Transcript Slide 1
Wind Energy and Transmission South Dakota Legislative Briefing Pierre, South Dakota January 18, 2006 Beth Soholt Director Wind on the Wires Overview • • • • Wind industry accomplishments in 2005 Wind energy legislative/regulatory update Transmission studies update South Dakota 2006 legislative recommendations New Wind Farms in 2005 and Other Developments • 2,437* new megawatts of wind power • Projects completed in 22 states: • • • • • • • • • • • • • California – Idaho – Illinois – Iowa – Kansas – Minnesota – Montana – Nebraska – New Mexico – North Dakota – Oklahoma – Oregon – Texas – 31 MW 75 MW 56 MW 202 MW 150 MW 151 MW 135 MW 59 MW 140 MW 31.5 MW 298 MW 75 MW 701 MW • Large financial investors entered market; consolidation of the industry • Wind increasingly attractive as hedge against volatile natural gas prices • Increased understanding of costs and operational impacts of integrating larger amounts of wind power into the transmission grid * American Wind Energy Association 1/17/06 Wind Energy Legislative/Regulatory Update • Wisconsin – – 10% Renewable Portfolio Standard (RPS) likely to pass by May 2006. – Utilities doing RPS satisfies compliance with WI Energy Priorities Law (conservation and renewables highest priority). • Illinois – – on July 19, 2005 the Illinois Commerce Commission (ICC) adopted Governor Blagojevich’s Sustainable Energy Plan, including a RPS of 8% by 2013. – Problems with implementation; RPS introduced in legislature. • Minnesota – Comprehensive energy legislation passed in 2005 – Renewable Energy Objective (10% by 2015) – Several utility Integrated Resource Plans (IRP) pending – PUC orders will ultimately drive generator resource additions. MN Department of Commerce and Governor Pawlenty committed to adding significantly more wind resources. Transmission Studies Update Better Use of the Existing Grid – Western Area Power Administration Dakotas Wind Transmission Study - Task #1 - Analyze Non-Firm Transmission Potential Relative to New Wind Generation – MISO – wind forecasting, control area consolidation and ancillary services market Get More Grid to Use – CapX 2020 – Midwest Independent System Operator (MISO) Transmission Expansion Plan (MTEP ’06) – MISO Exploratory Studies – Wind Generation Outlet • Buffalo Ridge Incremental Generation Outlet (including new WhiteToronto 115 kV line) • SW MN to Twin Cities 345 kV (White to Twin Cities) What the Wind Industry Needs • SDEIA and SD Energy Task Force Joint Report: – “A successful wind farm needs three main ingredients: 1) a good resource, 2) transmission, and 3) a buyer for the electricity. Often, South Dakota sights meet the first criteria but fail the second, third, or both.” • The South Dakota Legislature can help by passing legislation that encourages utilities to construct new transmission for wind power and lowers the barriers to accessing the markets for wind. South Dakota 2006 Legislative Recommendations • SDEIA and SD Energy Task Force Joint Report Recommendations – Funding for SDEIA: $100,000 for each of 2006, 2007; $250,000 for 2008 – SDEIA identify lower voltage transmission lines (115 and 230 kV) that could be constructed in the near-term for wind generator outlet – Become more involved in regional transmission studies and identify markets for wind power • Western Dakotas Wind Transmission Study – Concluded that non-firm transmission is available at the 7 sites studied most of the time. Urge Western to work with a customer and wind developer to complete a project that would utilize a “curtailable firm” transmission product • Transmission Cost Recovery Legislation – Pass legislation that allows automatic cost recovery for transmission and requires CapX utilities (Xcel, OTP, MRES, Minnkota) to file application(s) for transmission permits that provide additional wind outlet capacity by date certain (SD portion of CapX projects)