Building Out the Green Power Superhighway

White paper, FERC fi lings move transmission agenda

Inadequate transmission capacity remains a signifi cant barrier to

renewable energy development in the U.S. Nearly 300,000 MW of

wind capacity (enough to generate 20 percent of U.S. electricity) is

being delayed due to transmission limitations. Underscoring that

fact, AWEA and the Solar Energy Industries Association issued a

white paper titled “Green Power Superhighways: Building a Path

to America’s Clean Energy Future,” offering policy solutions to get

more power lines off the drawing boards and into the ground. AWEA

also fi led with the Federal Energy Regulatory Commission (FERC)

on the key issue of transmission cost allocation, calling on FERC to

broadly spread costs of transmission to all those who benefit.

4 Planning: Interconnection-wide (regional) planning is

needed for transmission networks to move renewable power

from remote areas to population centers.

4 Paying: A simple mechanism is needed to pay for

transmission lines to ensure that everyone who benefi ts from

them shares in the cost.

4 Permitting: Stronger federal certifi cation and siting authority

is needed to ensure that transmission lines are built when

and where they are needed.

States and regions tackle transmission issues

While federal transmission policy remains under heated discussion

as part of pending energy legislation, states and regions are where

key decisions on transmission investment are being made. Texas

and the Southwest Power Pool (Kansas, Oklahoma, and parts

of surrounding states) are seeing investment in new power lines

and infrastructure due to favorable transmission cost allocation

policies. The wind industry will be closely watching the Midwest

Independent System Operator to see if it adopts similar policies.

 

Transmission lines that pay for themselves

A number of studies have documented that building new

transmission will reduce consumers’ electric bills by billions of

dollars per year, particularly when that transmission is built to

access renewable resources like wind energy (see chart below).

The utility system operator in Texas estimated that a $4.9 billion

investment in transmission to access wind could pay for itself in

fewer than three years by reducing the use of natural gas, saving

consumers $1.7 billion per year on their electric bills.

Wind power can be integrated reliably and cheaply

As wind penetrations grow higher in the U.S. and Europe in 2010,

utilities and grid operators should become more comfortable

with this new and variable source of electricity. Several major wind

integration studies slated for release in 2010 are expected to add

further evidence that wind can be reliably integrated with the grid

at low cost. As wind continues to become a larger part of our

electric power system, however, the wind industry will be keeping

its eye on nascent efforts by some fossil fuel competitors to

impose new and unfair costs on wind plants.

Can U.S. improve 20% Wind by 2030 Report Card in 2010?

In July 2009, AWEA issued its fi rst annual progress report card

on the U.S. Department of Energy’s “20% Wind by 2030”

Report (www.20percentwind.org). The U.S. received a solid “B”

for its progress toward reaching 20% of electricity supply from

wind energy by 2030, but could be “at the high-water mark”

for wind without a strong, immediate, long-term national policy

commitment to renewable energy. Prepared by an in-house team

of AWEA experts, the report card examines progress in four key

areas–Technology Development, Manufacturing, Siting, and

 

Transmission & Integration.