NATIONAL GRID'S TRANSMISSION AND WIND ENERGY: CAPTURING THE PREVAILING WINDS FOR THE BENEFIT OF CUSTOMERS

In a white paper released on September 21, 2006, National Grid (LSE: NG. NYSE: NGG) urged federal and state policymakers to address current inadequacies in U.S. transmission policies that create obstacles for wind and other renewable generators in accessing the country’s electric grid.

In the paper, entitled “Transmission and Wind Energy: Capturing the Prevailing Winds for the Benefit of Customers,” National Grid advocates for the development of a consistent and appropriate policy approach to support the transmission investment needed to harness wind power and integrate it into the U.S. electricity grid while continuing to maintain system reliability, and deliver its full benefits to electricity market users and customers.

National Grid contends that in order to tap the vast potential of new generation sources, policies must support investment needed to deliver renewable energy to customers. National Grid calls for:

• Comprehensive regional planning for reliability and economic needs, including access for new renewable and remote generation sources
• Cost allocation for transmission improvements that recognizes their broad benefits
• Policies that address interconnection scheduling issues, remote siting, generation interconnection, and the unique characteristics of renewable generation, such as the intermittency of wind
• Federal and state cooperation on siting and cost recovery

National Grid also proposes incentives to continue FERC’s encouragement of independent transmission ownership, which can help wind development. Independently operated transmission can:

• Provide the most effective method of ensuring non-discriminatory and adequate transmission access to new, less costly, and diverse sources of generation including clean coal, renewables, and wind;
• Promote effective regional system planning processes that provide for new generation, including remote renewables, and demand-side participation in electricity markets;
• Facilitate the closure of old, dirty, and uneconomic generating sources by allowing newer, cleaner regional generation sources to be delivered to load centers.

To download a copy of the National Grid's “Transmission and Wind Energy: Capturing the Prevailing Winds for the Benefit of Customers" please click here.

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