DOE PAGES title logo U.S. Department of Energy
Office of Scientific and Technical Information

Title: Improving estimates of transmission capital costs for utility-scale wind and solar projects to inform renewable energy policy

Abstract

Estimating the overall costs of transmission needed to integrate variable renewable energy (VRE) onto the grid is challenging. An improved understanding of these transmission costs would support electricity system planning as VRE penetrations increase. This paper brackets VRE transmission capital costs using multiple approaches based on interconnection studies, actual transmission projects, capacity-expansion simulation models, and aggregated U.S. VRE-related transmission expenditures. Each approach possesses advantages and drawbacks, and combining the approaches lends confidence to the results. The resulting range of average levelized VRE transmission costs is 1– 10 dollars/MWh, which is generally lower than earlier estimates in the literature. These transmission capital costs can increase the direct plant-level levelized cost of VRE by 3%–33%, based on levelized costs of energy of 29– 56 dollars/MWh for utility-scale wind and 36–46 dollars/MWh for utility-scale solar. As VRE deployment continues to expand, policy makers can use this information to (1) assess the benefits of transmission avoidance and deferral when comparing distributed energy resources versus utility-scale projects, (2) evaluate the potential costs of large-scale public transmission investments, and (3) better analyze system-level costs of utility-scale VRE technologies. Future research can expand on the framework presented here by providing a review of operation and maintenance costsmore » for transmission systems. « less

Authors:
 [1];  [1];  [1]
  1. Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Publication Date:
Research Org.:
Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
Sponsoring Org.:
USDOE Office of Electricity (OE)
OSTI Identifier:
1572067
Alternate Identifier(s):
OSTI ID: 1566915
Grant/Contract Number:  
AC02-05CH11231
Resource Type:
Accepted Manuscript
Journal Name:
Energy Policy
Additional Journal Information:
Journal Volume: 135; Journal Issue: C; Journal ID: ISSN 0301-4215
Publisher:
Elsevier
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY, AND ECONOMY

Citation Formats

Gorman, Will, Mills, Andrew, and Wiser, Ryan. Improving estimates of transmission capital costs for utility-scale wind and solar projects to inform renewable energy policy. United States: N. p., 2019. Web. doi:10.1016/j.enpol.2019.110994.
Gorman, Will, Mills, Andrew, & Wiser, Ryan. Improving estimates of transmission capital costs for utility-scale wind and solar projects to inform renewable energy policy. United States. https://doi.org/10.1016/j.enpol.2019.110994
Gorman, Will, Mills, Andrew, and Wiser, Ryan. Sun . "Improving estimates of transmission capital costs for utility-scale wind and solar projects to inform renewable energy policy". United States. https://doi.org/10.1016/j.enpol.2019.110994. https://www.osti.gov/servlets/purl/1572067.
@article{osti_1572067,
title = {Improving estimates of transmission capital costs for utility-scale wind and solar projects to inform renewable energy policy},
author = {Gorman, Will and Mills, Andrew and Wiser, Ryan},
abstractNote = {Estimating the overall costs of transmission needed to integrate variable renewable energy (VRE) onto the grid is challenging. An improved understanding of these transmission costs would support electricity system planning as VRE penetrations increase. This paper brackets VRE transmission capital costs using multiple approaches based on interconnection studies, actual transmission projects, capacity-expansion simulation models, and aggregated U.S. VRE-related transmission expenditures. Each approach possesses advantages and drawbacks, and combining the approaches lends confidence to the results. The resulting range of average levelized VRE transmission costs is 1– 10 dollars/MWh, which is generally lower than earlier estimates in the literature. These transmission capital costs can increase the direct plant-level levelized cost of VRE by 3%–33%, based on levelized costs of energy of 29– 56 dollars/MWh for utility-scale wind and 36–46 dollars/MWh for utility-scale solar. As VRE deployment continues to expand, policy makers can use this information to (1) assess the benefits of transmission avoidance and deferral when comparing distributed energy resources versus utility-scale projects, (2) evaluate the potential costs of large-scale public transmission investments, and (3) better analyze system-level costs of utility-scale VRE technologies. Future research can expand on the framework presented here by providing a review of operation and maintenance costs for transmission systems. },
doi = {10.1016/j.enpol.2019.110994},
journal = {Energy Policy},
number = C,
volume = 135,
place = {United States},
year = {Sun Dec 01 00:00:00 EST 2019},
month = {Sun Dec 01 00:00:00 EST 2019}
}

Journal Article:

Citation Metrics:
Cited by: 23 works
Citation information provided by
Web of Science

Save / Share:

Works referenced in this record:

The Private and Public Economics of Renewable Electricity Generation
journal, February 2012

  • Borenstein, Severin
  • Journal of Economic Perspectives, Vol. 26, Issue 1
  • DOI: 10.1257/jep.26.1.67

Meta-analysis of high penetration renewable energy scenarios
journal, January 2014

  • Cochran, Jaquelin; Mai, Trieu; Bazilian, Morgan
  • Renewable and Sustainable Energy Reviews, Vol. 29
  • DOI: 10.1016/j.rser.2013.08.089

The first step towards a 100% renewable energy-system for Ireland
journal, February 2011


Simulations of scenarios with 100% renewable electricity in the Australian National Electricity Market
journal, June 2012


States of transmission: Moving towards large-scale wind power
journal, May 2013


Integration costs revisited – An economic framework for wind and solar variability
journal, February 2015


Cost of Wind Energy: Comparing Distant Wind Resources to Local Resources in the Midwestern United States
journal, November 2010

  • Hoppock, David C.; Patiño-Echeverri, Dalia
  • Environmental Science & Technology, Vol. 44, Issue 22
  • DOI: 10.1021/es100751p

Avoidable Transmission Cost is a Substantial Benefit of Solar PV
journal, June 2008


Wind Integration Studies: Optimization vs. Simulation
journal, November 2010


Value of energy storage for transmission investments
journal, April 2019

  • Khastieva, Dina; Hesamzadeh, Mohammad Reza; Vogelsang, Ingo
  • Energy Strategy Reviews, Vol. 24
  • DOI: 10.1016/j.esr.2019.01.008

Potential of renewable energy systems in China
journal, February 2011


Future cost-competitive electricity systems and their impact on US CO2 emissions
journal, January 2016

  • MacDonald, Alexander E.; Clack, Christopher T. M.; Alexander, Anneliese
  • Nature Climate Change, Vol. 6, Issue 5
  • DOI: 10.1038/nclimate2921

Renewable Electricity Futures for the United States
journal, April 2014

  • Mai, Trieu; Hand, M. Maureen; Baldwin, Samuel F.
  • IEEE Transactions on Sustainable Energy, Vol. 5, Issue 2
  • DOI: 10.1109/TSTE.2013.2290472

Envisioning a renewable electricity future for the United States
journal, February 2014


100% Renewable energy systems, climate mitigation and economic growth
journal, February 2011


Integration of Variable Generation, Cost-Causation, and Integration Costs
journal, November 2011


Exploration of resource and transmission expansion decisions in the Western Renewable Energy Zone initiative
journal, March 2011


The cost of transmission for wind energy in the United States: A review of transmission planning studies
journal, January 2012

  • Mills, Andrew; Wiser, Ryan; Porter, Kevin
  • Renewable and Sustainable Energy Reviews, Vol. 16, Issue 1
  • DOI: 10.1016/j.rser.2011.07.131

High-resolution modeling of the western North American power system demonstrates low-cost and low-carbon futures
journal, April 2012


A geographically resolved method to estimate levelized power plant costs with environmental externalities
journal, March 2017


Global assessment of onshore wind power resources considering the distance to urban areas
journal, April 2016


A renewable energy and hydrogen scenario for northern Europe
journal, January 2008

  • Sørensen, Bent
  • International Journal of Energy Research, Vol. 32, Issue 5
  • DOI: 10.1002/er.1376

What are the Benefits of Co-Optimizing Transmission and Generation Investment? Eastern Interconnection Case Study
journal, November 2017

  • Spyrou, Evangelia; Ho, Jonathan L.; Hobbs, Benjamin F.
  • IEEE Transactions on Power Systems, Vol. 32, Issue 6
  • DOI: 10.1109/TPWRS.2017.2660249

System LCOE: What are the costs of variable renewables?
journal, December 2013


Grid Investment and Support Schemes for Renewable Electricity Generation
journal, April 2019


Works referencing / citing this record:

Financial Impacts of Net-Metered Distributed PV on a Prototypical Western Utility’s Shareholders and Ratepayers
journal, December 2019

  • Cappers, Peter; Satchwell, Andrew; Gorman, Will
  • Energies, Vol. 12, Issue 24
  • DOI: 10.3390/en12244794