$1.5B transmission project would boost California's access to renewable energy

New York — A GridLiance GP LLC subsidiary proposed a $1.5 billion electric transmission project that could eventually allow California to access nearly 6,000 MW of additional renewable energy capacity.

GridLiance West LLC on March 15 announced plans for the Silverado Renewables Connection, a three-phase project that would upgrade and expand the independent transmission company's existing 230-kV transmission lines in southwestern Nevada and California.

The existing high-voltage power lines are controlled by the California ISO, which will study the proposal this year as part of its transmission planning cycle. The grid operator is expected to make final recommendations in March 2022.

The proposed project comes as the California Public Utilities Commission considers a range of resilience measures in response to mid-August 2020 rolling blackouts caused by an unexpected loss in generating capacity. Potential solutions include procuring 7,500 MW of additional capacity between 2023 and 2025, including 1,000 MW of geothermal energy, and delaying the retirement of natural gas-fired peakers even as the state seeks to decarbonize its power supply by 2045.

The first phase of the Silverado Renewables Connection would enable 2,600 MW of additional capacity by upgrading GridLiance West's existing 230-kV infrastructure in areas already designated as renewable energy zones. Without upgrades, proposed renewable energy projects in those areas are unlikely to move forward.

The second phase would unlock an additional 1,250 MW of capacity by connecting GridLiance West's transmission system in Nevada to Bishop, Calif. The company noted on the project's website that the National Renewable Energy Laboratories has identified the area as "a hotbed for geothermal energy development" in addition to being prime real estate for wind and solar generation.

A third phase would connect the upgrades completed in the first two phases, increasing transmission capacity between southern Nevada and California by thousands of megawatts.

GridLiance expects the $1.5 billion project to produce approximately $2.4 billion in economic activity for California alone, including nearly 14,000 jobs. Once complete, the three-phase project would offset about 14.5 million metric tons of planet-warming carbon dioxide, the annual equivalent of removing 3.1 million passenger cars from the road, GridLiance said.

GridLiance noted that the project would also help tamp down on California's notorious "duck curve" problem, where systemwide generation ramps up to meet an evening peak in demand as solar penetration abruptly declines.

"We commend the CPUC for their forward-looking approach to meeting California's nation-leading climate change goals and are excited to work with CAISO to study the needed improvements to the transmission system," GridLiance President and CEO Calvin Crowder said in a statement. "There is pent-up demand for these upgrades, and we stand ready to begin work on Silverado Renewables Connection to expedite the deployment of these renewable resources."