SPP Considering 765-kV Solution for Permian Basin

Tom Kleckner | Source: RTO Insider | Posted 08/07/2024

ERCOT staff has projected the SPS projects will cost about $750 million, or almost as much as the 2022 and 2023 ITP portfolios. The entire portfolio could end up costing between $2 billion and $3.5 billion. The costs are conceptual in that they are more “rough estimates” until SPP receives study-level estimates. “This portfolio is the largest that we’ve ever had in an annual cycle. It is reflective of load changes,” engineering vice president Casey Cathey said, noting the last ITP cycle’s load forecast exceeding two-year-out models in just one year.

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Southwest Power Pool (SPP) is evaluating the implementation of a 765-kV solution along with multiple 500-kV proposals in the Permian Basin region spanning Texas and New Mexico. The move signifies the organization's initial foray into extra high voltage (EHV) transmission lines. Planning staff have recommended a 300-mile, 765-kV transmission line in New Mexico, foreseeing significant load growth in the coming years due to increased electrification of oil and gas operations among other factors.

SPP's deliberations are in response to mounting load growth challenges in the region, particularly driven by electrification and industrial expansions. The proposal includes the installation of high-capacity lines that offer advantages over lower voltage alternatives in terms of efficiency and cost-effectiveness. In a parallel situation, Texas grid operator ERCOT is also grappling with similar issues related to the exponential growth in the Permian region, projecting substantial investments of up to billions of dollars in EHV transmission facilities to accommodate the escalating load. ERCOT advocates for the adoption of EHV solutions to meet future transmission needs efficiently.

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SPP Considering 765-kV Solution for Permian Basin

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