Interstate Transmission Challenges for Renewable Energy: A Federalism Mismatch
Interstate Transmission Challenges for Renewable Energy
Introduction
- Transmission challenges are a critical barrier for the wind industry: "transmission, transmission, and transmission".
- The traditional transmission planning strategies are ineffective for integrating new sources of renewable energy.
- Existing transmission lines connect large power plants to demand centers; however, renewable energy generation is dispersed.
- There is a complex mix of federal, state, and regional laws impacting renewable energy goals and transmission planning.
Part I: Renewable Energy and the Electric Transmission Grid
A. The Electric Power Industry and the Transmission Grid
- The electricity industry consists of four main parts: fuel, power generation, high-voltage transmission lines, and distribution.
- Most electricity generation in the US comes from coal (42%), natural gas (25%), and uranium (19%), with only 5% from renewables.
- The transmission network includes over 200,000 miles of high-voltage lines connecting the US to Canada and Mexico.
- Electricity transmission systems have evolved into three major national networks: Eastern Interconnection, Western Interconnection, and Texas Interconnection.
B. Renewable Energy Policy
- States adopted their own policies to promote renewable energy due to the absence of comprehensive federal policies.
- As of 2011, renewable energy accounted for 5% of US electricity, with significant growth primarily in wind power.
- 38 states have renewable portfolio standards (RPS) or goals to promote renewable energy, with varying stipulations for participation and accountability.
C. Challenges of Wind Power
- Wind energy generation is inherently variable, creating challenges in matching electricity supply to demand.
- Solutions include: providing backup reserves, developing energy-storage systems, spreading wind power geographically, and improving wind forecasting.
- Further expansion of electric transmission lines is necessary to connect dispersed wind resources to demand centers, requiring significant investments.
Part II: Transmission Law and Policy in the Twenty-first Century
A. Federal Renewable Energy and Transmission Policy
- ARRA allocated $4.5 billion to modernize the transmission grid and establish a smart grid.
- Several recent federal initiatives are focused on improving coordination between state and federal efforts in siting interstate transmission lines.
B. Federal Statutes Governing Transmission Line Siting
- The Federal Power Act grants FERC jurisdiction over interstate electricity transmission but not siting.
- PURPA allows independent electricity producers access to the grid.
- The Energy Policy Act of 2005 (EPAct 2005) created policies for transmission line siting, including national interest electric transmission corridors (NIETCs).
C. FERC Orders Governing Transmission Line Siting
- Order 888: mandated open access to the transmission system.
- Order 2000: encouraged the formation of regional transmission organizations (RTOs).
- Order 1000: emphasized the need for cooperation among states and established regional planning requirements.
D. Federal Projects and Federal Lands
- The federal government has significant authority over siting transmission lines on federal lands, which is crucial for renewable energy projects.
Part III: New Directions for Transmission Policy
- Solutions to improve transmission infrastructure include:
- Greater federal preemption of state siting authority.
- Increased authority for regional siting agencies.
- Enhanced cost-allocation methods to finance projects across state lines.
Conclusion
- The integration of renewable energy into the transmission system requires coordinated policy efforts at federal and state levels, addressing both existing legal frameworks and new infrastructural needs.
- Current challenges in transmission are rooted in the structure of federalism and require innovative regional solutions to overcome them.