This week marked an important step toward a West powered by renewable energy.

The California Independent System Operator (CAISO) released market studies on Tuesday showing that expanding the grid manager’s territory into other Western states would create $1.5 billion in annual net benefits to California ratepayers.

The studies were completed in response to last year’s landmark Senate Bill 350, which established a requirement for meeting 50 percent of California’s electricity needs with renewable energy by 2030. In addition to the benefits, the studies show that expanding CAISO’s footprint increases the use of renewable energy, creates jobs and increases investment across the West.

Whether for environmental reasons or because renewables are a less expensive option for utilities looking for power, our nation, and California in particular, is moving toward a grid dominated by new renewable energy sources. And CAISO expansion will be necessary to integrate and balance these resources within and beyond California’s borders.

Leading policies adopted in California, such as the renewable portfolio standard and the California Solar Initiative, have led to dramatic declines in the cost of solar and to rapidly increasing adoption.

There are currently more than 2,754 solar companies at work in California, employing 75,598 people. In 2015, California installed 3,266 MW of solar electric capacity, ranking first nationally, and the industry accounted for more than $7 billion in investment in the state.

The next step is for the California legislature to act and we look forward to working with lawmakers as they consider these studies. Details will matter and the integration of the Western grid will take time, but CAISO has done an important job in outlining the tremendous benefit of a more integrated and more renewable electricity system.