Study: Billions Needed to Deliver
Wind Power to Eastern Interconnection
Feb 9, 2009 - /PRNewswire - Reuters
Carmel - Ind -The Joint Coordinated System Plan (JCSP'08),
the first step of a transmission and generation system
expansion analysis of the majority of the Eastern
Interconnection, estimates the electricity sector
will need over $80 billion in new transmission infrastructure
to obtain 20% of the region's electricity from wind
This initial analysis, which was performed with
participation from major transmission owners and operators
in the Eastern U.S., looked at two scenarios to examine
transmission and generation possibilities between
2008 and 2024. The first, a Reference Scenario, assumes
"business as usual" with respect to wind development,
with approximately 5% of the region's energy coming
from wind. The second was a 20% Wind Energy Scenario
and was based on the U.S. Department of Energy's Eastern
Wind Integration and Transmission Study.
"We believe that, although JCSP'08 examined a small
set of scenarios with limited variables, this study
nonetheless gives a clear idea of the scale of commitment
it will take to integrate large amounts of renewable
resources into the grid," said John Bear, President
and CEO of the Midwest ISO. "This is information we
believe that our leaders need to consider as they
begin work under a new administration and start defining
our energy future."
JCSP'08 estimates that incorporating 5% wind energy
(the "Reference Scenario") will require the addition
of approximately 10,000 miles of new extra-high voltage
transmission at a cost of approximately $50 billion,
in addition to nearly $700 billion in total generation
capital costs by 2024.
The 20% Wind Energy Scenario is estimated to require
15,000 miles of new extra-high voltage lines, at an
estimated cost of $80 billion, in addition to $1.1
trillion in total generation capital costs by 2024.
Under both scenarios, the generation capital costs
would be borne by developers, while the funding source
for the needed transmission is not known at this time.
The study represents the collaborative efforts of
Midwest ISO, Southwest Power Pool, Inc., PJM Interconnection,
the Tennessee Valley Authority, Mid- Continent Area
Power Pool (MAPP), and participants within SERC Reliability
Corporation (SERC). Among the key features of the
-- It used a collaborative, transparent, stakeholder
process to develop and screen assumptions and postulate
transmission expansion possibilities.
-- It used a common approach with system condition
assumptions to characterize the majority of the Eastern
Interconnection in a single multi- regional analysis,
rather than conducting parallel, region-specific analyses.
-- It used study tools and databases that are in
common use in the electric power industry.
As previously stated, this is only the initial phase
of the analysis that must be performed to derive the
most effective and efficient answer. A follow- on
phase of the study will be initiated in the first
quarter of 2009 to investigate additional scenarios
that must be analyzed to develop a better understanding
of the possible solutions available, perform a detailed
reliability assessment, better refine the existing
assumptions, and recommended new transmission facilities
and the costs and benefits.
Members of the JCSP'08 plan to present the full study
to the Federal Energy Regulatory Commission, Congressional
representatives and staffers for their consideration
during the first few months of the new administration.
SOURCE Midwest ISO; Southwest Power Pool
Carl Dombek, Midwest ISO, 1-888-MISO-NEWS (647-6639);
or Emily Pennel, Southwest Power Pool, +1-501-614-3337