NEW ENERGY WIRES, THE PLAN

The American Society of Civil Engineers gave the U.S. transmission infrastructure a D+. That’s the transmission infrastructure on which President Obama wants to double U.S. New Energy capacity. Think about that next time the lights flicker.

Former CIA Direction R. James Woolsey recently observed that it would be very challenging to INTENTIONALLY design a transmission system as brittle and vulnerable as the present U.S. transmission system. That’s the transmission system Silicon Valley’s ambitious information technology mavens want to make much smarter. Think about that next time there's a blackout somewhere that takes days to rectify.

There are almost 300,000 megawatts of wind projects waiting for access to the national grid. In California, 13,000 megawatts of solar power plants are waiting to connect. Think about that next time a threat of rolling brownouts is announced.

The New Energy industries are pushing for a whole new approach to transmission. Green Power Superhighways: Building a Path to America’s Clean Energy Future describes what they want and need. (For a recent assessment of an opposing point of view, see DOES BIG NEW ENERGY NEED BIG NEW TRANSMISSION?)

New Energy industry leaders are not calling for specific legislation. They’re not demanding specific sites. This is what American Wind Energy Association CEO Denise Bode called “a vision statement” focusing on 3 points: (1) More national planning, (2) more local and regional interconnection planning, and (3) a fair way to share costs and benefits.

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New Energy industry leaders see new transmission not as a separate legislative initiative but as part of the upcoming energy or climate change bills. Their purpose in bringing the report forward is to identify policy and regulatory, not legislative, concerns.

The report: “Policy barriers – not technical or economic barriers – are the chief factors impeding the construction of green power superhighways. However, there are notable changes that should be implemented to make better use of our transmission infrastructure.”

The regulatory agency with which they are concerned is the Federal Energy Regulatory Commission (FERC). FERC has the power to facilitate transmission development or to facilitate obstruction. In addition to long term planning, FERC could take short term steps to improve the system.

The Report: “Today’s highly constrained patchwork transmission system makes it very difficult to move large amounts of renewable power around the country. A solution is to use the existing grid more efficiently through technology and new operating protocols. This is not a replacement for green power superhighways, but these changes would allow more wind and solar energy to be integrated with the grid at lower cost. Increased efficiency would provide greater flexibility for changes in electricity supply and demand and would improve economic performance of the grid even in the absence of renewable energy.”

The need for regulatory planning goes beyond the reach of FERC to state regulatory agencies that fail to negotiate Not-In-My-Backyard (NIMBY) attitudes.

The report: “State regulators, who in many areas have primary jurisdiction over what transmission gets built and who pays for it, are often required to weigh only the benefits that will accrue to residents of that state…[T]he benefits of high-voltage transmission infrastructure typically accrue to millions of consumers over broad interstate regions…Most state regulators have little authority or incentive to require ratepayers in their state to help pay for an interstate network.”

According to the report, though, it is possible for FERC to resolve obstacles.

The report: “FERC should allocate, based on electricity usage, the capital and operating costs of these transmission lines across all load-serving entities on an interconnection-wide basis. In regulatory terms, the “determination of need” would be made in the regional plan, approved by FERC…[S]ubstantial reform of the transmission siting process is required to meet national renewable energy goals. The most effective model is the siting authority that was given to FERC over interstate natural gas pipelines. For green power superhighways, the extra-high-voltage facilities defined in the regional plans would be subject to FERC approval and permitting. Separate siting approval at the state level would not be required…”

A key element of the report is its call for the newest in high-voltage 765-kilovolt lines, capable of carrying more electrons with fewer lines and significantly smaller power losses at a lower price.

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Monies in the recently passed stimulus bill, in the form of Department of Energy (DOE) grants and loan guarantees, lay the groundwork for the funding. The report’s authors cite several assessments showing new transmission pays for itself through increased competition in wholesale power markets.

A grid operators’ study found that a $50-to-60 billion upgrade to the Eastern U.S. system bringing 240 gigawatts of wind-generated electricity online would drive down power costs enough to pay for the investment. An Electric Reliability Council of Texas (ERCOT) study found new transmission infrastructure to bring New Energy online pays for itself in 3 years. A Charles River Associates International study found high-voltage transmission to add wind power capacity in Kansas, Oklahoma and Texas would cost $400-500 million/year and save $1 billion/year.

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New Energy industry leaders are not calling for the new transmission to be exclusively dedicated to New Energy, only that New Energy be given priority. The crucial role of New Energy in the nation’s future, though, is highlighted by President Obama’s goal of doubling capacity in the next 3 years. On this subject, the report quotes a statement by environmental group Western Resource Advocates.

From Smart Lines: Transmission for the Renewable Energy Economy: “Efficiency and local generation won’t be enough to satisfy future demand, let alone provide the capacity that will be needed to retire older coal facilities in order to make a dent in U.S. carbon emissions. Renewable energy at the utility scale will be required, and in the West, the resources that can provide this type of power are often far from population centers. That means significant new transmission capacity will be needed to tap these resources.”

The report quotes calls for new transmission from President Obama, Vice President Joe Biden, former Vice President and Nobel laureate Al Gore, MIT economist Paul Joskow, energy entrepreneur T. Boone Pickens and Richard Sergel, President and CEO of the North American Electric Reliability Corporation (NERC), the organization charged with maintaining grid reliability. The consensus of opinion is striking and the message is clear.

From the report's conclusion: “Modernizing America’s outdated transmission infrastructure will not be easy. It will require bold, forward-looking action from leaders who recognize that addressing America’s economic, energy, and climate challenges must be a top priority...All three challenges are intertwined. All three require new, innovative ways of thinking about energy policy at the local, state, and federal level. And all three will require a modern transmission system that is able to deliver clean, abundant renewable energy to homes and businesses efficiently and reliably...”

New transmission would support smart transmission. (click to enlarge)

Solar, Wind Industries Release White Paper On Green Transmission Superhighway
February 18, 2009 (American Wind Energy Association)

WHO
American Wind Energy Association (AWEA) (Denise Bode, CEO); Solar Energy Industries Association (SEIA) (Rhone Resch, President/CEO); Federal Energy Regulatory Commission (FERC)

WHAT
Green Power Superhighways: Building a Path to America’s Clean Energy Future

A modern transmission system could change the country...(click to enlarge)

WHEN
- AWEA and SEIA bring this report forward in anticipation of major legislative initiatives in the current Congressional session on energy and climate change either or both of which are expected to contain measures pertaining to expanded transmission.
- Many experts anticipate increased problems with blackouts and brownouts in coming years without an upgraded transmission system.
- The New Energy industries say there are many shovel-ready new transmission projects awaiting regulatory and planning certainty.

...like the interstate highway system and...(click to enlarge)

WHERE
- Rural electrification in the 1930s, the interstate highway system in the 1950s and the information superhighway of the 1990s launched economic growth and lasting benefit. A new high-voltage transmission upgrade could be the 1st project of the 21st century to have such an impact.
- The Southwest has the potential to generate nearly 7 times the solar energy-generated electricity
- T. Boone Pickens calls the Midwestern plains from West Texas and the Texas panhandle to the Canadian border the “Saudi Arabia of Wind” and believes only the lack of adequate transmission prevents the region from powering population centers from the Eastern seaboard to the West coast.

...and rural electrication did. (click to enlarge)

WHY
- Siting issues pertain more to high-voltage than low-voltage transmission and minimizing land use and wildlife impacts must be considered in planning to avoid local NIMBYism.
- Smart grid capacity is integral to efficient operation and will be facilitated by high-voltage lines.
- New lines giving New Energy priority, though not exclusivity, would facilitate regional balancing between where the wind is blowing and where it’s not or where the sun is shining but the wind is not blowing and would greatly improve the reliability of New Energy.
- 1 765-kilovolt line carries what 6 of today’s highest volume (345-kilovolt) lines carry with 10 times lower losses.
- New lines would allow more competition among power wholesalers, bring down ratepayers’ costs for electricity and more than offset the cost of building infrastructure.

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QUOTES
- Denise Bode, CEO, AWEA: “Just as President Eisenhower’s vision of a modern interstate highway system transformed commerce and transportation in our nation, the benefits of this kind of investment by our generation will far exceed the costs. We need a modern electron superhighway to power our nation’s 21st century economy with clean, renewable energy…Nearly 300,000 MW of wind capacity is held up in the pipeline due to transmission limitations. The wind industry is ready to get these projects in the ground, create thousands of jobs, generate investment here in the U.S. and provide an inexhaustible supply of clean, affordable energy for years to come.”
- Rhone Resch, President/CEO, SEIA: “President Obama has issued the bold challenge to double renewable energy generation in the U.S. in three years. This will not be achieved without renewed investment in our electric transmission infrastructure to ensure that the regions with the best solar resources are connected to population centers where they are needed most…At the same time, new investments will create thousands of good-paying jobs in areas hard hit by the recession. This effort will require a cohesive plan from federal, state, and local interests and will not be easy, but we are up to the President’s challenge.”