The US Electricity Transmission and Distribution Market Outlook

The US electric transmission and distribution network is a complex composition of lines that traverse around 365,000 circuit miles to supply electricity to the nation. The majority of the existing transmission infrastructure was put in place in the 1950’s and 1960’s and according to the US Department of Energy, around 70% of the power transformers are over 25 years old and around 60% of the circuit-breakers are 25 years old. This is causing bottlenecks for transmission operators to efficiently supply electricity to consumers.

Scope of this research
• Comprehend the US electricity transmission and distribution market with respect to issues that are shaping up the industry.
• Achieve an understanding of government support provided to various states in the US to enhance transmission and distribution within the power market.
• Analyze activities that are driving and factors that are deterring renewable power integration into the grid.
• Explore insight into the smart grid, its functionality, the key players involved, growth drivers and challenges.
• Understand the future of the US electricity transmission and distribution market:- planned construction of transmission lines; electricity capacity.

Research and analysis highlights

Installed power generation capacity in the US grew at a CAGR of 1.9% from 783GW in 1990 to 1,104GW in 2008. The highest growth in additional capacity was recorded during 2000–2005 primarily due to an improved financial environment aiding the easy availability of credit, coupled with demand from an increase in industrial activities.

Generation from renewables in the US grew at a CAGR of 2% from 351,485GWh in 2004 to 381,044GWh in 2008, primarily driven by growth in Washington and California. The top 10 states in the US contribute 69.2% of the total renewable power generation in the country.

Implementing demand response that has an impact on reducing peak load requires support technology. Some of the key technologies enabling demand response include thermostats, interval meters, energy management systems, dynamic lighting controls and dynamic energy storage systems.

Key reasons to purchase this research
• What is the current scenario of the US electricity transmission and distribution?
• How are the strategies of major players helping integrate renewable power in to the grid?
• What are the strategies of major players in the US for the growth of demand response?
• Which is the top state currently implementing smart grid technology on a large scale?
• Which energy storage technologies are currently used or are under development?

Table of Contents :

Disclaimer 2
Executive summary 10
Market overview 10
Integration of renewables 11
Demand response 12
Smart grid 13
Energy storage 14
Future outlook 15
Chapter 1 Market overview 16
Summary 16
Installed power generation capacity 17
Electricity generation 18
US electricity transmission and distribution 20
Key players 24
Drivers of US transmission and distribution 27
Growth of renewable power generation capacity 27
Ageing transmission infrastructure 27
Resistors against US transmission and distribution 28
Cost challenges 28
Siting issues 29
Chapter 2 Integration of renewables 30
Summary 30
Overview of renewable energy in the US 31
Installed capacity 31
Electricity generation 33
Renewable resources in the US 35
Wind power 35
Solar 39
Geothermal 42
Biomass 43
Strategies of major players in renewables integration 44
Building new transmission and distribution infrastructure 44
Installing intelligent grid systems 50
Challenges in renewables integration 51
Intermittency 51
Remote location of electricity generation 52
Absence of a nationwide renewable policy and resulting uncertainty 52
Chapter 3 Demand response 53
Summary 53
Overview of demand response and its programs 54
Demand response programs 56
Price-base demand response 56
Incentive demand response programs 58
Key players 62
Key technologies 62
Strategies of major players in demand response 63
Improving load control through demand response programs 63
Use of third-party aggregators to improve demand response implementation 66
Challenges in demand response 67
Low level of demand response implementation in competitive markets due to possible revenue loss 67
Regulatory hurdles 68
Non-availability of real-time data 68
Lack of AMI 69
Demand response potential 69
Chapter 4 Smart grid 71
Summary 71
Overview of smart grid and smart metering 72
Top states investing in smart grid 76
Major players in smart grid 81
Smart meter vendors 81
Communication network players 81
Meter data management (MDM) vendors 81
Drivers of the smart grid 82
Government stimulus 82
Growth of renewables 84
Resistors against the smart grid 85
High installation costs 85
Multiple standards 86
Grid security 87
Chapter 5 Energy storage 89
Summary 89
Overview of energy storage 90
Major technologies 91
Pumped storage 91
Compressed air energy storage 94
Batteries 96
Molten salt storage technology 98
Flywheel energy storage 99
Drivers of energy storage 101
Anticipated increase in renewable power 101
Government support 102
Resistors against energy storage 104
High installation cost 104
Chapter 6 Future outlook 106
Summary 106
US electricity market outlook 107
Transmission and distribution outlook 109
Glossary/abbreviations 111

Table of Figures
Figure 1: US installed power generation capacity by state, 2008 (%), 2010 18
Figure 2: US electricity generation by state, 2009 (%), 2010 19
Figure 3: NERC interconnections map, 2009 21
Figure 4: Transmission lines in the US as of 2008 above 100kV (circuit miles), 2009 22
Figure 5: Transmission lines in the US by state as of 2008 above 132kV (circuit miles), 2010 24
Figure 6: Category of electric utilities in the US, 2008 25
Figure 7: Renewable installed power generation capacity in the US, 2005–09 (MW), 2010 33
Figure 8: Renewable power generation in the US, 2004–08 (GWh), 2010 35
Figure 9: Wind resource map of the US, 2009 36
Figure 10: Wind power potential in the US, 2010 39
Figure 11: Solar resource map of the US, 2008 40
Figure 12: Top 15 states by solar power potential in the US, 2010 41
Figure 13: Geothermal power resources in the US, 2009 42
Figure 14: Biomass resources of the US, 2009 44
Figure 15: The Green Power Express transmission map, 2009 46
Figure 16: Noncoincident actual peak load 2005–09 (MW), 2010 55
Figure 17: Entities offering price demand response programs 57
Figure 18: Top 10 peak demand reductions by state in the US, 2009 (MW), 2010 61
Figure 19: Utility-scale smart meter deployments, plans and proposals, 2010 73
Figure 20: Top 10 states receiving SGIG funds ($m), 2009 77
Figure 21: Key smart grid players, 2010 82
Figure 22: Pumped storage installed capacity by state in US, 2008 (MW), 2010 93
Figure 23: Working principle of a pumped storage system, 2010 94
Figure 24: Working principle of a CAES system, 2010 95
Figure 25: Working principle of batteries, 2010 97
Figure 26: Working principle of molten salt storage system, 2010 99
Figure 27: Working principle of a flywheel, 2010 101
Figure 28: Cost comparison of select energy storage technologies ($ per kW), 2010 105
Figure 29: Installed power generation capacity forecast, 2007–35 (GW), 2010 109
Figure 30: Transmission lines in the US above 100kV, 2008–18 (circuit miles), 2009 110

Table of Tables
Table 1: US installed power generation capacity by state, 1990–2008 (GW), 2010 17
Table 2: US electricity generation by state, 1990–2009 (TWh), 2010 19
Table 3: Transmission lines in the US as of 2008 above 100kV (circuit miles), 2009 22
Table 4: Transmission lines in the US by state as of 2008 above 132kV (circuit miles), 2010 23
Table 5: Category of electric utilities in the US, 2008 25
Table 6: Major investor-owned electric utilities in the US, 2010 26
Table 7: Renewable installed power generation capacity in the US, 2005–09 (MW), 2010 32
Table 8: Renewable power generation in the US, 2004–08 (GWh), 2010 34
Table 9: Wind power potential in the US, 2010 38
Table 10: Top 15 states by solar power potential in the US, 2010 41
Table 11: RPS for select states in the US, 2010 45
Table 12: Select renewables-related transmission projects Part 1, 2010 48
Table 13: Select renewables-related transmission projects Part 2, 2010 49
Table 14: Noncoincident actual peak load 2005–09 (MW), 2010 55
Table 15: Entities offering price demand response programs, 2009 57
Table 16: Potential and actual peak load reduction by demand response resources, by region, 2007 (MW), 2009 60
Table 17: Top 10 peak demand reductions by state in the US, 2009 (MW), 2010 61
Table 18: Select utilities' demand response programs, 2010 65
Table 19: Select contracts of utilities with third-party demand response service providers, 2010 67
Table 20: Peak load reduction estimate, 2009–19 (GW), 2009 70
Table 21: Select utilities’ planned smart meter deployment, 2010 75
Table 22: Top 10 states receiving SGIG funds ($m), 2009 77
Table 23: Major utilities receiving SGIG funding Part 1, 2009 79
Table 24: Major utilities receiving SGIG funding Part 2, 2009 80
Table 25: Break-up of ARRA provisions for smart grid, 2009 83
Table 26: Categorical split of SGIG program fund allocation, 2009 84
Table 27: Cyber security projects announced by the US DoE, 2010 88
Table 28: Pumped storage installed capacity by state in US, 2004–08 (MW), 2010 92
Table 29: Stimulus grants by state, 2009 103
Table 30: Cost comparison of select energy storage technologies ($ per kW), 2010 104
Table 31: Installed power generation capacity forecast, 2007–35 (GW), 2010 108
Table 32: Transmission addition plans in the US above 100kV (circuit miles), 2009 110