Wind-farm developers, retail electric providers and others in Texas outlined their recommended approaches for dealing with overloaded power lines in areas with thousands of megawatts of wind farms, according to filings posted at the Public Utility Commission of Texas Thursday.

Such congestion forces the curtailment of wind-turbine operations, so parties want to establish a system for priority dispatch of power generated by wind-turbines in the “competitive renewable energy zones” in Texas. Although nearly $5 billion in transmission lines will be built over the next five years in these areas, the PUC wants to reduce congestion in the meantime.

REP Direct Energy said in its comments that a “congestion revenue right” mechanism would help protect the financial investment of a CREZ generator, and control excess development of wind power. CRRs are financial instruments which help their owners hedge against transmission congestion. Read More