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July 7, 2022
In January 2022, the Department of Energy (DOE) announced the Building a Better Grid Initiative, a new program that will help the agency carry out the electric grid modernization provisions described in the Infrastructure Investment and Jobs Act (IIJA) (P.L. 3684). IIJA is the largest infrastructure investment in U.S. history and includes a variety of climate investments designed to help the Biden-Harris Administration reach its goal of achieving net-zero emissions by 2050. Drawing upon more than $20 billion in federal financing tools, Building a Better Grid aims to further the administration’s climate goals by both strengthening existing grid infrastructure and significantly expanding national transmission networks. A larger and more resilient grid will provide the foundation for the accelerated renewable energy ramp-up needed to decarbonize the electric power sector.
Much of the current grid infrastructure in the United States was developed decades ago, and there have been growing concerns that the system is woefully outdated. The power grid was initially built to transmit electricity from centralized fossil-fuel generation facilities to population centers. However, with the growing use of distributed clean energy technologies like wind turbines and rooftop solar, the grid will need to embrace decentralization, which will require substantial modernization investments.
Unlike fossil fuels, renewable energy sources are very time- and location-specific. Renewable energy tends to be more intermittent than fossil-fuel energy (the sun isn’t always shining, nor is the wind always blowing), and many of the utility-scale renewable energy facilities in the United States are located in relatively remote regions. Transporting this electricity to large population centers will require thousands of miles of new transmission lines. A larger, smarter grid will also make it easier to ensure sufficient electricity supply no matter what the local conditions. These issues have been the primary focus of the Building a Better Grid Initiative.
Renewable energy resources greatly vary in abundance throughout the United States and cannot consistently power population centers at all times. However, by developing an electric grid that integrates the various clean energy generation facilities through inter-state transmission lines, the United States can better manage its energy demands and maximize its renewable energy resources. Image credit: National Renewable Energy Laboratory
DOE released a Notice of Intent on January 19, 2022, outlining the Initiative’s primary objective of launching a nationwide program for transmission deployment. The three main facets of the DOE’s strategy will involve:
The agency plans to coordinate with relevant state and tribal governments, independent system operators, utilities, and other stakeholders from across the country to pinpoint nationally significant transmission lines. Through a study of national transmission needs, DOE will identify where to build new transmission facilities and where federal modernization investments are required to prepare existing transmission infrastructure for rising load demands and clean energy integration.
In addition to studying national transmission needs, DOE will conduct a transmission planning analysis to ensure the grid’s ability to facilitate renewable energy sources and maintain stability in the long term. This is crucial for ensuring the long-term resilience of national grid systems, especially considering the Biden-Harris Administration’s goals of installing 30 GW of offshore wind by the end of the decade and fully decarbonizing the electric power sector by 2035.
Secretary of Energy Jennifer Granholm outlined the importance of this work in DOE’s first Building a Better Grid webinar, stating “We actually want to cut emissions in half by 2030, reach 100 percent clean electricity by 2035, and then achieve net zero by 2050. And all of our success is going to start with the foundation which is the transmission capacity.”
Streamlining the permitting process for grid infrastructure is another key component of the Building a Better Grid Initiative. Currently, constructing interstate transmission lines involves several government agencies and a plethora of procedural hurdles. This process can take years and delay project timelines significantly. To improve the efficiency of this permitting system, DOE will support pre-application planning for those seeking permits, promote government partnerships with the private sector, and collaborate with the Federal Energy Regulatory Commission (FERC) to approve nationally-important transmission corridors for FERC-issued permits. The revamped permitting processes will seek to promote inter-agency collaboration and reduce time-intensive bureaucratic hurdles that can stifle critical transmission development projects.
Alongside its transmission planning and permitting work, the Building a Better Grid Initiative will also support transmission research, development, and demonstration. In particular, the Initiative will focus on advancing energy transmission and storage, which will be vital in sustaining a decarbonized energy economy.
Ushering in clean energy technologies to the national energy mix is paramount to reducing carbon emissions and mitigating global climate change. However, as the energy makeup of the United States evolves, so must the accompanying grid infrastructure. The Department of Energy’s recent initiative aims to target this very issue, infusing much-needed capital into the national grid system. Through its array of grid expansion, modernization, and resilience programs, Building a Better Grid could help accelerate the nationwide transition to a 100 percent clean energy economy.
Author: Abi Shiva
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