Transmission Development: The Key to Unlocking the Midwest’s Wind Resource
By: ZACHARY D. OLSON
May 2009
The Midwest is home to a rich wind resource that has the potential to provide renewable electricity to Midwest states, and states on the East Coast as well as states in the Southeast of the United States. Also, more than one-half of the states in the United States have adopted a form of a renewable portfolio standard (“RPS”), mandating that a certain percentage of their electricity be generated from renewable electrical resources. The U.S. Congress and the Obama Administration are expected to pass a national RPS in the coming years. The future demand for electricity combined with state and federal support for renewable electricity that can be generated at a competitive price have given rise to several large-scale transmission studies and initiatives aimed toward tackling the issues surrounding how to expand the current transmission grid to accommodate the future demand for electricity and renewable electricity. This article provides a brief summary and status of several key transmission studies and initiatives.
Upper Midwest Transmission Development Initiative
The Upper Midwest Transmission Development Initiative (“UMTDI”) was formed on September 18, 2008, and is a cooperative effort between the states of Minnesota, Iowa, North Dakota, South Dakota, and Wisconsin to effectively increase the transmission capacity within the Upper Midwest. The Executive Committee of the UMTDI held public stakeholder meetings on November 7, 2008, and January 30, 2009, where they have engaged stakeholders from the five UMTDI states and answered questions and entertained ideas and comments. Currently, the UMTDI has formed working groups to focus on two of the main issues related to building new transmission in the Midwest, transmission grid planning and siting and fair and proper cost allocation of the new transmission. The working groups consist of members of the Executive Committee and stakeholders. The UMTDI intends to deliver a transmission plan by Fall 2009. The plan is expected to identify generation zones and potential transmission projects to accommodate such generation zones and propose equitable cost-sharing methodologies to fund the new transmission construction projects.
Regional Generation Outlet Study
The Regional Generation Outlet Study (“RGOS”) is a study performed by the Midwest Independent Transmission System Operator (“MISO”) to address transmission issues in light of the MISO queue reform which took effect in August 2008. The RGOS examines solutions for integration between MISO’s long-term and short-term planning processes by looking at several different scenarios for generation and transmission planning and comparing and contrasting generation capacity with the cost of building new transmission. The RGOS has identified several different configurations of generation zones and analyzed each configuration with a different transmission schematic. The study examines proximity to load centers, amount of transmission required for each scenario, and the economic impact of each scenario.
Joint Coordinated System Plan
The Joint Coordinated System Plan (“JCSP”) began in November 2007 and its participants currently include MISO, Pennsylvania, New Jersey, Maryland Interconnection (“PJM”), Southwest Power Pool (“SPP”), the Tennessee Valley Authority (“TVA”), and the Mid-Continent Area Power Pool (“MAPP”). The objective of the JCSP is to analyze and assess the current system reliability as well as reliability and economic impacts of an integrated transmission system serving the Midwest and much of the Eastern portion of the United States. The JCSP studies these topics through practical situations based on current levels of generation, as well as a theoretical wind mandate of 20% of energy consumption to come from wind by 2024. In doing so, the JCSP creates scenarios and proposed solutions that are not limited to a single geographic region or a single solution, but contemplates the need and desire for flexibility and being able to utilize the rich wind resource of the Midwest throughout New England, along the East Coast, and into the Southeast states. In addition to reliability assessment, the JCSP plans to examine and evaluate potential cost allocation models to determine not only the most cost-effective approach but also an equitable way of funding the potential transmission construction projects. Going forward, JCSP plans to expand the number of different generation and transmission scenarios studied, to include regulators in the discussions, and to sharpen the focus on potential costs and benefits of each transmission scenario.
Takeaway
The Upper Midwest Transmission Development Initiative, the Regional Generation Outlet Study, and the Joint Coordinated System Plan are all critical studies and plans for increasing the capacity and reliability of the transmission system. They will help guide federal and state policymakers, indirect power producers, and transmission owners in creating cost-effective transmission stations that meet the future demand of electricity, including renewable electricity. These initiatives and studies have endeavored to study, analyze, and ultimately make decisions that facilitate the expansion of the current grid to allow wind electricity generator developers to not only thrive in the Midwest but also make wind electricity generation an integral part of America’s energy plan.