Grid Technology Could Save Billions But For a Policy Vacuum
Two studies have found that using grid-enhancing technologies in generator interconnection could reduce wholesale energy costs nationwide by over $5 billion per year.
19 Dec
2024
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2025 is a new year, with changing global power dynamics, a new U.S. administration, and conflict in Europe and the Middle East affecting power generation, distribution, pricing, and priorities. In the U.S. new, highly impactful global regulations, mandates, and trends will influence utilities’ priorities, grid modernization plans. Reflecting conversations with our global customer base, here are my top observations and predictions for 2025.
The U.S. and countries across Western Europe, South America, and the Middle East are adopting GET-related mandates and incentives at record speed driven by the need to increase the capacity and lifespan of transmission grids while meeting energy demands and decarbonization priorities.
In the U.S., anticipated FERC regulations in 2025 will offer incentives like higher ROE adders, automated cost recovery, and performance-based measures to accelerate GETs adoption. Existing orders 1000, 1920-A, and 881 require utilities to incorporate GETs such as Dynamic Line Ratings (DLR) and Advanced Power Flow Control into planning and operations, improving grid efficiency and lowering energy costs. FERC has issued an Avanced Noticed of Proposed Rulemaking (ANOPR) regarding reforms that would require Dynamic Line Ratings (DLR) and enhanced reporting practices on transmission lines to reduce congestion costs, facilitate new resource interconnection, and improve reliability through broader deployment of DLR.
The European Union mandates under the European Green Deal, and a recent allocation of €700 billion (€175 billion for digitalization such as GETs) aim to pave the way for the rapid integration of GETs technology. Priorities include interconnection of renewable energy, increased reliability, capacity, and the easing of grid bottlenecks through DLR, power flow control, and enhanced monitoring technology.
In the Middle East, Saudi Arabia and the UAE are pursuing grid modernization as part of their Vision 2030 with a budgeted $17.6 billion in smart grid upgrades by 2027. Additionally, the UAE is leading through programs like the Distributed Solar System (DSS), advancing rooftop solar integration and grid sustainability.
This global momentum reflects a shared recognition of GETs as cost-effective solutions for modernizing energy grids and supporting the clean energy transition.
The concept of a "tipping point" in reference to the global average temperature refers to a threshold beyond which climate change effects could become self-sustaining and irreversible. Many scientists agree that the tipping point is a 1.5°C to 2°C increase in global average temperature above pre-industrial levels. Exceeding this range risks triggering catastrophic changes, such as significant ice sheet loss, shifts in ocean circulation, massive biodiversity loss, and more frequent and severe weather events.
Global decarbonization goals are pressuring utilities to integrate renewables, necessitating upgrades to transmission capacity. The EU has set ambitious targets via its “Fit for 55” targets to reduce emissions by 55% by 2030. In response, GETs like DLR are increasingly seen as cost-effective, short-term solutions to improve grid flexibility and manage the variability of renewable energy sources.
"FERC's Order 881, which requires compliance by July of 2025, is a significant step towards requiring utilities to adopt Ambient Adjusted Ratings (AAR), a precursor to DLR. The adoption of these technologies can substantially increase the accuracy of transmission line ratings and reduce renewable energy curtailment as well as provide savings and environmental benefits," said Neil Chatterjee, former FERC Chairman and Ampacimon board member.
In the U.S., the former Trump administration’s withdrawal from the Paris Climate Agreement in 2017 and rollback of the Clean Power Plan showed a preference for energy policies focused on economic growth and energy independence. However, the administration has historically supported infrastructure investment, which could indicate a favorable environment for GETs deployment as a tool to increase transmission capacity and reliability without building new lines (and incurring new costs). Trump-appointed FERC commissioners could favor GETs solutions for efficiency and grid reliability and continue current GETs incentives if they align with infrastructure and cost-savings goals.
To mitigate government regulatory pressure and to support economic growth, more public-private partnerships will drive GETs adoption by involving commercial companies in technology deployment and funding. As these partnerships are expanded, utilities may find easier access to capital for adopting technologies like Dynamic Line Ratings and other GETs. This is especially true in the U.S. as the demand for reliable, cost-effective grid modernization solutions grows and government funding for GETs is scrutinized.
In emerging markets like South America and parts of the Middle East, governments and private companies are collaborating to fund and deploy GETs. In these regions, technology providers are exploring shared funding models or leasing options to ease GETs adoption. These partnerships are expected to drive faster technology adoption in areas with limited access to capital.
Utilities are tamping down concerns and leaning into AI to manage the increasing complexity of adding renewable energy sources, optimizing distributed energy resources (DERs), and improving grid reliability with real-time analytics. The adoption of AI in grid management is projected to accelerate from 2025 to 2030, with estimates that 60-70% of utilities in advanced and emerging markets will utilize AI by 2030 . Technology including DLR, predictive maintenance systems, and renewable integration are key drivers of this trend. AI is increasingly used to analyze real-time and historical sensor data to predict and prevent failures and reduce costs through proactive repairs. AI-powered DLR optimizes electricity flow and adjusts capacity in real-time, based on environmental factors. AI is widely used to analyze and predict power generation needs, ensuring a balanced and uninterrupted supply. AI-driven demand forecasting helps utilities allocate resources effectively, while cybersecurity tools identify and mitigate network threats. Additionally, AI streamlines energy trading and pricing, allowing for dynamic strategies that optimize revenue and balance loads during fluctuating demand.
“I’d say that next year we will see an increased adoption of digital technologies. Customers’ preference remains on validated models and solutions, but as the technology cycles become shorter, AI-based applications will push their way into utilities solutions space and will see higher degree of adoption,” stated Daniel Mitcan, Ampacimon CTO.
Utilities that incorporate AI and other analytics technologies are also realizing a rapid return on investment. Utilities that have successfully employed AI and analytics technologies are achieving 2 to 10 percent improvements in production and yield, and 10 to 30 percent improvements in cost in the first two years .
Thomas Schmidt, Ampacimon Global Sales Director agrees: “Reflecting on the last Cigre conference and our discussion with Powerlink, it is essential to provide high-quality data and analysis. This will enable our customers to optimize the use of existing assets and make informed decisions moving forward.”
As climate change impacts intensify, the focus on climate adaptation and resilience in energy infrastructure will heighten. GETs, particularly DLR, are instrumental in helping utilities manage extreme weather impacts by providing real-time data to maximize transmission capacity safely. In the Middle East and other regions facing extreme temperatures, climate resilience will drive adoption of technologies like DLR to ensure grid stability.
Many European countries and U.S. states continue to enact their own mandates, clean energy targets, and resilience standards. California, New York, and states in the Midwest and Northeast United States will continue leading in GETs adoption, even if federal support wanes. States like California and New York have passed ambitious clean energy targets, and state regulatory bodies continue to prioritize grid modernization efforts. California’s SB 100 (2018) and New York’s Climate Leadership and Community Protection Act (2019) are examples of state-level legislation driving GETs adoption through aggressive renewable and grid modernization mandates.
Generating clean energy is only half the solution. Getting it on the grid and to consumers is the other half. Transmission grids around the world are aging, and demand for clean energy is increasing. Grid Enhancing Technology is one of the keys that unlocks grid capacity and paves the way for broader clean energy interconnection. GETs innovations will accelerate in 2025 as vendors, including Ampacimon, mitigate capacity constraints with DLR and AAR solutions and AI-driven analytics that reveal unused capacity. DLR reduces congestion costs, improves reliability and safety, and reduces congestion barriers that prevent the interconnection of clean, lower-cost energy sources. Advanced techniques for line and facility ratings give utilities the information they need to optimize existing infrastructure for efficiency and resiliency. Finally condition monitoring solutions prioritize and locate issues in aging grid infrastructure with real-time data. Innovation in grid enhancing technology is expected to accelerate in the coming year.
Since DLR deployment requires long-term planning, utilities are increasingly using ambient adjusted ratings (AAR) to achieve incremental efficiency in the short term. The benefits of DLR, beyond AAR, are realized when there is sufficient wind, in the right direction, to cool the lines and therefore identify and pinpoint additional capacity.
2025 will mark an exciting year of change and achievement as global utilities adopt technologies that serve customers and the climate, and technologies like GETs and AI will play a critical role. Utilities, regulatory bodies, nations, and states are proactively driving to meet these goals. As 2025 unfolds, we believe strong regulatory support, regional standards, and technological advancements will drive GETs adoption. New partnerships between utilities, the technology industry, government agencies and scientists highlight the importance of finding ways to streamline financing and collaboration models to overcome barriers to widespread GETs deployment.
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