Advanced Energy Perspectives

Last May, the Federal Energy Regulatory Commission issued Order No. 1920, a landmark order requiring all transmission providers to engage in multi-value long-term regional transmission planning. The order grants states significant opportunities to engage in this process. In December, the Commission issued Order No. 1920-A, responding to issues raised on rehearing (where parties can argue that the Commission should have ruled differently on specific issues in the final order). Order No. 1920-A expanded the role of states in the planning process. Since then, all the multi-state RTO/ISO regions have requested extensions, giving states and transmission providers additional time to craft compliance plans. States can use this extra time to work together to identify priorities and reach alignment on key questions raised by the order.

Below, we outline the key decisions and actions states can take to influence compliance and to engage in implementation once the planning process begins.

In Nevada, the need to significantly expand power generation, transmission capacity, and regional resource sharing is urgent as the state’s energy grid struggles to keep up with rapid economic and industrial growth. Northern Nevada’s energy grid, for example, could quadruple in size as the data-storage industry continues to grow and expand in the Reno-Sparks area and beyond. Strengthening and expanding transmission lines will be especially critical to ensure that the growing demand for energy can be met as new advanced energy resources come online.

In response to this need, nearly four years ago, Senate Bill 448 created a Regional Transmission Coordination Task Force to help shape Nevada’s energy future. The Task Force is responsible for studying issues and policies related to transmission development and regional electricity markets, both of which are key solutions to deal with load growth.  

As California moves toward a clean energy future, its demand for electricity is surging, fueled by the rapid electrification of homes, vehicles, and businesses across the state. The California Air Resources Board (CARB) estimates that electricity demand could increase by 76% by 2045 (relative to 2022), making expansion of the state’s transmission infrastructure crucial to keeping the lights on.  At the same time, climate-related threats—such as wildfires, extreme heat, and severe weather events—are increasingly straining the grid, further highlighting the urgent need for modern and resilient transmission infrastructure. However, California is already grappling with an energy affordability crisis, and new transmission investments come with significant costs. To meet the state’s clean energy and reliability goals without further burdening ratepayers, innovative financing solutions will be critical. 

Net-Zero California’s (NZC’s) and Clean Air Task Force’s (CATF’s) timely report, Wired for Savings: Evaluating the Impact of Alternative Transmission Financing and Development Models on California Ratepayers, explores alternative transmission financing and development models and their impacts on consumers. The results show potential for substantial ratepayer savings of up to $3 billion per year, or about $123 billion over 40 years, to the extent that this infrastructure is financed and developed through public-private partnerships. 

This month, the U.S. Department of Energy (DOE) announced three major investments aimed at enhancing the resilience and reliability of our nation’s electric grid in response to growing demand.

The investments made by DOE’s Transmission Facilitation Program, Grid Resilience and Innovation Partnerships (GRIP) Program, and Advanced Energy Manufacturing and Recycling Program represent significant funding for the modernization of our country’s energy infrastructure, whether through transmission projects, innovative grid solutions, or manufacturing capabilities. Funded directly by the Bipartisan Infrastructure Law (IIJA) and the Inflation Reduction Act (IRA), these programs are designed to create a reliable, clean, and affordable grid, while generating thousands of jobs and supporting disadvantaged communities. 

The New Jersey Board of Public Utilities held a public stakeholder meeting this week where Advanced Energy United and key allies spoke in favor of opening a prebuild infrastructure solicitation to support the development of offshore wind projects. 

The transmission project would allow 3,742 MW of offshore wind power to connect to the grid, supporting up to four different wind projects.