Trillion Dollar Investment Needed to Maintain Reliable Energy in U.S.
11/14/2008
SustainableBusiness.com News
The U.S. utility industry will have to invest between $1.5 and $2.0 trillion between 2010 and 2030 to maintain current levels of reliable energy service for customers throughout the country, according to a new report.
Nearly 40 gigawatts of new renewable capacity will be needed just to meet state requirements, according to “Transforming America’s Power Industry: The Investment Challenge 2010-2030,” issued by The Brattle Group, which provides consulting and expert testimony in economics, finance and regulation.
“This study highlights the investment challenges confronting the power industry in the coming decades,” said Dr. Peter Fox-Penner, who presented the findings today at the Edison Electric Institute’s 43rd Financial Conference. “The industry is facing enormous investment needs during a period of modest growth, high costs, and very substantial policy shifts.”
Capital spending to upgrade distribution and transmission facilities nationwide may surpass investment in new generation, the study found. Spending on “smart grid” technologies to ramp up efficiency—along with new power lines to integrate renewable electricity sources—will account for much of that spending.
“The good news is that as a result of this very significant investment, our economy and utility customers will get more efficiency and control over their electricity use, lower-carbon generation, and a higher-technology, more resilient and reliable electric grid,” Dr. Fox-Penner said.
Website: http://www.brattle.com/Default.asp