Sens. Welch, King introduce bill to boost investment in grid technologies
U.S. Sens. Peter Welch (D-VT) and Angus King (I-ME) introduced a bill in the U.S. Senate this week that seeks to boost investments in grid-enhancing technologies (GETs).
GETs are a type of transmission technology that expands the capacity of existing transmission infrastructure. The Advancing Grid-Enhancing Technologies (GETs) Act (S.3918) would require the Federal Energy Regulatory Commission to establish a shared savings incentive to return a portion of the savings attributable to an investment in grid-enhancing technology to the developer of that grid-enhancing technology.
“We’re at a crucial turning point in our work to achieve a clean energy transition, and meeting this moment requires new investments in clean energy technologies that strengthen the capacity of our transmission system,” Welch said. “The Advancing GETs Act will motivate grid operators and developers to bring new projects online that expand transmission capacity by guaranteeing returns for these targeted, cost-saving investments. This legislation will be crucial to boosting transmission capacity and helping the United States achieve its clean energy electricity goals.”
GETs are a crucial part of achieving a diversified clean energy transition. They increase grid capacity by allowing grid operators the ability to better manage the flow of electricity. However, current financial incentives are not encouraging developers to implement GETs. This bill seeks to spur developer investment in GETs by creating a shared savings incentive program to split savings for GETs installation between installers and ratepayers while increasing grid capacity. The shared savings incentive for GETs would allow a developer to be reimbursed for the cost of a GETs project, plus some of the cost-savings generated by it. The rest of the savings would go to ratepayers.
“The energy grid powers our homes, businesses, and critical infrastructure — and it must evolve to continue serving America for the 21st century,” King said. “As we work to create a sustainable clean energy future, improved and increased transmission is urgently needed to meet that goal. The Advancing GETs Act will create an incentives program to help spur new, smart solutions to expand existing transmission infrastructure. This bill is another step forward in meeting the need for reliable, affordable, and clean electricity.”
Additionally, the Advancing GETs Act includes an annual reporting requirement that directs transmission owners to report costs associated with congestion to FERC and directs FERC to make this data available to the public. Further, it charges the Department of Energy (DOE) with creating an application guide for implementing GETs projects, providing technical assistance to stakeholders interested in GETs, and managing a clearinghouse with examples of implemented GETs projects.
Companion legislation was introduced in the House of Representatives by Reps. Kathy Castor (D-FL), Paul Tonko (D-NY), and Scott Peters (D-CA).
“New clean energy projects — including solar, wind, geothermal, and other sources — are popping up all across the country thanks to the Bipartisan Infrastructure Law and Inflation Reduction Act,” Castor said. “In order to bring these projects online quickly, we must upgrade our old, congested transmission infrastructure.”
The bill is endorsed by American Council on Renewable Energy (ACORE), Clean Energy Buyers Association (CEBA), Electricity Consumers Resource Council, Rewiring America, RMI, Sierra Club, Solar Energy Industries Association (SEIA), and the WATT Coalition.
“The Advancing GETs Act will enable more efficient use of the transmission system in three ways. First, it aligns incentives so that for-profit utilities will be compensated for lowering costs through Grid Enhancing Technologies. Second, it directs FERC to standardize and collect data on grid congestion in all regions – transparency that will help stakeholders and utilities understand where grid capacity is needed. Finally, it directs the Department of Energy to fill a gap for the industry with documentation and technical assistance on Grid Enhancing Technologies,” Julia Selker, executive director of the WATT Coalition, said.
