Diving brief:

• The Bureau of Land Management has released a draft environmental impact statement for the 500 kV SunZia transmission project, which is designed to deliver 4,500 MW of mostly renewable power from New Mexico and Arizona to markets around the world. southwest, including California.

• The agency of the Ministry of the Interior on April 28 also says it was beginning the environmental review process for NV Energy’s Greenlink West project in Nevada and the Cross-Tie project between Nevada and Utah, which is being developed by a joint venture Pinnacle West Capital and Berkshire Hathaway Energy. Together, the three projects could unlock 10,000 MW of renewable energy, according to the Home Office.

• BLM action on environmental reviews came two days after Nevada’s first meeting Regional Transportation Coordination Working Groupwho was created under a state legislative mandate that prompted NV Energy to consider joining a regional transmission organization by the end of the decade.

Overview of the dive:

Several major transmission projects in the southwest appear to be moving forward as utilities and western network operators explore market options such as an RTO.

The SunZia Project, which has been in development since the mid-2000s, would travel about 550 miles from central New Mexico to central Arizona, according to SunZia Transmission. It is planned to have a 3,000 MW line and a 1,500 MW line which would be built separately.

Pattern Energy, based in San Francisco, is also develop wind farms in New Mexico totaling approximately 3,000 MW.

The Federal Energy Regulatory Commission has approved an agreement giving a subsidiary of Pattern Energy 1,500 MW on the first line. SunZia Transmission and Pattern Energy in March asked FERC to approve the results of a second tender that would give Pattern Energy an additional 1,500 MW on the same line, which has been expanded by switching to high-voltage direct current technology from an alternating current line .

In a pending application, the companies asked FERC to make a decision by May 2, 2022, so they can fund the SunZia project soon. The BLM is taking public comment on the draft environmental impact statement through August 1, according to a Federal Register Notice published on Monday.

The companies aim to begin construction of the first line in mid-2023 and start commercial operations by the end of 2025. The timing of the second line will depend on the timing of funding and construction of the first line as well as regional demand for transmission capacity, the companies told FERC.

MMR Group, which owns the SunZia project, has agreed to sell it to Pattern Energy in a deal expected to close this year, according to the FERC filing.

Pattern Energy markets its wind generation to California utilities.

In December, the Los Angeles Department of Water and Electricity, for example, started buying power from Pattern Energy’s 350 MW Red Cloud wind farm in New Mexico for $41/MWh less a 20-year fixed-price contract. The wind farm has an estimated capacity factor of 46%, reflecting New Mexico’s strong wind potential, LADWP said.

Meanwhile, transmission projects are also progressing in Nevada, according to presentations last week to the state’s regional transmission coordination task force.

The Nevada Public Utilities Commission has approved NV Energy’s $2.5 billion Greenlink project, which includes Electricity transmission facilities at 525 kV, 345 kV, 230 kV and 120 kV. NV Energy, a subsidiary of Berkshire Hathaway, aims to have the project’s western and northern lines fully operational by the end of 2028, according to the presentation. In part, the projects are designed to access Nevada’s rich solar resources.

According to the presentation of the company.

The 500 kV line between Utah and Nevada would facilitate imports of renewable resources to California and Nevada, including wind power from Wyoming, company officials said. TransCanyon aims to have the project operational in 2027.

LS Power and GridLiance, a subsidiary of NextEra Energy Resources, are also developing transmission projects that could add to Nevada’s interconnections with other states, including California.

“These four new projects are going to have a big impact on how Nevada plays out in any type of RTO in the West from a clean power generation perspective,” said Cameron DyerWestern Resource Advocates managing a senior attorney and a member of the task force.

Given the state’s central location in the West, building the transmission could give Nevada a major role in any potential RTO in the region, according to Dyer.