ERMUSR MISC. ITEMS 10-15-2003 - Laserfiche WebLink

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TRANSMISSION INFRASTRUCTURE BY STEVE BLANKINSHIP, • ASSOCIATE EDITOR THE WIND BLOWS ACROSS THE COAL FIELDS Wind power developers bemoan the fact that abundant wind Webb says transmission outlets added to mine-mouth coal plants usually exists in regions remote from load centers.where there is in the Illinois basin would produce wholesale cost reductions in rarely adequate transmission to connect wind-generated electric- TVA and to the south as well as in MISO. ity to population centers. Developers of new coal-fired projects Many of the potential sites for new coal and wind development in experience similar frustration because, in many instances,Made- MISO are in congested areas of the system,and transmission expan- quate transmission hampers delivery of low-cost,coal-fired power sion in these areas can result in improved delivery of the most efficient to customers who could benefit most. existing and new resources. "Certainly some of the scenarios we Although most people probably think of coal plants and wind looked at, particularly up in the Northwest where most of our wind farms as being at opposite ends of the power resource spectrum, potential is,is also the area that includes some additional coal devel- both coal and wind share the need for expanded and improved opment,"says Webb."We had one scenario that was mostly wind and transmission infrastructure if customers are going to derive maxi- also had some new coal.I think it is reasonable to expect that there's mum benefit from the electricity they generate. Coal offers reli- both wind and coal resources up in the constrained transmission areas able, low-cost base-load power. And wind brings emission-free of the northwest. Transmission that enables one is going to enable renewable energy at an increasingly competitive cost.These real- both.That's something that's not lost even on the wind folks." ities are not lost on some generation-neutral entities. Great Northern Power Development and Keiwit Mining Com- The Midwest Independent Transmission System Operator pany announced in May that they will proceed with a 500 MW lig- (MISO), the nation's first FERC-approved regional transmission rite/wind project in eastern Montana. The circulating fluidized organization, is one such asset-neutral entity. MISO's footprint bed design selected is a good example of today's clean coal tech- spans 15 states and 1.2 million square miles from Canada to Ken- nologies that make the nation's most abundant fuel dramatically tucky. "Some have noted that the wind blows across the coal cleaner than was once possible.The companies believe that link- fields," says Jeff Webb, MISO's director of planning. "It's not ing coal and wind provides unique advantages to the project enough to simply assure reliability. We need to identify transmis- because coal can support the necessary upgrades to the transmis- sion that must be built so the consumer can reap the benefits of sion grid that would otherwise be difficult for wind to justify,while existing low-cost generation and new developments. And among wind can improve the environmental performance of the project. those low-cost resources are coal and renewables." Elected officials in neighboring North Dakota—viewed as a Several transmission scenarios are under consideration by 'Saudi Arabia"of wind in the U.S.,and with hundreds of years of MISO,and some are based upon the location of substantial amounts coal reserves—have recognized the need for new transmission for of coal and wind where enhanced transmission could enable both. both. North Dakota has organized a unique coalition of wind pro- MISO's coverage area is rich in both coal and wind resources. It ponents, coal developers and transmission providers to address includes the northern lignite basin in the Dakotas,and the Illinois transmission to markets in need of new,reliable power. basin in Illinois,Indiana and Kentucky.It also includes some of the "Our governor and elected officials have embraced energy highest wind potential areas in the world, also in the Dakotas as development in the state,and recognized North Dakota's opportu- well as in Kansas and other upper-Midwest states. A MISO study nity to contribute to our nation's energy supply and its security," shows that between $304 million and $1.6 billion in reduced says Robert Harms, counsel to North Dakota Governor John annual marginal cost of wholesale energy could result from trans- Hoeven. Harms chairs the coalition formed to help resolve trans- mission additions together with higher amounts of wind and coal mission constraints to neighboring markets. Governor Hoeven has capacity,depending on natural gas price projections. been heavily involved in formulating national energy policy among In the June issue of Power Engineering, Jacob Williams of governors,in an effort to help diversify the energy supply. Peabody Energy, a company pursuing low fuel-cost mine-mouth "Most people who have looked at the issue recognize the need coal generation projects in western Kentucky and southern Illinois, for different fuel sources and risk of relying too heavily upon a sin- noted that many coal facilities are underutilized because the lack gle fuel," says Harms. "We need it all. Energy developers in the of transmission prevents the flow of low-cost coal-generation to region recognized the need to build alliances and coal and wind high-demand areas in the Northeast, Florida,Texas and the West. found those alliances that will help both deliver energy in coming As a result,many electricity markets will be left to float with years. Both energy groups recognized a need for one another,and the volatile natural gas market,which over the last three years has a greater likelihood of success if they worked together,rather than wildly fluctuated."It is not surprising that the low-cost areas have going it alone.We know that transmission is the key and the mem- the coal plants with the lowest capacity factors and the high-cost bers are committed to finding solutions to transmission constraints areas have coal units with the highest capacity factors," he says. in the upper Great Plains in the coming years." PE POWER ENGINEERING/AUG'LS 2003 • 8 www.power-eng.com