The US is taking up the challenge of network modernization – pv International magazine

May 29, 2024 Anna Fischer

From pv USA magazine

The US federal state initiative to implement modern energy networks has now secured commitments from 21 US states. The program aims to bring together states, federal entities and energy stakeholders to help modernize the U.S. energy grid to respond to the challenges and opportunities the sector will face 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 modernize 160,000 km of existing transmission lines by leveraging public-private partnerships to deploy readily available technologies such as grid improvement technologies and high-performance cables.”

The U.S. power grid was built in the 1960s and 1970s. The aging grid is struggling to cope with extreme weather events caused by climate change, as well as the renewable energy needed to meet national 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 capacity on the U.S. power grid relied on building new transmission lines using technologies that have not changed since the mid-20th century. However, today’s new modern grid technologies, such as high-efficiency conductors and grid enhancement technologies, can produce twice or more energy than today’s transmission lines. Network modernization can be done 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 U.S. 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 American 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.

The 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, under 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 funding from the DoE. 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 (GETs) that potentially save project developers hundreds of millions of dollars in interconnection costs compared to default network upgrades. It said savings at the project level “could make the difference” that would enable developers to build projects instead of dropping out of the queue. The study noted that GET can also be installed faster than other network upgrades.

The U.S. Federal Energy Regulatory Commission (FERC) recently issued the Regional Transmission Planning and Cost Allocation Final Rule, 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 conductors and technologies network improvement.

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.