Study: Nebraska could develop up to 10,000 MW of wind energy

Dive Brief:

A new study prepared for the Nebraska Power Review Board finds the state could develop up to 10,000 MW of wind power for export, though the regional market for renewable power is currently saturated.
Current transmission capacity is sufficient for up to 2,000 MW of additional wind power, but further growth of renewable sources would require "a substantial expansion" of the state, regional, and interregional transmission systems.
The report found renewable developers in Nebraska face competitive disadvantages relative to some other states in the region, including lower financial incentives and lower wholesale power prices.

Dive Insight:

Economists at The Brattle Group say Nebraska could develop between 5,000 and 10,000 MW of wind power for export purposes. The study, prepared at the direction of Nebraska lawmakers, lays out what challenges must be overcome to bring more renewable energy online.

Transmission projects currently in development will be sufficient to integrate at least another 2,000 MW of wind projects. "However, achieving the considerably higher target of renewable generation in Nebraska would require a substantial expansion of the state, regional, and interregional transmission systems," the Brattle Group said in a statement.

The report also noted the regional market for renewable generation is currently saturated, but demand will likely grow as renewable costs decline versus conventional resources and and new environmental policies are implemented. "Nebraska will need to better position itself to be prepared to take advantage of emerging new demand for renewable generation," Brattle Group said.

Should legislators decide to grow renewables, the report said addressing future transmission constraints within and outside of Nebraska "will be an essential component of the state's long-term renewable generation strategy. The most effective strategy will likely be a mix of options that can minimize costs to ratepayers while supporting renewable generation development."

The report also said that the state should consider additional tax incentives for wind generation. Economic disadvantages faced by renewable developments in Nebraska "could be addressed through additional economic development incentives," Brattle Group said.