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Wind Power Waiting on Transmission-Line Boom

Transmission lines are becoming the single-largest obstacle to the continuing growth of U.S. wind power. But some investors, such as T. Boone Pickens, view the barrier as an equally large opportunity.

Congress tried to ease this process by passing the Energy Policy Act of 2005, which gave the Federal Energy Regulatory Commission authority over the approval of transmission line locations. Approval previously fell under the state government’s jurisdiction, but now, if the state withholds approval for more than one year, applicants may appeal to the commission.

Still, approval times can be discouraging.

“Regulatory delays will be something that will affect anyone building transmission lines,” Legge said, adding that some power lines can take more than 10 years to build.

Could Texas Have the Answer?

Yet Texas, the state with the largest wind capacity, may have an answer.

The Texas Public Utility Commission earlier this month paved the way for $4.83 billion in new transmission lines when it approved a plan to carve out wind zones and designate transmission paths, then take applications from companies that want to build on those paths.

The idea is that predesignated paths will remove some of the uncertainty about how electricity will be transmitted, so that companies will be more likely to act.

“These designated zones will greatly encourage investors to build lines,” commission spokesman Terry Hadley said.

The plan, which aims to connect wind- and sun-rich West Texas with more populated areas to the North and East, already seems to be bearing fruit.

On Thursday, just a week after the vote, Austin, Texas-based Sharyland Utilities announced a proposal to build transmission facilities in the Texas Panhandle and South Plains. It filed the statement of interest with the commission in partnership with five other companies, according to the announcement.

Another longtime supporter of renewable energy, Sen. Harry Reid, D-Nev., recently introduced a new bill to designate zones where renewable resources can generate over 1 gigawatt of electricity. The bill calls for the federal government to then step in and provide financing for transmission line construction.

These early models could be just the beginning of the government’s efforts to jumpstart investment in transmission lines.

Pickens, who made his fortune as a maverick oil driller and has now become one of the most visible advocates of wind power, is also benefiting from legislation.

The reason he opted to build his own lines may stem from a right-of-way provision tied to a water pipeline he owns. Due to recent Texas legislation, a renewable-energy project may obtain a right of way if it coincides with water lines. (In this way, he is an exception. Not many developers can claim to own a fresh water supply.) The new power lines for the giant wind farm will likely run right over the water lines, saving time and money and avoiding a protracted approval process.

Still, Pickens’ willingness to invest some $2 billion in power lines for wind power sends a strong message.

Others are likely to follow in his footsteps.

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Comments [6]

  • Jim Burrows 11/13/08 2:54 PM

    In initiating a solar powered camp in the semi remote woods of the foot hills of the Adirondack Mountains I’m a firm beleiver that renewable energy can work. Looking at a huge project of renwing power to the grid by means of green souces is ultimate in keeping the way we live our life styles. But small substations behind everyones house seems more a reality to me. I believe after watching the thieves of this land rape the money foundation of the United States it’s time for the American worker/people to take charge and incorporate our own electricity. Even if this country went to fully renewable power and the big guy’s still own it, we the people that built this country through learning and hard work will not pay less for utilities. But if unconnected from the grid we can control our own destiny’s. Instead of dumping 700 billion in something that will make smart investers very fat let’s dump that money into households so all of America can spend money again at places besides Walmart and lead imbedded chinese toys. I’ve read and listened to some of Pickens comentary’s. He’s on the right track and as an ivestor I would like to know who will be doing the work so I can get in on the ground floor and become rich myself. But, If we just looked at the education we have in front of us on our computers we can all have FREE power at our house’s. Will it be free with Pickins plan?

    Reply
  • adam moritz 07/25/08 9:15 AM

    Imagine the amount of distributed renewable energy generation that could be purchased with those billions of dollars.  No habitat destruction or violation of property owners’ rights would be necessary.  Think of the energy needed to manufacture, transport and put in place all the aluminum, steel and concrete—not just for the transmission lines themselves but the substations as well.  Think of the renewable energy turned into waste heat from transmission line impedance and substation losses.  Think of the labor involved in building and maintaining all of this.  New transmission lines are completely unnecessary in the presence of abundant solutions such as negawatts through green building, distributed renewables with smart grids, waste heat recycling and small-scale cogeneration. 

    By the way, Pickens’ plan for sucking water from the already over-taxed ogallala aquifer and pumping it to Dallas (a town without a clue about real water efficiency) is as much of a disaster as the transmission lines.

    He could get accomplish more renewable generation and more water distribution in a much more ecologically sound, socially equitable and profitable manner by investing in distributed renewables and rainwater catchment infrastructure WITHIN Dallas and other Texas cities.  The paradigm of centralized production and distribution of natural resources needs to be shrunk to a fraction of its size if there is to be real and lasting peace in this world.

     Reply
  • Jim White 07/26/08 4:06 AM

    greensolutions - Talk to thousands of your neighbors and see how many of them are willing to invest thousands of dollars in distributed energy sources.  Remember, T Boone Pickens nor anyone else will be paying for it.  Are you and your neighbors willing to make this investment?  What are the sources for the distributed generation?  Gasoline??  Unreliable wind or solar??  Your idea will never happen without a major technological breakthrough.  So, the real question is how do we survive for the next few decades?  I say thanks to Mr Pickens for helping out us all!

     Reply
  • Michael Powes 07/27/08 9:40 AM

    There is a new world wide web emerging right before our eyes. It is a global energy network and, like the internet, it will change our culture, society and how we do business.  More importantly, it will alter how we use, transform and exchange energy.
     
    Enough solar energy falls on the surface of the earth every 40 minutes to meet 100 percent of the entire world’s energy needs for a full year. There is no energy supply problem, there is an energy distribution problem—and the emerging solution is a new world wide web of electricity.

    For more information, see http://www.terrawatts.com

     Reply

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