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Macro Grids in the Mainstream: an International Survey of Plans and Progress

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Macro Grids in the Mainstream: an International Survey of Plans and Progress November 2020 Macro Grids in the Mainstream: An International Survey of Plans and Progress Sponsored by Americans for a Clean Energy Grid as part of the Macro Grid Initiative Prepared by Iowa State Univeristy James McCalley and Qian Zhang About Us. Americans for a Clean Energy Grid Americans for a Clean Energy Grid (ACEG) is the only non-profit broadbased public interest advocacy coalition focused on the need to expand, integrate, and modernize the North American high voltage grid. Expanded high voltage transmission will make America’s electric grid more affordable, reliable, and sustainable and allow America to tap all economic energy resources, overcome system management challenges, and create thousands of well-compensated jobs. But an insular, outdated and often short-sighted regional transmission planning and permitting system stands in the way of achieving those goals. ACEG brings together the diverse support for an expanded and modernized grid from business, labor, consumer and environmental groups, and other transmission supporters to educate policymakers and key opinion leaders to support policy which recognizes the benefits of a robust transmission grid. Macro Grid Initiative The Macro Grid Initiative is a joint effort of the American Council on Renewable Energy and Americans for a Clean Energy Grid to promote investment in a 21st century transmission infrastructure that enhances reliability, improves efficiency and delivers more low-cost clean energy. The Initiative works closely with the American Wind Energy Association, the Solar Energy Industries Association, the Advanced Power Alliance and the Clean Grid Alliance to advance our shared goals. Americans for a Clean Energy Grid | cleanenergygrid.org 2 Table of Contents Executive Summary . 4 Introduction . 9 Benefits and Costs of Interregional Transmission . 13 Characteristics for Successful Development of Interregional Transmission 20 Interregional Transmission and Macro Grids: Area Analysis . 24 Interregional Transmission Design . 57 Conclusions . 64 References . 67 About the Authors . 79 Americans for a Clean Energy Grid | cleanenergygrid.org 3 I. Executive Summary This report addresses interregional transmission and Macro necessary to accomplish an interregional transmission project Grids, to illuminate the value of developing transmission in the U.S.? systems of this kind in the US. By interregional transmission, we mean transmission between two or more distinct In the US, the power industry evolved with hundreds of utilities geographical regions that are otherwise planned and operated that were vertical siloes of local generation serving local load. separately, or between two or more distinct geographical Regional institutions have only been added in this century regions that are separated by significant distance. By Macro and have barely begun to pursue interregional transmission Grids, we mean a network of interregional transmission lines, between them. Interregional transmission was a job that was generally expansive in geographical scope. People have also never clearly assigned to FERC, DOE, or any other entity. It is used supergrids as an alternative to Macro Grids, both of time for the change. which are used interchangeably throughout this report. The interest in interregional transmission and Macro Grids has The following are some key messages resulting from this report: grown worldwide, on every continent, because there is strong perception the benefits it provides are of high economic value • Macro Grids and high-voltage interregional transmission and significantly outweigh the costs of providing it. The fact that connections are either already in place, under development interregional transmission and Macro Grids are of worldwide or being considered almost everywhere in the world. interest leads to the purpose of this report, which is to inform the US energy policy and engineering communities of answers • China has recently completed five times more high-voltage to the following four questions: interregional transmission than Europe, and over 80 times more than the U.S. (i) Worldwide summary: To what extent are the various regions of the world studying, planning, and building interregional • The European Union is planning and building high-voltage transmission and Macro Grids? transmission to support the development of offshore wind in the northern seas. (ii) Benefits, costs, and characteristics for successful implementation: What is the perception of interregional • The U.S. should review its policies to address current transmission and Macro Grids around the globe in terms of challenges to interregional transmission and Macro Grid perceived benefits, costs, and characteristics for successful development. implementation? • The same physics and economics generally apply (iii) Engineering design: What basic steps are necessary everywhere, so Macro Grid development is a natural and in order to motivate and perform an engineering design of unsurprising next stage of electric industry evolution. interregional transmission or a Macro Grid? Reserve sharing and diversity has always been a feature of power systems but it is becoming much (iv) Consolidating and coordinating mechanism: What more pronounced given weather-driven (wind/solar) potential consolidating and coordinating mechanisms are resource reliance. Americans for a Clean Energy Grid | cleanenergygrid.org 4 Executive Summary Figure 1: Total capacity of planned or recently-completed interregional transmission projects Worldwide Summary continental studies for other areas. Figure 2 illustrates an aggregation of the topologies resulting from many of these The worldwide interest is indicated in Figure 1, which shows studies. Most of these studies represent visions rather than for each area of the world the amount of interregional projects in advanced stages of development. transmission capacity that has been built since 2014 or is likely to be built in the near future based on the extent to Salient features of some of the worldwide designs are which permitting and land acquisition is underway. These summarized in what follows. numbers are also visualized in the bar chart below. As Figure 1 demonstrates, significant interregional lines are planned or under development in Asia and Europe, which are expected to North America result in significant economic growth, job creation, and carbon emission reductions. In contrast, North America lags behind Of the four nations comprising North America, the US stands all other regions, with the exception of Australia and Africa, in out because of its geographical centrality and size, its high developing interregional lines to integrate the lowest cost clear electricity consumption, the benefits likely to accrue from energy resources. interregional transmission development, and the fact that it has both north-south and east-west opportunities that appear attractive. In regard to the characteristics necessary for successful development of interregional transmission, there is both precedent and existing features that suggest they are largely in place. The seven RTOs of today provide a regional force having no profit motivation, trusted for their knowledge and experience, providing a familiar and collaborative environment within which entities may engage and negotiate. The Federal Energy Regulatory Commission (FERC) and the Department of Energy (DOE), represent federal capability that could have significant influence on developing interregional transmission should federal policy swing in that direction. Indeed, FERC Order 1000 [8] already requires RTOs to consider interregional transmission, and the DOE has a track record which includes establishing successful collaborative mechanisms. Several groups in the US have recently conducted studies to explore the benefits of interregional transmission and Macro Grids. Of these, the US Interconnections Seam Study, led by Europe the National Renewable Energy Laboratory, has generated significant interest by proposing a Macro Grid that spans most Europe has an ambitious goal of achieving climate neutrality by of the US, but if extended into Canada and Mexico would 2050. The integration of offshore wind resources - especially be continental. Groups around the globe have conducted in the Northern Seas (North Sea, Irish Sea, Baltic Sea, Americans for a Clean Energy Grid | cleanenergygrid.org 5 Executive Summary Figure 2: Global aggregation of Macro Grid designs English Channel, and neighboring waters) - and the solar resource in southern Europe will rely on the development India and South Asia, Southeast of a more interconnected European power system via high voltage transmission. A supergrid enabled by multi-terminal Asia, and Australia offshore hubs or potential energy islands in the North Sea is of particular interest. Cross-border interconnections have also Development and integration of cost-effective renewable energy been proposed for better sharing of resource and capacities. resources are driving interregional transmission development Major examples include the interconnectors between UK in South Asia, Southeast Asia and Australia. In India, two and Norway, UK and Denmark, UK and Continental Europe, major existing and near-term planned UHV-DC corridors are and those between Spain and France. Important intra-state the northwest to north central for integration of northwestern transmissions include the north-south HVDC links in Germany. hydro resources, and the north-south corridor for sharing Ultimately, these separated
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