By: John Nikoloff
The PJM Interconnection L.L.C., which operates the region's electrical grid, has approved $1.6 billion in additions and upgrades to the electric-transmission systems for the grid that serves 51 million people in 13 states and the District of Columbia. The upgrades are required to maintain reliability of the power supply and keep the lights on in years ahead, PJM said. To accomplish this 15-year plan, PJM's board has authorized almost $13.3 billion in investments.
"Ensuring the reliability of the power supply infrastructure is a vital role for PJM and our member companies," said PJM President and CEO Terry Boston. "A reliable grid is a lifeline to our homes and critical to our standard of living."
PJM's reliability has been important to development of alternative and renewable energy projects in the region - but projects in other states have had to shut down at times because of congestion on their grids. Lack of transmission capacity has become a major roadblock to further development of wind and solar generation today.
As the promise of renewable energy expands, the limits of our existing national transmission system will become ever more evident. In New York recently, wind farms were forced to shut down because the electric grid was unable to handle the power being generated.
Moving large amounts of power over long distances is a reality if we are to significantly expand our wind and solar generating capacity. Without major capital investment in transmission lines, the national grid's limitations will continue to put a damper on these projects.
The world credit crunch makes funding these projects even more difficult. The major expense for renewable energy generation and transmission projects are upfront capital costs, with limited ongoing operational costs. Even T. Boone Pickens has to put his Texas wind project on hold because he cannot access capital - a fact that speaks volumes about the availability of credit in today's market.
Renewable power standards are one policy to promote development of alternative energy sources, and a national standard may well soon be passed by the new Congress. But we need reasonable expectations of what can be achieved in the short term, and a major federal funding commitment as part of an economic stimulus package to make that happen.
We can only hope that a portion of the national infrastructure funding promised this week by President-elect Obama will be used for improvements in the system, and that state and local siting issues will not preclude development of these projects, which are critical to our renewable energy future.
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