Expanding and Modernizing the Electrical Grid: Essential Infrastructure for the Midwest’s Clean Energy Future Des Moines Public Library Des Moines, IowaOctober.

Expanding and Modernizing the Electrical Grid: Essential Infrastructure for the Midwest’s Clean Energy Future

Des Moines Public Library Des Moines, Iowa October 21, 2010

Removing Policy Barriers to Transmission for Renewable Energy

Beth SoholtWind on the Wires

[email protected]

Background on Wind on the Wires• Non-profit Advocacy Organization launched in 2001 to overcome the

barriers to bringing wind energy to market in the Midwest.

• Members include non-profit environmental organizations, tribal representatives, farm groups, 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 deliver wind energy

– 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

Wind on the Wires Footprint

Regional Transmission Organizations

4

Source: FERC

MISO State RES Requirements (May 2009)

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• MISO existing wind: ~8,000 MW• MISO State RESs: ~25,000 MW• MISO-wide 20% wind: ~50,000 MW• MGA 30% by 2030: 75-100,000 MW

On-Going Challenges for Wind Power and Transmission

• Transmission planning process needs to properly accommodate public policy goals and move timely through the regulatory process

• Cost allocation – how to pay for new transmission. Cost for large, regionally beneficial transmission facilities needs to be broadly allocated

• Fair Market and operational “rules of the road” – must realize and recognize unique characteristics of variable resources like wind power

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

• Siting/routing new transmission lines

Transmission to Support a Clean Energy Future

• Transmission ExpansionCapX 2020 InitiativeMISO Regional Generation Outlet Study (RGOS)MISO Candidate Multi-Value Projects (MVP)

CapX 2020 Initiative• CapX 2020 Initiative undertaken by Minnesota utilities• Transmission planning done for a number of “future” scenarios out to 2020

– Minnesota generation build out– Generation from west (North and South Dakota)– Generation from east markets

• Lines moved forward that were common to all futures• 3 345 kV lines – Fargo-St. Cloud, Brookings to Twin Cities, SE MN line• Regulatory proceedings:

– Certificate of Need, including Environmental Report– Siting/Routing

• All lines have received CON; 2 lines have received Site/Route permit; currently in Siting/Routing for SE MN line

• Segments will be placed into service between 2013-2015

Regional Generation Outlet Study (RGOS)• Developed transmission portfolios needed to implement Renewable

Portfolio Standards or goals at the least cost for consumers while continuing to reliably serve load.

• RGOS summary: – Renewable energy: ~ 40 GW of total wind (~28.5 GW new & ~11 GW ‘existing’)– Iterative development of transmission plans; options include 345 kV, 765 kV, and

HVDC; analysis included power flow, production cost models (PROMOD), and business case / value metrics

– The three transmission overlay plans represent potential investment of $16B to $22B (2010 dollars) over the next 20 years and consist of new transmission mileage of 6,400 miles to 8,000 miles

– RGOS identified a set of Starter Projects considered viable for near term development; The estimated cost for this starter set is approximately $5.8 Billion (2010 dollars), $4.4 billion of which is within the Midwest ISO borders

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RGOS Identified Starter Projects

Source: Midwest ISO 8/20/10 Draft MTEP10

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22

33

44

55

6677

88

99

1010

1111

$5.8 B ($4.4 B in MISO)

RGOS Identified Starter Projects

1. Big Stone to Brookings 345 kV line (2010 estimated installed cost: $150M). 2. Brookings to Twin Cities 345 kV line (2010 estimated installed cost: $700M). 3. Lakefield Junction to Mitchell County 345 kV line constructed at 765 kV specifications

(2010 estimated installed cost: $600M). 4. North LaCrosse to North Madison to Cardinal, Dubuque to Spring Green to Cardinal

345 kV lines (2010 estimated installed cost: $811M).5. Sheldon to Webster to Hazleton 345 kV line (2010 estimated installed cost: $458M). 6. Ottumwa to Adair to Thomas Hill, Adair to Palmyra 345 kV lines (2010 estimated

installed cost: $295M). 7. Palmyra to Meredosia to Pawnee, Ipava to Meredosia 345 kV lines (2010 estimated

installed cost: $345M). 8. Sullivan to Meadow Lake to Greentown to Blue Creek 765 kV line (2010 estimated

installed cost: $908M). 9. Collins to Kewanee to Pontiac to Meadow Lake 765 kV line (2010 estimated installed

cost: $964M). 10. Michigan Thumb 345 kV transmission loop (2010 estimated installed cost: $510M). 11. Davis Besse to Beaver 345 kV line (2010 estimated installed cost: $71M).