Hyperlocal transmission planning has led to the Southeast becoming the only major market in the U.S. to not approve a regional transmission project in recent history, according to a new study.
The narrowly focused approach to power grid planning risks business and economic growth, the study finds. Additionally, businesses and families are paying higher energy costs while facing greater risks of blackouts that can cause significant economic damage. That’s particularly problematic as extreme weather events, such as the recent Winter storms Elliot and Uri plague power grids.
That report comes from The Brattle Group, with support from the Southern Renewable Energy Association (SREA), the Carolinas Clean Energy Business Association (CCEBA) and the Clean Energy Buyers Association (CEBA).
The report finds that by 2035, electricity demand in the Southeast is projected to grow by 20 gigawatts, which is a 25% increase and the equivalent to adding twice the power demand of New York City in just one decade.
This comes as other regions throughout the nation invest heavily — to the tune of billions of dollars — to strengthen power grids.
And the report found that the investment is worth it, with a $5 billion infusion into new regional transmission projects potentially generating more than $8 billion in savings for customers through slashed electricity prices and grid reliability.
The report is also timely, coming after the Federal Energy Regulatory Commission (FERC) issued Order No. 1920 to create a process for modernizing long-term transmission planning.
Increasing investment, the report finds, would shift the Southeast from reactive planning that focuses on the near-term and places energy projects into local silos into a best-in-class regional planning model that would yield better savings for consumers and better service for energy users.
The Brattle Group is a leading economic consulting firm that provides analysis on energy markets, infrastructure investment and regulatory framework. Its research seeks to help utilities, policymakers and advocacy groups make data-driven decisions to boost reliability and achieve cost savings through effective and efficient power systems.
CEBA, meanwhile, is a coalition of more than 400 businesses, including some Fortune 500, that work to advance low-cost and reliable clean energy solutions.
SERA likewise emphasizes the use of wind and solar to achieve responsible and sustainable energy cultivation, while CCEBA is an association of independent power producers and suppliers seeking to expand private sector market access throughout the Carolinas.
