Clean Energy
Regional transmission plan paves the way for renewable energy, lower customer bills
Wind power is now among the cheapest sources of new electricity, and the Midwest is home to some of the best wind resources in the country. However, the best wind blows in sparsely populated areas that don’t have the necessary transmission to bring that wind power to market, creating a barrier to new development. A recently-approved transmission plan will surmount that barrier, saving consumers money and helping states meet their renewable energy goals.
In the United States, the powerlines that carry electricity from power generators to our homes and businesses are interconnected to form a grid. In the Upper Midwest, the high-voltage transmission grid is operated by the Midwest Independent Systems Operator (MISO, pronounced “MY-so”); local utilities manage the smaller distribution lines that supply homes and businesses. In December, MISO approved a portfolio of 17 new transmission lines as part of its annual Midwest Transmission Expansion Plan (MTEP) . The decision is the culmination of eight years of study and consultation with representatives from industry, utilities, state regulatory agencies, and public policy organizations.
Called the “Multi-Value Project” or MVP portfolio, the projects are the first in MISO’s history that were planned with public policy considerations. State renewable energy laws in MISO’s territory require approximately 23,500 megawatts of wind generation by 2026, but only about 8,000 megawatts are currently spinning in the region. With these new lines, thousands of megawatts of wind that are waiting to connect to the grid will be able to bring renewable energy to consumers. And because the wind is always blowing somewhere, a strong regional grid means that the entire Upper Midwest will benefit when renewable energy is online in any part of the region. For example, when the wind isn’t blowing in Minnesota, we can still meet our renewable energy goals with wind blowing in Michigan.
Plus, customers’ bills will go down. Once the transmission is constructed, MISO calculates that the average retail customer will pay $11 in costs but receive $23 in benefits annually. Since transmission lines with MVP designation benefit the entire region, costs of building the lines are also spread throughout the region.
Two projects in the portfolio are already underway: the Michigan Thumb Loop, which will pass through a number of counties in Michigan’s Thumb region, and Minnesota’s Brookings transmission project, which will connect southwest and west central Minnesota to the Twin Cities. The remaining projects will undergo state certificate of need and siting/routing proceedings before construction.
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