U.S. Electric Utilities Invest Heavily to Meet Future Transmission & Distribution Requirements

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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. utilities are expected to invest nearly $880 billion in the next 20 years for transmission and distribution upgrades. The infrastructure system includes more than 642,000 miles of high-voltage transmission lines; 19,000 generators, each with a capacity of more than one megawatt (MW); and 7,000 operational power plants.

The investments are being driven by the need to improve the reliability and capacity of the North American electrical grid, which was constructed largely during the post-World War II era.

Industrial Info is tracking 368 transmission projects in the U.S. valued at about $51 billion. The Rocky Mountains region leads with 73 projects valued at $19.66 billion, followed by the Midwest region, with 51 projects valued at $8.45 billion; and the Mid-Atlantic region, with 29 projects valued at $5 billion.

In addition to addressing aging infrastructure, investments are being made by the industry to meet increasing demand; comply with state and federal regulations; provide reliable power delivery; move renewable energy to load centers; accommodate the shift to natural gas from coal; and adapt to the growth of U.S. oil and gas production.

The U.S. Department of Energy's (DOE) Grid Modernization Laboratory Consortium has brought together 14 national labs and nearly 70 experts to identify challenges to grid modernization and to create solutions. This research would then deliver advances to the electric grid, such as smart grid technology, where a customer's home can communicate with the grid to do things such as starting the dishwasher during non-peak hours.

The installation of fiber-optic communication cables, and the replacement high-voltage wires in transmission lines with higher-capacity versions, allow for more power to be delivered to regional substations. They also allow data on power flows to be conveyed to computer-based protection systems. These technological advances will allow the grid system to avoid blackouts and generation bottlenecks during high-load periods or natural disasters.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, 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.