A massive $1 billion proposal for transmission lines that would run through Northern Wisconsin and Michigan’s Upper Peninsula should not be allowed to continue on a special, fast-tracked “out-of-cycle” approval process, according to the Environmental Law & Policy Center (ELPC) and Citizens Utility Board of Wisconsin (CUB)

American Transmission Company’s (ATC) proposed “Northern Plan” transmission proposal is being reviewed on a rapidly accelerated schedule by the Midwest Independent Transmission System Operator (MISO), a regional organization that manages access to the electricity grid. MISO granted the faster, out-of-cycle review process because of WE Energies’ statements that it might shut down the Presque Isle coal plant in the Upper Peninsula, Marquette, Michigan. Recently, WE Energies and Wolverine Power Cooperative announced a joint venture to explore retrofitting the coal plant with modern pollution control equipment and continuing to run the plant.

“Consumers should not be asked to pay for $1 billion of new transmission lines running through Wisconsin’s Northwoods, without a full and fair review of alternatives that might save money and prevent the disruption of key habitats and natural areas,” said Howard Learner, Executive Director of the Environmental Law & Policy Center.

According to the groups, a more thorough, normal review process should include a consideration of the cost impacts of siting, as well as a detailed consideration of alternative transmission routes. The proposed high-voltage transmission lines would run through the Northwoods in Wisconsin and the Upper Peninsula of Michigan.

“Should we spend many years and consumer dollars to analyze the technical details of a plan that might not even happen because of the significant natural resources and other concerns it already raises,” asked Charlie Higley, Executive Director of Citizens Utility Board of Wisconsin. “Should we build transmission lines through one state to primarily serve another state? These are questions MISO should ask – and answer – after careful review.”

Although the MISO review process is closed to the public, MISO agreed to allow ELPC and CUB to submit expert comments for its consideration. Read them here.

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The Environmental Law & Policy Center is the Midwest’s leading environmental legal advocacy and eco-business innovation organization. www.ELPC.org

“Wind energy creates good jobs and business growth across Iowa and across different sectors,” said Howard Learner, Executive Director of the Environmental Law & Policy Center. “Smart policies can bring more wind businesses to Iowa – that’s good for both economic growth and better environmental quality.”

The report states that a commitment to business development combined with tax incentives, a skilled workforce and a central location have helped make Iowa a leader in the wind industry.

The report highlights supply chain companies across the state, from locally owned small businesses to seven international manufacturing companies. In addition to the 80 existing supply chain companies, the study identified more than 30 additional Iowa companies that could supply the wind industry if demand increased.

The report notes that strong regulatory and tax policies are key to growing any industry, and the wind industry is no exception. The proposed strong federal renewable energy standard would help grow Iowa’s economy by increasing Iowa’s export opportunities for both wind power and manufactured wind turbine components and professional services.

To download a copy of the report, visit www.elpc.org/iowawind.

New transmission lines could expand the market for the vast wind resources in the Midwest, but getting transmission in place will require cooperation between many different states, utilities and industries. As ELPC Senior Attorney John Moore told the Des Moines Register, “The easy stuff has already been done on wind. Now come the more difficult details.” ELPC is working to continue the growth of clean energy in the Midwest.

Read the article in the Des Moines Register

Join ELPC for “Transmission Week” starting with a Webinar: “Using Regional Energy Markets to Reduce Energy Demand and Costs” on September 28 and a “Transmission 102″ Training on September 30 to learn more about achieving a cleaner, more efficient and environmentally protective electric transmission grid.

Interconnection is the process of linking clean distributed wind power and solar energy sources of electric generation to the grid. The new standards create a clear process for Iowa citizens and utilities to bring their clean energy sources online with standard forms, affordable fees and reasonable insurance requirements.  Iowa previously had loose interconnection guidelines that resulted in a complicated patchwork of rules.

The new Iowa standards are built on a model by ELPC in Illinois and South Dakota. The goal is to “facilitate the addition of distributed generation” to the electric distribution system.  The rules minimize burdensome insurance requirements and application fees for small systems, and they include standard forms and contracts to streamline and provide transparency to the process.

The Iowa Utilities Board’s Final Order which includes the final interconnection rules, forms and standard agreements is available here: https://efs.iowa.gov/efiling/groups/external/documents/docket/041781.pdf

The Iowa Utilities Board Staff Memo describes the process: https://efs.iowa.gov/efiling/groups/external/documents/docket/041952.pdf

The importance of new transmission capacity to support wind power development is relatively clear. There is a less obvious and equally important goal of relating transmission advocacy to spur the retirement of old, highly-polluting coal plants in the Midwest/Great Plains states. There is a very important set of strategic leverage points because of the structure of the Midwest/Great Plains power market in 2010 – 2020.

ELPC hosted a Midwest Transmission Strategy meeting in Chicago in April 2010.  The meeting brought together Midwest environmental, clean energy and consumer leaders to develop strategies to address delivery capacity issues for wind power and other renewables as well as important cost-allocation issues for new transmission. Below are links to some of the resources shared at that conference.

Midwest Transmission Strategy Meeting
Presentations and Materials (April 2010)

Other Resources

Using Regional Energy Markets to Reduce Energy Demand and Costs
Webinar and Materials (September 28, 2010)

Transmission 102 Training (September 30, 2010)

By: Howard A. Learner
Executive Director, Environmental Law & Policy Center

The confluence of multiple economic and policy factors creates a huge strategic opportunity to advance solar power installations in the Midwest.  This window of opportunity will likely be open for about two years while solar photovoltaic (PV) module prices are very low due to excess global supply.  Soon after, hoped-for technology curve improvements will reduce module costs and key policy drivers, such as Illinois’ solar procurement legislation, will kick in.  Here are the combined factors that are driving today’s solar PV opportunities:

Þ   Solar PV module prices have come down to $3 per watt, or less, due to the excess supply in global markets.  For several years, solar-friendly policies in Germany, Spain and other countries drove new global manufacturing plant investments to ramp up supply for the expected markets.  Germany and Spain shifted their subsidy policies – designed to catalyze markets, not support mature markets – just as ramped up manufacturing came on line.  The current excess supply has driven down solar PV panel prices to the lowest level in years.

Þ   Solar will find a niche supplying peak power in Midwest electricity markets. Solar is available at peak times when regional power market prices are highest.  As the Midwest power market has transformed from vertically-integrated utilities to a wholesale market dominated more by merchant generators and power auction-type processes, prices for generation are increasingly reflect time-of-day and time-of-year.  In short, solar energy matches well at pricey peak demand times.

Þ   Fairly lush federal subsidies for solar energy through the Investment Tax Credit, loan guarantees and various other tax credits and grants are making a difference. Recent federal energy legislation and the economic stimulus package provide significant price support and investment value for solar projects.

Þ   Federal and state policy support for solar energy is making a difference. For example, the Illinois RPS “solar carve-out” in the state’s renewable energy procurement standard will drive a new market for 700 MW – 750 MW of solar power supply in 2015.  Net metering standards and interconnection standards in several Midwest states are creating more favorable pricing for distributed solar-generated power. Expanding net metering policies to cover larger projects will boost solar even more.

Þ   Solar development is finding a sweet spot with 10 MW – 20 MW projects on former industrial sites with nearby substations. These projects are large enough to achieve economies of scale on module purchases and installation costs.  Locating systems on older industrial sites provides ready low-cost access to transmission substations in open areas with little blockages to sunlight.  In some cases, brownfield redevelopment, recovery bonds and other tax credits and subsidies are available.  In addition to SunPower’s 10 MW solar project on the old U.S. Steel site on the South Side of Chicago, there are at least three more developers seeking to move forward with 10 MW – 20 MW solar projects in Illinois.  These solar projects are big enough to obtain economies of scale, but small enough to fit onto the transmission grid as well as provide grid support when needed most.

Þ   Skilled electrical and other workers are available in the current economic downturn for solar installation “green jobs.” With the 10 MW – 20 MW projects, there is enough volume to bring down the per panel installation costs and, thereby, improve the overall economic robustness of projects.  Moreover, in some cases, various federal and state job creation grants, subsidies and credits are available, as are federal job training programs directed to new “green jobs.”  Because of the excess worldwide manufacturing capacity, the solar green jobs opportunities are predominantly installation jobs, rather than new manufacturing jobs in the Midwest.  The International Brotherhood of Electrical Workers is (re-) training new skilled solar installers at facilities in Illinois, Indiana and other states.

Þ   Solar intensity in the Midwest is better than that of both Germany and Japan, the world’s largest solar markets. All right, Illinois and Nebraska are not the same as Arizona and Nevada, but there are some good solar sites here.

Þ   New state policies can provide continued support for solar expansion as module prices increase after about two years when there is less excess supply. The Environmental Law & Policy Center and our colleagues are advocating a new ramp-up in 2010 – 2014 prior to the 700 MW – 750 MW Renewable Energy Portfolio Standard (RPS) solar carve out now set to begin in Illinois in 2015.  We are working on feed-in tariff models in Michigan and with colleagues in Iowa to improve the state’s net metering policies.  As Wisconsin considers boosting its RPS in 2010, there may also be opportunities to include solar provisions.  We have a two-year window of opportunity to gain solar policy improvements as the unusually low module prices, combined with federal economic stimulus incentives, can drive significant new development.

Solar PV is primed for take-off in the Midwest, and especially in Illinois.  Let’s seize these strategic opportunities and move forward with solar power development that creates new jobs, spurs economic growth and helps to solve our global warming pollution problems.

Howard A. Learner is the executive director of the Environmental Law and Policy Center, the Midwest’s leading environmental and economic development advocacy organization.  www.elpc.org and www.globalwarmingsolutions.org