MISO levels playing field for wind power

From an article by Ken Paulman in Midwest Energy News:

A decision announced today by the Midwest Independent Transmission System Operator (MISO) could change the economics of wind power in the region.

MISO controls power supplies to the grid, which serves most of the Midwest as well as Manitoba, through spot markets at intervals as short as five minutes. MISO determines demand, and power companies bid to supply the energy.

In the past, if various generating sources were pushing too much power to the grid, wind farms, which are easiest to switch on and off, would typically be shut down, even if they were the least expensive source of energy. This is known as curtailment (a practice that is the subject of some controversy in the Northwest).
That’s bad news for wind farm operators, because they can’t make money if they’re not generating power, and the industry has long complained the practice puts them at an unfair disadvantage.

But wind farms will now be designated as Dispatchable Intermittent Resources, which basically gives them equal standing to other power sources when MISO dispatches energy via the real-time spot market. According to a 2010 NREL report, the New York ISO is the only other U.S. grid operator to put wind generators on an equal footing.

In a news release, Joe Gardner, a spokesman for MISO, says the move “enhances systemwide operational and market efficiency.”

Azar to head initiatives on transmission grid

For Immediate Release – Monday May 23, 2011
Contact: Matthew Pagel, (608) 266-9600

Azar to Leave Public Service Commission to Join United States Department of Energy

Today, Public Service Commissioner Lauren Azar informed Governor Walker and Public Service Commission Chairman Phil Montgomery of her resignation from the Public Service Commission to work as Senior Advisor to Secretary Steven Chu at the United States Department of Energy in Washington, D.C.

“It has been a great honor to serve the people of Wisconsin for the past four years,” said Commissioner Azar. “While I look forward to the challenges of serving the nation, I will look back to Wisconsin fondly. This is one of the greatest laboratories of regulatory policy, and I will be taking with me to Washington my Wisconsin sensibility and commitment to the public interest,” Azar continued.

Secretary Chu has asked Commissioner Azar to drive the administration’s initiatives on the electric transmission grid. Commissioner Azar will work with industry, states, and other federal agencies to facilitate the development our nation’s electrical infrastructure; an infrastructure that will keep our nation competitive in the global economy with an engine fueled by independent and clean energy. Her initial work will be focused on the transmission grid, transmission-related technologies (such as energy storage) and on the federal power marketing administrations.

While at the Wisconsin PSC, Commissioner Azar was recognized as an independent, fair and strong regulator with a command of the utility industry, working to protect ratepayers as well as the financial integrity of Wisconsin’s public utilities. During her tenure, Commissioner Azar led an in-depth study on the potential for developing wind generation on the Great Lakes and served as the President of the OMS, which is the Organization of MISO States. As OMS President, Azar led two processes that resulted in a FERC-approved tariff that allocates the cost of new transmission developments in the Midwest. Commissioner Azar also co-founded and served as the first President of the Eastern Interconnection States’ Planning Council, a 39-state collaboration on transmission planning. As Commissioner, Azar was appointed by Secretary Chu to serve as Vice Chair of the DOE’s Electricity Advisory Council.

“I would like to applaud Commissioner Azar on her federal appointment and express thanks for her service at the Public Service Commission” said Chairperson Montgomery. “Commissioner Azar has worked diligently to protect the ratepayers as well as the public utilities of Wisconsin. Her hard work and dedication will be missed at the PSC but will be a great asset at the United States Department of Energy.”

“Congratulations to Commissioner Azar on her federal appointment” said Commissioner Eric Callisto. “Her intellect, her work ethic, and her skills at coalition building were of great benefit to Wisconsin, and they will well serve the nation in her new position.”

Commissioner Azar’s resignation is effective at the close-of-business on June 3, 2011. Appointed by Governor Doyle in 2008, her term was set to expire in March of 2013.

-END-

State electricity needs won't rise as much as thought, according to report

From an article by Judy Newman in the Wisconsin State Journal:

Projections for the rise in state electricity needs have dropped by nearly two-thirds, according to a report approved by state regulators Thursday.

The Public Service Commission's Strategic Energy Assessment, looking at Wisconsin's energy needs through 2016, shows state utilities now expect the need for electricity at times of highest demand will grow about 1 percent a year, down from peak demand growth of 2.75 percent a year, projected just two years ago. The figures were scaled back because of the economic downturn, the PSC said.

Wisconsin rules CapX 2020 app incomplete

From an article by Sarah Elmquist in the Winona (MN) Post:

A portion of the proposed CapX2020 electric transmission lines that would connect Alma, Wis. to a substation near Holmen, Wis. hit a snag this week, after the Public Service Commission (PSC) of Wisconsin determined the lengthy application was incomplete. The PSC included dozens of detailed requirements for information and documents that need to be added to the application for the project to be considered, including areas in the application where environmental review was deemed insufficient, where greater information was needed, and where the utilities need to further explore the ways that efficiency programs might change electricity use projections.

Two possible routes have been proposed for this portion of the CapX2020 project. One would run along the Mississippi River from Alma, Wis., to the La Crosse area. The other would travel from Alma east to Arcadia and then south to La Crosse.

Wind energy producers face wall in moving power east

From an article by Dan Piller in the Des Moines Register:

Iowa energy policymakers know that building the nation's second-largest wind generating capacity was relatively easy compared with the next step of figuring how to transport surplus electricity to Eastern cities.

One thing appears certain: If plans don't gel relatively soon on ways to move wind energy across state lines, the slowdown in building wind farms in Iowa will turn into a complete halt.

"Absolutely, Iowa will see wind energy development stopped if transmission issues aren't solved," said Roya Stanley, director of the Iowa Power Fund. She's Gov. Chet Culver's representative on multistate task forces trying to untangle the wires, literally, to build an interstate electric system.

Robert Loyd, manager of the Clipper Windpower plant in Cedar Rapids, said: "Everybody's waiting for something to happen. If we don't get the transmission issue solved fairly soon, we'll hit a wall on new wind power development."

Loyd laid off workers last year. So did TPI Composites in Newton, a company heralded as part of that city's attempts to come back from the Maytag closing five years ago.

Wind already faces a stiff challenge from natural gas, which burns cleaner than coal and now is believed to be in much larger supply in the nation than previously believed five years ago thanks to huge discoveries.

Gas has a built-in advantage — a national network of pipelines. Wind-generated electricity doesn't have a multistate transport system, and such a network will be needed if Iowa and the Upper Midwest expect to succeed.

Wind generation reduces climate-changing emissions

From a report titled "The Facts about Wind Energy’s Emissions Savings" prepared by the American Wind Energy Association:

. . . four of the seven major independent grid operators in the
U.S. have studied the emissions impact of adding wind energy to their power grids, and all four have found that adding wind energy drastically reduces emissions of carbon dioxide and other harmful pollutants. While the emissions savings depend somewhat on the existing share of coal-fired versus gas-fired generation in the region, as one would expect, it is impossible to dispute the findings of these four independent grid operators that adding wind energy to their grids has significantly reduced emissions. . . .

DOE data show that wind and other renewables’ share of Texas’s
electric mix increased from 1.3% in 2005 to 4.4% in 2008, an increase in share of 3.1 percentage points. During that period, electric sector carbon dioxide emissions declined by 3.3%, even though electricity use actually increased by 2% during that time. Because of wind energy, the state of Texas was able to turn what would have been a carbon emissions increase into a decrease of 8,690,000 metric tons per year, equal to the emissions savings of taking around 1.5 million cars off the road.

ATC expands 10-year plan to $3.4 billion

From a blog post by Tom Content on JSOnline:

American Transmission Co. on Thursday unveiled a 10-year transmission plan that calls for higher spending than the same report envisioned a year ago.

Driving the $3.4 billion electric transmission system assessment are a series of new projects that aim to help take advantage of lower cost power across the Midwest as well as help import renewable energy into Wisconsin, the power-line utility said in a statement.

“There is an increasing need for an expanded regional transmission system because of an emerging wholesale marketplace and federal and state policy changes,” said Flora Flygt, ATC director of strategic projects.

Projects included in the 10-year plan include a proposed 150-mile, 345,000-volt power line linking Madison and La Crosse, as well as upgraded transmission system facilities to accommodate increased power that’s proposed to be generated by the Point Beach Nuclear Plant in Manitowoc County.

In addition, a six-mile, 345,000-volt line will be proposed to alleviate transmission congestion in Kenosha County, ATC said.

Hoosiers may bear $16B cost of transporation for wind energy

From an article by Ted Evanoff in the Indianapolis Star:

The rural Midwest is booming with wind turbines these days -- but guess who's going to pay the $16 billion it will cost to move all that clean electricity to the cities that need it?

Probably you.

Officials are trying to figure out how much wind developers should pay to build the transmission lines to get their energy to market. But because other regions have shifted the entire cost to utility rate payers, the Midwest officials likely will feel pressure to do the same.

If they don't, industry analysts say, it could hurt the development of green energy in the region.

The Midwest -- with its heavy reliance on coal-fired power plants -- can ill-afford that, as federal regulations clamp down on carbon emissions.
Over the next few years, the development of wind energy could cost Indiana households more than $40 million per year, adding at least $2 per month on average to the typical bill for the state's 1.5 million homes.

The new cash would help pay for about $16 billion worth of new transmission lines that wind developers say are needed. The lines would move wind energy into the electric grid -- the interlaced power lines that tie utilities into a massive network.

Paying for the new lines raises an issue of fairness because households in, say, Indianapolis could subsidize electricity made by North Dakota wind turbines and used in cities such as Milwaukee, Chicago or Fort Wayne, experts say.

That could happen because the electric grid that covers Indiana is monitored by a Carmel-based nonprofit organization whose territory includes a wide swath from Ohio to the Dakotas.

Will we create a grid smart enough for the 21st century?

As daylight fades, Manhattan continues to gorge on power. New York City is tied to fuels like natural gas, with less than one percent of its electricity coming from wind or solar.

From an article by Joel Achenbach in National Geographic, with photos by Joe McNally

Can we fix the infrastructure that powers our lives?

We are creatures of the grid. We are embedded in it and empowered by it. The sun used to govern our lives, but now, thanks to the grid, darkness falls at our con­venience. During the Depression, when power lines first electrified rural America, a farmer in Tennessee rose in church one Sunday and said—power companies love this story—"The greatest thing on earth is to have the love of God in your heart, and the next greatest thing is to have electricity in your house." He was talking about a few lightbulbs and maybe a radio. He had no idea.

Juice from the grid now penetrates every corner of our lives, and we pay no more attention to it than to the oxygen in the air. Until something goes wrong, that is, and we're suddenly in the dark, fumbling for flashlights and candles, worrying about the frozen food in what used to be called (in pre-grid days) the icebox. Or until the batteries run dry in our laptops or smart phones, and we find ourselves scouring the dusty corners of airports for an outlet, desperate for the magical power of electrons.

The grid is wondrous. And yet—in part because we've paid so little attention to it, engineers tell us—it's not the grid we need for the 21st century. It's too old. It's reliable but not reliable enough, especially in the United States, especially for our mushrooming population of finicky digital devices. Blackouts, brownouts, and other power outs cost Americans an estimated $80 billion a year. And at the same time that it needs to become more reliable, the grid needs dramatic upgrading to handle a different kind of power, a greener kind. That means, among other things, more transmission lines to carry wind power and solar power from remote places to big cities.

Most important, the grid must get smarter. . . .

Xcel Energy and co-sponsors release Phase One of Transmission Study for transporting wind energy across Upper Midwest

From an news release issued by Excel Energy:

MINNEAPOLIS – Phase One of a comprehensive study released today by a coalition of energy leaders, identifies future transmission needs in the Upper Midwest to support renewable energy development and to transport that energy to population and electricity load centers. Xcel Energy is co-sponsoring the study with Electric Transmission America – a joint venture between subsidiaries of American Electric Power and MidAmerican Energy Holdings Company, American Transmission Company, Exelon Corp., NorthWestern Energy and MidAmerican Energy Company.

The Strategic Midwest Area Transmission Study (SMARTransmission) sponsors retained Quanta Technology LLC to evaluate extra-high voltage transmission alternatives for new transmission development in the Upper Midwest. In phase one, Quanta evaluated eight transmission alternatives designed to support the integration of significant new wind generation within the study area, including North Dakota, South Dakota, Minnesota, Iowa, Wisconsin, Nebraska, Missouri, Illinois, Indiana, Michigan and Ohio. The plans would accommodate the integration of up to 56.8 gigawatts of wind generation. This translates into enough energy to power over 15 million households. If it is determined that less wind energy is needed, transmission recommendations would be adjusted accordingly.

The study’s Phase One results recommend three alternatives for further study based on a rigorous reliability assessment and stakeholder input. One of the alternatives is primarily 765-kilovolt extra-high voltage transmission, another includes 765 kilovolt combined with limited use of high-voltage direct current transmission lines, while the third constitutes a combination of both 345-kilovolt and 765-kilovolt transmission lines. The three alternatives will be evaluated further during the second phase of the study, scheduled for completion during the third quarter of 2010. The Phase One report can be downloaded at www.smartstudy.biz.

NREL sudy shows 20% wind is possible by 2024

From a news release issued by the National Renewable Energy Lab:

[T]he U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL) released the Eastern Wind Integration and Transmission Study (EWITS). This unprecedented two-and-a-half year technical study of future high-penetration wind scenarios was designed to analyze the economic, operational, and technical implications of shifting 20 percent or more of the Eastern Interconnection’s electrical load to wind energy by the year 2024.

“Twenty percent wind is an ambitious goal, but this study shows that there are multiple scenarios through which it can be achieved,” said David Corbus, NREL project manager for the study. “Whether we’re talking about using land-based wind in the Midwest, offshore wind in the East or any combination of wind power resources, any plausible scenario requires transmission infrastructure upgrades and we need to start planning for that immediately.”

The study identified operational best practices and analyzed wind resources, future wind deployment scenarios, and transmission options. Among its key findings are:

•The integration of 20 percent wind energy is technically feasible, but will require significant expansion of the transmission infrastructure and system operational changes in order for it to be realized;
•Without transmission enhancements, substantial curtailment of wind generation would be required for all 20 percent wind scenarios studied;
•The relative cost of aggressively expanding the existing transmission grid represents only a small portion of the total annualized costs in any of the scenarios studied;
•Drawing wind energy from a larger geographic area makes it both less expensive and a more reliable energy source – increasing the geographic diversity of wind power projects in a given operating pool makes the aggregated wind power output more predictable and less variable;
•Wind energy development is a highly cost-effective way to reduce carbon emissions – as more wind energy comes online, less energy from fossil-fuel burning plants is required, reducing greenhouse gas emissions;
•Carbon emissions are reduced by similar amounts in all scenarios, indicating that transmission helps to optimize the electrical system and does not result in coal power being shipped from the Midwest to New England States;
•Reduced fossil fuel expenditures more than pay for the increased costs of additional transmission in all high wind scenarios.

Sec. Chu announces $620 million for smart grid demonstration and energy storage projects

From a news release issued by the U.S. Department of Energy:

COLUMBUS, OHIO – At an event in Columbus, Ohio this afternoon [November 24], Secretary Chu announced that the Department of Energy is awarding $620 million for projects around the country to demonstrate advanced Smart Grid technologies and integrated systems that will help build a smarter, more efficient, more resilient electrical grid. These 32 demonstration projects, which include large-scale energy storage, smart meters, distribution and transmission system monitoring devices, and a range of other smart technologies, will act as models for deploying integrated Smart Grid systems on a broader scale. This funding from the American Recovery and Reinvestment Act will be leveraged with $1 billion in funds from the private sector to support more than $1.6 billion in total Smart Grid projects nationally.

An Associated Press article posted on WKBT-TV (La Crosse):

Federal energy officials have handed Wisconsin $10 million to improve electrical grids.

The money is part of $620 million in stimulus money that will support 32 grid improvement projects across the country. Projects include large-scale energy storage, monitoring devices and other technological upgrades that will serve as models for the rest of the nation.

U.S. Department of Energy officials say Wisconsin's share of the stimulus money will go toward a $21 million effort by Waukesha Electric Systems to develop a smaller, more efficient utility substation transformer.

ZBB gets order for renewable energy project in Canada

From a story in Business Times:

Menomonee Falls-based ZBB Energy Corp. today announced that it has received an order for four standard, modular ZESS 50 energy storage systems from Powertech Labs, a subsidiary of BC Hydro, for the Bella Coola Hydrogen Assisted Renewable Power (HARP) project in Bella Coola, British Columbia.

The ZESS energy storage systems will be used as part of a demonstration project that uses multiple components (power generation, utilization, storage, and dispatch optimization) to provide electrical power to an isolated remote area grid with the goal of reducing reliance on diesel generation and the reduction of greenhouse gas emissions in remote communities in British Columbia.

The project objective is to increase the utilization of BC Hydro’s Clayton Falls small hydro plant and reduce the reliance on diesel generators at its Ah Sin Heek generating facility. The ZESS units will be used to store excess power from Clayton Falls, to be later dispatched during periods when Clayton Falls is unable to supply sufficient power to the community.

Wind association applauds steps to streamline transmission siting

From a news release issued by the American Wind Energy Association (AWEA):

The American Wind Energy Association (AWEA) enthusiastically supports a new policy announced today by the administration that will greatly facilitate efforts to access world-class renewable energy resources currently stranded in remote parts of the country. The Memorandum of Understanding (MOU) announced today will streamline the transmission permitting process for federal lands by improving coordination among nine federal agencies and creating timelines to limit delays in the permit approval process.

“The wind industry applauds the Obama administration for recognizing the need to address transmission barriers and enacting a measure to improve the speed and ease with which transmission can be constructed across federal lands. This MOU is an important step towards putting more of our abundant renewable energy resources to use, powering American homes and businesses with clean, domestic sources of energy while creating thousands of high-paying jobs here in America” noted AWEA’s CEO Denise Bode.

Currently, lengthy delays in the process of obtaining the necessary permits from federal agencies to build transmission lines across federal land are a major barrier to accessing the country’s best renewable energy resources. This is particularly true in the Western U.S. where the federal government owns more than one-half of the land and any interstate transmission line is likely to cross land controlled by one or more federal entities.

ATC studies show need for $2.5 billion in investment

From a news release issued by the American Transmission Company (ATC):

PEWAUKEE, Wis. – American Transmission Co. has completed its annual electric transmission system assessment and has identified $2.5 billion in necessary improvements over the next 10 years. The total includes $1 billion for transmission network upgrades, along with $1.5 billion in interconnection and asset renewal projects, infrastructure replacements and relocations, and other smaller network reliability improvements. That is down from the 2008 10-year assessment of $2.7 billion, although the current forecast may change due to regional initiatives to build transmission infrastructure to support renewable generation.

“While ATC has made significant progress since beginning operation in 2001, we continue our process to assess and reassess the needs of our customers to determine and evolve, over time, the best set of transmission projects to meet those needs,” explained Flora Flygt, director of transmission planning at ATC. “Now, more than ever, we are committed to an open, collaborative process to select best-value projects that resolve multiple electric system issues over a broad region.”

The $1 billion investment in new transmission infrastructure includes:
• 131 miles of new transmission lines,
• upgrades to more than 399 miles of existing lines and
• 21 new transformers and 29 new capacitor banks.

The ATC report lists nine regional collaborative planning initiatives in which ATC is leading or participating, including the SMARTransmission Study to identify extra-high voltage transmission infrastructure needed to move wind power within a nine- state region from the Dakotas to Ohio, as well as the Regional Generator Outlet study being conducted by the Midwest Independent System Operator.

Midwestern green power transmission project gains new partner

From an article by Jordan Burke on Bloomberg.com:

July 7 (Bloomberg) -- MDU Resources Group Inc., the largest company in the Dakotas, said it will join with ITC Holdings Corp. in developing the Green Power Express, a transmission project that will link wind farms in the U.S. Plains to cities.

The transmission lines will run about 3,000 miles (4,827 kilometers) through North Dakota, South Dakota, Iowa, Wisconsin, Minnesota, Illinois and Indiana, MDU said today in a statement. MDU, based in Bismarck, North Dakota, said the Green Power Express will carry as much as 12,000 megawatts. One megawatt can power about 800 average U.S. homes, according to the Energy Department in Washington.

The project will cost about $10 billion to $12 billion, and MDU will be the first of many partners involved, Novi, Michigan- based ITC said in a separate statement. The lines will carry power to major markets in the U.S. Midwest and mid-Atlantic regions, the company said.

Outdated transmission system stalls progress on wind power

From a Gannett news article by Larry Bivins published in the Fond du Lac Reporter:

WASHINGTON — Wind has become the nation's most viable renewable energy option, and industry experts see plenty of potential in Wisconsin as policymakers demand that a larger percentage of energy come from wind, the sun and other clean-energy sources.

Last year, the state had the fourth highest rate of growth in wind capacity with the addition of three large wind projects, according to the American Wind Energy Association. The state now has 448 megawatts of wind power capacity.

Three major wind projects are in Fond du Lac County: Forward Wind Energy Center, Blue Skies Green Fields and Cedar Ridge Wind Farm.

But as support builds for wind and other renewable options, a major question remains: how to move electricity from the wind-swept prairies where it's generated to the big cities where it's needed.

Experts agree that the network of wires that move electricity from power plants to private homes and pubic buildings is old and unreliable. Adding renewable energy to the load would likely be too much for the system to handle.

Already, more than 70,000 megawatts of wind projects in the Upper Midwest are on hold because of insufficient transmission capacity, according to the AWEA. That could provide electricity for at least 14 million households.

"Transmission is really the glass ceiling for renewable energy development right now," said Beth Soholt, director of Wind on the Wires, a coalition of wind energy advocates based in St. Paul, Minn.

Not-in-my-backyard attitude a continuing problem

From an editorial in The Country Today:

We hear it all the time in rural Wisconsin communities: "We don't want that wind farm, large dairy operation or anaerobic digester in our neighborhood."

The not-in-my-backyard mentality hasn't gone away and it isn't likely to anytime soon.

The NIMBY attitude really isn't so hard to understand. If someone lived in a peaceful rural neighborhood and that person had a choice, he or she probably would opt not to have that tranquility disrupted by a large business being built next door, whether it be an ethanol plant, a hog confinement operation or a widget factory.

It would be quite unusual to hear, "Please don't build that in my backyard, build it in my front yard!"

Within the past week, stories have crossed our desks about a large dairy project near Rosendale, a Manitowoc County wind farm and a community animal-manure digester project in Dane County.

In all three cases, millions of dollars would be invested - during the toughest economic times in about 60 years - to help stimulate the economy. Each of the projects would provide good rural jobs. . . .

So herein lies the dilemma. The economy desperately needs stimulation, and agricultural and rural projects stand ready to meet the challenge. But many of the projects face opposition.

This problem could become even more widespread in the months ahead if, as expected, President Obama and Congress designate money to accelerate renewable-energy projects. The projects that could provide immediate economic stimulation could become bogged down by a plethora of opposition and regulations.

There is no easy solution to this dilemma. It's certainly not a new problem.

But some people might have to reconsider their opposition to reasonable projects that help the country climb out of its economic doldrums. The old economic structure in this country is broken and must be replaced by a new paradigm. That new paradigm will likely include new ways to generate energy and economic wealth that we might not be used to or familiar with. But they're not necessarily bad just because they're different.

We can't always have our cake and eat it too, as the old saying goes. We can't ask for projects that stimulate the economy but then always expect them to be built somewhere else.

If we want to put people back to work and get this country's economy back in gear, some people might have to change their mind-sets.

PSC approves power line along Beltline

From an article by Judy Newman in The Capital Times:

A new electrical transmission line will be built across Dane County.

The three-member Wisconsin Public Service Commission voted unanimously today to approve a proposal by American Transmission Co. to erect a 345-kilovolt line that will extend from west of Middleton to the county’s eastern edge.

The plan will follow a route along the Beltline and none of it will be built underground.

Hearings next week on controversial power line

From an article in The Capital Times:

The state Public Service Commission will hold public hearings on Tuesday and Wednesday in Madison on American Transmission Company's controversial application to build a new 345-kilovolt transmission line across Dane County from Rockdale to West Middleton.

The hearings will be at 1 and 6 p.m. both days at the PSC, 610 N. Whitney Way.

ATC filed an application with the PSC on Oct. 16, 2007, for approval to construct electric transmission facilities to serve portions of Dane County. The project would be constructed between the proposed Cardinal Substation in the town of Middleton and either ATC's Rockdale Substation in the town of Christiana or a proposed substation in the town of Albion or the town of Dunkirk.

Public comments on ATC's application will be included in the record the PSC will review to make a decision.

A live video feed of the hearings will be broadcast via the internet and can be accessed by visiting the PSC Web site.

Comments also can be provided via the Web site through April 3. Click on the "Public Comments" button on the PSC's homepage and click on the case title.