Article reprinted in its entirety from SNL Financial, with permission.

ISO New England study finds transmission must be expanded to integrate wind

March 09, 2010

By Corina Rivera

Roughly 12,000 MW of potential wind resources in New England
could be added to the regional grid with appropriate transmission
expansion, ISO New England Inc. concluded in a study.

A final version of the study, “New England 2030 Power System
Study,” was completed in February. The ISO released a draft version
in September 2009, examining the economic and environmental impacts
of renewable energy development, demand resources, plug-in
electric vehicles and other resources.

ISO spokeswoman Marcia Blomberg said March 8 that the grid operator
took comments on the draft version. Aside from final editing
and formatting, the substance of the report is unchanged, she said.

Among the key results identified in the study, the analysis of transmission
development required to support the integration of New
England wind resources indicates that focusing on offshore wind
results is the most cost-effective use of new and existing transmission,
the ISO said, adding that this also allows for the integration of
some near-shore inland wind resources.

Cape Wind Associates spokesman Mark Rodgers said March 8 that
Cape Wind will pay all of the transmission costs for its proposed Cape
Wind Offshore energy project in Massachusetts.

“Clearly, New England will require a large amount of both onshore
and offshore wind power development to meet public policy goals
that ensure significant job creation, greater energy independence
and reduced emissions of pollution and greenhouse gases,” he said.
“One of the major advantages of offshore is that you have significant
wind resources in relatively short proximity to the areas of highest
population density and correspondingly high electric demand.”

The Minerals Management Service of the U.S. Department of the
Interior on March 4 released an environmental assessment for the
project. Meanwhile, Interior Secretary Ken Salazar has moved toward
a final decision on permits for the project, being developed by
a subsidiary of Energy Management Inc.

The ISO study, commissioned by New England’s governors to
help develop a blueprint for renewable energy development in the
region, focuses primarily on the potential for new wind generation.

Researchers studied dozens of scenarios in which different levels of
renewable power generation are connected to the grid by 2030.

Each of the scenarios identified showed that significant new
transmission investment would be required to move energy from
renewable resources to customers throughout New England. For
example, the ISO said, New England could support the integration
of roughly 8,500 MW of low-carbon resources through a combination
of offshore and inland wind in New England (5,500 MW) and
expanded transmission interconnections with Quebec (1,500 MW)
and New Brunswick (1,500 MW), for an estimated cost of about $10
billion in new transmission facilities in New England.