Utilities and Electricity TransmissionOverviewChanges in energy policy at every level –federal,state and local – have changed the face ofutilities across the nation. With a majority ofstates already establishing a renewable portfoliostandard (RPS) and the possibility of a federalRPS lurking in the future, the industry has begunto ramp up investment in renewable energy andsupporting technology. Leaders from across theelectric utility industry convened to discussrecent trends, technological developments, andmajor issues facing the industry.ConsensusA common theme that emerged among thespeakers was how utilities can meet the energychallenges of the 21 st century. Solutionsincluded in the discussions were: addressingenergy reliability and security; updating archaichardware and energy storage technology;investing in power generation and gridinfrastructure, and constructing energy policy tostimulate renewables. In the end, the answerwas that no single approach or technologicaladvancement alone can solve the challenges.Rather, the speakers concluded, it will take acombined effort of federal and state policybacked with support from a responsiveconsumer base.Infrastructure and TechnologicalDevelopmentThe United States needs a reliable power systemthat provides electricity 24 hours a day, 365days a year.The United States must not rely on 20 thcentury infrastructure to meet 21 st centuryenergy demands. The grid is operating veryclose to capacity and is dangerously vulnerableto physical and cyber attack. It is designed tolink specific generators with specific distributors,with no larger national vision. Over the next 20years, investments must be made to replace andmodernize electricity production, transmissionand distribution infrastructure.Inadequate transmission investment is theprimary obstacle to delivery of renewable energyto customers.As it is, the grid is ill-equipped to handle a large percentageof renewable power. Transmission developmentneeds to remain ahead of the renewable supply in order topromote new entry in resource-rich areas. To overcomethese obstacles we need a well functioning regionalplanning process, clear cost allocation and recoverymechanisms and adequate incentives for new transmission.There is a need for transmission policies to movelarge scale renewable resources to market.Competitive regional electricity marketshave a proven track record of improvingoperating efficiency, which allows us to domore with less.– William Massey, Partner, Covington & Burling, Counsel toCOMPETE Coalition<strong>American</strong> <strong>Council</strong> <strong>On</strong> <strong>Renewable</strong> <strong>Energy</strong>Executive Summary Report 58
Currently, planning is geographically fragmented andlocally focused. Siting multi-state transmission facilities isa long and contentious process involving numerous statesand local agencies each with the power to block an entireproject. Further, cost allocation of transmission investmentsmakes it difficult to finance a coherent interstatetransmission network for renewables.The answer is a national clean energy smart grid designedto build new interstate transmission capacity to bringrenewable energy from remote areas to population centersthat demand it. Smart grid technologies will managepower flows, improve reliability, facilitate end-use efficiency,and assist with the integration of clean distributedresources.The future of the industry relies on theconvergence of distributed renewable energyresources and a smart grid.A national clean energy smart grid will expand renewableelectricity, enhance reliability of the electricity system andstrengthen our economy by creating jobs and opportunitiesfor business. This upgraded transmission grid willallow utility companies and consumers to monitor andadjust their electricity use, while providing a pricingsystem to integrate new renewable energy sources andenergy storage devices.Distributed energy will provide greater stability to theelectricity grid by helping meet baseload power, peakingpower, backup power, remote power, power quality, as wellas cooling and heating needs. It will also allow customersto feed any excess power they produce back to the grid forother consumers to use.<strong>Energy</strong> storage technologies will be one of themost transformative technologies for theelectricity industry.The grid needs a consistent, stable supply of energy thatcan be adjusted during times of peak demand. Newenergy storage options can help provide such a supply andare essential for stabilizing the grid, ensuring a continuityof supply, increasing energy autonomy, mediating againstintermittent power production and expanding renewableenergy sources.Grid improvements could help move renewableenergy to the Southeast—the fastest growingregion in the nation.The Southeast will have a significant need for new generationin the future due to rapid population growth. This willbe a great opportunity for renewable energy growth.However, because there is a limited amount of renewableresources actually located in the region, the success ofrenewable energy development in the Southeast dependson grid improvements and the increased capacity to movethe renewable energy resources.With competitive pricing for baseloadrenewables utilities will have to considerthese generation sources to meet theirsupply needs.– D’Juan Hernandez, President & CEO, Sun <strong>Energy</strong> GroupThere are overlooked benefits of placingdistributed energy projects on industrial orbrownfield real estate.Currently, the trend is to place green projects on greenland, with the assumption that agricultural land is aneasier option, though far from the grid. But, the land isnot properly zoned, is environmentally sensitive andextensive environmental reviews are required.Further, building new transmission lines from the middleof the country to cities takes roughly 10 years, whereasdistributed generation on previously zoned industrial landtakes between 1 to 9 years. Using land use law to ouradvantage will get projects built on sites where municipalitiescannot say no. Industrial zoned lands are zoned toinclude electric generation, have minimal environmentalreview and are often in non-environment sensitive areas.<strong>On</strong>e example is the Buffalo Steel Wind Project inLackawanna, New York – just outside of a city wherepower is needed and close to the grid.<strong>Energy</strong> Security and US Competitivenessin the Global MarketInvestments in renewable energy can decreaseAmerica’s oil dependence and improve nationalsecurity.The US imports roughly 13 barrels of oil eachday – over 60% of its total daily consumption.This dependence on imported oil ties theUS economy to unstable and often undemocraticnations. We can decrease thisdependence on foreign sources of energy by<strong>American</strong> <strong>Council</strong> <strong>On</strong> <strong>Renewable</strong> <strong>Energy</strong>Executive Summary Report 59
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The highlights of WIREC 2008 includ
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EVENT SPONSORSHosted byBadge Sponso
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EXHIBITORS ContinuedKamatics Corp.K
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The ARRA contains the following ite
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“How do we organize ourselves to
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John GeesmanFormer Commissioner, Ca
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