Grid Upgrade Needed for US to Meet its Clean Energy Targets

Three crucial laws were passed in the United States: the Inflation Reduction Act, the Bipartisan Infrastructure Law, and the CHIPs Act. This is a significant victory for the nation’s clean energy industry. Clean Energy experienced exceptional growth in 2023, marked by a surge in solar and energy storage installations.

A record 31 gigawatts (GW) of solar energy capacity was installed in the US in 2023, a 55% increase from 2023 and significantly higher than in 2021. Solar is the fastest-growing renewable energy source, with a total installed capacity of 161 GW, representing around a 5% share of the nation’s electricity grid, according to the Solar Energy Industries Association (Bird & Womble, 2024).

According to the 2020 Goldman School of Public Policy report, reducing global carbon emissions by half by 2030 is crucial to limit warming to 1.5°C and prevent devastating climate consequences. The increasingly affordable wind and solar energy could make this goal achievable. Considering two scenarios, the report examined how the US might achieve almost 100% carbon-free electricity by 2035.

Assuming the continuation of current state and federal policies, the first scenario would only result in 55% clean energy by 2035. However, the second scenario, aiming for a 90% clean electricity share by 2035, involves retiring all existing coal plants by that year and avoiding constructing new fossil fuel plants.

In this case, renewable energy sources such as wind, solar, and batteries would provide 70% of annual generation, while hydropower and nuclear energy would contribute 20%. Natural gas plants would account for about 10% of annual electricity generation.

Under the 90% Clean case, renewable energy will be 10% lower in 2035 than the present cost. The report also notes that achieving 90% low-cost renewable energy and battery storage across the US will require investment in transmission networks connecting renewable generation to existing high-capacity transmission lines or load centres.

Challenges of upgrading the electric grid in the US to expand renewable energy

The United States grid consists of three major separate grids: The Easter Interconnection, which operates in the states east of the Rocky Mountains; the Western Interconnection, covering the Pacific Ocean to the Rocky Mountain States; and the Texas Interconnection systems. These three regional grids are interconnected with local electricity grids.

According to an article by the US Energy Information Administration (EIA), the US power grid is made up of over 7,300 power plants, nearly 160,000 miles of high-voltage power lines, and millions of miles of low-voltage power lines and distribution transformers, connecting 145 million customers throughout the country (EIA, 2016).

Most of the electricity produced in the US is from conventional sources such as natural gas, which accounts for the largest share at 40%, followed by coal at 23% and nuclear at 20%. Renewable energy sources contribute to about 17% of the US electricity generation, where 7.3% comes from wind and 6.6% comes from hydropower. Other minor renewable energy sources are solar, biomass, and geothermal energy. But recently, some of the fastest electricity sources have been renewable sources such as wind and solar.

Most US electric grids and networks were built in the 1960s and 70s. The US’s ageing electric infrastructure is becoming vulnerable to extreme natural events and struggling to cope with the growing demands for electricity and the need to expand clean energy.

According to an article in the New York Times, the US grid is designed for coal and gas electric generation and transmission. Still, it could be the cheapest way to slash emissions if the country taps into its vast wind and solar energy supplies.

One of the biggest obstacles to expanding clean energy in the United States is the lack of power lines. Building new high-voltage transmission lines can take decades or longer due to permitting delays or local opposition.

However, research shows that applying a technique called “advanced reconductoring” offers a quick and cost-effective solution to increase the capacity of the country’s power lines by up to 40%. The article notes that this technology is already used in other countries, but many US utilities have embraced it slowly because of their unfamiliarity.

The best spots for solar and wind energy generation are away from cities and the existing grid. Tapping into them would need thousands of miles of new high-voltage transmission lines — large power lines spanning multiple grid regions. Reaching Biden’s administration’s goal of shifting the grid to 100% renewable energy generation would mean that the US transmission capacity would need to double in just over ten years.

Achieving this means that the country should first overcome some obstacles, including the complex and lengthy permitting process, potential opposition from local communities, and getting the three regions to agree and approve longer distances transmission lines that will have to cross or pass through them or between multiple states.

The current grid set up in the US means that there is no single entity that is in charge of organising the grid, the way the Federal government oversaw the Interstate Highways System in the 50s and 60s, which means that installing long-distance power lines will require the approved of multiple regional entities, not to mention the myriads of smaller and local utility companies who owns or manages the grid.

If the country doesn’t construct new transmission lines faster than it can expand its solar panels, wind turbines, electric vehicles, and charging stations, then renewable energy generation won’t reach where it’s most needed. This means fossil fuels will continue to power the plants closer to homes and businesses, and the emissions saved by generating and distributing renewable energy will be lost.

The good news is that the White House announced on 28 May its plans to modernise the country’s electric grid to pave the way for clean energy transformation, the CNN article says. According to the news, “The announcement came on the same day that hundreds of thousands of customers lost power in Texas during destructive storms Tuesday morning, following a deadly holiday weekend of severe weather across the South and Midwest” (Nilsen, 2024).

The new initiative between the federal government and 21 states will invest tens of billions to modernise and expand the grid to reduce power outages and increase electrical transmission capacity.

This investment is the largest in a generation. It is timely for the projected spike in electricity demand in the coming years due to the rapid growth of data centres, AI, and demands from electric vehicles.

Federal Energy Regulatory Commission (FERC) chairman Willie Phillips says, “Our country’s aging grid is being tested in ways that we’ve never seen before,” Phillips said. “Without significant action now, we won’t be able to keep the lights on in the face of increasing demand, extreme weather and new technologies.”

The articles noted that the US urgently needs a comprehensive grid modernisation to support the energy transition and achieve climate change objectives. Building a more integrated and efficient national electric grid will require overcoming significant logistical, regulatory, and political challenges.