Innovative Grid Deployment Liftoff Report

The “Pathways to Commercial Liftoff: Innovative Grid Deployment” (“Grid Liftoff Report”) marks the tenth publication in the Liftoff series, which launched in March 2023 and aims to show how various energy technologies can reach commercial liftoff, led by the private sector with support from the government. We explained the broader initiative in a previous blog, and covered the advanced nuclear liftoff report as well as the industrial decarbonization liftoff reports.

DOE prepared the report because the North American Electric Reliability Corporation (“NERC”) projects electricity peak demand to grow an estimated 91 GW over the next decade (equivalent to 12% of current U.S. peak demand).  See NERC 2023 Long-Term Reliability Assessment (Dec. 2023). In order to achieve net-zero emissions by 2050, it would require even greater peak demand growth from electrification and domestic manufacturing. With electricity demand growing significantly for the first time in decades, grid operators and regulators are faced with the need to pursue a new, growth-oriented grid investment strategy.

The 96-page Grid Liftoff Report assessed how 20 commercially available advanced grid solutions—including advanced conductors, dynamic line rating, energy storage, advanced distribution management systems, topology optimization and communications technologies—can cost effectively increase the existing grid’s capacity to support upwards of 20–100 GW peak demand when installed individually, with significant additional capacity potential when installed in strategic combinations.

According to the report, these advanced grid technologies can be deployed at less than a quarter of the cost of transmission lines and significantly more quickly — e.g., in less than three years compared to roughly a decade for some transmission projects.  The report also explains that these technologies would improve grid reliability, resilience, and affordability for consumers, while also aligning with the nation’s clean energy goals.

We walk through the key take aways from the report below:

• Near-term solutions are available.  Multiple advanced grid solutions are commercially available today that can help utilities and regulators respond to grid pressures in the near-term—including rapid demand growth, reliability and resilience priorities, and new energy generation connections. These solutions include advanced transmission (e.g., advanced conductors) and grid enhancing technologies (e.g., dynamic line rating, advanced power flow control, energy storage) as well as system automation and situational awareness solutions (e.g., advanced distribution management systems, distributed energy resource management systems). These solutions can serve as a bridge, allowing better alignment between near-term customer needs and the cadence of grid capital planning, while critically needed new grid infrastructure capacity continues to be built out long-term.  See Grid Liftoff Report at 4-5, 12, 25.
• The existing grid has untapped value.  Deploying these advanced technologies could increase the capacity of the existing grid to support 20–100 GW of incremental peak demand when installed individually, while improving system reliability, resilience, and affordability. This capacity impact is on the order of magnitude of the 91 GW of peak demand growth that North American Electric Reliability Corporation (“NERC”) projects for the next decade (as of December 2023).  This is equivalent to 12% of current U.S. peak demand.  Note, DOE explains that this 91 GW represents the winter peak demand growth expected from 2024-2033 from the NERC forecast as of December 2023.  See Grid Liftoff Report at 9, 24.
• Solutions are cost-effective and quick to deploy.  The report underscores the economic and rapid deployment potential of advanced grid solutions.  Most of these solutions are less than a quarter of the cost of conventional alternatives and can be relatively quick to deploy since they make use of existing infrastructure.  For example, on the transmission side, the report cites a DOE study of dynamic line ratings (“DLR”) and advanced power flow control (“PFC”) applications in New York, which found these advanced technologies cost less than 25% of traditional upgrades; PPL Electric recently deployed a DLR solution for less than $1M on two transmission lines, which avoided having to reconductor or rebuild those lines at a cost of $0.5-4M/mile (or an estimated total of ~$13-68M).  See Grid Liftoff Report at 16.
• Liftoff within three to five years is possible. The report outlines a feasible liftoff timeline, estimating it could occur within three to five years.  This timeline relies on utilities and regulators comprehensively valuing and integrating advanced solutions as part of core grid investment, planning, and operations. Pursuing 6-12 large operational, “no regrets” deployments across a diverse set of utility contexts can de-risk adoption at scale and build repeatable operational and investment models. Deployments could be achieved without increasing costs to household ratepayers.  And ultimately, it is vital for grid operators, regulators, state and federal policymakers to share and implement best practices and integrate solutions.  See Grid Liftoff Report at 7, 37.
• Aligning with national energy goals. The deployment of advanced grid solutions aligns closely with the U.S.’ goal of achieving a net-zero emissions economy by 2050. By bolstering U.S. power grid capacity, reliability, and affordability, these solutions contribute to the transition toward sustainable energy systems. The report outlines the transformative potential of advanced grid solutions. With their immediate availability, capacity-boosting capabilities, and cost-effectiveness, these solutions offer a pathway to a more resilient, reliable, and sustainable energy future.  See Grid Liftoff Report at 14, 21, 29.

​DOE is holding a webinar to discuss this liftoff report on May 13 and registration is available here. 

Transmission Interconnection Roadmap to alleviate interconnection backlog

The same day DOE released the Grid Liftoff Report, it also published the “Transmission Interconnection Roadmap: Transforming Bulk Transmission Interconnection by 2035.” (“Transmission Interconnection Roadmap”)—its first-ever roadmap to address a growing backlog of renewable energy projects looking to connect to the grid.  The Transmission Interconnection Roadmap, developed by DOE’s Interconnection Innovation e-Xchange, is meant to be a guide for setting what DOE deems aggressive success targets for improvement by 2030, by providing stakeholders with a set of 35 solutions organized around increasing data access, transparency and security for interconnection; improving interconnection process and timeline; promoting economic efficiency in interconnection; and maintaining a reliable grid. 

This roadmap serves as a guide for stakeholders such as transmission providers, interconnection customers, state agencies, federal regulators, transmission owners, load serving entities, equipment manufacturers, consumers, equity and energy justice communities, consultants, and the research community, which includes DOE.  To support these stakeholders and the recent interconnection backlog, the roadmap includes target metrics for interconnection reform such as shorter interconnection times, lower interconnection cost variance, increased completion rates and zero disturbance events attributed to modeling.

Solutions laid out in the roadmap include, among other things:

• Improving the scope, accessibility, quality, and standardization of data on projects already in interconnection queues.
• Creating new and better use of existing fast-track options for interconnection, such as surplus interconnection service, generation replacement service, and energy-only interconnection service.
• Adopting and implementing a harmonized and comprehensive set of generation interconnection requirements or standards. 
• Exploring and evaluating potential options for delinking the interconnection process and network upgrade investments to increase up-front interconnection cost certainty. 

DOE has several ways of implementing these solutions.  For example, DOE’s Grid Deployment Office is investing in accelerating the interconnection of clean energy generation through its Grid Innovation Program.  Additionally, the Solar Energy Technologies Office and Wind Energy Technologies Office announced a $10 million funding opportunity aimed at developing analytical tools and approaches to expedite interconnection.  And finally, the Loan Programs Office aims to finance energy infrastructure projects, including investments in transmission infrastructure to support interconnection. 

Notably, LPO loans have helped launched the utility-scale solar and wind industries, have expanded domestic manufacturing of electric vehicles, and are reviving nuclear energy in the United States.

For more information contact Amy Roma, Partner, or Stephanie Fishman Associate.