Utah and Indiana Take Bold Steps to Modernize Their Energy Grids

Utah and Indiana Pave the Way for Energy Grid Modernization

Utah and Indiana are at the forefront of energy innovation, recently enacting bipartisan legislation aimed at modernizing their electric grids to address the swiftly rising electricity demand in the United States. The urgency for enhanced energy capacity has grown due to population increases, the proliferation of data centers, and a nationwide expansion in manufacturing.

As part of their initiatives, both states are turning to advanced transmission technologies (ATTs), which include hardware and software solutions designed to improve the efficiency and reliability of existing grid infrastructures. These technologies allow transmission lines to carry significantly more electricity compared to standard systems. For instance, advanced conductors can increase energy transportation by 50% to 110% over conventional lines.

The Legislative Landscape

In a decisive move, Utah’s Governor Spencer Cox signed a bill into law on March 25 this year that mandates electric utilities evaluate the potential benefits of integrating ATTs in their grid planning processes. The new regulations also empower the state’s Public Service Commission to promote ATT usage and authorize cost recovery for utilities following successful deployment of these technologies.

"With energy demand on the rise, we need assured and affordable transmission solutions that can be implemented without delay. Advanced transmission technologies represent the quickest and most practical means to optimize our existing grid," noted Representative Christine Watkins, the bill’s sponsor.

Around the same time, Indiana's Governor Mike Braun approved a similar bill on March 31. This new regulation obligates utilities to assess and report on their ATT investments as part of the state grid planning framework. Moreover, it requires the Utility Regulatory Commission to conduct an assessment of the advantages provided by ATT deployment throughout Indiana. If deemed cost-effective, utilities can recover their investment costs.

This legislative push comes amid growing concerns about grid congestion and a significant backlog of energy projects awaiting grid connection. For example, the region served by the Midcontinent Independent System Operator has experienced congestion costs exceeding $8.3 billion from 2021 to 2023.

By implementing ATT technologies, Indiana aims to swiftly meet energy demands, enhance grid reliability, and reduce operational costs.

A Nationwide Movement

The inclination towards advanced transmission technologies is not confined to Utah and Indiana. Recently, South Carolina and Ohio have also adopted measures promoting ATTs during their planning processes. Meanwhile, North Carolina officials are considering similar legislation. Collectively, these efforts reflect a paradigm shift in addressing the United States' escalating energy requirements through pragmatically devised strategies that have garnered bipartisan support.

According to the U.S. Department of Energy, a national deployment of these technologies could unlock an additional 100 gigawatts of grid capacity, potentially saving consumers an astounding $35 billion by alleviating existing bottlenecks. Furthermore, advanced conductors alone could save approximately $85 billion in total system costs over the next decade.

Policy’s Integral Role in Grid Development

Utah and Indiana's proactive approach serves as a blueprint for other states grappling with energy challenges. By highlighting the importance of swift implementation and broad coalitions of support, these states exemplify how effective legislation can contribute to timely grid modernization. Their experiences demonstrate that with strategic foresight and collaboration among stakeholders, states can establish clear pathways for deploying innovative transmission technologies.

As states contemplate their methods for enhancing energy infrastructure, Utah and Indiana illustrate that proactive legislation paired with innovative technologies can lead to substantial benefits in energy reliability. Those states that act expediently in advancing transmission innovations will undoubtedly be at the forefront of the energy transition in the years to come.