Power Transmission Projects See Increased Spending and Growth in Coming Years, a "Navigating the Currents of Change" Webcast on Industrialinfo.com

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Researched by Industrial Info Resources (Sugar Land, Texas)--As states continue implementing renewable portfolio standards (RPS), setting targeted percentages of renewable energy generation, construction of wind, solar and other renewable energy projects has blossomed across North America. Along with these new generating facilities, which are often located in remote areas with little existing infrastructure, has come the need for power transmission and distribution (T&D) projects to actually bring this power to the grid.

Industrial Info is currently tracking more than $50 billion in transmission projects in North America that are planned to begin construction within the next five years. In this week's "Navigating the Currents of Change" webcast, Brock Ramey, Industrial Info's manager for North American Power Industry Research, discusses some of the issues facing the power transmission sector. Ramey says he anticipates annual spending of between $10 billion and $15 billion on power transmission projects in the next few years, with an increase to about $17 billion after 2015.

While construction of renewable energy projects has helped spur transmission projects, 2012 remains it a "make-it-or-break-it" year for many T&D projects because of the possible non-renewal of the federal production tax credit (PTC) for renewable energy projects. If the PTC is not renewed, many wind power projects will be cancelled or delayed, lessening the need for new transmission infrastructure.

While wind power is certainly a huge driver of these projects, other factors also come into play regarding power transmission. In particular, Smart Grid projects require updated transmission infrastructure. Ramey noted that approximately $156 billion in Smart Grid projects are anticipated to begin between now and 2020, and much of the existing transmission equipment, a large amount of which dates back to the 1960s, simply cannot handle the new technology. "If you have an older transmission system and substations, you cannot bring the Smart Meters or the home controls in, because the systems just won't accommodate it," said Ramey.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.