The Latest Market Data Show that the Potential Savings of New Electric Transmission was Higher Last Year than at Any Point in the Last Decade

The value of additional U.S. transmission capacity in 2022 was higher than in any year over the prior decade (2012-2021). That means more transmission could have reduced power system costs last year by an amount greater than in any of the previous 10 years. The study from Lawrence Berkeley National Laboratory showed that the mean and median value of interregional transmission links in 2022 surpassed the annual values of the prior decade, indicating the increased value was a national phenomenon rather than a regional one. Additionally, while this value was concentrated in a small portion of total hours, it was slightly less concentrated than in years prior. Further, the lab’s findings supported past results indicating that many existing transmission planning approaches are likely understating the economic value of new transmission infrastructure. The analysis points to the need for a more comprehensive assessment of transmission value during both normal and extreme operating conditions, the latter of which is not always adequately modeled or considered by transmission planners.  

The Latest Market Data Show that the Potential Savings of New Electric Transmission was Higher Last Year than at Any Point in the Last Decade