- The US renewable energy sector struggles due to insufficient power transmission infrastructure, threatening decarbonization efforts.
- Experts emphasize the need for regulatory reforms to streamline approval processes and enhance grid flexibility amid local opposition and federal coordination challenges.
- Despite the rise of renewables, the US continues to rely heavily on natural gas, raising concerns about price volatility and energy security, especially in regions dependent on gas-fired plants.
US industry experts state that the US renewable energy sector struggles to expand due to inadequate power transmission infrastructure, which threatens national decarbonisation efforts.
Jason Grumet, CEO of American Clean Power, says the fragmented US grid, split into ten regions, limits the transfer of renewable energy from rural areas to urban centres, hindering clean energy growth.
Regions like the Midwest and Texas generate a surplus of wind and solar energy. Without long-distance transmission lines, cities on the East Coast cannot access these resources. This imbalance leads to more power outages and raises energy security concerns as extreme weather events become more frequent.
Experts emphasize the need for regulatory reform to develop a more flexible grid. Transmission projects often stall due to complex approval processes and local opposition, and the absence of federal coordination compounds the issue.
The Inflation Reduction Act (IRA) of 2022 introduced incentives to expand energy infrastructure. However, these measures fail to address critical bottlenecks. Bureaucratic delays slow down projects, pushing back renewable energy integration and threatening decarbonisation goals.
Natural gas remains central to the US energy mix. It serves as a “bridge” fuel, stabilising the grid during the shift to cleaner energy. Grid operators like PJM Interconnection warn that the rapid closure of coal plants and rising electricity demand strain existing infrastructure.
New York and New England, where 60% of electricity comes from gas-fired plants, face even more significant challenges. As renewable energy grows, inadequate energy storage and transmission capacity may drive electricity price volatility.
The IRA offers tax credits for transmission and storage projects but distributes these benefits unevenly. About 80% of the credits go to Republican districts, causing political friction. Despite early concerns, experts remain optimistic about long-term funding for energy infrastructure. However, dependence on foreign supply chains, particularly from China, threatens project timelines.
Experts call for a complete overhaul of the grid. They envision a national system capable of transporting electricity efficiently across the country. Achieving this will require overcoming political and economic obstacles and fostering stakeholder cooperation.
In the short term, energy companies continue adapting their strategies to include more renewables. However, experts warn that these efforts will likely fall short without significant investment in transmission infrastructure, jeopardizing the country’s decarbonisation goals.