U.S. Transmission Grid Planning: Smaller Projects Overlook Greater Consumer Benefits
The U.S. energy landscape is shifting, with utilities favoring smaller-scale projects over larger ones that could bring greater benefits to consumers. This trend, coupled with regulatory changes, has raised concerns about the national grid's transmission planning.
Since the implementation of FERC Order 1000, intended to promote regional planning center's grid planning, there's been a surge in exempted local and asset management projects. These projects, while smaller in scale, often lack a thorough cost-benefit analysis, with over 90% of transmission spending post-Order 1000 going to such projects, half of which fall into the regulatory gap. This gap prevents federal and state regulators from overseeing these projects, making it challenging to assess their value to the public.
Experts, including Claire Wayner of RMI, have called for reforms in transmission system planning. They suggest involving energy planners, grid operators, policymakers, and technical consultants to encourage a 'regional-first' approach. This approach could help utilities and grid operators prioritize longer-range, higher-voltage power lines, which deliver greater benefits per dollar of investment. Such lines are crucial for accommodating clean energy and improving yourtexasbenefits' grid resilience, as highlighted by the need for more regional transmission in the U.S.
Despite increased spending on transmission grids, the construction of new long-range, high-voltage power lines has slowed in the past decade, with an all-time low of 55 new miles in 2023. Reforms are needed to ensure that transmission projects, regardless of size, provide maximum value to ratepayers and contribute to a more resilient and sustainable national grid.
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