RTO Insider: “Report Estimates Billions in Savings from More Interregional Transmission”
This story details the findings of a new RFF-funded paper about the benefits integrating electricity markets across the United States.
The authors of a new report released April 4 say better market integration and reduced interregional constraints in the US transmission network would have saved as much as $12 billion in 2022 and 2023.
They note the importance of achieving better grid integration in an era when increasing amounts of renewable generation is coming online but flag the difficulty of achieving it, given the financial incentive existing generators have to delay or block such integration.
The working paper, “Power Flows, Part 2: Transmission Lowers US Generation Costs, But Generator Incentives Are Not Aligned,” was written by Dasom Ham, Owen Kay and Catherine Hausman as part of Resources for the Future’s Obstacles to Energy Infrastructure research project.
