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Mar 17, 2009

Wind Energy: Reliable, Renewable, Cost-Efficient

Ambitious renewable energy standards, an abundant supply of wind energy and a marketplace free of burdensome regulations have all collaborated to make Texas the national leader in wind energy production. This is a real tribute to our governor, legislators and public utility commissioners who recognize that traditional fossil fuels are finite in nature, while the wind will blow as long as the earth rotates around the sun. At the same time, while we have made great progress in harnessing the wind, what we have accomplished pales in comparison to what is possible if the Texas Public Utility Commission (PUC) approves the creation of Competitive Renewable Energy Zones (CREZ) in Texas.

Critics of wind power argue that wind should only be one piece of the energy puzzle, and cannot alone satisfy increased demand. In this case, I agree with the critics. While the wind industry is prepared for a robust expansion if the PUC builds needed capacity, we have never argued that we should be anything more than a vital part of the energy mix in Texas. But if Texans want to develop an energy supply that will never run out, will reduce emissions, and will make our power system more reliable, then we must do certain things: first, and foremost, we must build additional transmission capacity in the western part of this state to more fully utilize wind as a part of our energy mix; second, we must continue to provide economic incentives for the production of clean, renewable energy; third, we must continue to impose minimal siting requirements so that clean energy development is not hampered by regulation, and; fourth, we must continue to support forward-looking renewable energy standards, including ambitious but achievable goals for the amount of power produced by clean sources in the coming years.

The PUC has several options on the table, ranging from $3 billion to $6 billion in cost, to build new transmission lines under the CREZ proposal. This cost, however, should not be considered in a vacuum. Based on recent studies by ERCOT and General Electric, if we were to add 18,000 megawatts of new wind capacity to the grid, the transmission costs would be more than offset by the reduction in fuel costs by billions of dollars. The fact is that wind is economically viable today, costing less per kilowatt than our prime source of energy, natural gas.

Additional economic factors should be taken into consideration. Wind is quickly becoming an important commodity in the effort to revive dormant economies, and create thousands of jobs in places like West Texas. In the Metroplex wind energy is big business, with Trinity Structural Towers, Inc. (a major manufacturer), Luminant Energy (the state's largest buyer of wind energy), and Babcock and Brown all running operations there. In addition, it benefits the entire state when we reduce our carbon costs related to the burning of fossil fuels. If we add 18,000MW of new wind capacity, we would reduce CO2 emissions from power plants statewide by more than ten percent. This could save taxpayers hundreds of millions of dollars per year.

Lastly, while wind is a variable resource - its abundance fluctuates based on the weather - the impact of changing weather patterns on energy generation can be managed. In fact, an ERCOT report says we could triple wind capacity without impacting the reliability of the electricity system. And as long as we have a streamlined forecasting system - something ERCOT is now working hard to achieve - we can plan for wind variance. Generally, with a change in the weather we will know hours in advance how it will impact wind generation. Compare this to the amount of warning we have when a fossil fuel power plants trips off line - an average of 1/60th of a second.

The fact is every additional wind-generated megawatt will improve system reliability, make our grid more cost-competitive, and reduce the impact energy generation has on our air and water supply.
Increasing wind capacity is not merely a strategy for some companies to claim they are "green" for publicity reasons, but truly a viable method for generating large amounts of electricity that has the added benefit of being clean. If the PUC approves the CREZ, not only will it be good for the economy and air quality, it will be good for ratepayers. And that's good for Texas.

Paul Sadler is the executive director of the Wind Coalition, which is an association of more than two dozen companies and public interest groups dedicated to the development of the vast wind energy resources of the south central United States.


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