Document name wecc scenarios


Scenario Four - Policy Themes



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Scenario Four - Policy Themes


The chart below indicates how policy areas might influence the context in which energy related decisions are to be made within scenario four. The indicators on the charts will also be used to indicate changes from the common case assumptions, which will be the basis for WECC quantitative modeling. The common case assumptions should be thought of as a world, which naturally extrapolates from current conditions with no extraordinary changes.

Key: ‘++’ = Most aggressive; ‘+’=aggressive; ‘-’= less aggressive; ‘– –’ = least aggressive; ‘0’ = neutral


Scenario 4: Focus on Long-Term Societal Costs


Policy

Categories





Notes


Policy

Theme


“Low-hanging fruit” investment in clean,

domestic resources.



+ means:

Greenhouse Gas Policies

+

more aggressive

reduction targets



Economic

Policies


0

pro-growth policies

Capital Investment Support

0

more investment support

Renewable Energy Policies

+

more favorable to renewables

Transmission and Standards

+

more favorable to investment and coordinated operations

Federal R&D/ Technology Support

+

more support

Transportation

Policies


+

more support for alt. fuel vehicles and transport. choices

Demand-side Policies

++

more support for

demand-side investments



Energy Security/
Independence Policies

++

more support for

domestic resources



Environmental/

Cultural Policies



+

more protection of environmental/cultural resources

Consumer Issues

0

more restrictions

on cost recovery



Fuel

++

more support for

enhanced production




Using the Scenarios for Long Term Thinking and Early Indicators


The draft scenarios are written as if the entire twenty-year period unfolds in one quadrant. Remaining in one quadrant was a necessary step for creating distinctly different worlds and as a way to provide clear alternatives to drive the transmission planning results. Since scenarios are tools for thinking and learning they can also be combined in imaginative ways.

Long-Term Use of the Scenarios


The WECC scenarios can be seen as “archetypes” or states of play for periods of time (generally shorter than 20 years). It is in this light that one can imagine pathways through the archetypal spaces over longer periods. Here are some suggestions from the pathways shown in Chart 4 below. We use directional designations for the four scenario quadrants: (1) Scenario One is the Northwest (NW) Quadrant; (2) Scenario Two is the Northeast (NE) Quadrant; (3) Scenario Three is the Southwest (SW) Quadrant; and (4) Scenario Four is the Southeast (SE) Quadrant.

Chart 4: Long-Term Movement





From SW to NW


Here we can imagine the U.S. and the WECC region emerging from the 2008-2010 recession and steadily returning to stable economic growth. If technology in the power industry evolves steadily (with no big breakthroughs), then it is possible for the WECC region to stay in this world for five to ten years. Supported by global economic growth, good demographics and effective economic policies, this world could even extend out for the majority of the 20 years. For transmission investment, this path would call for new transmission to tie in the new generation being built to meet growing demand.

From NW to NE


Movement here would be caused by a ramp up in technological innovation in the power sector combined with investments across the industry to implement a new paradigm. These investments would contribute to sustaining economic growth. This could be a 10-year boom (like the 1990s) with have a soft landing that essentially characterizes a long period of time. For transmission investment, this path may indicate that interstate transmission may already be sufficient and that most of the action could be in the distribution system and in limited in-state transmission. The transmission added during the period in Scenario One might prove sufficient.


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