakeholders until April 23. Following this period, a final version will be presented for consideration by the ISO Board of Governors at its May meeting.


With a focus on reliability driven projects to accommodate load growth and evolving grid conditions, the draft plan recommends 19 projects estimated at $1.54 billion. The majority of the investment, approximately $4.59 billion, is allocated to three major transmission lines intended to deliver energy from offshore wind turbines off the coast of Humboldt County.


Neil Millar, Vice President for Infrastructure and Operations Planning at the ISO, highlighted the significance of these projects, stating, "These projects off California’s North Coast area represent the first wave of development for offshore wind to meet the state’s portfolio needs while also being flexible enough to expand in the future to meet any increased requirements."


The comprehensive plan encompasses various renewable energy sources, including solar, wind, and geothermal, with provisions for battery storage projects and the import of wind generation from neighbouring states. Notably, the plan anticipates the first offshore wind farms to begin generating power by 2034.


To ensure transparency and efficiency, the ISO's transmission planning process includes detailed assessments of alternatives and recommended projects, reflecting a proactive approach to meet California's clean-energy policy objectives.


Millar emphasised the importance of synchronised planning and resource procurement, stating, "It’s crucial that we do all we can to synchronise all of our planning and resource procurement so we can get these transmission lines planned, sited and built as quickly and as cost-effectively as possible."


Once approved, the transmission plan will initiate cost recovery for the identified projects through ISO transmission rates, subject to regulatory approval, and will kick start the competitive solicitation process for eligible projects under the ISO's federal tariff.


In parallel, the ISO has been collaborating with stakeholders to enhance its interconnection process, aiming for more efficient and timely integration of new resources into the grid. A final proposal outlining recommended changes to the interconnection process is slated for consideration at the May Board of Governors meeting.


The unveiling of the 2023-2024 Transmission Plan underscores California's continued leadership in clean energy and represents a significant milestone in the state's journey towards a decarbonised grid by 2045.



For more information about offshore wind farm projects across the globe, click here.

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