Benefit-Cost Analysis of Large-Scale Transmission for Renewable Generation: Principles & California Case Study

The California Renewable Portfolio Standard (Senate Bill 1078) will result in large increases in renewable energy development in the state. In this presentation, we discuss the challenges involved in estimating the benefits and costs of transmission reinforcements designed to bring renewable energy to market, with a focus on the recently approved SunPath project and the proposed large scale Tehachapi development. There are important theoretical and practical challenges in estimating the net benefits associated with the energy, reliability, environmental, and capacity impacts of such transmission projects.