TRES AMIGAS TO LINKUP NAT’L GRID

Drive to Link Wind, Solar Power to Distant Users; Proposed Station Would Connect Separate Grids, Enabling Electricity Generated in Remote Sites to Reach a Wider Market
Rebecca Smith, October 13, 2009 (Wall Street Journal)

"A new proposal to build a transmission link to connect the nation's three major electricity grids -- Eastern, Western and Texas -- is generating interest among energy policy makers because of its potential to accelerate development of renewable energy…[The] Tres Amigas "superstation," to be built at Clovis, N.M., would bring a major change to the U.S. electricity infrastructure by improving connectivity…

"The lack of interconnectivity is becoming a larger problem as the nation adds more solar and wind energy… in remote areas [that] needs to travel to distant population centers, which is problematic under the current setup…Greater connectivity among the grids could open up the market for some renewable-energy developments because the electricity could be sold across a wider region or moved to where it is most needed."

The Tres Amigas (click to enlarge)

"The substation is being proposed by Tres Amigas LLC…[It] could cost $1 billion or more. The location is key -- it would be less than 100 miles from substations in the grids to which it would connect electrically…Some energy officials who have been briefed on the project are intrigued because it could enable more power-generating resources to get built…[Former Federal Energy Regulatory Commission (FERC) Chair Patrick Wood III approved of the idea and current] FERC Chairman Jon Wellinghoff [found the idea interesting and creative, said FERC will study it and wants more such ideas but said] it was too early to endorse the project…New Mexico Gov. Bill Richardson, an energy secretary under President Bill Clinton, also supports the project…Public Service Co. of New Mexico has more than 7,000 megawatts of proposed wind generation in its footprint that could benefit from the Tres Amigas project.

"The project still is in an early stage and could unravel if it is unable to obtain financing. It also faces regulatory hurdles, since the FERC is being asked to waive jurisdiction over power sales in and out of Texas. Because Texas removed most electrical connections to other states decades ago, most of its wholesale power sales aren't subject to FERC regulation."

The Missing Link? (click to enlarge)

"The proposed substation, functioning like a traffic roundabout, would use [5,000 megawatt capacity superconducting cable…The Tres Amigas substation would use novel technology to solve a basic problem: that power can't easily flow among the three grids because they aren't synchronized. It would convert the alternating current of each region into a common direct current. Then it would convert specific electrons back into alternating current to match the grid to which the electrons were destined…

"It isn't just renewable energy that could be moved across grids…With the superstation in place, more [coal-fired] power plants could be built closer to the mines…[T]here could be opposition. Not everyone is unhappy that electricity sometimes gets bottled up due to lack of transmission. For example, in West Texas, power prices sometimes tumble to almost nothing when there is an excess of wind power. If that power had another outlet, prices could rise and eliminate an advantage for local buyers of electricity…Of course, if companies sell power for higher prices, they may be more likely to develop additional wind or solar resources."