Grid Reliability: Award Announcement and Looking Ahead with DOE's National Transmission Planning Study

The U.S. Department of Energy (DOE) has announced two significant initiatives to enhance the nation’s transmission infrastructure, aiming to ensure a reliable and resilient electricity grid while lowering costs for families.

See the full announcement here.

Transmission Facilitation Program:

The first initiative is the Transmission Facilitation Program, which utilizes $1.5 billion of BIL funds for 1,000 miles of transmission and capacity development across 6 U.S. states.

Four new transmission projects are set to enter capacity contract negotiations with the DOE:

1. Aroostook Renewable Project: This project will build a new substation in Haynesville, Maine, and a 111-mile transmission line with a capacity of 1,200 MW. It aims to connect to the ISO-NE system, providing low-cost clean energy to New England while creating over 4,200 construction jobs and 30 permanent jobs (potential contract value up to $425 million).
2. Cimarron Link: A 400-mile high-voltage direct-current (HVDC) line will be constructed from Texas County to Tulsa, Oklahoma, transmitting 1,900 MW of renewable energy to eastern Oklahoma. This project is expected to create more than 3,600 construction jobs and 20 permanent jobs (potential contract value up to $306 million).
3. Southern Spirit: This 320-mile HVDC line will connect the ERCOT grid with southeastern U.S. power markets, enhancing reliability during extreme weather. It will provide 3,000 MW of bidirectional capacity and create 850 construction jobs and 305 permanent jobs (potential contract value up to $360 million).
4. Southline: A new 108-mile transmission line will deliver 1,000 MW of capacity between Hidalgo County and Las Cruces, New Mexico. This project aims to support regional industries and create at least 150 construction jobs (potential contract value up to $352 million). This selection is for Phase 2 of the Southline Project, following Phase 1's earlier approval.

National Transmission Planning Study:

The DOE also released the National Transmission Planning (NTP) Study: This study emphasizes the need for the U.S. to double or triple its transmission capacity by 2050 to meet growing energy demands. The study suggests that significant investments in transmission could yield savings of hundreds of billions of dollars, reinforcing the importance of coordinated inter-regional planning.

The NTP Study aims to promote inter-regional planning for transmission infrastructure without specifying particular projects at this time. Instead, it highlights potential opportunities for planners to consider various beneficial projects for customers in diverse future scenarios. The study also introduces new transmission planning tools, such as open-source software and modeling capabilities, which the DOE is making available to regional operators, utilities, and states to facilitate better inter-regional transmission planning nationwide.

Key takeaways from the long-term study include:

1. Expansion for Cost Savings: Expanding the transmission system across the contiguous U.S. could save the national electric system between $270 billion and $490 billion by 2050.
2. Return on Investment: Each dollar invested in transmission infrastructure is expected to yield savings of approximately $1.60 to $1.80 in system costs.
3. Coordination for Lower Costs: Coordinating transmission regions to ensure resource adequacy could further reduce system costs by $170 billion to $380 billion through 2050.

Looking Ahead:

The release of the DOE planning study and the announcement of infrastructure-building awards highlight a continued focus on improving grid reliability across the U.S. With the tandem goals of cost savings and energy reliability, stay tuned for more potential DOE investment announcements in the near future.

This information was compiled with the assistance of ChatGPT and reviewed by staff for the purposes of this post.