RTO and Clean Energy Jobs

AN RTO CAN HELP POWER AN UNPRECEDENTED GREEN JOBS BOOM.

California needs to generate 86 GW of new clean energy between now and 2035, according to the historic procurement goals set this February by the California Public Utilities Commission (CPUC). That is more than double today’s 75 GW maximum output. Meeting these goals will require massive increases in production of every single type of renewable energy source—and $30 billion in transmission investments to connect all of this power to the grid. All of this clean energy expansion means unprecedented job growth for California workers.

California’s clean energy system can only grow this big—this quickly—with a regional market for the state’s clean energy. While California shares its power with other states today, an RTO will help expand regional energy coordination, so Western states produce enough clean power to keep the lights on, while collaborating on the transmission investments needed to deliver it to customers throughout the region.

The federal Inflation Reduction Act provides $369 billion in funding for expanding clean energy production – including $270 billion in tax credits for clean power projects with prevailing wage and union labor requirements. A new study finds California will benefit more than any other state, with 140,000 new clean energy jobs produced by 2030.

California’s clean energy goals have put the state on the brink of one of the largest green job booms in history, as the state’s clean power targets rapidly expand over the next decade, supported by unprecedented federal funding and strong labor standards. An RTO is essential for maximizing benefits to California workers and ratepayers—while keeping the lights on and energy costs down.

THE NEED:

California clean energy production must more than double by 2035.

California needs to generate 86 GW of new clean energy between now and 2035, according to the historic procurement goals set this February by the California Public Utilities Commission (CPUC). That is more than double today’s 75 GW maximum output. This will require massive increases in production of every single type of renewable energy source—and $30 billion in transmission investments to connect all of this power to the grid. This coming wave of clean energy expansion means unprecedented job growth for California workers, especially in these fields:

Solar: 39,072 MW of new resources, up from 15,072 MW today
Wind: 5,951 MW in new, in-state wind (offshore and onland), on top of today’s 6,281 MW
Battery Storage: 28,831 MW of new storage, up from less than 5,000 GW today
Transmission: Transmission capacity will need to triple to deliver all of these new resources. CAISO has identified $10.74 billion in needed upgrades to existing power lines and substations, along with $8.11 billion in new transmission for offshore wind and $11.65 billion to connect wind resources in other states.

NEW FEDERAL SUPPORT:

The Inflation Reduction Act includes unprecedented new funding for clean energy projects—with strong union labor standards.

The largest climate bill in American history includes $369 billion in funding for clean energy production—including $270 billion in tax credits for clean power projects with prevailing wage and union labor requirements. A new study finds California will benefit more than any other state, with 140,000 new clean energy jobs produced by 2030.

THE ESSENTIAL ROLE OF AN RTO:

Regional energy cooperation across state lines is the most reliable, affordable way to support this new green job boom.

California’s energy system can only grow this big—this quickly—with a regional market for the state’s clean energy: While California shares its power with other states today, an RTO will help expand regional energy coordination, so Western states produce enough clean power to keep the lights on, while collaborating on the transmission investments needed to deliver it to customers throughout the region.
The most effective way to maintain energy system reliability and affordability during this transition is through an RTO: Recent heat events have shown how small California’s margins are for producing enough clean energy to meet demand. As more sectors of the economy shift to renewable energy—putting even more pressure on the state’s energy system—an RTO will be essential to keeping the lights on and energy rates affordable. A CAISO study produced in February at the request of the Legislature concluded definitively that “California’s goals for renewable energy and greenhouse gas reduction can be achieved more quickly and with less cost to Californians through expanded regional cooperation.”