Plunging Wind Into the Grid

The California ISO's intermittent resource program addresses a key market barrier to wind power: how to schedule wind energy in forward markets.

On July 1, the California Independent System Operator will launch its Intermittent Resources Program-the first of its kind in the nation. The new scheduling system encourages renewable resources such as wind to bid into the ISO's markets. The program will open with about 300 MW of new wind capacity this summer, with another 2,000 MW possible for the ISO's markets by the fall. Current estimates suggest that a total of 4,000 to 5,000 MW of new wind power capacity may be integrated into the California transmission grid over the next 15 years.

This projected growth from wind and other intermittent renewable resources is in response to the passage by the California legislature of the Renewable Portfolio Standard (RPS) last year. The law requires California to double the amount of renewable energy resources consumed in the state-from 10 to 20 percent-by 2017. This new law will encourage investment and construction of a substantial amount of new wind power capacity in California. Consumers will benefit because wind power is the lowest-cost renewable power generation option currently available.

The ISO's intermittent resource program addresses a key market barrier to wind power: how to schedule wind energy in forward markets without subjecting wind generators to major imbalance penalties when they do not deliver energy as forecast. The ISO's program is designed to achieve this objective in an open, competitive market environment without cross subsidies from other resources.