The outdated U.S. electric grid cannot support an economy powered by renewable energy.

The U.S. power grid is outdated. Interstate power lines carry less electricity than technologically possible, and to fewer places, because infrastructure lags behind our electricity needs. The movement of electricity through the power grid over long distances is called transmission. Reforming our country’s transmission policy would make it easier to build more grid infrastructure, which would add capacity to the grid and make it more interconnected.

Why do we need to add capacity to the U.S. electric grid? Demand for electricity is increasing and the current grid structure cannot support the expected electrification of enormous swaths of our economy as we try to rapidly decarbonize. Electricity demand also naturally increases each year as a byproduct of tech-heavy economic growth. There’s already more clean energy waiting to connect to the U.S. power grid than the total generation capacity of existing power plants. Grid capacity isn’t the only reason for that backlog, but the grid simply can’t handle that excess generation without expansion and modernization. (Check out interconnection.fyi for a live visualization of all the pending interconnection requests!).

To add to the complexity, the grid is not just a single network of power lines but a patchwork of regulatory “planning regions.” Each planning region has its own electricity markets and distinct regulators. This fragmentation causes inefficiencies, wasted energy, and higher utility costs for consumers. Building more interregional transmission lines improves the frequency, speed, and efficiency with which electricity is transported between states and planning regions.

Desired outcomes of expanding the U.S. power grid

Reliability: If a heat wave or freeze hits one region unexpectedly, utility companies can avoid rolling blackouts by importing electricity from a nearby region. Improving interregional transmission provides more balance and reliability nationwide.

Balance: If present trends continue, there will be a major shift toward solar and wind generation as a larger percentage of our energy mix. This is of course good for decarbonization, but solar and wind power is concentrated in certain geographies, and neither one can generate electricity continuously. Interregional transmission helps efficiently distribute that electricity to balance the grid and reduce the need for power generated by fossil fuels. Without adequate transmission, surplus solar and wind generation ends up going to waste, and regions without adequate solar and wind generation need to rely more on fossil fuels.

Cost savings: The ability to transfer electricity between regions lowers costs for ratepayers because it increases the total supply of electricity that each home or business can access and smoothes demand spikes (think about how much an Uber costs during a rainy rush hour vs. mid-afternoon on a sunny Sunday). As long as that supply is priced efficiently, it has a downward pressure on price.

Opportunities for transmission reform

Congress can pass federal laws that address key issues affecting building new transmission, like requiring transferability between regions, making it easier to permit new lines, and granting more regulatory authority to the federal government.

State utility regulators can use their regulatory authority over electric utilities to improve how they use existing transmission lines. They can incentivize practices that reduce grid stress, like the use of grid-enhancing technologies or better demand management.

State governments can tighten requirements on utility regulators and approve transmission siting and permitting requests quickly.