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The Indicator from Planet Money

The debate at the heart of new electricity transmission

The Indicator from Planet Money

NPR

Business

4.79.5K Ratings

🗓️ 6 August 2024

⏱️ 11 minutes

🧾️ Download transcript

Summary

The U.S. wants to become a net-zero emissions economy by 2050. That will mean a lot of new generation from renewable energy. It also means more transmission networks are needed to bring it onto the grid.

But there's a debate over how that new transmission should be built — between a competitive or monopoly approach. Today, we look at why competition is so divisive and why each side thinks they should build the next generation of transmission infrastructure.

Related Listening:
Texas' new power grid problem (Apple / Spotify)
Green energy gridlock (Apple / Spotify)

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Transcript

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0:00.0

NPR This is the indicator from Planet Money, I'm Darien Woods.

0:15.0

And I'm producer Cooper Katz-McCam here to talk one of my favorite topics, Power.

0:19.8

Yes, you are our resident energy expert. We're talking about electricity here, not about political

0:26.1

power, although there will be a little bit of that. You know, there is a desperate need for new

0:31.2

electricity transmission in the US to meet rising

0:34.6

demand for power and to decarbonize the economy. We are generating a lot of

0:39.4

power. There just isn't enough transmission infrastructure to get it where it needs to go,

0:44.0

especially when it comes to renewables.

0:46.0

To become a net zero emissions economy by 2050, as the Biden administration wants to do,

0:51.0

the US will need to roughly triple its existing transmission capacity.

0:55.0

But right now we're nowhere near close to meeting that goal.

0:59.0

There are a lot of questions that need answered before transmission can get built. What old

1:03.8

permitting look like? How will the costs be allocated? Another one, who will

1:07.8

build it? That last question, who is divisive and there's basically two options here

1:15.8

You've got one where the utilities who are already there getting the new projects by default

1:21.0

Or you could allow an outside developer in who can win the bid.

1:26.6

And these represent two distinct perspectives, whether we should use a monopoly or a competitive

1:32.4

model to develop new transmission.

1:34.6

The spy versus spy of our era.

1:36.9

Right.

1:37.9

Which method you choose may affect your electricity bill?

1:40.7

Today on the show we look at why competition is so controversial in this one sector

...

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