Study: Billions of Dollars Needed to Deliver Wind Power to Eastern Interconnection
February 11, 2009
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 generation.
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. A reference scenario assumes business as usual with respect to wind development, with approximately 5% of the region's energy coming from wind. A 20% wind energy scenario 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," says John Bear, president and CEO of the Midwest Independent System Operator (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 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 and participants within SERC Reliability Corp.
SOURCE: North American Windpower, Feb. 10, 2009