Network governance and effectiveness on renewable energy integration: A comparative case study on power transmission networks in the United States

Abstract

This paper examines how network structure and coordinating mechanisms in the US power transmission system affect the integration of wind energy through comparative case studies. The two transmission network cases represent two major transmission network governance models in the US power sector. Using archival data from all network participants and interviews with key stakeholders, we find that a centralized transmission network coordinated by an independent network administrative organization (NAO) is more effective in integrating wind power than a less centralized structure. Particularly, the concentration of decision-making authorities is a more substantial determinant than the structural centrality of the core agency. The two cases also highlight that hierarchy, collaboration, and market mechanisms coexist in a transmission network to manage the tension between stability and flexibility. When the network operates in a turbulent environment with great uncertainties, different coordinating mechanisms complement each other to improve system resilience.