TRANSMISSION ISSUES IN NEVADA. NWCC Webinar on REZ Planning

Transcription

1 TRANSMISSION ISSUES IN NEVADA NWCC Webinar on REZ Planning July 10, Daniel N. Schochet Ram Power, Inc.

2 Nevada s Renewable Transmission Issues 1. Wind and Geothermal identified in north half of Nevada, many in rural areas with weak or no transmission available. 2. Nevada wind & geothermal resources typically 20 to 200 MW, too small to support new transmission without aggregation. 3. No intertie between the northern and southern electricity grids of Nevada. Northern Nevada not able to absorb new geothermal 4. NV Energy to acquire more renewable energy to meet RPS. 5. Export of renewable energy in excess of Nevada s needs is a potential source of economic development for rural Nevada.

3 Gov. Gibbons in announcing RETAAC Phase I, stated that: Renewable energy development is good for Nevada and the nation. Much of Nevada s renewable resources are located away from the grid. For companies to develop renewable energy resources, we need to ensure access to the transmission infrastructure to bring their energy to the marketplace. RETAAC Phase 1 Recommendations To Governor Gibbons: #1 REZs have enough resource to require new transmission and collector systems. Governor should support the construction of lines and collectors to enable access for development in each of the identified REZs. #2 The Governor should support construction of a line to connect northern and southern grids to provide southern Nevada with geothermal and wind resources in northern Nevada with access to the solar resources in southern Nevada. #3 Initiate RETAAC Phase II to define: (i) capacity of REZs (ii) prioritization of proposed transmission lines, (iii) environmental and land use constraints, (iv) cost benefit analysis, (v) potential financing mechanisms for recommended transmission.

4 REZs and New Transmission Line Recommendations From RETAAC Phase I Report

5 From June 2008 executive order by Gov Gibbons RETAAC II shall: determine the power potential capacity for each renewable energy zone that is available for commercial development; investigate land use and permitting constraints; identify routes that can accommodate immediate construction of transmission lines while avoiding constraint areas; determine the cost and revenue structure of transmission lines based on supply curves; and identify and rank lines that are feasible to build; address the financing mechanisms to build these lines and collector systems; and provide related policy recommendations.

6 RETAAC PHASE II Progress to Date: Updated estimates of Nevada REZs include; 1500 MW more geothermal, more than 5000 MW of Solar and over 1000 MW of wind. Environmental, Land Use & ROW Feasibility Issues identified and transmission line routes modified to accommodate them, no deal killers, NV Energy has agreed to go ahead with the N-S intertie (now called ON Line) without connection to Ely Energy park, Non Rate Based Financing Mechanisms available, includes 501(c) 3 corp. for transmission financing- Similar mechanisms used in other states, Prioritization and Costs to construct new Transmission facilities estimated and found to justify substantial degree of construction, Potential exists to export significant renewable energy resources in excess of Nevada s utility needs

7 Text Transmission Map Showing REZs & Collector Lines, Based on Avoiding Constraint Areas From RETAAC Phase II Study Group

8 Analysis of Renewable Energy Transmission Costs/Tax Exempt Bond Financing Excerpt from Economic Analysis presented to RETAAC by Dr. Yasuji Otsuka/PUCN

9 CONCLUSIONS 1. Environmental and Land Use Constraints Study Group, consisting of state and federal agencies & volunteers from industry and advocacy groups was tasked with providing information for prioritizing and analyzing the feasibility of constructing proposed transmission lines to the REZs. After evaluating available secondary data collected for this project and consulting with representatives from land management agencies, no fatal flaws were indentified for the proposed interconnections.

10 CONCLUSIONS 2. Renewable Energy Zone Prioritizations Study Group was tasked with: a) developing a method of prioritizing the zones defined in RETAAC Phase I, and the transmission links that serve these zones, and b) presenting these recommendations for Phase II. Methodology developed resulted in a matrix which employed four evaluation criteria: (i) renewable energy potential; (ii) cost of transmission construction; (iii) transmission environmental impact, and (iv) other system benefits from transmission. This matrix served as the basis for the analysis by the Economic Feasibility Study Group.

11 CONCLUSIONS 3. Economic Feasibility Study Group tasked with answering critical questions: (i) how much does transmission line developer charge to recover the construction, operating and maintenance expenses including return on the investment; (ii) how much are the resource developers to pay for the use of the line, and (iii) are the renewable providers still competitive with cost of delivering energy to load centers. Results of analysis indicated that certain transmission lines could charge economically acceptable fees for the use of the transmission lines and that these fees could recover the costs if the transmission line usage were fully subscribed.

12 CONCLUSIONS 4. Transmission for Export Study Group was tasked with identifying existing facilities and proposed transmission that could export energy from Nevada renewable resources to adjacent states. The results of this task indicates that a significant market exists in California and Arizona for Nevada s renewable energy and transmission paths are feasible.

13 CONCLUSIONS Recommendations from RETAAC: 1. Renewable energy access to the transmission grid is facilitated by providing a robust and reliable statewide transmission system. 2. Tax exempt bond financing should be encouraged to substantially reduce the cost of constructing new transmission lines and facilities. 3. No matter what the driving issues are, establishing a mechanism to repay the investment is critical to any plan on moving forward. 4. The PUC, to the extent it is legally mandated, should employ flexibility to encourage new renewable transmission construction. 5. New transmission should be constructed by entities with the financial capacity, expertise, experience & understanding of Nevada issues. 6. The State should create a functional entity, which will serve as a one stop shop to assist in working with local, state and federal agencies in overcoming permitting and siting constraints and barriers. For More Info: