EirGrid Customer Conference 2009 October 13, 2009 Dublin, Ireland Session 2: Key Industry Challenges “If you love wind, you have to at least like transmission”

EirGrid Customer Conference 2009October 13, 2009

Dublin, Ireland

Session 2: Key Industry Challenges“If you love wind,

you have to at least like transmission”

Beth SoholtExecutive DirectorWind on the Wires

[email protected]

Presentation Outline

• Wind on the Wires (“WOW”) background

• Midwest Independent System Operator (regional “grid” operator)

• What’s driving renewable energy in the Midwest (and therefore the need for additional transmission)?

• Update on wind power installations

• Transmission Studies underway

• WOW participation in transmission line cases and lessons learned

• On-going Challenges for Wind Power and Transmission

• Conclusion

Background on Wind on the Wires• Organized in 2001 to overcome the barriers to bringing wind power to

market in the Midwest.

• Members include non-profit advocacy organizations, American Indian tribal representatives, wind developers and manufacturers, American Wind Energy Association, businesses that provide goods and services to the wind industry.

• Work in 3 areas: – Technical – work with electric utilities and Midwest Independent

System Operator (MISO – regional “grid” operator) on transmission planning for wind, market and operational rules that treat wind fairly

– Regulatory – actively participate in cases where states are approving new transmission lines that will access wind power

– Policy education/outreach/advocacy – work with governors, state regulators, legislators, local elected officials, regional groups, colleague organizations, general public on wind and transmission issues

• Support – Foundation grants and member contributions

Renewable Northwest Project (WA, OR, ID, MT)

Interwest Energy Alliance (AZ, CO, NV, NM, UT, WY)

The Wind Coalition (NM, TX, OK, AR, LA, MS, KS, MO)

Center for Energy Efficiency & Renewable Technologies (CA)

Wind on the Wires (ND, SD, MI, MN, MO, IA, IN, WI, IL, OH)

RENEW New England (CT, MA, ME, NH, RI, VT)

Alliance for Clean Energy New York (NY)

Potential New Mid-Atlantic Organization

Potential New Southeastern Organization

Wind on the Wires ACE New York

MISO

Renewable NW Project

CEERT

Interwest Energy Alliance

Wind on the Wires

The Wind Coalition

Western Grid Group

Western Grid Group (CA, OR, WA, MT, ID, AZ, NM, CO, UT, NV, WY)

Midwest Independent Trans. Sys. Operators (MISO) (ND, SD, NE, MN, IA, MO, WI, IL, MI, IN, OH, KY, Manitoba)

RENEW New England

Midwest Independent System OperatorScope of Operations:• Geographic scope includes 13 states, 1 Canadian Province• 750,000 square miles• 159,000 MW of generating capacity• 95,600 miles of transmission (69, 115, 120, 138, 161, 230, 345, 500 kV)• 628 TWhours annual billing (2008 transmission service)

In addition to Reliability functions, Midwest ISO Energy Market:• Includes Day-Ahead Market, Real-Time Market, Financial Transmission

Rights Market– Five-minute dispatch– Offers lock in 30 minutes prior to the scheduling hour; spot market prices

calculated every five minutes; 2,072 pricing nodes

Renewable Electricity Standards

20% by 2015

HI: 20% by 2020

5,880 MW (~5.5%) by 2015

16.1% by 2020

16.2% by 2020

15% by 2025

2% by 1999

24% by 2013

VT: 10% of 2005sales by 2013

MA: 20+% by 2025

CT: 23% by 2020

RI: 16% by 2019

NJ: 22.5% by 2020MD: 20% by 2022

28 States + D.C.

DC: 20% by 2020

15% by 2015

DE: 20% by 2019

15% by 2020

Standard

Standard and Goal

Voluntary Goal

NH: 23.8%by 2025

VA: 12% by 2022

20.2% by 2025

ME: 40% by 2017

25% by 2025

10% by 2015

27.4% by2025

15% by 2021

20% by 2010

8% by2020

11.2%by 2021

10% by 2015

16 states + D.C. have requirements of 20% or higher

10% by 2015

20% by 2025

12.5% by 2025

10% by 2015

2nd Quarter Market Report2,860 MW commissioned in 1Q09

1,210 MW commissioned in 2Q09

>5,500 MW under construction (for completion in 2nd half of 2009 and/or first half of 2010)

Over 4,000 MW installed in 1st half of 2009

Installations Growing Throughout U.S.

HI63

AK 3

As of end of June 2009, 29,440 MW of wind installed in 35 states

> 1 GW100 MW - 1 GW< 100 MW

Transmission Studies• State driven transmission study efforts

– Minnesota Renewable Energy Standard (MN RES) Transmission Studies– Michigan Wind Energy Transmission Study

• Sub-regional group studies by utilities and the Midwest ISO– CapX 2020 Initiative– American Transmission Company (Wisconsin)– Midwest ISO Regional Generator Outlet Study – Phase I and II

• Multi-state transmission regulatory efforts– Upper Midwest Transmission Development Initiative– Organization of Midwest ISO States

• Midwest ISO footprint wide studies– MISO Transmission Expansion Plan ’08 and ‘09

• Inter-regional studies– Joint Coordinated Transmission Plan– Eastern Wind Integration and Wind Transmission Study

11

Midwest ISO is actively engaged in planning from regional to the Eastern Interconnection level

RGOS = Regional Generation Outlet StudyMTEP= Midwest ISO Transmission Expansion PlanJCSP = Joint Coordinated System PlanEWITS = Eastern Wind Integration and Transmission Study

RGOS = Regional Generation Outlet StudyMTEP= Midwest ISO Transmission Expansion PlanJCSP = Joint Coordinated System PlanEWITS = Eastern Wind Integration and Transmission Study

RGOS IMTEP & RGOS II

JCSP

EWITSRGOS Phase I

Scope: Develop transmission for mandates in IA, IL, MN, WI; 11-16 GW; Completion 3rd Q 09

• Participants: MISO Stakeholders, Regulators, Governors, PJM

• Lead: MISO, UMTDI (Phase I) and MGA

• Who’s Watching: State Regulators, Governors Offices (UMTDI, MGA), FERC, State Transmission Authorities

RGOS Phase I

Scope: Develop transmission for mandates in IA, IL, MN, WI; 11-16 GW; Completion 3rd Q 09

• Participants: MISO Stakeholders, Regulators, Governors, PJM

• Lead: MISO, UMTDI (Phase I) and MGA

• Who’s Watching: State Regulators, Governors Offices (UMTDI, MGA), FERC, State Transmission Authorities

RGOS Phase II

Scope: Develop transmission for mandates or goals in IL, IN, MI, MO, and OH; 22 GW (Phase I & II); Completion 4th Q 09

• Participants: MISO Stakeholders, Regulators, Governors, PJM

• Lead: MISO and MGA

• Who’s Watching: State Regulators, Governors Offices (MGA), FERC, State Transmission Authorities

RGOS Phase II

Scope: Develop transmission for mandates or goals in IL, IN, MI, MO, and OH; 22 GW (Phase I & II); Completion 4th Q 09

• Participants: MISO Stakeholders, Regulators, Governors, PJM

• Lead: MISO and MGA

• Who’s Watching: State Regulators, Governors Offices (MGA), FERC, State Transmission Authorities

MTEP

Scope: Develop MISO transmission; 15-50 GW (20% scenario); on-going

• Participants: MISO Stakeholders

• Lead: MISO

• Who’s Watching: MISO Stakeholders

MTEP

Scope: Develop MISO transmission; 15-50 GW (20% scenario); on-going

• Participants: MISO Stakeholders

• Lead: MISO

• Who’s Watching: MISO Stakeholders

JCSP

Scope: Develop East. Int. transmission; 50-91 GW (20% scenario)

• Participants: MISO, PJM, SPP, TVA, MAPP, Utilities

• Lead: MISO for Dept. of Energy

• Who’s Watching: Utilities, ISOs/RTOs

JCSP

Scope: Develop East. Int. transmission; 50-91 GW (20% scenario)

• Participants: MISO, PJM, SPP, TVA, MAPP, Utilities

• Lead: MISO for Dept. of Energy

• Who’s Watching: Utilities, ISOs/RTOs

EWITS

Scope: Operating impacts of JCSP; 50-91 GW (20% scenario); Completion Aug 09

• Participants: MISO, PJM, SPP, TVA, MAPP, Utilities, Enernex, Ventyx

• Lead: Enernex for Dept. of Energy

• Who’s Watching: Utilities, ISOs/RTOs

EWITS

Scope: Operating impacts of JCSP; 50-91 GW (20% scenario); Completion Aug 09

• Participants: MISO, PJM, SPP, TVA, MAPP, Utilities, Enernex, Ventyx

• Lead: Enernex for Dept. of Energy

• Who’s Watching: Utilities, ISOs/RTOs

Courtesy of the Midwest ISO

New and Upgraded Transmission in SW MN for Wind New and Upgraded Transmission in SW MN for Wind PowerPower

New lines: Split Rock – Lakefield Junction* 345 kVLakefield Junction – Fox Lake* 161 kVNobles – Fenton – Chanarambie* 115 kVBuffalo Ridge – White* 115 kVChanarambie – Lake Yankton – Lyon 115 kV

Upgraded lines: Fox Lake – Winnebago 161 kVMartin Co – Wilmarth 345 kV

*Xcel Energy Certificate of Need, Minnesota Public Utilities Commission Decision 1/30/03

Minnesota Public Utilities Commission (PUC) Order:Certificates of Need Subject to Conditions

• 2007 in-service date for new facilities • Xcel Energy (utility company) purchase 825 MW of

wind-generated electricity, including 60 MW of small, locally owned wind power

• Xcel Energy, within 15 days of obtaining CONs, make transmission service requests for network (firm) service to the Midwest ISO for 825 MW of wind

• Xcel Energy designate new wind generators as network resources

• Xcel Energy report to MN PUC any regulatory developments at regional or federal level that could affect the conditions placed on the Certificates of Need

CapX Group I LinesTwin Cities – LaCrosse, WI: ~150 miles, 345 kVFargo, ND - Twin Cities: ~250 miles, 345 kVBrookings, SD – Hampton Corners : ~200 miles, 345 kV

On-Going Challenges for Wind Power and Transmission

• Best wind resources are located far from load; agreement on what transmission should be built

• Transmission studies that are properly scoped and completed on schedule; studies must then successfully move through the regulatory stage and into construction

• Cost allocation – who pays for new transmission?• Fair Market and operational “rules of the road” – must

accommodate and not penalize intermittent resources like wind power

• Wind Integration issues – these issues show up in transmission planning, the energy market and operations

• Siting/routing new transmission lines

ConclusionGoal: Steel in the ground and wires in the air!• Bring constructive, credible technical resources into the

transmission planning arena that can partner with renewable energy advocacy efforts

• Active participation in regulatory cases to support new transmission lines

• Educating colleague organizations on why transmission is needed to achieve environmental/climate change/policy goals

• Find and support unlikely champions• Early and often involvement with communities and other

stakeholders