Step 1: Process Design and Vision Statement

An effective REZ process is firmly rooted in applicable laws and regulations. This ensures that decision makers have the authority to approve and direct transmission investment and guarantees that the designation of REZ has relevant legal ramifications.

Identify the scope of the REZ process

The scope defines the geographic boundaries and the renewable energy resources included in the REZ process. The geographic area being considered in the REZ process defines the boundary of application. A clear boundary of application is important because it focuses the scope of the REZ process. The Lead Entity sets the geographic boundary based on the existing layout, operation, and regulation of the transmission infrastructure. This boundary may include a local, regional, national, or multinational area.

The scope of the REZ process also establishes the renewable energy resources included in the REZ process. The criteria for this decision may include government priorities and/or availability of spatially linked resource data. This step does not consider the production cost of electricity for different renewable energy resources because this is evaluated in step 2. For example, wind and solar are the most often defined resources for the REZ process.

Develop a vision statement

After establishing the scope of the REZ process, the Lead Entity reviews relevant laws and regulations to create a vision statement for the REZ process. While decision makers and stakeholders may provide comments, the vision statement comes from the Lead Entity.

The vision statement has two practical purposes:

1. To establish the goal of the REZ process—for example, to build new transmission infrastructure and make improvements that cost-effectively and fully use the best renewable resources in the region.
2. To clearly state the scope of the REZ process. A clear scope sharpens the focus of the process and manages stakeholder requests and expectations. This may include the boundary of application and the renewable energy resources considered.

Example Vision Statement from the Texas CREZ Initiative

The Texas CREZ vision statement was included in the Texas Utility Code
(Texas Public Utility Regulatory Act 1999):

The commission, after consultation with each appropriate independent organization, electric reliability council, or regional transmission organization: (1) shall designate competitive renewable energy zones throughout this state in areas in which renewable energy resources and suitable land areas are sufficient to develop generating capacity from renewable energy technologies; (2) shall develop a plan to construct transmission capacity necessary to deliver to electric customers, in a manner that is most beneficial and cost-effective to the customers, the electric output from renewable energy technologies in the competitive renewable energy zones; and (3) shall consider the level of financial commitment by generators for each competitive renewable energy zone in determining whether to designate an area as a competitive renewable energy zone and whether to grant a certificate of convenience and necessity.

Example Vision Statement from the Philippine CREZ Process

Philippines Department of Energy (DOE) Department Circular Number DC2018-09-0027

The Philippine CREZ is intended to enhance the planning process and strengthen the implementation of the PEP, PDP, TDP and NREP.[*] To achieve this, the DOE, in partnership with other stakeholders, shall identify and develop Renewable Energy Zones (RE Zones) and upgrade and expand transmission facilities through policy initiatives and activities that shall enable the optimal use of the indigenous RE resources of the country.

(a) The Philippine CREZ Process is hereby defined to support the DOE in the identification and establishment of the CREZ and preparation of the PDP. It shall likewise support the NGCP in planning transmission line enhancements (e.g., infrastructure upgrades, expansions and/or extensions) by developing a planning framework that shall direct the country's transmission development to areas where potential RE resources are located. At the end of the CREZ Process, several CREZs shall be identified and established in the country;
(b) The CREZ Process aims to support the DOE in overcoming RE development obstacles such as transmission constraints and regulatory barriers to financial investments by the private sector.
(c) The CREZ Process, shall:
(i) Identify candidate RE Zones, which represent geographic areas characterized by high-quality, low-cost RE potential in addition to high levels of private-sector developer interest;
(ii) Identify a set of transmission expansion and/or upgrade scenarios that enhance the deliverability of energy originating from candidate RE Zones;
(iii) Analyze the economic, operational, environmental, and other costs and benefits associated with the required transmission enhancement scenarios; and
(iv) Specify cost-effective transmission line enhancements proposed to be included in the TDP, as reviewed and approved by the DOE.
(d) Expansions of and upgrades to the existing system shall be evaluated as part of the reliability analyses and other assessments conducted in the TDP process.
(e) Any identified transmission line enhancement projects derived from the CREZ Process may be used as a form of justification in the approval of ERC.

*Philippines Energy Plan (PEP), Power Development Plan (PDP), Transmission Development Plan (TDP), and National Renewable Energy Plan (NREP)

Activity: Setting a Vision Statement for the Renewable Energy Zone (REZ) Process – Defining the Scope of a Project

This activity helps users set a vision statement for their REZ process. The vision statement establishes the goal and clearly states the scope of the REZ process. The exercises walk through the key components of a vision statement together with actual examples from the Texas Competitive Renewable Energy Zones (CREZ) and the Western Renewable Energy Zones (WREZ) initiatives from the United States. Upon completion of this activity, users will have a clearer understanding of the vision for their REZ process that can later be included in applicable documents that formalize the process.

Establish a detailed process design

The Lead Entity may also publish a REZ process design document describing the process in more detail, including steps, responsibilities, deliverables, timelines, and goals. The design document adds transparency and creates a process baseline that bounds subsequent changes as the different decision makers and stakeholders provide input on the scope and adjust the process to accommodate unforeseen circumstances. Prior to publication, the Lead Entity may share the process design document for review and input from decision makers and stakeholders.

Activity: Adapting the REZ Process – Developing a Specific Planning Process

This activity helps users set a vision statement for their REZ process. The vision statement establishes the goal and clearly states the scope of the REZ process. The exercises walk through the key components of a vision statement together with actual examples from the Texas Competitive Renewable Energy Zones (CREZ) and the Western Renewable Energy Zones (WREZ) initiatives from the United States. Upon completion of this activity, users will have a clearer understanding of the vision for their REZ process that can later be included in applicable documents that formalize the process.