Although many have doubted it, a new study has concluded that wind-generated electricity from the upper Midwest can become cost-competitive with power generated from conventional fossil fuels. But wind power can only be harnessed if the country updates the outdated grid and transmission lines.

The current lack of available high voltage transmission lines through the upper Midwest acts as a significant barrier to wind power. The study, “Transmission Super Highway: Benefits of Extra High Voltage Transmission Overlays,” was commissioned by ITC Holdings Corp., the largest independent electricity transmission company in the country, and conducted by The Brattle Group. It shows that wind power can replace fossil-fuel power sources after 2020 if policies are made today. And Congress is under fierce pressure to encourage the adoption of renewable energy policies by updating the policies that govern the country’s power grid.

"Right now, the outdated laws that govern our electricity grid are standing in the way of America's energy goals," said Joseph L. Welch, president and CEO of ITC, as he spoke before a congressional committee. "Transmission, which should be the enabler, is today a roadblock to the development of the full potential of renewable resources such as wind, solar and geothermal resources.”

An example of the transmission lines that Welch says are needed is the ITC’s proposed Green Power Express, a transmission project that would traverse nearly 3,000 miles of the Midwest, North Dakota and South Dakota. It’s expected to cost $10- 12 billion, but could generate up to 12,000 megawatts of wind power for the Midwest and the East Coast. Moving from coal to wind energy could eliminate up to 280 million metric tons of carbon dioxide emissions over a 10-year period. In case you’re wondering, that equates to the annual emissions of about 700 coal plants.

Similarly, Texas is spending $5 billion to bring wind from the western part of the state to the more populus east side.

"Our country is trying to tackle 21st century energy challenges with an electric transmission grid largely built more than 30 years ago while operating under an outdated regulatory system," said Welch. "We will not meet our energy security, efficiency and environmental goals if we don't change how we do business. We urgently need to reform how we plan, locate and pay for new transmission. This requires moving beyond the parochial interests and fractured regulatory structure that has led to decades of underinvestment in our electricity grid."

Welch pointed out an interesting idea – that federal regulators could allow private companies like ITC to make the critical infrastructure investments instead of relying on taxpayer dollars.

This is an idea that will surely win over the hearts of many a taxpayer. But the bottom line is it doesn’t matter who pays for it – the grid must be updated and renewable energies must be harnessed.

Until recently, federal regulations required new transmission lines to allow open competition for access to new distribution, which made it difficult to attract private investment that would pay for the lines since access could not be guaranteed. In February, the Federal Energy Regulatory Commission changed the rules so that two Midwest companies could assure wind developers that they could get access to new lines.