21 states take on the challenge of grid modernization – pv USA magazine

May 28, 2024 Anna Fischer

As part of the federal-state initiative for the development of modern networks, commitments have been made from 21 states. The program aims to bring together states, federal entities and energy stakeholders to help modernize the U.S. energy grid to meet the onslaught of both challenges and opportunities facing the sector in the coming years.

The 21 states are Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Washington and Wisconsin.

These countries committed to prioritize efforts to adopt modern network solutions to increase network capacity and build modern network capabilities on both new and existing transmission and distribution lines.

“American economic competitiveness on a global scale relies on access to cheap and reliable energy. The federally announced modern grid initiative, now supported by 21 states, represents significant progress toward a modernized and more connected transmission system that is at the heart of ACORE’s Macro Grid Initiative vision,” said Ray Long, president and CEO of the American Council on Renewable Energy (ACORE). “This announcement builds on a commendable commitment to upgrade 160,000 km of existing transmission lines by using public-private partnerships to deploy readily available technologies such as grid improvement technologies and high-performance cables.

The U.S. power grid in use today was built in the 1960s and 1970s. The aging grid struggles to cope with extreme weather events caused by climate change, let alone the renewable energy needed to meet energy goals. According to the U.S. Department of Energy, 70% of transmission lines are over 25 years old and near the end of their typical life cycle.

In the past, increasing the efficiency of the U.S. power grid relied on building new transmission lines using technologies that have not changed since the mid-20th century. However, with today’s new, modern grid technologies such as high-performance conductors and grid improvement technologies enabling the generation of twice or more power than is processed on today’s transmission lines, grid upgrades can be accomplished quickly and cost-effectively compared to building new transmission lines.

Countries can receive technical and analytical assistance from the United States Climate Alliance. As a result, the Department of Energy (DOE) maintains many technical assistance programs designed to support analysis for utilities, policymakers, regulators, state energy offices, and other stakeholders.

Funding to help states implement advanced networking technologies is made possible through the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Act (BIL). For example, the Department of Energy’s Office of Grid Implementation administers $10.5 billion in competitive grants through the Grid Resilience and Innovation Partnerships (GRIP) program.

DOE’s Office of Lending Programs has $250 billion in loan guarantee authority that provides low-interest financing for projects that modernize existing energy infrastructure, according to program guidelines that highlight reconstruction as a qualifying project example. The Department of Agriculture’s Empowering Rural America (New ERA) program provides $9.7 billion in low-interest loans or grants and represents the largest rural electrification investment since 1936 eligible for transmission system modernization.

Funding is also available through the Grid Resilience and Innovation Partnership (GRIP) program, which recently completed its second round of applications for up to $2.7 billion in DOE grants. The intent of the program is to fund projects that will modernize and modernize the transmission and distribution system to increase reliability and resiliency to prepare the grid for extreme weather events, and to ensure the supply of clean, affordable electricity to all communities across the country.

The RMI study cited network enhancement technologies (GET) as having the potential to save project contractors collectively hundreds of millions of dollars in interconnection costs compared to default network upgrades, while project-level savings “could be the difference” that allows a developer to build a project instead of falling out of the queue. The study noted that GET can also be installed faster than other network upgrades.

The Federal Energy Regulatory Commission (FERC) recently issued a final rule on Regional Transmission Planning and Cost Allocation, Regulation 1920, which adopts requirements specifying how transmission service providers must conduct long-term planning for regional transmission facilities, take into account the use of advanced cables and networks Technology improvements .

The Solar Energy Industries Association (SEIA) has been engaged in this rulemaking for the past two years, advocating for reforms to the transmission planning process to take into account all the benefits that clean energy offers.

“We are pleased that FERC has taken several steps to improve America’s antiquated transmission system, including pursuing SEIA recommendations requiring transmission service providers to engage in long-term regional planning,” said Melissa Alfano, senior director of energy markets and advisor SEIA.

(Read also: 50 states of network modernization)