Charle Smith Comments and Presentations from the FERC Workshop on Wind in Wholesale Markets

FERC Technical Conference on Assessing the State of Wind Energy in Wholesale Electricity Markets

On December 1, 2004 the Federal Energy Regulatory Commission (FERC) addressed national wind energy and transmission issues in a one-day technical conference in Denver, Col.. The conference's goal was to explore possible policy changes that would better accommodate the participation of wind energy in wholesale markets. Some of the areas addressed included reform to FERC Order 888 and transmission tariffs to better accommodate wind, the impacts of imbalance charges on wind generators, regional transmission planning processes, state plans and ICAP markets, transmission provider perspectives.

Three panels provided comments as part of the technical conference. The first was an overview of the current state of wind development, and of the drivers and obstacles, (economic, financial, technological, environmental, geographic, and legislative) of wind energy development. The second examined how planning, grid operation and utilization can account for wind and other intermittent resources. This session explored the needs of these resources, the role of reserve requirements, and capacity credits in capacity markets, and the reliability impacts of large-scale wind integration on the regional transmission grid. The third panel investigated open access transmission tariffs. Panelists provided perspectives on whether the existing pro forma tariff's transmission services and related ancillary services are appropriate for intermittent resources. In addition, panelists discussed potential new transmission services and their potential effects on existing markets and market participants.

Charlie Smith, UWIG Executive Director, was asked to participate on two of the panels. He provided a summary of European wind energy development and policy drivers, as well as a review of RTO policies on how wind participates in competitive wholesale electricity markets, and how it differs from FERC Order 888, based on a panel discussion of this topic at the UWIG Fall Technical Workshop in Albany.

The Utility Wind Interest Group, now the Utility Wind Integration Group, is pleased to make available the comments and presentations made by Executive Director Charlie Smith. The rest of the comments and presentations can be found at the FERC web site.

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