DeepSummary
The podcast episode discusses the challenges in deploying sufficient transmission capacity and interconnections to support a modernized grid in the United States. Approximately 2.5 terawatts (TW) of new clean wind, solar, and storage capacity is currently on hold, awaiting transmission interconnections. This is roughly double the country's current generating capacity of 1.28 TW. Building the necessary infrastructure and securing these interconnections would revolutionize the U.S. power grid and likely eliminate all fossil-fueled and eventually nuclear generation.
However, investor-owned utilities have historically obstructed the development of new transmission capacity, both within and between their regional transmission grids. In 2011, the Federal Energy Regulatory Commission (FERC) issued Order 1000 to address these barriers, but utilities resisted, attempting to undermine and weaken the order. Despite some progress within Regional Transmission Organizations (RTOs), no new transmission projects outside of these RTOs have been realized under Order 1000.
In response, FERC introduced Order 1920 in May 2024, aimed at compelling utilities and regional transmission organizations to undertake long-term regional planning of transmission systems. The episode features an interview with Ari Peskoe, Director of the Electricity Law Initiative at Harvard Law School, who explains the history of Order 1000 and the implications of the new Order 1920.
Key Episodes Takeaways
- The United States faces significant challenges in deploying enough transmission capacity and interconnections to support a modernized grid and integrate renewable energy sources.
- Approximately 2.5 terawatts of new clean wind, solar, and storage capacity is currently on hold, awaiting transmission interconnections.
- Investor-owned utilities have historically obstructed the development of new transmission capacity, both within and between their regional transmission grids.
- FERC issued Order 1000 in 2011 to address these barriers, but utilities resisted, attempting to undermine and weaken the order.
- FERC introduced Order 1920 in May 2024 to compel utilities and regional transmission organizations to undertake long-term regional planning of transmission systems.
- There are concerns about utilities controlling the pace of the energy transition and prioritizing their own interests over the broader goals of integrating renewable energy sources.
- The lack of oversight and evaluation in utilities' transmission development decisions may not align with the needs of the energy transition.
- The episode raises the question of whether new players should be involved in transmission development to challenge the utility industry's monopoly.
Top Episodes Quotes
- “We need transmission, as you said, to connect all these wind, solar and storage resources that are waiting in the queue. And that's because we've built our transmission system over a century, piece by piece, and it's largely been designed around fossil and nuclear resources.“ by Ari Peskoe
- “If we let the utility industry control transmission development, they will control the pace of the energy transition. They will build out the system in ways that protect their interests in both existing fossil plants as well as future development opportunities for power plants, whether they're powered by natural gas or wind, et cetera.“ by Ari Peskoe
- “But again, there's really nobody doing the work to check to make sure any of this makes sense, whether we ought to be building new lines, whether we ought to be rebuilding the system, but at least at a higher capacity.“ by Ari Peskoe
- “Are we going to let the utilities themselves continue to control transmission development as they've been for a century? Or is there a way to bring some new players to the table?“ by Ari Peskoe
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Episode Information
The Energy Transition Show with Chris Nelder
XE Network
6/26/24
However, investor-owned utilities have historically obstructed the development of new transmission capacity, both within and between their regional transmission grids. In 2011, the Federal Energy Regulatory Commission (FERC) sought to address these barriers with Order 1000, but utilities resisted, attempting to undermine and weaken the order. Despite some progress within Regional Transmission Organizations (RTOs), no new transmission projects outside of these RTOs have been realized under Order 1000. This bottleneck has hindered the energy transition and state-level goals to expand clean energy use and phase out fossil-fueled power under their own renewable portfolio standards.
In response, FERC introduced Order 1920 in May this year, aimed at compelling utilities and regional transmission organizations to undertake long-term regional planning of transmission systems.
In this episode, we are rejoined by Ari Peskoe, Director of the Electricity Law Initiative at Harvard Law School, to walk us through the history of Order 1000 and to explain the implications of the new Order 1920. He’s one of the top scholars in the country on transmission regulation and we’re very pleased that he was willing to share his expertise with us once again.
This 80-minute discussion gets quite technical, but after listening to it you will begin to see a clear picture of a future in which new transmission lines unlock the potential of the wind and solar resources in the US and help us completely decarbonize the power grid.