Encouraging Transmission Investment for Clean Energy
In this presentation at the European American Grid Dialogue, Richard Cowart discussed four transmission policy innovations in the United States, which could be adapted and adopted in Europe. The Federal Energy Regulatory Commission’s (FERC) Order 1000 institutes a public, multi-stakeholder transmission planning process driven by policy requirements, such as energy efficiency or renewable targets. FERC also provides financial incentives for transmission investments by authorizing higher returns on equity to transmission owners that participate in regional transmission organizations. In areas with large wind potential and inadequate transmission, some states have created competitive renewable power transmission zones to encourage new development. Finally, FERC encourages consideration of non-transmission alternatives, such as demand response or distributed generation, to meet transmission constraints.