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Transmission Design at the National Level: Benefits, Risks and Possible Paths Forward

Today, the ability to move electric energy interregionally is limited to the capacity of the existing transmission system, a system designed largely to serve intraregional needs from fossiland nuclearbased generation for which production costs are relatively flat from one region to another. In contrast, the levelized cost of energy production for renewables (wind, solar, and deep geothermal) varies dramatically from one part of the country to another. Furthermore, unlike coal, natural gas, and uranium which may be moved electrically or in other ways (rail and truck, or for natural gas, by pipeline), the only way to move renewable energy is by electric transmission. These two attributes of renewables, the heavy influence of location on their economic viability, and their complete dependence on electric transmission for energy transfer, increases benefits derived from interregional transmission in future scenarios where renewables comprise an increased percentage in the national generation portfolio.