Advanced Energy Perspectives

America has not been building the kind of transmission lines it needs to reliably and cost-effectively power our grid, and a major part of the problem has been our short-term, just-in-time planning process. On May 13, the Federal Energy Regulatory Commission (FERC) released Order No. 1920, meant to modernize the transmission planning process by viewing the system through a wider lens to plan for and construct the transmission system we need for the future.

With the Federal Energy Regulatory Commission’s (FERC) much-awaited final rule on Transmission Planning and Cost Allocation imminent, New England’s grid operator, ISO-NE, quietly prepared to file at FERC its own hugely consequential, self-initiated Longer-Term Transmission Planning (LTTP) reforms. The problem it seeks to address? With peak demand for electricity set to double to 51 – 57 GW in the region by 2050, planners recognize the current grid’s transmission capabilities are ill-equipped to ensure reliability while handling the transition to an emissions-free electricity sector. ISO’s LTTP filing establishes a framework for procuring, building, and funding transmission projects and follows the inception of a new paradigm for long-term electric system planning. Combined, these solutions promise to propel us towards the much-needed build-out of the future grid and help us reach urgent state energy and climate policy requirements. In recognition, Advanced Energy United, along with a number of other allied organizations, wrote to ISO-NE and the New England States Committee on Electricity (NESCOE), commending their efforts while urging them to leverage this process as soon as it is effective.   

Currently, over two million megawatts of generator and storage projects are actively seeking to connect to the U.S. transmission grid. The process to connect these proposed projects to the grid so they can start generating electricity—called “generator interconnection”—is outdated, slow, unpredictable, and sorely in need of reform. The 2024 Advanced Energy United Generator Interconnection Scorecard is the first-ever attempt to evaluate each of the seven regional transmission system operators on their generator interconnection processes. 

Roughly one-third of Americans report having a side hustle to supplement their income. Side hustles range from delivery drivers to social media influencers and may soon include something surprising—electricity providers. That’s the promise of a Virtual Power Plant (VPP), letting consumers sell their unused energy back to the grid and get compensated for it. A VPP is formed when distributed energy resources – like solar panels, batteries, and EVs – are combined, or “aggregated” together and managed as a single resource like a power plant. 

The United States electric grid is undergoing a transformation and significant changes need to occur for Americans to fully realize the benefits of these improvements. The key is the transmission system. As the federal agency charged with regulating interstate transmission of electricity, the Federal Energy Regulatory Commission (FERC) is uniquely positioned to create new rules that better ensure Americans can achieve equitable, affordable access to energy, secure our grid’s future reliability, and accelerate the transition to clean generation and advanced grid technologies.