AWEA representatives outlined three major roadblocks (referred to as the three Ps) to building transmission during their March 9th Webinar entitled "Green Power Super Highways: Building a path to America's clean energy future."
It's no new discussion. Transmission is a problem, especially when you are involved in the renewable energy industry. During the Webinar, presenters stated that transmission is the
largest obstacle to wind growth, but they are optimistic that President Obama's future plans for renewable energy will help to get around that obstacle. By improving our electricity grid we can essentially allow for more growth for renewable projects like wind.
Why are renewables being effected so heavily by the current grid? There are many reasons. First of all, many renewable energy projects can't connect to the grid because there just isn't enough capacity. Then there are curtailment issues; those projects that are connected to the grid are being forced to cut down on their production because the grid can handle it. To go along with all of that, there is geography issues as well. Most renewable energy projects are located far from major cities, therefore the energy produced can't be sent to where it is needed most. The best wind and solar resources are most often found where not many people live. Webinar presenters stated that there are currently some 280,000 MW in wind projects held up because of transmission interconnection backlog.
There are many scenarios out there about this new "Green Power Superhighway." Both Sen. Jeff Bingaman, D-NM, and Majority Leader Harry Reid have both submitted legislation concerning transmission.
So now to the three Ps...AWEA representatives noted three issues that need to be address in order for the upgrade to the grid to be successful. Planning, paying and permitting were the issues they addressed.
Basically, the planning issue has to do with the chicken and the egg issue (who goes first?). Without transmission developers don't want to build their projects and with no one wants to build transmission where energy isn't already being generated. So, what did AWEA suggest as a solution? Pro-active planning. Studies need to be done that identify areas that have renewable energy potential and transmission need to planned for that area. The Texas CREZ process was given as a example of how this could be done. One other topic that was discussed was the use of high voltage transmission lines. With proactive planning transmission lines could be more efficient and use less land. Not to mention that building higher voltage lines in the first place would essentially decrease the cost of construction in the long run.
Once you get everything planned someone has to pay for all of this. The classic public goods issue often causes a problem because most are enticed to simply free-ride on lines. The solution that AWEA offers is "broad, regional cost allocation." The basis behind this plan is simple: everyone benefits from transmission so everyone should pay for transmission. Users throughout a broad region would be assigned the costs associated with transmission upgrades. It is important to note though that transmission costs account for less than 10% of your electric bill, therefore the increase wouldn't be much per individual. It was also noted that the consumer would eventually benefit from reduced electric costs which would make up the difference.
The final step after planning and paying for the upgrades to the grid would be building it. Several things come into play at this point. First you have the typical Not in My Backyard (NIMBY) mentality along with siting policies that can all hold up a project. Currently, one state could hold up an entire process if they aren't happy with the siting of the lines. The solution offered: coordinated and streamlined siting. Federal siting, similar to something like that of natural gas pipelines, would help to facilitate the process. Currently there is a lot going on in legislation to help make the permitting of lines easier.
In closing, it is important to note that the "Green Power Superhighway" is not the same as the "Smart Grid." AWEA representatives noted that they are separate efforts and while the "Smart Grid" efforts are going to help renewables to some extent, the real focus should be on getting the infrastructure built.
Click to read the "
Green Power Superhighways" white paper in its entirety.
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