This NASEO Policy in a Box offers resources and analysis to assist State Energy Offices in supporting their governors' and legislatures' development of policies to incentivize advanced electric grid optimization solutions. Advanced electric grid optimization solutions aim to optimize the performance of the existing transmission electric grid and maximize the benefits of new generation and transmission system infrastructure. For the purpose of this Policy in a Box, advanced electric grid optimization solutions include Grid Enhancing Technologies (GETs), such as dynamic line ratings, advanced power flow control, and topology optimization, as well as high-performance conductors (see Figure 1).

Figure 1: Advanced Electric Grid Optimization Technologies Breakdown

Advanced electric grid optimization solutions focus on increasing the capacity, cost effectiveness, and reliability of existing transmission infrastructure to meet increasing load growth. For example, implementation of grid enhancing technologies has been proven to yield increases in transmission line capacity while lowering both the costs and timelines for connecting new generation, according to research from Grid Strategies. Additionally, utilization of high performance conductors can double line capacity at less than half the cost of new lines, allowing generation sources to connect more quickly and affordably, according to a recent study from the Energy Institute at Haas.

This Policy in a Box: Advanced Electric Grid Optimization Solutions aims to help State Energy Offices to evaluate considerations and opportunities in supporting these technologies to meet state energy goals more rapidly and maximize the benefits of existing and new generation and transmission system infrastructure to power up the grid.

Why State Energy Offices Are Key to Supporting Advanced Electric Grid Optimization Solutions

As established state energy experts, State Energy Offices are positioned to assist governors and legislatures in the development and implementation of policies that promote the consideration of advanced electric grid optimization solutions to enhance the reliability, affordability, and efficiency of the electricity grid:

• State Energy Offices possess in-depth knowledge of state energy systems, technologies, and emerging policy trends, enabling them to identify the benefits advanced grid technologies may offer.  
• State Energy Offices, with their expertise and established relationships with electric consumer- and investor-owned utilities, the private sector, energy providers, and local governments, are ideally positioned to bring stakeholders together. They can effectively build support for the development and enactment of advanced electric grid optimization solutions policy.
• State Energy Offices frequently serve as convenors of business and consumer stakeholders and facilitate statewide discussions in support of energy policy development.
• State Energy Offices understand the unique needs of local jurisdictions and can ensure that proposed policies are flexible enough to meet both business and community needs.
• State Energy Offices may have access to federal funds and relationships with private-sector investors and can aid in supporting grid planning efforts as well as spur the utilization of advanced electric grid optimization technologies.

Benefits of Developing Policies to Support Advanced Electric Grid Optimization Solutions

Historically, the primary option for expanding transmission has been to build new lines. But building new lines is a time-consuming, complex, and expensive process, fraught with legal challenges. By avoiding the need for new construction and new rights-of-way, implementing advanced electric grid optimization solutions allows states to increase transmission performance and reliability in less time at a lower cost. 
Both grid enhancing technologies and high-performance conductors provide myriad benefits to the performance of the grid, including the following:  

• Benefits of Grid Enhancing Technologies:
  • Reduce grid congestion.
  • Decrease costs for customers. 
  • Reduce operating costs for utilities.
  • Increase grid resiliency and reduces wildfire risk.
  • Advance integration of new generation and speeds up transmission within existing rights-of-way.
• Benefits of High-Performance Conductors:
  • Double existing transmission capacity.
  • Improve grid performance through reduced line losses.
  • Typically, the cost is half the price of building new lines.
  • Often only require a maintenance permit and can be done without taking lines out of service, avoiding the lengthy permitting process of building new transmission lines. 
  • Generally, lead to lower line sag factors which increase grid resiliency and reduce maintenance costs and wildfire risk.

What's Included in this Box and What's Not

This Policy in a Box: Advanced Electric Grid Optimization Solutions is a repository for resources and analysis curated by NASEO about state policy initiatives that seek to increase adoption of advanced electric grid optimization solutions. The scope of this Policy in a Box is to provide an overview of the different strategies for achieving the policy objective of increasing the capacity and performance of existing transmission infrastructure. This resource is not advocating for specific technologies, nor will it provide a deep technological analysis of the various technologies. For a more detailed analysis of the technological aspects of these technologies, a variety of resources on this subject can be accessed through the technical reference library section. Please note that this list will continue to be refined as additional relevant research materials become available.

This Policy in a Box explores key strategies to support advanced electric grid optimization solutions by reviewing recent state initiatives that promote the use of grid enhancing technologies and high-performance conductors through the following categories: 

• Research
• Prepare
• Take Action
• Implement

Within each of these categories, illustrative examples from states are included to highlight practical cases that could serve as models for replication for other states. The examples provided serve as a starting point. As these types of initiatives are implemented in other states, additional cases will be added for reference.