US renewables integration requires $50-100 billion in T&D; investment

• 13 years ago (2010-10-15)
• Junior Isles

Europe 1061 North America 998

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Johannes Pfeifenberger, principal and utility practice leader at The Brattle Group, has estimated that $50-100 billion in transmission investment will be needed in order to integrate renewable power onto the existing electricity grid.

Speaking in a panel discussion on transmission expansion for renewable energy development at the EUCI Transmission Cost Allocation conference in Chicago, Pfeifenberger estimated that satisfying current state-level renewable portfolio standards (RPS) will require transmission investments of approximately $50 billion (with estimates ranging from $40-70 billion) nationwide over the next 10 to 15 years.

If a 20 per cent federal RPS were introduced that required states to meet either the higher of their current RPS standards or 20 per cent, transmission investment needs would increase to approximately $100 billion (with estimates ranging from $80-130 billion), not including baseline reliability upgrades.

“Without a multi-billion investment on the order of $50-100 billion, our nation's transmission capabilities will be insufficient to allow for the integration of enough renewable power sources into the high voltage grid to meet the RPS requirements," Mr. Pfeifenberger said. Uncertainty over cost recovery for these types of regional transmission projects has become one of the most significant barriers to making the necessary investment.