New "25-by-25" renewable energy law means that Minnesota needs Big Stone II now more than ever
On February 22, 2007, Minnesota Governor Tim Pawlenty signed into law a "25-by-25" renewable energy standard, the nation's most far-reaching mandate for how electric utilities will generate power.
The standard requires electric companies serving Minnesota to acquire at least 25 percent of their electrical energy from renewable resources by 2025. Xcel Energy will be required to have 30 percent renewable energy on its system by 2020.
The law is based on the results of the Minnesota Wind Integration Study, a project undertaken by the Minnesota Public Utilities Commission resulting from 2005 legislation. The study report, which was published late last year, shows that by 2020 up to 20 percent of the state's electrical energy could economically come from wind without adverse supply or reliability impacts. The report assumed, as part of its baseline, that certain facilities already were in place.
Included in those assumptions was that eastern North Dakota and eastern South Dakota would contribute to Minnesota's wind energy resource and that Big Stone II with its associated transmission would be built. The plant is needed as a source of baseload generation and to help ensure voltage stability between the Dakotas and Minnesota. Big Stone transmission upgrades are needed to help deliver energy from Minnesota's wind-rich Buffalo Ridge.
Thus, in order for Minnesota to realize the goals of the Legislature's "25 by 25" mandate, there must be a Big Stone II. That is, without meeting the Wind Integration Study assumptions, the wind resources of Minnesota's Buffalo Ridge and the windy Dakota prairies cannot be harvested, and "25 by 25" cannot meet its goals in a timely fashion.
Coal and wind energy play two very distinct roles in the electric industry as illustrated by the Wind Integration Study. Coal, with its reputation of reliability, provides the day-to-day power that people want and need. Wind complements coal by providing clean power when the wind resource is present. Wind cannot supplant coal's reliability and coal cannot match wind's cleanliness. But, together they bring out each other's best features. Working together, they will allow "25 by 25" to succeed.
Sincerely,
Mark Rolfes,
Manager
Big Stone II Project
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