22 May 2012 (Renew Grid)
“Installing a substantial amount of wind power, along with upgrading transmission in the Midwest Independent Transmission System Operator (MISO) territory, could have positive consumer benefits at a lower cost than is assumed, according to a report sponsored by the Americans For A Clean Energy Grid (ACEG)…[The study of wind-related transmission investments for MISO projects] concludes that consumer electricity prices would decline under low- or high-transmission scenarios. “Introducing greater levels of wind resources into MISO generally depresses the average annual market price relative to a baseline case of no additional wind generation beyond the existing 10 GW currently in place in MISO, according to the report. Because wind energy ‘fuel’ is free, once they are built, wind power plants displace fossil-fueled generation and lower the price of marginal supply - thus lowering the energy market-clearing price…”
click to enlarge“With good system planning, it is likely that large quantities of wind could be integrated with low or moderate transmission investments - though still larger increases than have been seen in the recent past…If load growth can be kept to a minimum through demand response and energy efficiency, the incremental transmission needed to integrate wind can be lowered (relative to a baseline with greater load growth) because a key determinant of transmission need is peak-load level… Transmission projects would still be required to connect remote wind resources…and "backbone" investments would still be needed…[but] continuous investment cycles of extra-high-voltage lines should not be necessary, and the cumulative rate impacts should remain small…Transformation of the supply fleet to much more flexible operation…[and] extensive coordination, control and forecasting improvements in the electric power sector, could also mitigate the need for…[much more] transmission…"
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