With U.S. Energy Grid Under Strain, Governments Promote Technology Solutions
States, White House, and federal agencies see value in methods that lower costs and increase clean energy usage
Pressure on the U.S. energy grid continues to rise. Thanks to the increasing use of data centers, the growth of artificial intelligence, and the expansion of domestic manufacturing—among other factors—U.S. grid planners have nearly doubled their annual forecast for anticipated electricity demand over the next five years, according to a 2023 survey of Federal Energy Regulatory Commission (FERC) filings.
To meet this demand, the U.S. must expand the capacity of the grid, which today struggles to efficiently accommodate the flow of low-cost electricity—often generated from renewables such as solar and wind power. Congestion, caused by an inadequate amount of grid capacity, increased consumers’ energy bills by an estimated $20.8 billion in 2022.
In response, federal and state policymakers and regulators are increasingly turning to advanced transmission technologies (ATTs) to efficiently increase grid capacity.
ATTs, which include grid-enhancing technologies (GETs) and advanced conductors, are a suite of software and hardware technologies that boost transmission lines' ability to carry more power. They are typically deployed faster and at a lower cost than traditional transmission infrastructure such as new towers and substations. According to the U.S. Department of Energy, ATTs can save utilities and states up to $35 billion in transmission and distribution costs.
Advanced conductors, which are stronger and more efficient than traditional transmission lines and use existing towers and right-of-way, can carry 50% to 110% more power than conventional wires. If deployed nationwide, replacing conventional wires with advanced conductor lines could quadruple energy transmission capacity in the U.S. by 2035 and save $85 billion in system costs, according to a report from GridLab, a nonprofit energy usage research organization.
Montana was one of the first states to promote the use of ATTs when it passed a bill in 2023 that provides an incentive for utilities to deploy advanced reconductors. So far in 2024, Arizona, Maine, Minnesota, New York, and Virginia have passed bills to boost ATT deployment, with California still considering legislation.
These states have taken a variety of policy approaches to promote ATTs. Notably, Minnesota’s law includes an innovative approach that requires utilities to examine areas of congestion— locations on the grid without enough capacity to meet demand—and create an implementation plan to use GETs to mitigate those issues.
State Policies That Support Advanced Transmission Technologies
Approaches vary by state
| State policies | Description | States with policies enacted |
|---|---|---|
| Study bills | Tasks state agencies or regulatory agencies with investigating the use of advanced grid technologies. | Maine, Colorado |
| Utility planning requirements | Requires utilities to evaluate ATTs in their planning and gives utilities a clearer path to recovering costs. Requires utility regulator approval. | Minnesota, Virginia |
| Rate recovery and cost-effective incentives | Allows utilities to recover costs of ATTs through their rate base or provides for additional incentives if ATTs are shown to create savings in grid infrastructure costs. Requires utility regulator approval. | Montana, Minnesota |
| Streamlining permits | Streamlines replacement of conductors (wires on transmission lines) through expediting applications or reducing the amount of new permitting required. | Arizona, Colorado |
Source: The Pew Charitable Trusts analysis of state documents.
Complementing the activity at the state level, the Biden administration and FERC have moved forward with several actions on ATTs in 2024. At the end of May, the White House announced a Federal-State Modern Grid Deployment Initiative with 21 states to prioritize and collaborate on expanding grid capacity by deploying ATTs. In April, the Department of Energy amended a rule to allow for speedier environmental review for reconductoring projects.
In May, FERC issued Order 1920, which, among other historic reforms to transmission planning, will require grid operators to consider GETs during regional long-term transmission planning processes. And in June, the agency announced that it was seeking public comments on potentially requiring the use of dynamic line ratings—one type of GET—to more accurately assess how much capacity a line can handle. These actions show growing FERC interest in using technologies that will increase the capacity of the country’s existing transmission infrastructure.
Congress has also shown interest in ATTs. In March, Senator Peter Welch (D-VT) and U.S. Representative Kathy Castor (D-FL) introduced the Advancing GETs Act of 2024 (S. 3918/H.R. 7624). This bill would require FERC to establish a shared utility-consumer savings incentive for GETs, allowing utility companies to recoup some of the expected cost savings generated by reducing congestion.
Taken together, these steps are significant: With more capacity, the nation can tackle the energy grid’s congestion and reliability woes that add significant costs for consumers and hinder the deployment of lower-cost renewable energy. ATTs can be deployed quickly to add capacity and help alleviate interconnection issues even as utilities and governments work to build out new grid infrastructure. State policymakers can look to their peers for innovative approaches to fully unlock ATTs’ potential to meet America’s growing electricity demand.
Carter Harms is an officer with The Pew Charitable Trusts’ energy modernization project.
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