The Aging US Power Grid: Navigating Toward Modernization

The aging infrastructure of the United States power grid presents a pressing challenge amid increasing electrical demand and the clean energy transition. Investments in infrastructure and grid-enhancing technologies are crucial to modernizing our power system and meeting evolving energy needs.

“The grid” represents more than just physical infrastructure; it encompasses a complex ecosystem of stakeholders and systems working in unison. The grid involves asset owners, manufacturers, service providers, and government officials. [1] However, both the infrastructure and its governing systems require modernization to address new demands posed by climate change and growing energy demand. Due to its age, grid infrastructure faces increasing challenges and risks across generation, transmission, distribution, and the communication and data assets that govern them.

Technological opportunities provide potential solutions:

 

Component	Symptoms of Aging	Risks	Opportunities
Generation	Unplanned outages spurred by resource inadequacy or mechanical failures Increased generation costs and input fuel inefficiencies	Reduction in fossil assets not met with the same increase in renewable to meet rising demand Pollution and carbon emissions from non-renewable generation	Improving energy efficiency, enhancing grid technologies such as two-way communication systems, integration of distributed energy and storage resources, and increased integration of utility-scale renewables and storage
Transmission	Reduced load-carrying capacity, line heating and sagging Increased demand placed on generators worsened by high transmission energy losses Long queues for interconnection limiting renewable expansion and penetration	Increased transmission maintenance costs, fire hazards from faulty and failing equipment Widespread outage potential Inability to connect renewable generation to high demand areas	Physical line upgrades including hardening, advanced reconductoring, and infrastructure expansion. Grid-enhancing technologies allow for peak shifting/shaving and dynamic line ratings, in addition to the integration of advanced grid monitoring and diagnostic systems
Distibution	Increased incidence of power disruptions and system failures, especially at end-of-line Long interconnection queues for renewables integration as new systems must tie into older generation systems	Increased frequency and duration of power outages, vulnerability to extreme weather events, and increased distribution costs Growing demand placing additional strain on the system	Physical line upgrades, including overhead line hardening or undergrounding and capacity expansion Distributed energy resources and microgrid solutions to improve reliability Grid-enhancing technologies such as dynamic line ratings and smart communication technologies for real-time monitoring and control
Communication	Outdated communications systems that do not integrate to modern monitoring One-way communications and controls limiting data sharing and effective energy decision making	Poor monitoring systems to respond to extreme weather, component failure, and demand spikes leading to increased outages and expense	Deployment of advanced, real-time metering infrastructure and two-way communications with consumer education to take advantage of improved energy data and analytics Enhanced cybersecurity protocols

Grid Reliability

The grid faces increasing reliability and resilience challenges. Overall, grid reliability has been in decline since the mid-2010s due in part to aging infrastructure. As of 2023, 70% of lines and transformers deployed on the grid were over 25 years old. [2] Climate Change has further exacerbated grid reliability challenges due to the increased frequency and intensity of severe weather events. Much of the U.S. electric grid infrastructure was built in the 1960s and 1970s, approaching the end of their 50 to 80-year life cycles. Extreme weather events can cause premature failures of power grid infrastructure, such as sagging or broken power lines, damaged transformers, compromised substations, and overextended generators. These reliability and resilience issues are compounded by a rise in extreme weather events, with 2023 setting a record for billion-dollar weather and climate disasters in the United States. [3]

The human costs of infrastructure failures can be severe:

• Public Safety and Health Risks: Frequent power outages disrupt essential services like hospitals, emergency response systems, and water treatment facilities. Prolonged outages can jeopardize life-saving medical equipment and delay critical treatments. Older adults and people with physical disabilities and chronic health conditions may face increased health risks or even fatalities. [4]
• Economic Disruption: Businesses face interruptions that result in lost revenue, spoiled goods, and damaged equipment, in addition to increased costs of emergency repairs and backup power solutions.
• Quality of Life: Power outages disrupt daily life and well-being, affecting heating and cooling, which is especially dangerous during extreme weather conditions.
• Environmental and Social Justice Implications: Unreliable grid infrastructure often disproportionately impacts disadvantaged communities. These communities experience more frequent outages and have fewer resources to cope with the consequences, exacerbating existing social and environmental inequities. [5]

Addressing these challenges requires strategic investments in infrastructure and advanced technology to modernize the grid and adapt to evolving load profiles. Electrification and EV adoption are reshaping electrical load profiles and increasing demand growth expectations. [6] The increased penetration of renewables creates new challenges to avoid curtailment while meeting increased dispatch and ramping needs. The once iconic “duck curve” is now outdated – replaced by a “canyon curve” [7] – eliminating traditionally baseload supply with high solar penetration and creating new challenges to avoid solar curtailment and meet substantially increased ramping needs. Grid modernization technologies and strategies allow us to create an ecosystem of solutions to meet these challenges.

The Path Toward Modernization

A modernized energy grid in the United States will evolve through active engagement across distribution companies, power retailers, transmission companies, generation companies, regulatory agencies, state legislators, grid and market operators, and consumers. In addition to increasing the pace of traditional infrastructure updates and renewable resource expansion and integration, grid-enhancing technologies, distributed energy resources, and microgrids [9] present promising opportunities to support the grid’s future. Grid-enhancing technologies allow us to get more from our existing infrastructure through improvements such as advanced power flow, dynamic line ratings, phasor measuring units, two-way communication, and overall improved grid information sharing. Distributed energy resources and microgrid solutions are valuable modernization opportunities to expand renewable power supplies while localizing power generation and bolstering community resilience. Modernization must also address energy equity to ensure that advancements benefit all communities fairly. Low-income, historically marginalized, and rural communities at the end of the distribution network often experience disproportionate impacts from power outages, with greater frequencies and longer durations. Deploying flexible distributed resources at scale and leveraging new management practices, such as AI to predict component failures, [10] can ensure reliable delivery of electricity to all consumers, even in the face of extreme weather, equipment failures, or high peak demand.

Implementing modernized solutions requires concerted effort and collaboration across stakeholders. Initiatives like the Grid Resilience and Innovation Partnerships Program (GRIP) under the Bipartisan Infrastructure Law allocate substantial funding—up to $3.5 billion across 44 states—to enhance grid resilience and modernization efforts. Twenty-five of the 58 Round One GRIP awards for smart grid, resilience, or innovation projects were awarded to SEPA members. The Federal-State Modern Grid Deployment Initiative further accelerates transmission and distribution improvements, fostering a more adaptable and cost-effective grid to meet 21st-century challenges. In addition to leveraging state and federal funding, the convening and sharing of best practices is a critical component of overcoming challenges to the implementation of grid modernization technologies and initiatives. SEPA leverages industry, utility, and customer insights, technical expertise, and our membership network to identify synergies within the ecosystem working to address these challenges and create a path forward in grid modernization.

Among the many anticipated changes to the energy system in the clean energy transition, stakeholders can leverage existing solutions to advance grid modernization:

1. Maximizing our existing infrastructure
   1. Smart metering deployment of advanced metering infrastructure
   2. Dynamic line ratings systems, automated distribution systems for fault detection, isolation, and restoration, and phasor measuring units for real-time monitoring and stability analysis
2. Protecting and strengthening existing infrastructure
   1. Advanced monitoring systems
   2. Line hardening and undergrounding
   3. Fire protection, suppression, and detection systems
3. Improving resilience through distributed energy resources (DERs)
   1. Microgrid development for resilience enhancement in critical facilities
   2. Energy storage systems for load leveling and peak shaving in addition to backup power during outages, including utilization of distributed storage resources
   3. Community solar expansion and distributed renewable energy resource development with grid-supportive inverters for voltage regulation and frequency support
   4. Demand response programs with automated load control to manage peak loads and reduce energy consumption
4. Utilizing policy and collaboration efforts
   1. Leveraging federal funding, including GRIP and Federal-State Modern Grid Deployment Initiative funds for transmission and distribution improvements, resilience enhancements, and cost-sharing
   2. Public-private partnership collaboration between utilities, government, agencies, and private companies to drive innovation and accelerate technology adoption
   3. Best practices and knowledge sharing in industry forums and working groups such as those at SEPA to share strategies and experiences for effective grid modernization

As we navigate the complexities of grid modernization, the imperative remains: to fortify our grid against emerging challenges while meeting the evolving needs of consumers and industry alike. By embracing innovative technologies, fostering collaborative partnerships, and leveraging policy initiatives, we can ensure that our electric grid continues to serve as a pillar of economic vitality and societal progress in a sustainable energy future.

Learn more about SEPA working groups and get started meeting, working with, and learning from peers working on grid modernization and other industry challenges. Discover how SEPA is helping state and local governments in locational resilience studies to enhance local grid infrastructure and electricity reliability.

References:

1. As defined by US Department of Energy
2. As noted by the US Department of Energy What does it take to modernize the US energy grid?
3. According to study via US National Oceanic and Atmospheric Administration
4. According to FEMA Healthcare Facilities and Power Outages
5. Per studies by Environmental Defense Fund
6. Per the 2023 US EIA International Energy Outlook
7. Per EPRI via PowerMag
8. Adapted from PowerMag
9. Evaluated by Resources for the Future Expanding the Possibilities
10. Such as work featured by Argonne National Lab

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This blog was written and produced with the help of interns from the EDICT Program. The EDICT program is designed to create a diverse pipeline of talent, to empower climate organizations in creating inclusive cultures, and to support the skill and network development of rising leaders from traditionally excluded groups. Thank you to Cara Kuuskvere and all of our EDICT Interns for their impactful contributions.