Economic Benefits Analysys

Report
North American Strategic Infrastructure Leadership Forum
October 12, 2011
Russell Stidolph
Chief Financial Officer
(203) 299-5420
[email protected]
CONFIDENTIAL & PROPRIETARY
2
Tres Amigas – Overview
TA’s transmission capacity creates market opportunities where none exist today
• Tres Amigas (TA) is a three-way AC/ DC merchant transmission project, located in Clovis, New Mexico,
interconnecting the Western Electricity Coordinating Council (WECC), the Electric Reliability Council of Texas
(ERCOT), and the Eastern Interconnection (through the Southwest Power Pool (SPP))
TA is designed to be expanded as economic and transmission opportunities develop
• Phase 1 will be a two-node 750MW (WECC  SPP) intertie in order to take advantage of existing pricing and
takeaway capacity
• Phase 2 is currently planned as a 750MW HVDC (ERCOT  SPP) intertie which will also provide ERCOT – WECC
transfer capabilities
• Phase 3 is currently planned to be a direct 750 MW ERCOTWECC intertie
• Phase 4 is currently planned to add a 2 GW SPP  ERCOT interconnection
• TA can be scaled to 30 GW
TA received FERC authorization in March 2010 to sell transmission service at negotiated rates
3
Project Value Creation
Connects the three US asynchronous power grids through a DC hub that can regulate the
direction and level of power flows between the grids
Provides economic incentives to further drive the growth of the nation’s renewable resources
Optimizes the value of existing and planned AC and DC/ HTS infrastructure
Provides open-access and cost-effective transmission services consistent with NERC
standards and regional reliability requirements
Provides voltage support, capacity firming and other value-added and ancillary services
4
The Location: Regional Renewable Resource Potential
Significant Regional Wind & Solar Capacity Factors in Excess of 35%
Source: NREL
From the 2010 Transmission Summit in Sweetwater
w/ HVDC Proposals
6
Site Location in New Mexico
Design
8
Tres Amigas Layout
• AC switchyard
allows for AC
line
reconfiguration
• DC Switchyard
allows for HTS
CONFIDENTIAL & PROPRIETARY
9
Tres Amigas Conceptual Build Out-Detail
Approx. 2 km
Expansion >5GW
Full 5GW build out allows for high current DC bus
10
Alstom Grid HVDC MaxSine Technology
•Voltage Sourced Converter
(VSC) technology
VSC HVDC scheme
+V
+V
•Modular multi-level
converter design
-V
•Control of real and reactive
power flow into AC grids
-V
= chain link module
•Harmonic free output
voltage
Ideal for use on weak AC
grids
•Compact station footprint
CONFIDENTIAL & PROPRIETARY
11
New Mexico Economic Impact: Ripple Effect
Direct Impacts from 6.0 GW
Landowner Revenue:
Over $16.3M/year
Construction Phase:
13,800 new jobs
$2.6B to local economies
Operational Phase (20yrs):
1,460 new long-term jobs
$130M/year to local economies
Illustrates Ripple
Effect if 6.0 GW of
Wind Is Developed
by 2015
Indirect Impacts
Construction Phase:
7,200 new jobs
$818M to local economies
Operational Phase:
380 new long-term lobs
$39.2M/year to local economies
Induced Impacts
Construction Phase
8,600 new jobs
$905M to local economies
Operational Phase:
800 new long-term jobs
$78.6M/year to local economies
Source: CDEAC report
Texas Economic Impact: Ripple Effect
Direct Impacts from 4.7 GW
Landowner Revenue:
Over $12.9M/year
Construction Phase:
10,900 new jobs
$2.0B to local economies
Operational Phase (20yrs):
1,150 new long-term jobs
$103M/year to local economies
Illustrates Ripple
Effect if 4.7 GW of
Wind Is Developed
by 2015
Indirect Impacts
Construction Phase:
5,700 new jobs
$645M to local economies
Operational Phase:
300 new long-term lobs
$30.9M/year to local economies
Induced Impacts
Construction Phase
6,800 new jobs
$714M to local economies
Operational Phase:
630 new long-term jobs
$62.0M/year to local economies
Source: CDEAC report
Economics Drive Phased Construction
SPP
Phase 1: SPP-> WECC
WECC-> SPP
WECC
14
Economics Drive Phased Construction
SPP
Phase 2: 750 MW
SPP  ERCOT
ERCOTSPP
WECC
ERCOT
15
Economics Drive Phased Construction
SPP
WECC
Phase 3: 750 MW
WECCERCOT
ERCOT WECC
ERCOT
16
Economics Drive Phased Construction
SPP
WECC
Phase 4: Additional
2GW
SPP  ERCOT
ERCOTSPP
ERCOT
17
Current Projected Build out Timeline
Phase 1
Phases 3 and Beyond
SPPWECC
As Justified
Completed 2014
Completed 2015-16
Phase 2
SPPERCOT
Completed 2015
18
Strategic Partners and Vendors
Foundation Fuel
19

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