Washington (Platts)--16Apr2009

A new report on integrating high levels of variable generation into the
North American power system provides an "excellent roadmap for the grid
planning and operations changes needed for America's future electric
generation portfolio," the American Wind Energy Association said Thursday.

Recommendations in the report, which a North American Electric
Reliability Corp. task force wrote, will "open the way to upgrading grid
planning and operations in ways that will make our aging electric utility
system more efficient and reliable while saving consumers money," said AWEA
CEO Denise Bode.

The identified reforms are needed to maintain system reliability and "can
be implemented in ways that allow a growing portion of our electricity supply
to come from clean, modern energy resources like wind, which made up 42% of
all new capacity added to the grid last year," she added.

Estimates are that 145,000 MW of wind generation could be added to the
bulk power grid over the next decade. The NERC report released early Thursday
offers a number of recommendations for ensuring the reliable integration of
wind and other variable generation.

In addition to calling for revised grid planning practices and
procedures, the report said system operators will need new tools, such as
consistent and accurate forecasting of daily and seasonal variable generation
output and advanced control techniques into their daily and real-time
practices. It also said the organized power markets should consider
implementing mechanisms designed to ensure the availability of adequate
flexible balancing resources.

NERC further urged energy policymakers "to accelerate transmission
siting, approve permits for needed facilities and otherwise remove barriers to
needed transmission development."

--Craig Cano, craig_cano@platts.com