Edison expanding transmission lines for renewables

Finding land that's suitable for wind and solar farms—and that's on the grid—could soon be easier.

Rosemead, Calif.-based Southern California Edison has started work on a $1.8 billion expansion of its transmission lines specifically to handle the growing need for renewable energy in the state.

The power utility, a subsidiary of Edison International (NYSE: EIX), said the Tehachapi Renewable Transmission Project would be capable of delivering 4,500 megawatts of electricity from wind farms and other renewable projects in northern Los Angeles and eastern Kern counties when it's complete in 2013.

"The transmission line was designed to tap into this wind potential," Stuart Hemphill, director of Southern California Edison's Renewable and Alternative Power department, told the Cleantech Group

Average wind speeds in the Tehachapi area are approximately 20 miles per hour, according to the California Energy Commission, which puts the region near the top of the class for wind power potential.

Along with the start of work on the new transmission lines, the company has launched another Request for Proposals for renewable energy.

Hemphill believes the new power lines could boost interest in the Tehachapi area.

"First we're going to build the transmission line, and then the developers will be popping up as the transmission line becomes available," he said.

Edison plans to build a total of 11 segments on the transmission project, with the first three segments expected to be operational in early 2009.

There is already about 700 MW of wind power operating in the Tehachapi region.

In December 2006, the company signed a contract with Alta Windpower Development, a subsidiary of Australia's Allco Financial Group, for 1,500 MW of wind power to be built in Tehachapi.

Edison said the planned wind farms would cover more than 50 square miles in the region, triple the size of any existing U.S. wind project.

The company gets nearly 17 percent of its energy mix from wind, solar, biomass, hydropower and geothermal sources.

The new Request for Proposals, which is open to all types of renewable energy, doesn't set any specific megawatt targets, but the utility is likely to pull in a significant amount of power from any new projects.

"We've done about 35 contracts over the last five years, and it's usually between six or seven contracts a year," said Hemphill. "Usually a couple of billion kilowatt hours."

Late last year, the company announced plans to add up to 185.5 MW of renewable energy to its portfolio, signing 20 year power purchase agreements with Reno, Nev.-based Ormat Technologies (NYSE: ORA) for geothermal power, and Daggett Ridge Wind Farm, an affiliate of Arlington, Va.'s AES (NYSE: AES), for wind power (see Edison to add up to 185.5 MW of wind, geothermal).

Texas is in the lead in wind power, with 4,356 MW of installed capacity, according to the American Wind Energy Association. California comes up in the No. 2 spot, at 2,439 MW.

The wind energy group expects growth in the industry to remain strong this year, but said the pace of growth could be dependent on an extension of a federal renewable energy tax credit (see U.S. solar & wind incentives on the way?).

The credit is set to expire at the end of this year.

Although Edison has big plans for wind in the Tehachapi area, solar could be a potential source there as well.

"I'm hopeful that solar developers will take a look at this new transmission line, and see it as a major opportunity for them to develop large scale projects," said Hemphill.

The first three segments of the transmission project includes two new substations, dubbed Windhub and Highwind, as well as 82.9 miles of new transmission lines.

"We may also see proposals for storage in other innovative technologies that can take advantage of this major pipeline that we're building," he said.

"It's like we're building a freeway that's going to be empty during rush hour traffic."