Non-wire alternatives for building new transmission lines have been a very popular subject of countless reports, studies and papers over the years. Maybe it’s the idea of not having to dealing with bottlenecks like high upfront costs, permitting-intensive processes, and community-sensitive delays. The latest hack for overcoming transmission gridlock is an unconventional, wireless approach. Initially it was called storage as a transmission asset (SATA) or the shortened version, storage-as-transmission. As it got more successful, each coalition wanted their own descriptor, which meant a variety of names, and it got confusing fast! Of all the industry names and acronyms that are being used, virtual transmission lines (VTL) appears to be the trending term for this outside-of-the-box application.

Since “Charging Ahead” has explored many of these virtual applications gaining popularity, let’s continue the trend and add VTLs to the list we’ve investigated with virtual twins, virtual power plants, virtual inertia and others. VTL technologies represent a cost-effective way to expand grid capacity and manage congestion according to experts. Utilities and grid operators are taking advantage of their ability inject or absorb active and reactive power with control architectures that allow independent or coupled regulation of each. That’s how VTLs emulate the electrical characteristics of physical transmission lines. As a result, virtual transmission technology has found itself being a groundbreaking alternative for adding capacity to the struggling transmission infrastructure.

Before jumping into the subject, let’s take a quick look at the background to make sure we’re on the same page. BESS (battery energy storage systems) are the heart of the application. BESS unlocked the power grid to solar and wind by overcoming their inherent weaknesses. It’s also proven to be more versatile than initially expected as researchers began focusing on standalone utility-scale BESS applications. They were also tinkering with many different battery designs and chemistry in an effort to improve battery technology, which proved fortuitous. That resulted in the development of the lithium-iron phosphate (LFP) battery and that was the gamechanger!

Timing is Everything

The LFP battery was one of those underdog technologies that had to fight to overcome resistance, but it was exactly what the BESS application needed. It was affordable. By 2025, “LFP batteries accounted for around 90% of global battery storage deployments,” according to IEA (International Energy Agency). Interestingly, IEA revealed that “this was a sharp rise from just a few years ago, when their share was below 50%.” One more surprise was the fact that around 80% of that 2025 new battery capacity was used with utility-scale installations. This gain in dominance appears to be a combination of factors. LFP batteries are more cost-effective than previous chemistries used for lithium batteries because the LFP design uses more abundant and less expensive materials.

As developers refined the LFP systems they improved their characteristics. LFPs have round-trip efficiency’s in the 85% to 90% range. Their power densities were upgraded, and their discharge durations started pushing 8 hours or more. All of this made LFPs more desirable and the demand grew for utility-scale BESS. It also helped that prices dropped substantially. As LFP-based BESS’s affordability increased, so did its scalability, making standalone stationary BESS more practical. IEA’s Global Energy Review 2026 noted that “battery storage was the fastest growing power technology” and again, affordability is a major factor.

Taking it a step further, a study from BloombergNEF had a section on turnkey grid-connected, utility-scale BESS with some interesting datapoints. The portion covering the average worldwide cost of these apparatuses was enlightening. The global average cost for utility-scale BESS was about “US$117/kilowatt-hour. Breaking that down further revealed the average cost for China was $73 /kilowatt-hour, for Europe it was $177/kilowatt-hour, and for the U.S. it was $219/kilowatt-hour. At these price levels, the capital cost of LFP BESS made virtual transmission economically viable by reducing the largest variable cost in BESS deployment.

VTLs Beats Wires

Virtual transmission applications started slowly with a trial project sponsored by France’s national grid operator, RTE, in partnership with Saft and Schneider Electric in the early 2020s. It combined multiple BESS to act like a VTL and demonstrated that BESS devices could replace or supplement physical transmission lines. Not long after that, Litgrid, the transmission system operator in Lithuania deployed Fluence Energy’s first VTL pilot project. It used BESS devices acting like a transmission line and maintained grid stability, reliability, and synthetic inertia. The project was successful and more VTLs were ordered and deployed.

As the technology gained popularity, deployments increased and the technology advanced. It wasn’t long until it was recognized as a viable tool for adding transmission capacity and addressing congestion problems. Those two features increased VTL’s acceptance and quickly became its most talked-about benefits. It’s a relatively simple process according to Fluence Energy. Multiple BESS are placed along a congested transmission line and “operated to inject or absorb power.” In effect, “it mimics a transmission line’s power flow.” The system charges when there is low demand and discharges when demand is high or generation is insufficient.

By injecting power at a congestion point or absorbing before that point the VTL removes congestion in real-time. A VTL operated in this manner “can take the place of proposed system upgrades or transmission lines that would otherwise have to be built,” but there are other important features. When it comes to installation time VTLs don’t have the long lead times associated with adding high-voltage transmission or the high costs. They also save time with the permitting process since they are usually sited in existing substations. In many cases they can be installed in months rather than years and that’s important for congestion relief and grid reliability.

Grid Services

Congestion comes in several forms but there’s one that’s getting attention, it’s the “peak-only” congestion that’s been described as a global bottleneck. It’s becoming a major concern worldwide because of its critical demand spikes. Basically, peak-only congestion is a localized event that exceeds capacity but only during specific peak periods, which means it’s intermittent and expensive to fix. The typical way it’s been dealt with is by dropping load or asking customers to cut back but that doesn’t bring customer good will. VTL applications, however, are a more cost-effective solution. In addition to the anti-congestion features, VTLs can also offer utilities and grid operators ancillary services through enhanced control architectures.

VTLs can immediately respond to frequency deviations like under frequency responses and fast frequency responses. They’re also able to provide adjustable Var (volt-amperes reactive) control, which is essential for voltage regulation and grid stability. Strategists indicate that VTLs operating in the Volt/Var mode provide rapid, flexible reactive power without the thermal and stability restrictions found in physical high-voltage transmission lines. There is also black start capability and virtual inertia control, but that’s sufficient for this discussion. There are several interesting VTL installations, but let’s look at one that’s really intriguing.

Transgrid, operates and manages the high-voltage electricity transmission network in New South Wales (NSW), Australia and they have been busy with future grid building. They designed and implemented the System Integrity Protection Scheme (SIPS) as part of the Waratha Super Battery (WBS) project with EnergyCo and other partners. The WBS is an 850megawatt/1680megawatt-hour BESS. WBS is designed to be integrated with SIPS components installed at 19 sites across NSW forming a virtual transmission system. The arrangement increases the effective transmission capacity of NSW existing grid without building new lines. The project began partial operation in mid-2025 and is expected to be fully operational in 2026.

Virtual Technologies

It seems like the power delivery system is under a great deal of strain from massive demand surges and the need for modernization. Maybe that’s why we’re also experiencing such an outpouring of virtual technologies like virtual transmission, virtual power plants, and other software-driven grid solutions that promise results. Or perhaps it’s as previously stated a case of modernization where traditional methods are not able to keep up with the speed and magnitude of change required by the power grid. Virtual technologies like VTLs may be software-based versions of physical resources, but they do offer tangible results and they do it quickly. VTLs are being deployed to add transmission capacity without waiting for “years-long infrastructure builds.”

Analysts point out VTLs have attracted global interest because they bridge the gap between needs and performance. In a technical paper, Fluence Energy reported that over 3 gigawatts of virtual transmission projects are in various stages of development and operation worldwide. They’re a cost-effective method for adding transmission capacity, improving grid performance, and offer the flexibility today’s dynamic environment requires. The bottom line here is that virtual transmission is no longer a concept. “It’s a proven, commercially deployed technology in multiple countries.” Experts say it’s a “credible contender for modernizing the power grid.” There are going to be challenges and a few bumps along the way, but VTL technology is needed to keep electricity affordable!