Regional Transmission: What It Means and Why It Matters (Part 1)

Written and prepared by Liam Van Vleet (July, 2023)

Edited by Abbey Greene, Jen McCann, and Sue Kennedy

Main Takeaways

• The U.S. government is making policy to accelerate transmission buildout, allowing easier state coordination as state partnerships form along the East Coast.

• Questions remain about who should bear the cost of the up-front investment needed for the grid, where landing points should be, and who has the authority to cross jurisdictional boundaries to build and operate it.

• Estimates show that pre-building transmission could cut environmental impacts in half, with 60–70% fewer shore crossings, and could reduce marine transmission cable installations on the ocean floor by 50% or approximately 2,000 miles.

Image Source: The Brattle Group

Why is there an interest in regional transmission? 

Recent studies in the U.S. and in the United Kingdom point to the need for, and benefits of, coordinated regional planning and implementation of a transmission grid that brings OWE to major markets onshore. State partnerships along the East Coast of the U.S. are proposing regional transmission strategies to create a networked offshore transmission grid. Collaborative planning and implementation of the offshore transmission grid could bring multiple efficiencies to the development process and benefits to people and marine and coastal environments.

If transmission could be pre-built, a recent study estimates that environmental impacts could be cut in half, there could be fewer shore crossings, and less cable installations along the ocean floor. The study also reports that a regional approach could also minimize the risk of connecting a new wind farm, where lower-cost bids for developers and lower-risk insurance premiums assigned to siting, permitting, and construction eventually mean cheaper electricity for customers. This is a potential option for improving the utilization and flexibility of the offshore transmission infrastructure and is a means for New England states to reduce the need for fossil fuel heating for the winter months. Proponents and analysts also see the potential to reinforce, avoid upgrades of, and support the existing regional onshore grids, which will improve grid-wide resilience and reduce future congestion costs.

What is the timeframe for making this happen?

Though the ambitious offshore wind energy goals set by the U.S. government for 2035 and 2050 may seem distant, proponents of the regional transmission approach note that the next few years are key to realizing the potential environmental and financial benefits linked to regional transmission planning and implementation.  Federal funding and tax credits through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) are available for planning and facilitating and are not indefinitely available. Issues with technology compatibility and the type and use of transmission facilities pose impacts, where facilities being planned now for construction between 2030 and 2035 could directly impact the timing for future needs for 2040 to 2050.

Major questions and barriers remain:

Despite the studies, federal action, and state collaboratives being formed, questions remain. Community and stakeholder engagement is needed to guide the proposed landing sites and minimize land-based transmission upgrades that have traditionally been sited in overburdened and underserved communities. Also, engineering questions exist around the design and implementation of high voltage direct current (HVDC) systems that provide the most efficient system structure. Finally, consumer price is of concern, as recently seen in Rhode Island, and dialogue continues regarding co-optimizing transmission infrastructure to provide maximum consumer benefit.

Learn Even More:

• An Offshore Wind Super Grid for the East Coast from the Center on Global Energy Policy at Columbia University, School of International and Public Affairs

• The Benefit and Urgency of Planned Offshore Transmission: Reducing the Costs of and Barriers to Achieving U.S. Clean Energy Goals from Brattle Consultants for the American Clean Power Association (ACP), the American Council on Renewable Energy (ACORE), the Clean Air Task Force (CATF), GridLab, and the Natural Resources Defense Council (NRDC)

References: 

1. The Northeast States’ Letter to the Department of Energy for Interregional Transmission

2. News Release: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont Working Together on Multi-State Transmission Infrastructure
   

3. Columbia University’s Center on Global Energy Policy: An Offshore Super Grid for the East Coast
   

4. National Renewable Energy Laboratory: Atlantic Offshore Wind Transmission Study

5. News Release: NE4OSW Applauds Next Steps in New England States’ Collaborative Transmission Initiative
   

6. The Brattle Group, Inc.: The Benefit and Urgency of Planned Offshore Transmission: Reducing the Costs of and Barriers to Achieving U.S. Clean Energy Goals - Executive Summary
   

7. New England Energy Vision: New England States Transmission Initiative

8. News Release: Department of Energy Proposes National Interest Electric Transmission Corridor Designation Process