Advanced Network Study and generation Optimization a must for siting while costing Transmission Assets required for meeting the 2020 Renewable Energy Goals,

Implications: 1.The Challenges in developing transmission capacity to met the goals of 15 % power through renewable by 2020 in US 2.Prevent transmission overload that could take place with the new projects 3.Finding a least-cost and reasonable solution to capacity and operational constraints on the transmission system that will benefit all the stake holders. 4.Existing transmission capacity insufficient to meet the required reliability standards during times of emergency, such as when redundancy in transmission lines reduced. 5.Advanced Network Study and Optimization a must for siting. 6.The cost per Km of transmission lines is prohibitively expensive if met by developer alone, jeopardizing economics and growth of renewable generation. 7.All ratepayers, not just developers, would benefit from the upgrades and should help pay for them.    

Analysis:

Reducing generation at times of transmission constraints would significantly reduce the capital required for transmission upgrades required. I suggest that developers must examine this in detail using Network Study and Optimization tools, before deciding on a siting.

It must be appreciated that in this particular case the reduction has been from 60Million to 11 Million dollars.

However the question remains as to who should pay for transmission upgrades required to accommodate the new generation planned from Renewable Energy.

Requiring the wind developers to pay for at least 25 to 75 percent of upgrade costs is beneficial because it creates an incentive for developers to consider economic efficiencies when they choose locations for their wind farms. That reduces the potential for the shifting of costs from the developers to the customers, which could occur if no upgrade costs were assessed against developers.

All ratepayers, not just developers, would benefit from the upgrades and should help pay for them. Further, requiring developers to pay for the upgrades would threaten the economic viability of his projects and stifle further development of renewable energy in the country.