Wednesday, February 17, 2010

PSC adds new wind farm study to list

Developers of the proposed Galloo Island, Horse Creek and Cape Vincent wind farms have one more study to add to their lists after an order from the Public Service Commission.

Under the PSC's order, dated Oct. 20, all renewable energy projects built at 80 megawatts or more in capacity must conduct the "energy deliverability" study.

Renewable energy development advocates say the study duplicates others, adds time and expense and may be used to refuse development. But the PSC says the study will show whether the power can reach areas with need.

The basis for the order is the state's Renewable Portfolio Standard, which aims to have 25 percent of the energy consumed in the state come from renewable sources by 2013.

"This goal will not be realizable if the energy from new renewable resources just replaces the energy produced by existing renewable resources," the order said.

The study would show areas of "bottlenecking," where the full output is not being delivered.

Maple Ridge Wind Farm in Lewis County has had periods of bottlenecking, said Paul N. Copleman, communications manager for Iberdrola Renewables, which operates the facility. Those times are usually a result of low demand in a region for power. Iberdrola would then "choose to curtail ourselves during real-time operations for economic reasons," Mr. Copleman said.

Iberdrola objected to the order during the comment period. The company said the order isn't clear on how the study should be conducted and it doesn't apply to other energy generator developers.

Renewable energy proponents said the PSC is adding an unnecessary requirement.

Carol E. Murphy, executive director of the Alliance for Clean Energy New York, said the New York Independent System Operator not only is responsible for the reliability of the grid, but is conducting a study of renewable energy development now.

"It's problematic that the PSC would require a study when one is already under way," said.

The group is asking for a rehearing on the matter.

"I certainly agree that we need to look at transmission," she said. "But work's already being done there."

The New York Independent System Operator reviews all requests to connect into the state's wholesale electric grid. Developers are required to conduct feasibility, system reliability impact and facilities studies for NYISO. Those studies determine the effect of the added generation and what upgrades, if any, would be necessary to ensure reliability.

The grid operator also conducts ongoing 10-year studies on grid reliability and efficiency, most recently released in May. A separate congestion study should be issued in December and a study on higher levels of wind power generation should be finished in early 2010, spokesman Kenneth M. Klapp said in an e-mail.

"The draft findings of the study indicate that there are areas where existing transmission capacity may limit the system's ability to take full advantage of new generation," he said. "The transmission constraints can be addressed with transmission upgrades in these local areas."

Ms. Murphy said congestion issues are addressed not just through the New York Independent System Operator studies and resulting requirements, but through other programs. Utilities are using "smart grid" grants to work on congestion problems. Power generators also can use transmission congestion contracts to make sure their power gets on the grid.

Renewable energy producers, like other developers, also conduct a series of studies for the environmental review and siting process.

"Nothing gets built in New York without a lot of permits and review," Ms. Murphy said.

The additional requirement also may encourage developers to keep projects under 80 megawatts — and the added hurdle.

"That would be a shame," Ms. Murphy said. "That would leave megawatts of clean energy on the table."

She also questioned what the PSC would do with the study when completed.

"The PSC recently made $95 million available under its Renewable Portfolio Standard program to develop large-scale renewable energy projects, including wind," James A. Denn, spokesman for the commission, said in an e-mail. "It is currently weighing whether to commit even more funds in the future. The time was right to issue the order given the huge amounts of ratepayer funds that are being invested to promote renewable energy."

He said the information in the studies will help the commission determine when, where and what type of system upgrades to require.

In Jefferson County, almost all of the proposed developments would have to complete the energy deliverability study.

Iberdrola Renewable's Horse Creek Wind Farm, Clayton and Orleans, would be built at 126 megawatts. Upstate NY Power Corp.'s Galloo Island Wind Farm, Hounsfield, is planned for 252 megawatts. Cape Vincent Wind Farm, being developed by BP Alternative Energy, would come in at 142.5 megawatts.

The only planned development that would be excluded under the plan is St. Lawrence Wind Farm, being developed by Acciona in Cape Vincent at 79.5 megawatts.

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