Start-up aims to move green power by connecting grids

www.reuters.com
Dec 9, 2009

SAN FRANCISCO, Dec 9 (Reuters) - A start-up, Tres Amigas, is aiming to transmit renewable energy from remote regions to populated areas on the U.S, coasts by connecting three networks that make up the North American electrical grid. Owned partly by American Superconductor (AMSC.O), Tres Amigas is proposing to create a 20-square-mile power superstation where there is access to abundant generation of wind and solar energy, and engage transmission companies to move that power across the United States. Tres Amigas said on Wednesday it has submitted filings with the Federal Energy Regulatory Commission (FERC) seeking approval to move forward with this plan.

If successful, it would be the first common interconnection for America's three power grids. The project is expected to be completed and operational by the end of 2014, according to Tres Amigas, which estimates the cost of the project to be over $1 billion at the very minimum. "We are expanding markets," said David Raskin, regulatory counsel for Tres Amigas, in an interview. "The interconnections have electrical barriers between them, and we are bringing them down." "This would open up huge new opportunities for renewables," he added.

The U.S, bulk power network is divided into three grids: the eastern two-thirds of the country, the western states and Texas, with each grid operating on a different cycle. The system is designed to prevent blackouts from spreading nationwide. Currently, only a small amount of power can flow between the different grids, usually through direct-current interties or duplicate switchyards. The Texas grid, for example, has two DC interties capable of moving 800 MWs of power to or from the Eastern Interconnection and three power plants that can ship power into two grids.

Tres Amigas, run by former chief executive of power grid operator PJM Phillip Harris, said its facility will be capable of transferring thousands of MWs of power between the different grids. The plan is to create a hub in Clovis, New Mexico, that would enable the buying and selling of electricity between the three regions. One of Tres Amigas' filings with the FERC seeks approval to operate an electricity market. More than half the U.S, states already have laws or targets requiring electric utilities to increase the use of renewable power, such as wind and solar, while proposed federal climate legislation would require utilities to rely on renewable power for 15% of supply.

A major hurdle, however, is a lack of transmission lines needed to move electricity from remote areas where solar, wind and other renewable power is produced, to cities where it is consumed. Tres Amigas, which plans to begin negotiations with transmission companies once it receives the regulatory approvals, said it currently has letters of intent with four transmission companies and is in discussions with others.