Tomorrow Starts Today - Ever-Changing Demands of the Power Grid
Can you feel the extraordinary rate of change taking place in the electric industry right now? Climate change. Renewable energy. The electrification of (just about) everything. These are today’s demands on the grid. We’ve seen unprecedented storms in Texas and Iowa. President Biden has set a target of a 50 percent reduction in greenhouse gas emissions by 2030, and net zero by 2050. In MISO alone, there are more than 40 proposed solar projects, with wind projects coming in a close second. And, of course, the pace at which the country is moving to electrification is seen in the way of expanded broadband services, heating our homes and offices and the rapid rate at which electric vehicles (EVs) are coming to market. According to a joint study by EEI and the Institute for Electric Innovation, 18.7 million EVs are expected to be on the road in the United States by 2030.
I have been in this industry for 20 years, and the rate of change currently taking place is astonishing. Yet, how do we plan for a future of constant changes in which nearly every part of our daily lives requires reliable electricity? We need a grid able to connect our country to renewable energy, improve reliability and resiliency and keep pace with the electric demands required.
Many studies, including those by Princeton University and the Brattle Group support a “transmission-first” approach to clean energy deployment, where transmission is built to facilitate renewable development in areas with abundant and cost-effective wind and solar resources. This approach can save electric customers money in the long run compared to the more incremental investment approach we use today.
Last month, ITC CEO Linda Apsey testified before the House Select Committee on the climate crisis to discuss one of the key steps we can take to help achieve the president’s emission reduction goals: invest in our electricity transmission. Linda also was asked to be a panel member at this year’s Edison Electric Institute (EEI) Annual Convention. The theme of the convention was the road to net zero, where Linda used the analogy “transmission is to renewables as roads are to cars,” once again emphasizing the critical role transmission plays with transforming our generation fleet to cleaner and more sustainable generation sources.
In Michigan, ITC has made significant investments in our transmission infrastructure to provide a safe, reliable and resilient grid designed to meet today’s needs, but there is much more work to be done. Given where our society is headed, and the long lead time needed for transmission planning and construction, we can’t afford not to make continued investments. The work must begin today to ensure we are ready for what tomorrow brings. We’re ready for the challenge!
Sincerely,
Simon Whitelocke
Vice President, ITC Holding Corp., and President, ITC Michigan