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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Grid modernization, as a concept, can be overwhelming and complex. It can also seem extraordinarily expensive and out of reach for many in the utility industry. Competing priorities, an array of funding programs, countless regulations, and increasing demand further complicate efforts. But I believe that by taking incremental steps forward, the nation can accelerate progress toward its grid modernization goals.
There are at least five million miles of distribution lines in the U.S. grid – five times more than any other country. Many parts of the U.S. distribution grid infrastructure are over 50 years old and past their expected lifespan, according to the American Society of Civil Engineers (ASCE) 2021 Infrastructure Report Card. The U.S. faces unique grid reliability and resilience challenges, even as it accelerates efforts to modernize the grid.
Unlike countries with more compact and underground networks, the U.S. grid's sprawling nature and reliance on overhead lines increase the complexity of maintaining reliable service. Exposure to extreme heat and cold, icing, tropical storms, tornadoes, wildfires, and earthquakes make distribution lines particularly vulnerable.
The challenge is exacerbated by the reliance on 110 volts, which requires roughly twice the current of 220-volt systems found elsewhere in the world. Higher current levels lead to faster equipment degradation, increased maintenance, and a more urgent need to replace antiquated equipment quickly.
These conditions cause widespread outages that impact millions of customers and lead to substantial economic losses every year. While operators work to modernize the distribution grid, the sheer scale of the task means widespread progress will take considerable time. In this context, overhead distribution line monitoring is a critical, incremental step forward in grid modernization.
Line monitoring reduces the time needed to locate and restore faults, leading to substantial reductions in the System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI). Studies have shown that a 20-37% reduction in feeder restoration time can lead to a 7-15% reduction in annual SAIDI. This improvement translates into substantial cost savings for utilities, with each minute of SAIDI mitigated resulting in approximately $200,000 to $1 million in operational and maintenance (O&M) savings.
With real-time information about the faults' exact location and nature, utilities can deploy repair crews more efficiently. This targeted approach reduces the time required to restore service and minimizes the need for extensive inspections and guesswork. Consequently, customers experience shorter outages, and utilities benefit from reduced operational costs and improved customer satisfaction.
Beyond immediate fault detection, advanced monitoring systems enable proactive maintenance through predictive analytics. By continuously monitoring the condition of overhead lines, these systems can identify potential issues before they lead to outages. For example, they can detect signs of wear and tear, vegetation encroachment, and equipment degradation.
Utilities can use this information to prioritize maintenance activities and address issues before they escalate into major problems. This proactive approach enhances grid reliability and extends the lifespan of grid infrastructure. Over time, the savings from avoided outages and reduced emergency repairs will be substantial.
Extensive research about the cost savings achieved through reduced outage durations, improved maintenance practices, and enhanced disaster response is available from the U.S. Department of Energy (DOE) and other sources. These savings can offset the initial investment in monitoring technology. Over time, operators can achieve a significant return on investment while enhancing the reliability and resilience of their networks.
In addition, there are several programs available to help utilities fund distribution grid monitoring projects. One example is the Grid Resilience and Innovation Partnerships (GRIP) Program, a major funding initiative from the DOE designed to enhance grid reliability. The program will provide up to $3.9 billion in the second round of funding for fiscal years 2024 and 2025, and aims to increase resilience against extreme weather, enhance grid performance, and spur innovation (EnergyGov).
The modernization of the U.S. power grid is a complex and ongoing process. Advanced monitoring can significantly improve grid reliability and resilience as part of an incremental grid modernization strategy. Utilities that invest in grid monitoring now can expect to see substantial reliability benefits, cost savings, and improved customer satisfaction. The time to act is now.
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