New Analysis Quantifies Capacity Benefits of Grid United and ALLETE’s North Plains Connector Interregional Transmission Line
Grid United and ALLETE announced a study by Astrapé Consulting revealing the North Plains Connector (NPC) project's significant capacity and reliability benefits. The 415-mile, 525-kilovolt HVDC transmission line will connect the Western and Eastern interconnections across WECC, SPP, and MISO, becoming the first HVDC link between these markets. The study found that NPC will unlock 3,550 MW of capacity across the three regions, exceeding its physical capacity. This enhancement is due to the bi-directional nature of the project and seasonal diversity among regions, improving grid reliability without adding new generating capacity. The project aims to mitigate extreme weather effects and double transfer capacity between the grids.
- The North Plains Connector (NPC) will unlock 3,550 MW of capacity across WECC, SPP, and MISO, enhancing power system reliability.
- The 415-mile HVDC transmission line will be the first to connect Western and Eastern U.S. electricity markets, facilitating efficient power transfer.
- The project aims to mitigate extreme weather effects and double the existing transfer capacity between the Eastern and Western Interconnections.
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Insights
The analysis by Astrapé Consulting underscores the substantial reliability and capacity benefits associated with the North Plains Connector (NPC). NPC aims to connect three major electricity markets: MISO, SPP and WECC. The project’s modeling as two 1,500 MW HVDC lines unveils an interesting aspect: it unlocks 3,550 MW of capacity — exceeding its physical capacity. This discrepancy can be attributed to the bi-directional nature of the project and seasonal diversity between the regions, allowing electricity demand to be managed more flexibly without adding new generating capacity.
Retail investors must consider that while the NPC enhances grid reliability and mitigates extreme weather impacts, the capital investment required for such infrastructure is substantial. Long-term benefits in reduced power outages and enhanced system resilience could justify the project costs. Investors should also look at how this project aligns with national energy policies promoting interregional connectivity and resilience.
From a financial perspective, the development of the NPC by Grid United and ALLETE, Inc. presents a potentially lucrative investment. ALLETE, trading on NYSE under the ticker ALE, stands to benefit from the increased reliability and capacity the NPC promises. The study’s results could improve investor confidence, potentially leading to stock price appreciation, particularly as this project addresses critical infrastructure needs.
Given the quantified benefits — 3,550 MW of additional capacity — the financial implications are clear: enhanced reliability directly translates to reduced operational risks and potentially fewer costs associated with power outages for connected regions. Retail investors should weigh these benefits against the capital expenditure and time horizon required for project completion. Long-term gains could be substantial, especially if the NPC sets a precedent for similar interregional projects, paving the way for more investments in this sector.
Grid United and ALLETE, Inc. (NYSE: ALE) are developing North Plains Connector (NPC), a 415-mile and up to 525 kilovolt high voltage direct current (HVDC) transmission line that would connect the western and eastern electric grids in
The study, which modeled North Plains Connector as two 1,500 MW HVDC lines connecting SPP and MISO to the Western electric grid, quantified the project's ability to increase power system reliability using the same framework employed by utilities and grid operators. When the bi-directional nature of the project as well as the seasonal diversity between the three regions are considered, the analysis found that NPC will unlock 3,550 MW of capacity across the three systems. Summed across all three regions, this total is greater than the physical capacity of the project itself. This capacity benefit represents the amount of additional demand that can be served without degrading reliability standards.
Importantly, the study quantifies the benefits that can be obtained by connecting meteorologically diverse regions whose peak need for electricity occurs at different times of day or in different seasons. Leveraging this difference in generation and load profiles improves the reliability of the grid on both sides of the project without adding any new generating capacity and allows the project to add an outsized amount of reliability benefit relative to its physical capacity.
"We are extremely encouraged by the results of this study, which underscore the critical role North Plains Connector will play in mitigating the effects of extreme weather events by more than doubling existing transfer capacity between the Eastern and Western Interconnections,” said Julie Pierce, Vice President of Strategy and Planning of ALLETE. "By increasing reliability and facilitating the efficient transfer of power between regions, NPC will enhance power system resilience and capacity."
“This study shows that the reliability benefits of an interregional transmission project can be quantified using the same methodologies we use for new generating facilities and that those benefits are worth quantifying,” said Kris Zadlo, President and Chief Technical Officer of Grid United. “We hope it sets a precedent for more comprehensive analysis regarding the benefits of interregional transmission projects. By shedding light on how grid-connecting projects like NPC enhance reliability and reduce the risk of power outages, we can build a better connected, more resilient grid for the future."
Visit www.gridunited.com/resources to read the full report.
About Grid United
Grid United is an independent transmission company aiming to develop next-generation energy infrastructure to create a more resilient and efficient electric system to the benefit of all consumers. For more information, visit www.gridunited.com
About ALLETE
ALLETE, Inc. is an energy company headquartered in
ALE-CORP The statements contained in this release and statements that ALLETE may make orally in connection with this release that are not historical facts, are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. These forward-looking statements involve risks and uncertainties and investors are directed to the risks discussed in documents filed by ALLETE with the Securities and Exchange Commission.
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Ashley McGeary
Communications Director
Ashley.mcgeary@gridunited.com
Amy
218-723-7400
arutledge@allete.com
Source: Grid United
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