Rocky Mountain Institute Releases Report on Rise of Wind Power for Corporate Buyers in Southwest Power Pool

The Rocky Mountain Institute's Business Renewables Center (BRC), a leading nonprofit helping corporations buy renewable energy, released a report titled: "Transmission Investments Affect the Value of Your Wind PPA." 

The report covers trends in corporate wind power purchase agreements for Central Plains states, and specifically highlights opportunities in the Southwest Power Pool. 

"Thanks to low costs and improving technology, wind power has grown dramatically over the past 10 years across Texas and the Midwest," said Anthony Teixeira, Senior Associate at RMI and author of the report. "As grid operators have increased transmission investment and improved market structures, they are supercharging the market for wind power - to the benefit of corporate buyers who choose to transact in areas like SPP." 

The report also shares key steps SPP took to unlock the economic opportunities of renewable energy and corporate energy deals: 

  • Upgrade Transmission Infrastructure 
  • From 2012 through 2014, SPP spent $819 million on transmission projects 
  • SPP estimates that the expansion would create $16.6 billion of benefit over 40 years 
  • Improve Electricity Market Structures 
  • New "Integrated Marketplace" created $131 million of net savings to customers in its first year of operations 
  • Main improvement was the introduction of Day-Ahead Markets 
  • This produces more efficient generation dispatch because it can be centrally optimized 
  • This also has specific benefits for wind generators by reducing transmission congestion and curtailments

The BRC tracks corporate transactions for renewable energy across the United States and has seen steady market growth since 2012. To date, the corporate market represents more than seven gigawatts of renewable energy.

BRC | www.businessrenewables.org