The Federal Energy Regulatory Commission (FERC) has ruled that regional transmission operators conduct regular long-term transmission planning to determine future power needs.
The final regional transmission planning and cost allocation rule, secured by a 2-1 vote, also stipulates transmission operators must also communicate measures that help determine how the cost of new transmission development will be allocated to beneficiaries.
Oceantic Network stated FERC’s ruling is critical to the US offshore wind industry’s long-term success.
Vice president of strategic communications at Oceantic Network Sam Salustro said: “Bringing offshore wind power to the grid has always been a challenge and opportunity for the industry, and greater planned and coordinated development that crosses state lines can greatly reduce costs, improve environmental benefits, balance the onshore grid, and importantly facilitate industry’s timely development.
“Today’s ruling helps unlock offshore wind’s true potential as a critical part of the nation’s energy mixture and major economic development driver.”
President and chief executive of the American Council on Renewable Energy Ray Long said: “This final regional transmission planning and cost allocation rule requires grid planners to implement proven best practices and efficiently plan the infrastructure needed to meet our nation’s increasing electricity demand.
“We are pleased to see the Commission require long-term multiple scenario planning that incorporates a minimum set of benefits to demonstrate transmission’s value, data on all drivers of the need for transmission, and the use of grid-enhancing technologies and advanced conductoring.
“If properly implemented, the rule will also enable the delivery of power from cleaner and more affordable electricity generation that will benefit consumers all across America.”
American Clean Power Association vice president of markets & transmission Carrie Zalewski said: “FERC has acknowledged the multiple benefits that transmission provides and has set out a process to ensure that all beneficiaries help to fund projects that reduce customer rates and keep the lights on.
“If implemented effectively, this will lead to much-needed expansion in transmission capacity on the US grid.
“At the same time, there are also areas in the rule to build upon, especially with regard to the integration of new resources and enabling more transmission between regions.”