A long-awaited study identifying the transmission infrastructure needed
to link wind-rich areas in western Texas with population centers in the
central and eastern parts of the state concludes that such transmission
could be built at modest cost to ratepayers.
"There is no question this type of investment is exactly what the state
should be doing, and when you look at the numbers it is clear ratepayers
come out ahead. Every wind-generated megawatt added to the system is
good for the economy, environment and electricity customers."-- Paul
Sadle, Executive Director, Wind Coalition
The report by the Electric Reliability Council of Texas (ERCOT), the
organization responsible for transmission planning in the state,
explores scenarios that would make it possible for the state to
integrate 5,100 megawatts (MW); 11,600 MW; and 18,000 MW of new wind
energy. For comparison, at the end of 2007, the U.S. had a total
installed wind power capacity of 16,800 MW, with almost 4,400 MW of that
capacity installed in Texas. The report concludes that the
infrastructure needed for this new wind development could be built at a
very low cost to Texas consumers, especially considering the economic,
environmental, and energy security benefits provided by wind energy.
ERCOT's report determines that the money saved by decreasing fossil fuel
use with new wind energy would drastically outweigh the cost of the new
transmission. The smallest transmission investment plan would bring
enough new wind power online to save $1.2 billion per year in fuel
costs-enough savings to cover the US $3.8 billion cost of the
transmission infrastructure in a little over three years. The new wind
brought online by the next largest transmission plan would save US $1.7
billion per year in fuel costs, repaying the US $4.9 billion cost of the
investment in 2.9 years. Fuel savings were not estimated for the
18,000-MW scenario.
Bringing new wind energy online is critical to protecting Texas
consumers from increases in the price of fossil fuels, wind energy
advocates point out. Texas currently depends on natural gas to generate
49% of its electricity, and natural gas plants make up 71% of the
state's generating capacity. From 1998 to 2006 natural gas prices in the
state tripled, which caused the price of electricity for the average
residential consumer to increase from US 7.6 cents per kWh to US 12.9
cents per kWh-an increase of US $64 monthly, or over US $750 per year,
for the average household.
In contrast, the transmission investments identified in ERCOT's report
would cost the average Texas household around US 30-40 cents per month,
less than the cost of a postage stamp. The price of natural gas is
likely to continue increasing in the future, as electric utilities
continue to increase their reliance on natural gas. Investing in
infrastructure that will allow Texas to reap zero-fuel cost wind energy
for generations to come will build a more balanced energy portfolio for
the state, wind energy advocates say.
"This investment will pay for itself in two years and will displace more
expensive energy, offering a savings to Texas consumers of about $3
billion per year," said Wind Coalition Executive Director Paul Sadler.
"There is no question this type of investment is exactly what the state
should be doing, and when you look at the numbers it is clear ratepayers
come out ahead. Every wind-generated megawatt added to the system is
good for the economy, environment and electricity customers.
Transmission costs will be more than offset by the savings realized from
lower fuel costs as we bring additional wind capacity onto the grid."
Wind energy provides a number of environmental benefits and can create
new jobs in the state. Emissions of carbon dioxide (CO2) from Texas's
electricity generation sector fell by 2% from 2000 to 2006, during which
time wind energy grew from producing 178 MW to 3,000 MW. In contrast,
CO2 emissions from the electric sector increased by 25% from 1990-2000,
before wind energy became a major part of Texas's generation mix. Based
on the results of recent studies by ERCOT and GE, adding 11,600 MW of
wind energy in Texas would reduce CO2 emissions by 22 million tons per
year, sulfur dioxide emissions by 18,000 tons per year, and nitrogen
oxide emissions by 8,000 tons per year. A study by the Union of
Concerned Scientists estimates that adding 10,000 MW of new renewable
generation in Texas would create 20,000 new jobs and US $628 million in
tax revenue for Texas's schools.
Michael Goggin http://www.renewableenergyworld.com/rea/news/article/2008/04/texas-study-benefits-of-wind-transmission-outweigh-costs-52103
Wind Energy
