Wednesday, November 24, 2010

Wind industry fears FERC slip-up on proposed grid rules

The American Wind Energy Association said late Friday that there could be a “mistake” in proposed new grid connection rules from the Federal Energy Regulatory Commission.

The issue regarded reforms that FERC said on Friday would make it easier for renewable energy projects to connect to America’s electricity transmission networks (see this BrighterEnergy.org story).

But the wind industry trade association said it believed the proposed rule allows conventional power generators to remain “largely exempt” from integration costs they impose on the system from any unexpected or emergency shutdowns, while renewable energy generators would have to pay “more than their share”.

The AWEA said it was not clear whether the federal commissioners intended such a rule, and that FERC’s remarks on outlining the proposals had not indicated this was the aim.

The trade association said on Friday: “We hope this was a mistake. Mistakes like this can be fixed before proposed rules turn into final rules. AWEA will provide FERC an alternative method that treats all generators fairly which we hope will be included in any final rule.”
Forced outages

Under the proposed rules, AWEA said conventional power generators do not have to pay for the back-up resources that grid operators require when conventional power plants shut down unexpectedly. These costs add up to billions each year, the wind industry group explained, but are not met by the generators that cause them.

However, variable energy producers like wind farms and solar power plants would have to pay for these back-up electricity supplies, even when outages are caused by large fossil fuel plants or nuclear generators, the wind industry fears.

AWEA also accused FERC of overstating costs of connecting up and managing renewable energy supplies on the grid in its proposals, calculating the variability of clean energy projects in isolation of other energy sources transmitting power through the grid.

Explaining the problem, the association said: “A comparable policy would be requiring a new house joining the grid to pay for an expensive battery that must be activated every time the residents turn a light or appliance on or off, while all of the existing grid users enjoy the benefit of having their changes in electricity use netted out against the changes of the other users of the grid.”

Noting the FERC’s intention to help reduce the discrimination faced by new renewable energy generators on the grid, the AWEA said it was “gravely concerned” that the proposals as currently drafter would “exacerbate” the discrimination.

FERC’s proposals are currently open for public comment for a two-month period.

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