Midwest grid planners are doubling down on plans to build high-voltage wires to support the growing use of renewable energy and battery technology across the region. The Midcontinent Independent System Operator’s (MISO) board recently approved a $30 billion package of new electric transmission projects, which will connect nine Midwestern states from Michigan to southern Indiana.
The plan aims to reduce carbon emissions and improve reliability by increasing the capacity of the grid to transmit power generated from wind farms and other renewable sources. MISO estimates that the new transmission projects will produce economic benefits totaling at least 1.8 times the portfolio’s $21.8 billion price tag, including lower-carbon electricity generation and avoided capacity.
Grid planners measured benefits across nine different categories with the greatest value, coming from lower-carbon electricity generation, avoided capacity, and reliability. Joe Sullivan, a member of the Minnesota Public Utilities Commission, said the reliability benefit that the lines will bring is “significant.”
The calculation of the benefits ratio was key to the approval under MISO’s tariff with the Federal Energy Regulatory Commission. Clair Moeller, MISO’s outgoing president, told reporters that maximizing the value of transmission investment rather than simply minimizing cost is how the grid operator plans and engineers projects.
Advocates for transmission expansion believe the plan approved Thursday has benefits well in excess of the initial 20 years, which is what MISO is required to demonstrate. The portfolio will unquestionably be a good deal for consumers, as the projects are expected to serve customers in the region for over 40 years.
However, some industrial energy users expressed concerns that they’ll ultimately pay a “proportionately large amount” of the $21.8 billion investment in new regional lines. Others, including North Dakota regulators, questioned how grid planners put a dollar value on benefits, including decarbonization.
MISO’s market monitor also raised concerns about the calculation of certain project benefits, and the North Dakota Public Service Commission said that MISO’s model imposes decarbonization benefits that conflict with state law. Despite these criticisms, MISO officials are moving forward with the plan, which will focus on getting projects approved in regions where there is enough political support.
The decision comes as states, utilities, and grid operators scramble to respond to staggering growth projections. MISO estimates that electricity demand across its territory could increase 60 percent by 2040, a rate of growth that wasn’t anticipated when planners and engineers set out to begin modeling regional transmission expansion five years ago.
Source: https://www.eenews.net/articles/midwest-grid-signs-off-on-record-21b-transmission-backbone