Renewable generation effect on net regional energy interchange

Using production-cost model (PLEXOS), we simulate the Western Interchange (WECC) at several levels of the yearly renewable energy (RE) generation, between 13% and 40% of the total load for the year. We look at the overall energy exchange between a region and the rest of the system (net interchange, NI), and find it useful to examine separately (i) (time-)variable and (ii) year-average components of the NI. Both contribute to interregional energy exchange, and are affected by wind and PV generation in the system. We find that net load variability (in relatively large portions of WECC) is the leading factor affecting the variable component of inter-regional energy exchange, and the effect is quantifiable: higher regional net load correlation with the rest of the WECC lowers net interchange variability. Further, as the power mix significantly varies between WECC regions, effects of `flexibility import´ (regions `borrow´ ramping capability) are also observed.