Energy Biz - September/October 2008 - (Page 23) just potential,” says David Austin, a British Columbiabased lawyer and energy sector analyst. “Proximity to the market is key, as well as transmission space. If you can’t deliver to the market because of space constrictions, then there is no market.” Thivierge argues that long-needed additions to the transmission grid are coming. “Achieving transmission is a constant work in progress,” he says. “There are trends that are getting under way. Each province is investing, or plans to invest, in future transmission needs.” In addition to creating energy reliability and economic opportunities in neighboring provinces, transmission expansion creates economic opportunities in neighboring states, something that is not being overlooked in transmission planning For example, one of the main goals of Quebec’s energy strategy, passed in 2006, is to open up new economic opportunities for the province, the world’s fourth-largest producer of hydroelectricity. “According to the Energy Information Administration, the northeastern United States will require 12,400 megawatts of additional capacity by 2025,” notes the Quebec document, and the province is going after as large a share of that export potential as it can manage to build in that time, increasing both its 1 -ad-1.qxd 10/5/04 8:01 PM Pagehydroelectric and its wind-driven electricity surpluses aggressively in the interim. Manitoba, another province with large hydroelectric surpluses, is also looking to its export future. On average, Manitoba Hydro’s export sales already account for approximately 40 percent of its annual electricity revenues. In April, the provincial utility announced it had signed a term sheet with Wisconsin Public Service to provide the U.S. utility with 500 megawatts of hydro power over 15 years starting in 2018, a deal worth more than $2 billion in Canadian currency, currently worth approximately $1.95 billion. This new deal follows the renewal by the two companies in 2007 of an existing agreement for 100 megawatts. The long-term sale to WPS will require the construction of a Manitoba Hydro transmission line with a targeted in-service date of 2017. Building the transmission grid capable of dealing with increasing interprovincial and cross-border demands, Thivierge says, “is a work in progress, and maybe a little bit of acceleration.” But price will always be key to cross-border electricity marketability. “In terms of electricity exports, it always comes down to a question of price,” says Austin. “It almost inevitably comes down to price, including the losses when electricity is transmitted a long distance.” Deep. Rich. Refined. Start your day with the industry standard for energy news services — Energy Central Professional Deep. Energy Central Professional delivers the most in-depth gas and power industry news, nationally and internationally, directly to your email every business day. Rich. When you need more than news, you have unlimited access to rich, comprehensive industry data through a secure web site or intranet connection. Refined. You select the topics you want to receive, we deliver your personally refined news service. Seamless and easy with your time in mind. Get your free trial today. Call 1-800-459-2233, send an email to newstrial@energycentral.com or go to: http://pro.energycentral.com For a free tour, grab a cup of coffee and go to: http://pro.energycentral.com/membership/tour.cfm www.energycentral.com E n E rgyB i z 23 http://www.energycentral.com http://pro.energycentral.com http://pro.energycentral.com http://pro.energycentral.com/membership/tour.cfm
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