Transmission: Not the Only Path to Green
7.20.10 |
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Ralph Izzo, Chairman, President and Chief Executive Officer,
PSEG |
It is vital to continue investing in a strong transmission grid.
Today, however, there is a debate about the role of transmission in
moving energy in a new, green direction.
Clearly, transmission will have an important role in linking renewable
resources to the grid. But this doesn't mean transmission is the only
pathway to green, or necessarily the right one in all circumstances. For
example, there are proposals to create a subsidized "electric
transmission superhighway" costing tens of billions of dollars to bring
wind power from the Midwest plains to the cities of the East Coast.
Midwest wind is a great resource, but not our only resource. It should
compete on a level playing field with renewables elsewhere. Suggesting
we should get our renewables from remote areas regardless of
transmission costs is like saying if only we had access to free
refrigerated freight trains, we should get our ice cubes from the North
Pole.
Who pays to build the trains or lay the tracks? And wouldn't it be
cheaper to make the ice locally?
All business owners know if they establish their factory at a distant
location to keep production costs down, they have to weigh that against
increased shipping costs. But, if taxpayers pay the "shipping costs" of
renewable generation, we skew decisions away from locally based
renewables that may have a lower total cost.
Moreover, there is no such thing as a "green" transmission line.
Transmission lines carry all electrons, regardless of whether or not the
generator is green. A new line gives a market advantage to any power
plant fortunate enough to be close to it. A Midwest transmission
build-out could have consequences that are hardly green - giving a new
lease on life to antiquated coal plants, jeopardizing green economic
development and jobs in regions such as the Northeast, and burdening
many taxpayers who would not enjoy its ostensible benefits.
With so much of energy needing to be changed, it's important to avoid
approaches that could prove excessively costly or even
counter-productive. We owe this to our customers.
Renewable energy needs to be encouraged everywhere, and not only in one
particular area or region. We will be on the road to doing this when we
have a strong national renewable energy standard (RES) and a price on
carbon. But we should leave it up to the creativity and entrepreneurial
spirit of the American people to do the rest. This will help ensure that
we get the most cost-effective solutions - whether from transmission or
other resources.
No one knows exactly what will be the most successful clean-energy
technologies of the year 2020, let alone 2050. By letting the market
determine which are the best technologies and locations for renewable
energy projects, our nation will be in a far better position to unleash
innovation, drive down costs and build the world's leading green energy
sector.
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