The United States is already one of the world's
most attractive wind energy markets and despite
signs of a slow down, the sector could achieve far,
far more. With a new administration in the White
House comes an opportunity to address some of the
key barriers to continued wind sector growth. Obama
has already more than hinted at a programme of accerated
grid development and more renewables, and here,
Peter Duprey explains, the development of a new
type of transmission system must indeed be a priority.
For much of last year we listened to US Presidential
candidates’ talk of energy independence, promises
of an expanded commitment to renewable energy generation,
green jobs and the importance of combating climate
change. Now, with President Obama in office, the
US can move past the speeches and into meaningful
action.
The United States has an opportunity to move now
to a new energy model – one that not only supports
the shift towards renewable energy, but which also
creates a reliable transmission infrastructure to
support it. Just as the country saw a sea change
in the last century with the creation of an Interstate
Highway System that connected people, goods and
services, it now needs an interstate energy transmission
system that can move the country to a new model
of energy supply and distribution. And, like any
evolution of this sort, it will require not only
the commitment of resources, but a shift of mindset
as well. The future promise of the United States
is one of clean, domestically generated energy,
and rethinking America’s energy transmission infrastructure
is the key to unlocking that promise.
The US Department of Energy has concluded that
wind harnessed in as few as three states – Texas,
Kansas and North Dakota – could provide enough electricity
to power the entire nation. That’s the good news.
However, the bad news is that with our current transmission
capabilities, we can’t get this vast domestic energy
resource to the areas where most people live.
The current transmission grid is simply incapable
of handling the potential amount of clean renewable
energy that can be produced. This nation’s imperative
must be to change and expand its transmission capabilities
so that we can provide that clean energy. But if
we are to galvanize this change, we must adjust
our collective mindset. Just as the American public
has rallied around utilization of untapped gas and
oil reserves, we must now recognize that the wind
is a vast, untapped clean energy reserve. Once we
embrace that idea, our leaders will understand the
urgency of expanding our transmission system. In
a time of economic crisis and insecurity, this initiative
can provide jobs to the American people who so desperately
need them and energy independence from foreign suppliers
of oil.
Challenging terrain
Clearly there will be challenges. The current
transmission grid in the United States was conceived
more than 100 years ago. That system was built largely
on a utility-by-utility basis to transport power
from large central power stations to load centres.
And by and large, most industrial cities were built
close to the energy source – coal. At that time,
the transportation of large quantities of remotely
generated power supplies across long distances was
not anticipated. The system is outdated and ill-equipped
to handle the transmission of clean power from rural
areas to the urban centres that need it most.
In addition, electrical generation is growing
four times faster than transmission lines are being
built. That imbalance is creating bottlenecks in
the system that interferes with reliable and efficient
delivery of electric power. According to the Edison
Electric Institute, energy demand has increased
by 25% since 1990, while construction of transmission
lines has in fact decreased by about 30%.
There are several factors impeding the creation
and implementation of a national plan to expand
the grid, but the most difficult obstacle is that
we have no clear indication of who is in charge.
Not only are there multiple Federal, state and local
regulations and organizations governing the construction
of transmission lines, but there is no clear line
of authority or responsibility for a federal transmission
policy. Two agencies at the national level, the
Federal Energy Regulatory Commission (FERC) and
the Department of Energy, now headed by Dr Steve
Chu, have responsibility for developing policies
on transmission and these policies do not necessarily
coincide. With one organization answering to Congress
and the other answering to the President, it is
difficult, if not impossible, to define a coherent
action plan.
Due to the lack of strong Federal policy, many
utilities, states, and companies are taking individual
action. For example, California is initiating a
state-wide effort called the Renewable Energy Transmission
Initiative (RETI) to bring together utilities, renewable
energy producers and transmission operators to identify
how best to upgrade and expand the grid. Another
example of energy innovation at the local level
is the effort led by Governor Hoeven of North Dakota.
Hoeven, together with governors in Iowa, Minnesota
and Wisconsin, is working to create a regional transmission
planning effort that will promote investment and
cost-sharing in the transmission grid.
Although these and other state initiatives are
important and essential to the growth of renewable
energy, it is imperative that we do more. Both the
111th Congress and the Obama administration must
make a coherent transmission policy an urgent national
priority. This is critical for the US economy, security
and future.
President Obama says he is committed to mandating
that the United States generate 10% of its electricity
from renewable energy resources by 2012 and 25%
by 2025. If this is a serious commitment, a national
transmission plan must be at its core. An investment
in transmission will yield multiple strong returns
in renewable energy, job growth, economic development,
and additional tax revenues.
All of us in the industry recognize the extraordinary
financial challenges facing our sector. Liquidity
crises, unexpected tightening of capital and reductions
in the price of oil are all very real issues. Many
projects may be at risk. But this slowdown should
not be an excuse for abandoning our efforts to build
up our transmission infrastructure to transport
clean, domestically generated energy. The process
will take time – many years, in fact – which is
why we must start today to change the national mindset
about the urgency and necessity of harnessing the
vast untapped reserves of renewable energy in the
United States. There are some signs of progress.
Projects like Acciona’s Tatanka Wind Farm, for example,
may yet benefit from Governor Hoeven’s initiative.
A 180 MW installation, it spans more than 14,000
rural acres (5700 ha) on the border of North and
South Dakota, two of the top five states in the
country for the production of wind energy. In fact
this part of the United States has been called the
‘Saudi Arabia of wind’ because of the area’s enormous
wind energy resources. With 120 turbines, Tatanka
is the largest wind farm in the Dakotas and the
development has created local jobs, provided additional
revenues to local landowners and expanded the tax
base for the community. That’s all good news, but
we could be doing so much more.
Each day that the wind passes through the Dakotas
without putting it to work is another day of economic
and energy loss. Transmission is the conduit to
economic growth and a clean, renewable energy future
for the United States. Without a concerted national
effort, one with a commitment like Eisenhower’s
investment in a national Interstate Highway System,
we will not realize this future.
Peter Duprey is Chief Executive Officer of Acciona
Energy North America. e-mail: info@acciona-na.com