Transforming Transmission: The Role of Advanced Technologies & Innovative Practices
London Economics International LLC has released a paper examining the role of Advanced Transmission Technologies and Innovative Practices – together called ATT+ – in strengthening the U.S. electric transmission sector. One goal of this research paper, which was commissioned by WIRES, was to highlight real-world deployments of ATT+. Another goal was to explore the potential benefits of ATT+, based on actual experience of transmission owners, and hit on other lessons learned and recommendations for further use of ATT+ alongside traditional grid investments.
Why Does ATT+ Matter?
The U.S. electric transmission sector is under growing strain. Electricity demand is rising sharply due to data center growth, transportation and heating electrification, and domestic manufacturing. Aging infrastructure must be replaced or upgraded. Extreme weather events are increasing in both frequency and severity, necessitating more resilient grid infrastructure.
While transmission buildout remains essential, ATT+ can increase the capacity of existing networks, reduce project costs and delays when new construction is needed, improve system reliability and resiliency, and enable faster integration of new loads and generation.
LEI categorized ATT+ based on discrete stages of the life cycle of transmission:
- Siting and design innovations – including AI-powered software that can quickly analyze millions of routing options, compact line designs that squeeze more capacity into existing rights-of-way, and streamlined permitting approaches;
- Construction innovations – ranging from modular tower raising systems that lift existing structures without shutting down lines, to helicopter-assisted equipment installation, to exoskeleton structures that can add circuits above existing lines; and
- Operational technologies – this list is even broader. It includes hardware such as advanced conductors, flexible transformers, as well as digital and gas-insulated substations. It also captures grid-enhancing technologies (“GETs”) – technologies that can increase capacity on existing grid infrastructure – such as dynamic line ratings, advanced power flow controllers, and topology optimization. In the O&M arena, it includes drones and robotics, LiDAR imaging, AI-driven asset monitoring, shared spare-parts inventories, and even strategically placed battery storage.
Lessons Learned from Real-World ATT+ Deployments
Drawing on interviews, independent research, and a survey of transmission owners and technology providers operating across the country, LEI found numerous successful deployments of ATT+. Many transmission owners across the country are already leveraging ATT+ in their service territories and continue to evaluate potential use cases. These deployments span different service territories, business models, and regulatory frameworks.
These real-world experiences shed light on some important lessons. First, proven track records are preferred. Reliability is paramount in the electricity sector, so less mature technologies that are not yet commercially available or widely deployed often face adoption hurdles. Second, ATT+ benefits are often undervalued in short-term analysis. Regulatory frameworks often emphasize near-term cost minimization over long-term system benefits. Finally, although capex versus opex accounting can influence choices, transmission owners consider multiple objectives beyond financial returns. Nevertheless, looking for ways to align and continue to provide financial incentives for innovation can expand the solution set.
Recommendations
Several strategies can accelerate adoption of ATT+ in transmission planning processes. These include:
Fostering collaborative pilot projects between transmission owners and technology providers, supported by a shared resource repository to promote knowledge exchange and reduce redundant testing;
- Adopting a forward-looking, long-term planning and investment approach that comprehensively considers the benefits of ATT+ given the evolving needs of the grid;
- Establishing centralized and ongoing monitoring of technology readiness levels so that regulators and transmission owners know when technologies are deployment-ready;
- Reducing regulatory uncertainty through “sandbox” regulatory environments that allow for testing of innovative solutions without full compliance burdens and risks; and
- Aligning financial incentives relative to traditional transmission capital investments through innovative capitalization policies or tax incentives.
Bottom Line
ATT+ is not a substitute for building new transmission lines, but it is an essential complementary “tool in the toolbox” for modernizing the grid, meeting surging demand, reducing costs, and enhancing reliability and resiliency in a changing climate and energy landscape. Federal and state action – combined with industry collaboration – can overcome adoption barriers and unlock the full value of these innovations for customers and the economy.
For more information, visit the WIRES website at: https://wiresgroup.com/use-of-advanced-transmission-technologies-and-innovative-practices-in-power-systems/
About the Author
Julia Frayer
Julia Frayer is the Managing Director for London Economics International LLC (“LEI”). Julia manages LEI’s quantitative financial and business practice area and specializes in economic analysis and evaluation of infrastructure assets, such as electricity generation and wires assets, as well as gas transportation assets. Julia has worked extensively in the US, Canada, Europe, and Asia over the last 25 years on both deregulated power market issues and regulated areas of the electricity sector. Specific to the electric transmission sector, Julia has advised on transmission rate design and regulation, valuing the benefits of transmission, evaluating non-wires alternatives, as well as procurement processes and contract design.