How to stop America’s outdated grid holding back the deployment of clean energy
Sep 17, 2024
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The podcast dives into the urgent need for a modernized energy grid in the U.S., highlighting a staggering 60% expansion requirement by 2030 to meet clean energy demands. Challenges in regulatory processes and local opposition are examined, revealing why new transmission lines are difficult to build. The discussion also tackles the controversial Manchin-Barrasso Bill, weighing its potential to streamline infrastructure against concerns over fossil fuel support. Additionally, insights on oil price volatility's impact on clean energy investment showcase the complexities facing the industry.
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Quick takeaways
The U.S. electricity system must expand transmission capacity by 60% by 2030 to meet growing clean energy demand effectively.
Building new transmission lines faces complex regulatory and local barriers that significantly hinder the development of renewable energy infrastructure.
Recent bipartisan legislation, like the Manchin-Barrasso bill, aims to streamline permitting and enhance infrastructure, though concerns regarding its potential impact remain.
Deep dives
Collaborative Energy Event
An upcoming significant energy event is set to occur in Calgary, Alberta, with the Energy Disruptors Unite Summit taking place on October 1st and 2nd. This conference aims to accelerate the energy transition by fostering unexpected collaborations and will include 3,000 participants from around the globe. Several prominent thought leaders will be featured, including former Prime Ministers Jacinda Ardern of New Zealand and Sanna Marin of Finland, along with best-selling author Yuval Noah Harari. Attendees are encouraged to come with curiosity and a willingness to be challenged, enhancing both personal and professional growth.
Electricity Transmission's Critical Role
The importance of electricity transmission in the context of energy transition is emphasized, with the phrase 'there's no transition without transmission' highlighting its critical role. The discussion focuses on the U.S. electricity system and the challenges it faces in modernizing its transmission infrastructure. The conversation includes insights from experts, pointing out that addressing these challenges is fundamental to expanding renewable energy capacity and meeting decarbonization targets. Without sufficient investment in transmission lines, the growing demand for electricity, particularly from renewable sources, cannot be effectively met.
Coalition for Clean Energy Grid
A diverse coalition, known as Americans for a Clean Energy Grid, is exploring strategies to enhance high-capacity transmission across the U.S. This group includes environmental organizations, labor unions, utility companies, and renewable developers, all united in a common goal: deploying effective transmission solutions to support grid decarbonization. The coalition focuses on dismantling barriers and addressing various challenges in legislation, regulation, and strategic communication related to transmission policies. Building a strong, clean grid is identified as essential for achieving long-term energy sustainability and reliability.
Permitting Challenges and Legislative Efforts
Significant hurdles in electricity transmission permitting are discussed, with varied state and federal processes complicating the construction of new lines. Recent legislative proposals, such as the bipartisan Manchin-Barasso bill aimed at streamlining permitting processes, are seen as positive steps, although concerns about vague language in the legislation raise questions about its effectiveness. The complexity of federal-state coordination in permitting remains a critical topic, as the need for efficient decision-making is paramount in advancing energy infrastructure. Successful implementation of robust reforms is essential to overcome existing barriers and facilitate faster development.
Future of Interregional Transmission Planning
The conversation touches upon the need for enhanced interregional transmission planning, using new Federal Energy Regulatory Commission (FERC) orders to address long-term needs in the evolving energy landscape. The discussion suggests that effective planning should incorporate input from various stakeholders, including state regulators, utility companies, and large energy consumers. Drawing comparisons to successful natural gas pipeline strategies, the importance of recognizing the intricate balancing of benefits and costs in transmission planning is underscored. Acknowledging the potential for innovative solutions, the aim is to create a more integrated and cost-effective energy transmission network.
There’s no transition without transmission, they say. It’s a cliché because it’s true. The US Department of Energy says that the nation will need to expand transmission capacity by 60% by 2030 to meet growing clean energy demand. A recent study found that delays in transmission development are adding $2.5 billion annually in additional costs to consumers due to the inefficiencies of the current grid. So why is building transmission lines in the U.S. so hard?
To find out, host Ed Crooks and regular guest Amy Myers-Jaffe of NYU are joined by Christina Hayes, Executive Director of Americans for a Clean Energy Grid. Her organization, which is backed by clean energy and tech companies and environmental groups, works to “expand, integrate, and modernize the North American high-voltage grid.”
Christina explains some of the complexities of building new transmission lines in the US, taking us through the regulatory, local, and state barriers that slow down the development of new capacity that is essential for the growth of renewable energy.
The Manchin-Barrasso Bill, legislation proposed in the Senate to expedite the construction of new energy infrastructure in the US, has been generating some heated debate. Could the proposals be a game-changer for infrastructure development that will accelerate deployment of clean energy and help cut emissions? Or do they give too much to fossil fuel interests relatives to the potential gains for renewables? The gang debate the pros and cons of the bill, and how much impact federal legislation can have when so many barriers exist at the local level.
They also discuss some of the other key issues for the grid. FERC Order 1920 was issued in May: what is it, and why is it so significant for transmission planning? And advanced transmission technologies: how can innovations such as reconductoring and grid-enhancing technologies make the grid stronger and more flexible, and what obstacles are in the way of these investments?
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