ABSTRACT
This chapter considers whether the benefits from deploying wind exceed the costs of integrating this variable generation source into the power system. Social costs and benefits (SCBs) are highly uncertain and affected by factors such as the quality of wind resources, the makeup of the underlying grid, and the capacity of wind installed. A bottom-up cost study by the Lawrence Berkeley National Laboratory (LBNL) study reviewed a sample of 40 transmission planning studies to assess the range of costs allocated to wind for transmission. The study also examined the case in which costs were not allocated to fossil plants on the same transmission line. The study also examined the case in which costs were not allocated to fossil plants on the same transmission line. This made a small difference, increasing the cost allocated to wind by $30/kW. However, it should be noted that new transmission may have other cobenefits such as easing transmission congestion or increasing grid reliability.
