Shifting Currents

The Southwest Power Pool (SPP) has emerged as a leader in renewable energy, offering significant opportunities for corporate buyers through wind power purchase agreements (PPAs). Market improvements since 2014, including the integration of the Integrated System (IS) transmission system, have increased dispatch efficiency and reduced energy costs. The region possesses some of the highest wind resource quality in the U.S., with nine of the top 10 states for high-capacity-factor wind generation located within the SPP footprint. This high capacity factor allows for lower unit costs and more competitive PPA prices. While there is a strong pipeline of planned wind capacity—including an estimated 19 GW of planned additions and nearly 7 GW expected in 2017—corporate buyers are cautioned to monitor the pace of transmission infrastructure investment to avoid curtailment risks and track regional policy changes, such as potential tax credit eliminations in Oklahoma.

• Market improvements implemented by the Southwest Power Pool (SPP) since 2014, including the expansion to include the Integrated System (IS) transmission system, resulted in $131 million in savings during the first year of operations and reduced curtailments for renewable generators.
• The SPP region features some of the best wind resources in the United States, with nine of the top 10 states for potential high-capacity-factor wind generation (defined as a capacity factor ≥ 35%) located within its footprint, leading to lower negotiated PPA prices for corporate buyers.
• There is a significant pipeline of wind energy development in the SPP region, with 73 percent of the generation interconnection queue consisting of wind projects and nearly 7 GW of wind generation expected to be completed in 2017.
• Compliance with the EPA's Clean Power Plan may further drive wind development in the region; an April 2015 SPP assessment estimated a need for an additional 5.6 GW of wind capacity to ensure compliance.
• Corporate buyers face risks related to the pace of transmission infrastructure investment relative to wind development, as well as potential policy shifts, such as the possible elimination of wind generator tax credits in Oklahoma.

APA

RMI (2017). Shifting Currents. https://rmi.org/resources/shifting-currents/

Chicago

RMI. Shifting Currents. 2017. https://rmi.org/resources/shifting-currents/.

Wikipedia

{{cite report |author=RMI |title=Shifting Currents |date=29 March 2017 |url=https://rmi.org/resources/shifting-currents/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2017shifting, author = {{RMI}}, title = {{Shifting Currents}}, institution = {RMI}, year = {2017}, month = mar, url = {https://rmi.org/resources/shifting-currents/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }