|
||
Major trends can be expected to affect energy transmission and resource integration based on experience with other competitive industries. |
The increasingly competitive
nature of the electric power industry is changing the way utilities do business. A number
of major trends can be expected to affect energy transmission and resource integration
based on experience with other competitive industries. As the market is restructured and
customers have the ability to choose their electricity supplier, the success of an
electric company will depend on how well the company is able to meet the needs of its
customers. Not only will an electricity supplier need to deliver reliable, high-quality
power, but the supplier must also deliver new products and services utility customers
demand. Rather than defining monopoly boundaries, the transmission grid will become the
interface for buyers and sellers; technology will play a key role in developing these
relationships as well as brand identity. Other significant trends will include increased compatibility between the electric industry and the environment, improved asset utilization, and diversification of the product mix. Wind energy has the potential to contribute substantially in meeting each of these trends as utilities adapt to competition. This paper identifies and discusses transmission issues to be addressed by utilities and policymakers to help wind energy realize this potential. Transmission of Wind Energy Estimating the potential contribution of wind power assuming a 30 meter wind turbine hub height; a minimum Class 4 wind regime (annual average wind speed greater than 14.5 mph) and PNL moderate land use restrictions, NREL researchers found more than 175,000 average MW of potential wind power development within 5 miles of existing 230 kilovolt (or lower) transmission lines; 284,000 within 10 miles, and 401,000 MW within 20 miles. However, a comprehensive assessment of available transmission and distribution line capacity in good wind resource areas is required to determine the amount of wind power in close proximity that could be accommodated without the need for extensive T&D upgrades or expansion. |
|
Case studies indicate that in some cases it appears possible to accommodate required power transfers for new wind resources |
Researchers at the Oak Ridge
National Laboratory (ORNL) and the National Renewable Energy Laboratory (NREL) have
examined whether or not capacity is available to bring large amounts of wind energy to the
market without the need for extensive upgrades or expansion of existing transmission and
distribution systems. Seven utility case studies reviewed by ORNL indicated that in some
cases it appears possible to accommodate required power transfers for new wind resources
of approximately 50 to 100 megawatts to supply the local load in many areas, without
making significant upgrades to the transmission system. ORNL also identified other possible benefits associated with integrating wind energy into distribution systems, including deferred construction of transmission and distribution (T&D) facilities for areas requiring additional electric capacity, avoided transmission and distribution system losses, and enhanced reliability. Such benefits exist only under very specific local conditions, for example, in Seattle, Wash., a 1 MW wind farm postponed the need for costly T&D upgrades and reduced line losses due to the very strong correlation between the available wind resource and the load on the distribution system. |
|
Changes to regulation of access and pricing principles for transmission line usage can significantly affect the choice of new resources. |
Transmission Access, Pricing,
and Regional Planning Changes to regulation of access and pricing principles for transmission line usage can significantly affect the choice of new resources and the feasibility and cost of wind power development. Inherent characteristics of wind-generated electricity, such as its location-specific resource, intermittent output, and low capacity factor, present unique policy issues. The National Wind Coordinating Committee (NWCC) supports the principle that transmission customers should have the same flexibility of service that transmission owners enjoy on comparable terms, including:
Policies and rate structures that allow diverse resource areas to be matched with local demand areas without the imposition of onerous access charges or conditions, as well as pricing principles reflecting the network costs and benefits of dispersed generation resources, are encouraged. To enable suppliers to meet customer demands for wind energy and other renewable resources, rate structures that reflect the cost impacts of all generation resources on the regional electric grid should be developed. |
|
VVind energy has the potential to play a significant role in the new competitive electricity marketplace. |
Regional planning must be
considered carefully in order for regional markets to operate efficiently and transmission
projects to increase regional efficiency. Generation resources and loads to be served by
transmission improvements will need to be identified, and the location of renewable
resources must be considered early in the planning process. Wind energy has the potential to play a significant role in the new competitive electricity marketplace. Research has shown that the available wind resource is not overly limited by environmental and land use restrictions or geographic factors, and that new wind resources can be integrated in some areas without extensive upgrades or expansion of the existing transmission system. One challenge that remains is to develop policies and rate structures that allow diverse resource areas to be matched with local demand areas and reflect the cost effects of all generation resources on the regional grid. |
|
The Wind Energy Issue Briefs are a product of the National Wind Coordinating Committee (NWCC). The NWCC is a collaborative endeavor that includes representatives from electric utilities and support organizations, state legislatures, state utility commissions, consumer advocacy offices, wind equipment suppliers and developers, green power marketers, environmental organizations, and state and federal agencies. |
