The aging US electric grid is facing significant challenges. Increasing demand from economic growth and electric vehicles, severe weather disruptions, and the integration of renewable energy sources are putting strain on the system. This strain manifests as congestion in the transmission system, often preventing the delivery of the lowest-cost electricity, typically generated from renewables like solar and wind, to consumers. Consequently, utilities must rely on more expensive sources, leading to higher consumer bills.
Grid-enhancing technologies (GETs) offer a promising solution to address this challenge. These technologies allow transmission lines to carry more power, often at a lower cost and faster deployment time compared to new lines and substations. One example is dynamic line rating (DLR), which uses sensors to measure real-time conditions of lines and adjust their capacity accordingly. Studies have shown that DLRs can increase transmission capacity by over 33% in summer and 19% in winter, creating space for renewable energy projects to connect to the grid.
The benefits of GETs extend beyond increased capacity. By reducing congestion, they allow for the uptake of lower-cost energy resources, ultimately saving customers money. Research has indicated that GETs projects could lead to a reduction in fossil fuel emissions equivalent to 12 million tons of CO2 annually. Additionally, DLRs provide valuable safety and reliability benefits by providing utilities with real-time data on line conditions and capacity.
Despite their potential, GETs have not yet been widely adopted by US grid operators. This is partly due to their relative newness and the existing utility incentive structures that favor large capital projects over operational improvements and efficiency. However, recent developments in policy are encouraging.
Multiple states have considered policy options to evaluate and promote GETs. Lawmakers in Maine, Massachusetts, and New Hampshire have explored studying the potential deployment of GETs, leading to reports that will guide future policy decisions. In Maine, a recently passed law (S.P. 257/L.D. 589) incorporates findings from these studies into utility rate-making and grid planning proceedings.
Furthermore, several states, including California, Colorado, Illinois, Minnesota, and Washington, have either passed or reviewed legislation to require utilities to consider GETs in their integrated resource plans (IRPs). These plans outline new investments in energy infrastructure, generation, and transmission. The recent law enacted in New York requires utilities to identify areas of existing or anticipated congestion, assess GETs to mitigate these challenges, and implement them if cost-effective.
Lawmakers in Pennsylvania have proposed legislation to mandate the consideration of GETs in resource planning and allow utilities to benefit financially from cost-effective deployment. While not a replacement for essential investments in new transmission lines, GETs and related technologies play a crucial role in building a modern, reliable electric grid. With more states taking action, ratepayers across the nation stand to benefit from the enhanced efficiency, lower costs, and increased renewable energy integration enabled by these technologies.
