MARKETS, STATES AND THE FEDERAL GOVERNMENT IN THE TRANSITION TO WIND ENERGY: MANY STEPS FORWARD, AND RECENT STEPS BACKWARDS

摘要

Wind energy continues its trend of improving cost competitiveness. Integrating moderate shares of wind has been achieved in a cost-effective manner while maintaining grid reliability and resilience, though there are clear challenges ahead to increasing wind penetration to high levels. Under current technologies, constructing interstate transmission lines is critical to integrating greater shares of wind and ensuring grid reliability. This endeavor will necessitate greater cooperation across states in achieving cost allocation that is acceptable across states. Wind energy, which yields benefits to rural communities and to consumers, has clinched the political support of state governments, and this recognition may spur states' greater willingness to cooperate and to compromise on interstate transmission lines. As wind penetration increases and brings generation and transmission lines into collision with more communities, revenue-sharing initiatives have become more important to secure buy-in from local landowners and non-landowners.