Wind & Transmission: The Clean Energy Superhighway Mark Lauby Manager, Reliability Assessments, NERC

“The Clean Energy Superhighway”  Industry Focus  Keeping Reliability in the Balance Integrating Renewables Climate Change Legislation  Working Together

Challenges to Reliability  NERC’s 2007 forecast projects load will grow 20% over the next ten years  The grid is being operated closer to the edge than ever before  Rising dependence on natural gas for generation just as North American demand begins to exceed on-shore supply  New transmission needed to support wind and other renewable development  On the cusp of dramatic change as climate change and carbon legislation are considered

2008 Emerging Issues  Greenhouse gas reductions & carbon legislation  Fuel storage & transportation  Rising global demand for energy & equipment, increased off-shore manufacturing of raw & finished materials  Modeling increasing adoption of demand-side and distributed generation resources  Replacing and upgrading transmission infrastructure for the 21st century  Water usage  Mercury emissions

2009 Scenario Analysis  Accommodate a minimum of an additional 15% of total energy from new renewable sources by 2018 No more than 5% made up from energy efficiency / demand response  “Stretch case”

 Bulk power system reliability must be maintained, regardless of the generation mix  All generation must contribute to overall bulk power system reliability  Standards and criteria established must be fair, transparent and performance-based  Planners and operators must understand the challenges presented by large scale integration of variable generation  Wind and other variable generation must effectively integrate into planning and operations practices to ensure reliability  New Planning/operating tool requirements will be described in terms of bulk power system reliability performance Keeping Reliability in the Balance

Integrating Renewables: Transmission as Ultimate Enabler  Moving power from the source to demand centers “Clean Energy Superhighway” We need just as much support for transmission development as we do for renewables States must work together to bring these clean resources from areas where renewable resources exist to areas where they don’t

Situation in Texas Today

Where We Want to Be Tomorrow

Integrating Renewables: Operational Tools  Operational models & wind forecasting tools Use geographic diversity & varying wind patterns  Strong transmission back bone  Demand-side management  Interconnection facilitators Low-voltage ride through Dispatchability

Integrating Renewables: Innovation  New technologies are needed to manage variable generation integration. For example: Storage  Compressed Air Energy  Plug-in Hybrid Electric Vehicles  Flywheels & battery Smart Grid  Better visibility leads to higher productivity, efficiency, & flexibility innovate storage smart grid

Climate Change Legislation: Results  Drives higher penetration of demand response and energy efficiency  Accelerated retirement of less efficient coal plants 59 planned coal plants cancelled or deferred in 2007  Environmental dispatching of existing generation to achieve emissions targets  Further expansion of natural gas

Climate Change Legislation: Analyzing Reliability Impacts  Need transmission  Power flow implications resulting from geographical disbursement of gas plants vs. coal plants  Possible strain on gas pipeline system  NERC to take active role in shaping legislation, making sure voice of reliability is heard

 NERC-EPRI joint effort to define reliable integration and identify technology requirements  Industry Challenges are bigger than any one organization  Requires cooperative, industry-wide action  Accelerated investment is required Moving Forward: Collaboration

“The Clean Energy Superhighway”  The time is now  We need renewables, & we need the transmission to move the power they generate Industry-wide collaboration required to support this effort  Operational issues exist, but emphasis must be on solving them

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