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The U.S. is spending more money on electricity transmission and distribution than on generation

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Christopher Neely's picture
Independent Local News Organization

Journalist for nearly a decade with keen interest in local energy policies for cities and national efforts to facilitate a renewable revolution. 

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  • Nov 26, 2021
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All that deferred maintenance over the years is finally coming to a head, as new information from the U.S. Energy Information Administration shows that the U.S. is spending more on delivering and distributing electricity than it is on generating it. 

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According to a report from this week, major American utilities spent 65% more on delivery in 2020 than they did in 2010, a difference from 2.6 cents per kilowatt-hour to 4.3 cents per kilowatt-hour. Over that same period, spending on power generation dropped from 6.8 cents per kilowatt-hour to 4.6 cents per kilowatt-hour. 

An analysis by S&P Global points to the recent efforts by utilities to invest in grid modernization in order to adapt to the changing renewable landscape. Long under development, renewable energy has become cheaper than fossil fuels, which has played a large role in its market dominance. The writing is now clearly on the wall for a renewable future and utilities are having to invest now in order to stay relevant later. I'd expect this trend to continue. After all, it's not generation that we need to fret over in this next decade, it's delivering renewable energy from where it's produced to where it's needed. 

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Dr. Amal Khashab's picture
Dr. Amal Khashab on Nov 27, 2021

The beauty is that total investment for generation and delevry has been decreased from 9.4 to 8.9 cents for kwh.

Rosana Francescato's picture
Rosana Francescato on Dec 2, 2021

The current (outdated) utility business model incentivizes spending on infrastructure. Meanwhile, recent sophisticated studies have shown Americans can save many billions by deploying much more clean local energy, in close coordination with utility-scale renewables (

https://energycentral.com/c/gr/transmission-elephant-room

). That's the direction we need to move in.

Pulikkal Ashokan's picture
Pulikkal Ashokan on Dec 3, 2021

The U.S. is spending more money on electricity transmission and distribution than on generation

This is happening not in in US but in all over the world.  I am from India, State Kerala. The Kerala Government has spent nearly INR Rs. 20,000 crores or more to bring electricity from outside the state  during 2019 to 2021 period, and to make distribution of power to the State.  This is really waste of precious money.

I can guarantee to you that in two years' time, power transmission will be reduced or totally stopped.  Perhaps all of you might be asking how this is possible.  Yes it is possible.

I have my own solutions. Being a  Researcher for 30 years in clean energy, I have found out many solutions which can be introduced everywhere to stop money waste. Besides, these solutions will be better answers to reduce carbon emission at a rocketing speed.  I am now working on these , with working models.

If anybody wish to know more,  please write to:

power.ashoka@gmail.com

Ph +91 9074575071

Researcher-Inventor - clean energy & clean water

cochin - kerala

 

 

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