(The Center Square) – “Make no mistake. Transitioning the energy mix isn’t a simple task. It’s not a shift from one resource to another. It’s a monumental change to how the bulk power system operates and it will take careful planning – and we risk blackouts if we don’t get this right.”
The cautionary statement by Diane Holder, vice president of engineering and strategic engagement at Reliability First, a regional entity of NERC, or the North American Electric Reliability Corporation, was made at a recent House Energy Committee hearing on electric transmission.
Meeting the growing electricity demand, driven by increased use of technologies like video conferencing, artificial intelligence, advanced manufacturing and electric vehicles, framed the discussion on how to maximize the existing grid and prepare for significantly higher levels of electricity generation and consumption.
Holder highlighted data revealed in NERC’s Long Term Reliability Assessment, released in December. The report evaluates resource adequacy across North America.
It states that generation is retiring faster than new resources are coming online – and rising electricity demand is further compounding the challenge.
Calling it “very concerning,” she noted it shows more than half of the continent is at high or elevated risk of resource adequacy shortfalls over the next ten years.
While the PJM region isn’t considered ‘high’ risk, it is currently rated as ‘elevated.’ Notably, last year’s assessment was ‘normal,’ so things have worsened, she said.
Another major concern is the integration of new resources into the generation mix and their impact on grid reliability.
Wind and solar operate intermittently and interact with the grid differently than traditional power sources, which provide critical stability.
Most renewables lack this capability unless paired with grid-forming inverters or batteries – tools with which many are not currently equipped. As a result, Holder said, more renewable resources are needed to match the output of retiring plants.
In addition to Holder, other industry leaders testified on the benefits of implementing grid-enhancing technologies, or GETs, and other strategies.
Stephen DeFrank, chairman of the Pennsylvania Public Utilities Commission, or PUC, stressed that the deployment of existing technologies and operational practices – such as composite core conductors and dynamic line ratings – can maximize the current infrastructure before making costly investments in new power plants.
He asserted that Act 129 has saved Pennsylvania consumers $4.5 billion since its inception in 2008. He considers it an important tool for meeting their mission of providing reasonable, adequate, and affordable service to the Commonwealth’s electric ratepayers. A tentative order was recently issued for Phase V of the program.
Another promising option, DeFrank said, is FERC Order 2222, which provides for distributed energy resources, like solar panels and battery storage, to participate in wholesale electricity markets as virtual power plants, or VPPs.
Chloe Holden, principal industry analyst for Advanced Energy United encouraged lawmakers to consider the use of VPP programs and advanced transmission technologies – two key tools she says have not been implemented at scale in Pennsylvania.
Virtual power plants can help reduce electricity costs to rate payers during peak demand times by minimizing reliance on expensive peaker plants. They are also quick to deploy, as unlike other sources of capacity, they do not need to wait in the interconnection queue.
Holden also said the state and the nation overspend on grid infrastructure, often overbuilding to handle brief spikes in electricity demand.
Additionally, she explained that advanced transmission technologies are hardware and software upgrades that can “significantly boost transmission lines’ ability to move power from where it’s generated to where it’s needed, quickly and at higher volumes.”
Advanced reconducting of power lines could quadruple new transmission capacity nationally by 2035, and could cost half that of new transmission lines for similar capacity increases, Holden said.
Building out the grid by co-locating high-voltage transmission lines along existing rights of way is the focus of NextGen Highways.
The organization’s Executive Director Randy Satterfield believes the state’s consideration of these existing rights of way – particularly highways and other infrastructure corridors – as sites for new transmission, could achieve several objectives:
Reduce political and siting permitting hurdles that can delay timely development;
Avoid unnecessary development on greenfield sites, thereby reducing land use and other environmental impacts;
Reduce the burden on private landowners who are often asked to host infrastructure.
According to Satterfield, Minnesota, Colorado and Wisconsin have passed legislation allowing co-location of transmission lines along state highways, and prioritizing corridors for siting transmission.
To advance co-location as an option, he said, legislation should establish a clear, collaborative process between utilities, transmission developers, and state Departments of Transportation. It should also prioritize using existing corridors before pursuing new, undeveloped routes.
While echoing support for GETs technologies, PPL’s Chief Operating Officer David Quire emphasized dynamic line ratings, which he says have the highest benefit to cost ratio.
Over several years, they have added dynamic line ratings to 11 major transmission lines in PJM’s territory. They found it has led to upfront savings by deferring the need for certain projects, and an estimated $23 million in annual congestion savings to customers.
Chaz Teplin, a principal at RMI, testified that new transmission tools – like dynamic line ratings, power flow control, and topology optimization – can unlock grid capacity and reduce congestion without waiting decades for new line buildout.
RMI conducted studies that show GETs technologies could increase PJM’s pace of bringing transmission onto its system, resulting in savings on the capacity auction and lower energy prices.
They recommend these technologies be considered first by legislators when appropriate and to work with PJM and neighboring states in planning and interconnection processes.
The PA PUC and Senate committees recently held hearings on related topics.
