Getting Renewables to Market

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Moving renewable generated power to where it is needed means transmission.

Written by Bruce Cannon

The power industry is developing significant renewable energy resources, but challenges remain in getting the power delivered where it is needed.

"In transmission development, we do the devil's work," said moderator Steve Mitnick, a partner at Oliver Wyman/Marsh & McLennan, on Wednesday at 10:30, as he opened the first of many critical issue forums. "We have come a long way but we have a long way to go," he continued. "We are the green economy's extension cord."

Jeff Anthony, utility program manager at American Wind Energy Association, compared transmission lines to "green power superhighways." He said the competitive renewable energy zones process was working well and highlighted the three preliminary stages of transmission development: planning, paying for it (cost allocation), and permitting.

Joe Welch, CEO of ITC Holdings, cited four primary obstacles to getting renewable energy sources to market: aging infrastructure, mounting reliability concerns, inefficiencies, and interconnection problems. With 380,000 megawatts of wind energy waiting to be developed, Welch stressed that it cannot be a state-by-state solution. "Sub-regional is sub-optimal," he said. "We need a robust transmission grid that is built for the good of this country." Welch compared today's need for a high voltage overlay system to the need for a federal interstate system in the 1950s. "We need optionality," he said.

Chuck Shivery, CEO of Northeast Utilities, flashed a map of New England on the screen and explained his basic dilemma: Renewable resources are in northern New England while the load centers are in southern New England. In addition to harnessing the wind power potential of Vermont, New Hampshire, and Maine, Northeast Utilities (co-winner of the 2009 Edison Award for its transmission projects) is exploring possible joint ventures with Canadian utilities. He is particularly excited about a new tie line that will use high voltage direct current technology to connect Hydro-Québec's hydroelectric system and New England's 345-kilovolt system in south-central New Hampshire. FERC has ruled favorably on the proposed structure of the transmission arrangement, but the project still needs additional authorizations and permits in Canada. "Transmission is a very important part of our business model," Shivery said in conclusion.

"The availability of money is not the issue," said John Cupparo, vice president of transmission for PacificCorp, as he discussed his company's new plans for building out its transmission system. In May 2007, PacifiCorp launched Energy Gateway, an ambitious $6 billion transmission expansion program that will add approximately 2,000 miles of new high-voltage transmission lines across the West. Siting and permitting processes are underway for many segments of the planned expansion with certain segments scheduled to come on-line by 2014.