Energy Costs & Savings
Alt-Energy Is in for a Boost
Changes to the grid to reduce power outages will help wind, solar, tidal and geothermal energy projects reach customers.
By Jim Ostroff, Associate Editor, The Kiplinger Letter
July 7, 2010
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A huge policy shift is coming at the Federal Energy Regulatory Commission. All power generating firms in an area will share the costs of new lines, starting early in 2011. At present, only the utility building a new facility foots the bill for power lines to get the juice from the plant to users.
One impact of the change: A big lift for prospective wind, solar, tidal and geothermal energy projects, many of which are best suited to relatively isolated areas -- in western deserts or on the High Plains, for example. Sharing the cost of building transmission lines to power-hungry urban areas will make the projects more financially attractive and doable, since alternative energy companies, such as PacifiCorp, US Wind Force, Crownbutte Wind Power and First Wind, to name a few, rarely have the deep pockets of large electric utilities.
The policy change is part of a larger government plan that will require electric utilities to show that there’s sufficient generating and transmission line capacity to meet current and anticipated needs. The overall goal is to boost the reliability of the nation’s electric grid, reducing blackouts and brownouts, says Michael Goggin, manager of transmission policy with the American Wind Energy Association.
Already, about 330 gigawatts of new wind power capacity are in the works, planned for prairies, mountainsides and offshore. Many projects still need approval from state utility commissions, and some are sure to encounter court challenges. But by 2020, most will be built. Current U.S. wind power capacity is a mere 36 gigawatts.
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Reader Comments (2)
Posted by: john at 07/07/2010 01:51:12 PM
Clarification..... power generators do not share the cost of new transmission lines, the rate-payers share the cost! Good lobbying by the Alt energy folks at the FERC. Now we have socialized investment for private profit wind farms.
Posted by: mike at 07/08/2010 09:34:05 AM
Nice call john, NOTHING gets done anywhere in this world(system of things,as stated in any bible) without lobbiers getting things done for money hungry punks. all the journalist keep showing how religious the washitonions are. the truth is they just go to a church,but they do not adhere to what the bible really says.we all should help each other,not for personal gain.