Despite Dullness, This Transmission Article is a Must-Read!
TL/DR –
Transmission, or moving electrons from one place to another, is essential for a reliable energy system that supports economic growth, emissions reductions, and affordability. Recent US energy policies have neglected transmission, focusing on more glamorous technologies, creating a problem in deploying wind and solar generation. Policymakers should prioritize improving transmission infrastructure to facilitate the transition to renewable energy, including offering above market rates for rights-of-way and speeding up the permitting process.
The Lack of Attention to Power Transmission Could Impact US Energy Policies
Despite being a relatively unglamorous segment of the electricity industry, power transmission, the process of moving electrons from one place to another, plays a crucial role in ensuring a reliable, cost-effective, and low-emission energy system. This aspect of energy infrastructure, often overlooked by US policymakers, could significantly impact the nation’s economic growth and sustainability goals.
Historically, key energy legislation such as the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) have largely skirted around the importance of efficient power transmission, opting instead to focus on more cutting-edge technologies, particularly in the generation sector. The failure to adequately address the essential role of the grid has hindered the deployment of renewable resources such as wind and solar power. Furthermore, the previous administration under President Donald Trump took measures to limit clean energy incentives and cancel several transmission projects.
Understanding the Importance of the Grid
As future legislation is crafted, the critical role of the power grid must be recognized, and appropriate measures should be taken to reflect its social value. This could include offering above-market rates for rights-of-way, thereby encouraging the construction of new transmission lines.
However, existing legislation, such as the IRA, has thus far failed to deliver promised benefits due to its disproportionate focus on generation without the necessary corresponding investment in transmission. A study by Princeton’s REPEAT, shows that without major transmission expansion, over 80 percent of the IRA’s potential reductions in emissions would be lost.
Despite the IRA and IIJA allocating less than 0.3% of their energy expenditure for grid expansion, the main obstacles to expanding the transmission grid are political and regulatory, rather than financial or technological. While easing these burdens is crucial, financial incentives for grid expansion would also play a key role. For instance, offering homeowners and communities incentives to host new lines would accelerate grid expansion and bring about a cleaner, more reliable, and affordable grid.
Building New Transmission Lines
Developing high-voltage direct current lines that connect power generation sources with consumer demand is currently a complex process, requiring consent from every jurisdiction the lines traverse. Despite the social benefits of such projects, a single dissenting party can derail the entire development. Slow progress in updating transmission rules and a lack of substantive permit reform legislation compounds this issue. Policymakers must take steps to ease the process of building long-distance power lines to avoid further deterioration of the US transmission buildout and prevent an explosion in the interconnection queue.
The recent Infrastructure Investment and Jobs Act included a $10.5 billion Grid Resilience and Innovation Partnerships (GRIP) Program. However, the Department of Energy has been slow in disbursing these funds, causing project delays and further issues with grid expansion. Therefore, future legislation must prioritize direct payment programs for landowners and communities and consider paying above-market rates for rights-of-way to expedite development.
In conclusion, while transmission may seem mundane, it plays a crucial role in energy affordability and decarbonization. Therefore, policymakers must prioritize this essential component of energy infrastructure to ensure a reliable and sustainable energy future.
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