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Glossary of Terms

Renewable Energy Zone
Renewable Energy Zones (they are sometimes also referred to as energy corridors, or target areas – it varies) evolved as a strategy to solve a problem: renewable energy sources such as wind are often located far away from transmission lines. Transmission lines cost a lot of money to install, but so do wind farms – so, what comes first, the wind plant or the transmission line? The chicken or the egg? Enter the Renewable Energy Zone, a policy concept pioneered in Texas and California. The state legislature (or, if you plan transmission interstate, a governors’ association) designates a certain area of the state for new transmission development. That way, wind developers and RTOs know where to focus their resources.
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