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Enhancing Regional Grid Development: Challenges and Opportunities

Explore the landscape of regional grid development and the critical role infrastructure plays in fostering competitive markets. Learn about barriers to investment, benefits of robust regional grids, and the importance of state and federal collaboration. Discover how RTOs can drive regional grid development by identifying cost-effective investments and enabling efficient cost allocation.

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Enhancing Regional Grid Development: Challenges and Opportunities

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  1. Regional Grid DevelopmentPat Wood, IIIKansas Transmission SummitSeptember 8, 2004

  2. Infrastructure Is the Foundation Vigilant Oversight Competitive Markets Effective Rules Sufficient Infrastructure

  3. Lagging Transmission Investment • Half as much annual investment in 2000 as in 1975 Annual growth rates in Gen, Trans, Load

  4. 5 Barriers to Investment • Lack of regional focus • Incentive to favor generation • Uncertain cost recovery policy • Insufficient incentives

  5. Robust regional grids benefit customers • Access to inexpensive supply • Protection from local disruption and weather volatility • Economic dispatch and efficient exchange • Fuel diversity

  6. Fuel diversity • Coal and wind require longer lines and regional delivery system. • Wind also requires an open competitive balancing (energy) market that RTOs provide.

  7. State and federal handshake • Recent settlements demonstrate lack of conflict • Missouri • Kentucky • Virginia • RSCs provide greater opportunities than ever before for state input.

  8. RTOs help regional grid development • Develop regional plan that identifies cost-effective grid investments to support reliability and economic delivery. • Provide a means of cost allocation and recovery.

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