On Wednesday, state utility regulators emphasized the need for ongoing federal support for advanced transmission technologies, highlighting their importance to maintain grid reliability and cater to increasing electricity demands. They noted that collaboration among the federal government, states, and the private sector could significantly boost the implementation of these innovative solutions, which are essential for enhancing transmission capacity.
A resolution by the National Association of Regulatory Utility Commissioners (NARUC) pointed out that effectively deploying advanced transmission technologies could benefit taxpayers. They called upon Congress to allocate sufficient funds to assist utilities and states in deploying these technologies, especially as funding from the bipartisan infrastructure law is set to expire in 2025.
In previous funding rounds, advanced transmission technologies have provided support to 29 states. A third round of funding is projected to begin accepting proposals in 2025, promising further advancements in this crucial area.
Doug Scott, the chairman of the Illinois Commerce Commission, sponsored the resolution and stressed the urgency to adapt to the rising electricity demands while keeping energy affordable. He believes that advanced technologies should be the standard approach to increase grid capacity effectively and economically.
NARUC’s resolution is seen as a significant step forward for grid-enhancing technologies, with Jigar Shah, director of the Department of Energy’s Loan Programs Office, noting that these technologies are now widely accepted for large-scale deployment, contrary to perceptions from just five years ago.
Shah also highlighted the importance of virtual power plants and clean energy solutions, expressing pride in the support provided by the Department of Energy to regulators and utilities. Even with the change in administration, the operations at the Loan Programs Office will continue to move forward, with around 200 applications currently under review seeking substantial funding.
According to Shah, the Loan Programs Office has issued approximately $102 billion in loans, offering rates that are more favorable than market alternatives, enabling utilities to undertake projects that serve the best interests of their customers.