CONNECTING TO THE ELECTRIC POWER GRID

Wind Power in the Western Upper Peninsula

 

The procedures for requesting that residential wind turbines and commercial turbines be connected to the electric power grid are quite different.  Residential wind turbines get connected to the same low voltage distribution system from which homeowners receive their electric power; that distribution system is operated by UPPCO.  Commercial wind turbines get connected to the high voltage transmission  grid, which is operated by the American Transmission Company.

Residential Turbines

Connecting a residential wind turbine to an electrical grid allows homeowners to produce their own electricity but still have access to electricity even when the wind isn't blowing.   This option eliminates the need for batteries by allowing a homeowner to use energy from the grid when not enough energy is provided by the wind turbine.   It also allows homeowners to sell excess energy back to the utility.  The technical and economic issues of connecting to the grid varies depend on the state and utility's policy.   According to the Michigan Wind Energy System Sitting Guidelines Draft #5 the rules for connecting a residential wind turbine to the grid are as follows:

"Utility Notification and Interconnection: No small wind energy system shall be installed until evidence has been given to the local government that the utility company has been informed of the customer's intent to install an interconnected customer-owned generator. An interconnected customer-owned generator shall comply with Michigan Public Service Commission and utility requirements. Off-grid systems shall be exempt from this requirement."

Currently the Upper Peninsula Power Company (UPPCO), and their affiliated companies, will only negotiate interconnection to their grid with certified alternative energy installers. It is the role of the alternative energy installer to negotiate a formal Power Purchase Agreement (PPA) with the electricity utility. The formal agreement covers both non-technical and technical issues, described by the American Wind Energy Association as the following:


"Non-technical issues: Interconnection agreements usually address two sets of non-technical issues: the terms and conditions for installing and operating your wind turbine; and the terms and conditions for the exchange or purchase of power from your facility."

"Technical issues: If your wind turbine is connected to the local utility grid so that any of the power produced by your wind turbine is delivered to the grid, then your utility also has legitimate concerns about safety and power quality that need to be addressed."

Requirements for connecting a residential turbine to the grid (output under 30 kw) can be found from the Michigan Public Service Commission's case file on Generator Interconnection Requirements. This document does not address other project concerns such as environmental permitting or local ordinances. Nor does it address agreements that may be required with the Utility and/or the transmission provider, or state or federal licensing to market the project’s energy.

With regard to transmission service, the Upper Peninsula Power Company (UPPCO) currently charges a fee of $5.00 per month and buys electricity at $0.03 per kilowatt/hr. Currently UPPCO does not have a net metering policy, instead it requires alternative energy producers to purchase a second meter (one for energy in, and the other for energy out).

For more information on connecting residential wind turbines, visit the following links:


U.S. Department of Energy: Consumer Guide to Small Wind Electric Systems


Michigan Public Service Commission: Generator Interconnection Requirements

American Wind Energy Association: Technical Requirements

American Wind Energy Association: Small Wind Toolbox


Energy Savers: Connecting your system to the electricity grid


IOWA Energy Center: Wind Energy Manual

Commercial-Scale Turbines

Large commerical wind turbines (and wind farms with multiple turbines) that are designed to generate power for sale must get connected to the high voltage transmission grid.  Companies that operate these turbines must meet strict technical requirements and secure an Interconnection Agreement.

For the largest wind farms, the technical requirements can be quite strict and include conditions such as "providing real-time telemetry and control deemed reasonable and necessary to parties responsible for maintaining system reliability."  For wind energy producers, meeting all the technical requirements, especially providing system operators with some level of control is difficult due to the difficulty of predicting wind speeds. Yet many wind energy facilities have been able to over come this as a result of good location and improved technology.

Under the rules set by the Federal Energy Regulatory Commission's (FERC) Order 2003, Standard Interconnection Agreements & Procedures for Large Generators, new wind energy facilities, and all other large generation facilities who wish to interconnect to the grid, must go through a rigorous process of obtaining an Interconnection Agreement. The process needed to obtain a Interconnection Agreement are presented as a flow chart outlined in Appendix A of Order 2003. The process itself and details regarding the Interconnection Agreement are given in Appendix C.

After securing an Interconnection Agreement, energy generators can then supply electricity to wholesale power transmitters. Wholesale power transmitters are those entities that deliver electricity to distribution companies, who in turn, deliver the electricity to residential and commercial customers. To ensure an un bias and efficient transfer of power from energy generator to wholesale power transmitter, regulatory agencies known as independent system operators (ISOs) are used. In the Western U.P. energy generators must bid to produce energy for a wholesale power transmitter through the Midwest Independent Transmission System Operator (MISO).

For more information related to the connection of large turbines to the electric power grid, visit the following links:


The Competitive Market for Power in the U.S.: The Role of ISOs and PXs


Miso-JPM Interconnection

 

 

 

 


Last Updated: April 1, 2005