TRANSMISSION SERVES NEW ENERGY

The ISO/RTO Council is finding different ways to fund different levels of growth and capacity in regions all over North America. The only constant: New Energy growth.

Renewable developers have already reserved space on ISO/RTO networks for planned projects. Reserved space for new wind is 12 times greater than existing wind, almost 40% more reserved space than for new natural gas, twice as much as that of new coal and 4 times greater than for new nuclear.

The key to New Energy growth is the new transmission. New Energy projects are typically in outlying regions without a lot of capacity to carry the electricity captured there to high-demand urban areas. This report chronicles the enormous amount of wind energy waiting for new wires to come and get it, and then describes plans like the ones in Texas and California for financing new transmission.

How Transmission Operators Are Helping Renewable Energy, Especially Wind
Bill Opalka, October 31, 2007 (Energy Pulse)

WHO
Independent System Operator (ISO)/Regional Transmission Organization (RTO) Council, an organization of 10 system operators in North America; Federal Energy Regulatory Commission (FERC); Electric Reliability Council of Texas (ERCOT); California Energy Commission (CEC)

This forward-thinking council of grid operators covers much of North America. (click to enlarge)

WHAT
Increasing Renewable Resources: How ISOs and RTOs Are Helping Meet This Public Policy Objective and 2 other new reports from the ISO/RTO Council. ISOs and RTOs cover huge regional power systems and grids providing 2/3 of US and 40% of Canadian electricity. The report details grid systems all over the US and how they are evolving capacity.

WHEN
In 2006, natural gas grew most and wind grew 2nd most as sources of electricity.

WHERE
25 states and D.C. have Renewable Electricity Standards (RESs). 17 are served by an ISO/RTO.

WHY
- Renewables (wind, 1.2%, small hydro, 6.2%, solar-geothermal-biomass, 1.3%) provide 8.6% of US electricity.
- 40% of US electricity load is governed by an RES.
- ISOs and RTOs host 79% of wind power.
- Wind looks to be 87% of new renewable generation.
- Only California has any “significant” solar generation in ISO/RTO planning.

Much of the US grid is already under renovation in anticipation of the New Energy era. (click to enlarge)

QUOTES
- The CEC plan to fund new transmission in California: “Costs will be allocated to all transmission customers until the renewable generation is built, at which point generation owners will bear proportionate shares of the costs.”
- The ERCOT plan to fund new transmission in Texas: “Texas has initiated a process to designate Competitive Renewable Energy Zones (CREZs) and build transmission to serve selected CREZs to facilitate the proposed development of thousands of megawatts of new wind generation…”