With increased electricity demand as we electrify away from fossil fuel power, the transmission system needs to have greater capacity and resiliency. The GRIP program is addressing some of that by funding grid-enhancing technology which can free up capacity on the grid, allowing affordable and timely integration of renewable energy projects and some 2 terawatts (1000 gigawatts each) worth is waiting to connect to our grid in the US as of Dec 2023.
HR7634 seeks to add more grid-enhancing technology deployment by not only allowing a developer to be paid for the cost of the project but also to share in some of the cost savings generated by it. Guaranteeing a return on this investment should increase the motivation and speed for these projects to assist with electricity transmission capacity needs. It could also help move toward broader changes in classic investor owned utility financing models so that their financial interests are more aligned with meeting our climate goals.
HR7634 seeks to add more grid-enhancing technology deployment by not only allowing a developer to be paid for the cost of the project but also to share in some of the cost savings generated by it. Guaranteeing a return on this investment should increase the motivation and speed for these projects to assist with electricity transmission capacity needs. It could also help move toward broader changes in classic investor owned utility financing models so that their financial interests are more aligned with meeting our climate goals.