Energy Zones In Action
Our upcoming implementation guide outlines the sequence of steps needed to implement Energy Zones as a tool for coordinated planning, siting, and permitting of generation and transmission infrastructure. Sign-up below to have a link to the guide delivered straight to your inbox.
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Examples of Energy Zones in Action
Texas’ 2005 Competitive Renewable Energy Zones spurred more than 15 GW of new generation
In 2005, the Texas legislature directed its public utility commission (PUCT) to designate Competitive Renewable Energy Zones (CREZ) to help connect wind-abundant areas to load centers. Developing individual projects in these regions without grid infrastructure would have been uneconomical. Instead, the state proactively identified priority geographic zones and planned transmission infrastructure at scale. After evaluating the wind areas, the PUCT designated five zones and approved 3,600 miles of 345 kV transmission buildout in advance of generation. CREZ enabled 15 GW of wind in 10 years and cut wind curtailment by 16.5 percent in 5 years.
Illinois’ Renewable Energy Access Plan identifies Energy Zones and coordinates with regional planning
Illinois sits within two multi-state RTOs (PJM and MISO) and cannot unilaterally direct regional transmission expansion. To ensure transmission constraints do not impede the state’s ability to meet its energy needs, the state’s Renewable Energy Access Plan identifies priority geographies for energy development and integration into regional or local transmission planning processes. The Illinois Commerce Commission designated renewable energy zones based on resource potential, developer interest, and land use, and categorized them into near-term and longer-term development potential. Illinois used these zonal designations to engage PJM and MISO to conduct headroom analysis and pursue complementary interconnection reforms.
The Texas Permian Reliability Plan Project coordinates transmission with the Permian Base
Under the following initiatives, coordinated planning efforts are enabling new generation and transmission expansion.
In Texas’ Permian Basin, oil and gas electrification and data centers are rapidly increasing electricity demand, creating a tremendous need for transmission expansion. As a result, the 2023 Texas legislature passed HB 5066 requiring the PUCT and the Electric Reliability Council of Texas (ERCOT) to plan the needed system-wide transmission solutions. While Texas did not use the term “Energy Zone,” the coordinated load, generation, and transmission planning enabled large-scale expansion, including integration of the Permian Basin Plan into ERCOT’s broader 765-kV Strategic Transmission Expansion Plan (STEP). STEP invests ~$33 billion to enhance grid reliability, manage congestion, and support economic growth in the Permian Zone.