Wind, solar can help reduce fuel costs 40 percent in western US

Wind, solar can help reduce fuel costs 40 percent in western US

20 May 2010-- A study says the western United States can accommodate 30 percent wind and 5 percent solar penetration so long as utilities increase coordination of operations over wider geographic areas and change how they schedule generation and interchanges.

GE Energy prepared the report, “Western Wind and Solar Integration Study,” for the National Renewable Energy Lab (NREL) and the Department of Energy (DOE). It studies the power system operated by the WestConnect group of utilities in the mountain and Southwest states, including Arizona Public Service, NV Energy, Xcel Energy and Sacramento Municipal Utility District. Four of the five states in WestConnect have renewable portfolio standards that require 15 to 30 percent of annual electricity sales to come from renewable sources by 2020 to 2025.

The study examines the benefits and challenges of integrating up to 35 percent wind and solar into WestConnect and the Western Electricity Coordinating Council in 2017. The challenge shows it is operationally possible to displace fossil fuels with wind and solar, reducing fuel costs by 40 percent in 2017 compared to not using any wind or solar.

Carbon emissions would decrease by 25 to 45 percent on the high end as more wind and solar is added. With a natural gas price of $3.50 per MBTU, emissions reductions would be greater because coal is displaced instead of gas. Using wind and solar in utility operations reduces operating costs by up to 14 percent, according to the study.

The report also said that for utilities to achieve lower emissions and prices, they have to spread their operations over wider geographic areas and schedule their generation and interchanges on an intra-hour basis. Extensive additional infrastructure would not be required as long as the changes to operational practices are made, the report said.

NREL and DOE released the Eastern Wind Integration and Transmission Study (EWITS) in April. That study said states along the Eastern Interconnection could switch 20 percent of their power generation from fossil fuels to wind power by 2030 but only with additional investments in transmission specifically from the Midwest.

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