U.S. Department of Energy - Energy Efficiency and Renewable Energy
Wind Program
New Federal Rule Encourages Transmission Access for Renewable Energy
February 21, 2007
The Federal Energy Regulatory Commission (FERC) adopted a new
regulation on February 15th that aims to allow greater access to transmission
lines for power generators of all types, including renewable energy
projects. The new rule exempts intermittent power generators, such as
wind power plants, from excessive "imbalance" charges when the amount
of energy they deliver is different than the amount of energy they are
scheduled to deliver. To help accommodate less-predictable forms of
renewable power generation, the rule creates a "conditional firm"
service to deliver power from a generator to a customer, allowing the
power supplier to provide firm service for most, but not all, hours in
the requested time period.
A key aspect of the new rule is that it eliminates the broad
discretion that transmission providers currently possess in
calculating the unused, available capacity on their transmission
lines. Instead, the new rule requires public utilities to work with
the North American Electric Reliability Corporation to develop consistent
methods of calculating the available capacity and to publish those
calculations to increase transparency. It also calls for open,
coordinated, and transparent planning on both local and regional
levels. The new final rule applies to all public utility transmission
providers, including regional transmission organizations and
independent system operators, and follows reforms proposed by FERC in
May 2006. See the
FERC press release,
chairman's statement,
and the full 1,255-page final rule
(PDF 2.7 MB).
Download Adobe Reader.
While access to nearby transmission lines is a key requirement for
large renewable power facilities, the first step for developing many
renewable resources is for someone to actually build a transmission line.
Fortunately, a number of efforts throughout the country aim to
build transmission lines to connect remote renewable resources to
regional power grids. In late January, the California Independent
System Operator (ISO) approved the Tehachapi Transmission project, a
$1.8 billion project that will increase grid access for large amounts
of planned geothermal, solar, and wind generation in southern
California. The California ISO has also asked FERC to approve an
innovative financing vehicle for new transmission lines, allowing
utilities to invest in a transmission line and then having renewable
generators pay for the line as they use it. Meanwhile, Sharyland
Utilities, L.P. is proposing to build an 800-mile transmission loop in
the Texas panhandle that will provide access to 4,200 megawatts of
wind power resources. See the California ISO press releases on the
Tehachapi project
(PDF 32 KB)
and the financing proposal
(PDF 142 KB)
and see the Sharyland Utilities Web site.
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