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By: Annika Barth, Ellie Potter

November 6, 2023

What is the Transmission Needs Study and Why Does it Matter?

The U.S. grid needs to significantly expand its regional and interregional transmission capacity to meet future electricity demand, improve overall grid reliability and resilience, alleviate system congestion, and connect cleaner energy resources, the U.S. Department of Energy (DOE) concluded in its final National Transmission Needs Study released on Oct. 30, 2023. The Needs Study is an assessment of more than 120 reports on current and anticipated future needs of the electricity grid. It helps inform regional and interregional planning and the use of DOE’s various authorities and funding streams, such as those included in the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA).

The DOE projected that regional transmission capacity will need to more than double by 2035 while interregional capacity must grow by more than fivefold to realize the full economic benefits and clean energy potential of the IRA. As shown in the figure below, for this analysis, the DOE assessed projected needs based upon multiple drivers, including improving reliability, reducing congestion, alleviating interregional transfer limits, and accessing lower-cost generation 

Source: U.S. Department of Energy’s Grid Deployment Office

Yet transmission investments have slowed considerably since 2015 in various regions. On average, the U.S. energized only 70 circuit miles of interregional transmission annually from 2011 to 2020, out of a total of 3,300 circuit miles.

What Stakeholders Need to Know

Regional Need

Regional transmission capacity will need to increase 20% by 2035 to accommodate a future with moderate load and clean energy growth. However, under scenarios with high clean energy growth – which most closely align with anticipated sector needs given state and federal policies – these regional needs increase to 64%. Accounting for the high load growth likely to occur under an expansion of building electrification, electric vehicle adoption, and other drivers, would require more than double the existing regional system, a 128% increase.

Scenarios with moderate load and high clean energy growth by 2035 forecast significant capacity growth needs compared to the 2020 system in specific geographic areas: 140% in Texas, 119% in the Plains, 112% in the Midwest, 90% in the Mountain region, and 77% in the Southeast. The needed increase for this timeframe under a high load growth scenario is even greater: 408% in the Plains, 231% in the Delta, 174% in the Midwest, and 173% in the Mountain regions.

Source: U.S. Department of Energy’s Grid Deployment Office

Interregional Need

The capacity needed for two regions to transfer power between one another is expected to increase significantly in the coming years, particularly under scenarios with high load growth or large additions of clean energy sources. Existing interregional transfer capacity must double to meet moderate load and high clean energy growth and quintuple to meet high load and clean energy growth futures by 2035.

Compared to 2020, the DOE projects that by 2035 interregional transfer capacity will need to grow by 414% between the Delta and Plains regions; 255% between New England and New York; 175% between the Midwest and Plains; and 156% between the Mid-Atlantic and Midwest to accommodate moderate load and high clean energy growth future scenarios.

Source: U.S. Department of Energy’s Grid Deployment Office

What’s Next for DOE

National Interest Electric Transmission Corridor (NIETC) Designation

Findings in the Needs Study will help inform the DOE’s designation of NIETCs, which will be critically important to alleviating current and anticipated transmission constraints identified in the Study. The Federal Power Act authorizes the DOE to designate a location as a NIETC if the Department finds that current or anticipated transmission capacity constraints or congestion is adversely affecting consumers. DOE designation of NIETCs can catalyze transmission development through several means. The Federal Energy Regulatory Commission (FERC) may grant permits for transmission lines sited within NIETCs if states do not have authority to site the line, have not acted on an application in over a year, or have denied an application. A NIETC designation also enables transmission projects to be eligible for public-private partnerships under the Transmission Facilitation Program and for loan support under the Transmission Facility Financing program.

The DOE’s designation process for NIETCs is still underway. In May 2023, the Department issued a Notice of Intent and Request for Information (RFI) on a proposal to evaluate the designation of NIETCs on an applicant-driven, route-specific basis. This approach would allow developers to weigh the benefits and risks of applying for such a designation and potentially limit local opposition. The DOE will release guidance on the NIETC designation process after reviewing comments on the RFI, which were submitted in July 2023.

Grid Deployment Office Funding Opportunities

The Needs Study will also help inform implementation of the DOE’s funding programs for transmission, authorized through the IRA and IIJA. Two of these programs include the Transmission Facilitation Program (TFP) and Grid Resilience and Innovation Partnership Program (GRIP).

Under the TFP, the DOE is authorized to borrow up to $2.5 billion to support the construction or upgrade of interregional transmission lines. In addition to releasing the Needs Study on Oct. 30, the DOE announced the first round of TFP funding, totaling $1.3 billion for three selected applicants. The projects include Cross-Tie, planned by TransCanyon, a joint venture between ACORE member Berkshire Hathaway and Pinnacle West Capital subsidiaries, that will connect Nevada and Utah; Southline, developed by Black Forest Partners and GU Southline LLC, a wholly-owned subsidiary of ACORE member Grid United, that will connect Arizona and New Mexico; and Twin States Clean Energy Link, planned by National Grid, which will run between Vermont and New Hampshire. Southline and Cross-Tie addressed critical regional needs identified by the Needs Study. The DOE anticipates releasing a second round of TFP funding in the first half of 2024.

The DOE also recently announced a total of $3.46 billion in GRIP funding for 58 projects, including the Joint Targeted Interconnection Queue projects that would connect MISO and SPP. GRIP funding is intended to enhance grid flexibility and resilience during extreme weather events, which the DOE expects to become more frequent and severe in the coming years. The Needs Study finds that extreme weather necessitates planning beyond the footprint of individual utilities and regions to assure reliable delivery of power. The DOE expects the next round of GRIP funding to open to applications at the end of 2023.

Conclusion

Having reviewed 120 public reports released in recent years on the issue, the Needs Study authors determined that considerable regional and interregional transmission development is required to meet increased electricity demand and public policy goals across the nation now and in the future. Its release comes just months after the passage of the debt ceiling deal that directing the North American Electric Reliability Corporation (NERC) to FERC on the need for more interregional transmission, followed by another year for FERC to make recommendations on any rule changes. But given the DOE’s findings, we clearly cannot afford for FERC to wait so long to take action. We need FERC to act as quickly as possible to ensure there is comprehensive multi-value regional and interregional transmission planning. It is clear that FERC must also establish a minimum interregional transfer capacity standard to spur development of the interregional lines critical to ensuring affordable, reliable power.

It’s time to shift the nation’s focus from studying these lines to building them.

The post Need for Speed: Connecting the Nation with Transmission appeared first on ACORE.

Need for Speed: Connecting the Nation with Transmission

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Doing What’s “Right” Is More Controversial than it Seems

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Some of us are looking for a single, simple statement to encapsulate what is going so wrong in America today, and perhaps it relates to what Aristotle says at left here.

Even the MAGA folks think that what they’re doing is “right.”  By this I mean white supremacy, mass deportation of immigrants (with or without due process), the rejection of science, and so forth.

Doing What’s “Right” Is More Controversial than it Seems

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Trump’s Agenda Is Even Far-Reaching Than People May Think

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As Trump’s former lawyer Ty Cobb says at left, in addition to turning the United Stated into an autocratic regime, at the same time, Trump needs to alter history such that future generations don’t think he did anything wrong.

Yes, he has his hands full, but he’s assisted by hundreds of traitors in congress, and hundreds of millions of hateful morons in the U.S. electorate.

Trump’s Agenda Is Even Far-Reaching Than People May Think

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Victoria’s VEU Scheme Introduces New Solar Incentives for C&I Properties 

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Exciting opportunity alert for Victorian commercial and industrial sectors! A major energy incentive has
arrived!

The Victorian Energy Upgrades (VEU) program has just rolled out an exciting new activity offering, deemed solar incentives specifically for commercial and industrial (C&I) properties starting from 1 October 2025.

This means easier access to valuable rebates when you install solar systems, accelerating your journey to cleaner, more affordable energy.

Whether you run a factory, office, or retail space, this update could dramatically reduce upfront costs and boost your ROI on solar investments.

So, if you don’t want to miss this game-changing chance to power your business sustainably and save big, keep reading!

Breaking Down the 2025 VEU Changes: Is Your Business Ready to Cash In?

Well, the main goal behind these new solar incentives is to help the commercial properties to reduce energy cost,
lower emissions and most importantly increase electrification in the
commercial sector
.

It’s a part of a broader push by the Victorian Government to accelerate clean energy adoption in the Australian
C&I sector.

Through this program the government offers incentives of up to $35,000 that support the installation of solar PV
systems ranging from 30 kW to 200 kW across the non-residential premises.

Eventually, by generating Victorian Energy
Efficiency Certificates
(VEECs) and combining them with STCs and LGCs, it aims to drive energy efficiency
across Victoria’s business sector.

What Are Deemed Solar Incentives?

“Deemed” solar incentives refer to rebates or energy certificates like VEECs that are calculated upfront based on estimated energy savings over the life of a solar PV system rather than measuring actual savings year by year.

In simple terms, in this incentive program, the government “deems” or assumes how much energy your solar system will save over time and rewards you right away with certificates (VEECs). You can then trade it for either cash or rebates.

How Do These Deemed VEECs Work?

When you install a solar PV system between 30 kW and 200 kW on a commercial or industrial property, the system is assigned a pre-calculated number of VEECs based on its size, expected performance, and energy offset.

These VEECs have a market value, and also the accredited companies, like Cyanergy, can create and trade them for you.

And the best part that creates a difference is that, through these deemed VEECs, we ensure you get substantial upfront savings without waiting years to prove the actual energy savings.

What Makes This a Big Win for C&I Businesses?

  • Easier application process.
  • No complicated monitoring is needed for rebates; here, the savings are estimated in advance.
  • Immediate financial benefit, as there is no waiting time needed for long-term performance data.
  • Stackable with other schemes, such as combining with STCs or LGCs, can bring you even bigger savings from your business.

Top 6 Benefits of Going Solar for C&I Premises

With the government-backed incentives like the VEU program, commercial and industrial (C&I) businesses have
several reasons to make the switch.

Here are the 6 key benefits:

  • Saves Energy Cost

Reduce your business’s electricity bills significantly by generating your own clean power. With VEU incentives, STCs,
and LGCs, upfront installation costs are lowered by up to 30–35%, delivering faster return on investment.

  • Ensure Energy Independence

Adding solar panels protects or shields your business from rising energy prices and grid instability. Incorporating
solar on your premises gives you greater control over your energy use and costs, especially for high-demand
operations.

  • Boost Your Business’s Sustainability & Reputation

Switching to solar directly supports Victoria’s clean energy and sustainability goals by reducing carbon emissions
and dependence on fossil fuels.

In Australia, more and more customers, clients, and stakeholders prefer doing business with companies that support
green initiatives.

So, by investing in solar, you’re not just cutting costs, you’re also enhancing your brand image, thus aligning with
corporate sustainability.

  • Future-Proof Your Business

Commercial solar systems (30 kW to 200 kW) can be custom-designed to match your building, energy usage, and
operational hours, ensuring maximum efficiency and savings.

It future-proofs your business by preparing for growing energy demands and regulations.

  • Increase Property Value

Installing solar can increase your property’s value and appeal, especially for leased commercial spaces and
industrial buildings that seek energy-efficient certifications.

  • Access to Multiple Rebates, More Savings!

C&I businesses can benefit from stacked government incentives, including VEU incentives up to $35,000, STCs for
systems under 100 kW and LGCs for systems over 100 kW.

How Much Can You Save With This New Activity?

Under the 2025 update, eligible businesses can receive VEU incentives of up to $35,000 just for going solar.

As mentioned earlier, these Victorian Energy Efficiency Certificates (VEECs) represent estimated energy savings and can be combined with other financial incentives, like:

  • Small-scale Technology Certificates (STCs)

  • Large-scale Generation Certificates (LGCs)

This stacking of incentives can significantly reduce the upfront cost of a solar installation. For larger system sizes, that’s more than 100kW, this rebate can reduce the price by 30 to 35% or more.

Let’s have a glimpse at the following tables for better understanding!

Small-Scale Commercial Solar Systems (<100 kW)

These are ideal for smaller commercial buildings, offices, and retail spaces looking to cut energy costs with a fast return on investment.

Small-scale systems allow you to stack VEU incentives and STC rebates for immediate savings, with simple installation and faster payback:

Large-Scale Commercial & Industrial Systems (≥100 kW)

These are designed for larger facilities like factories, warehouses, and multi-site operations. These systems deliver serious energy savings and qualify for LGCs in addition to VEECs.

Eligibility Criteria: Do You Qualify for the VEU Solar Incentives?

To qualify for these new VEU solar incentives, your commercial property must meet the eligibility criteria.

So, let’s dive into the requirement list and see how your business can make the most of this exciting new
opportunity:

  • Installation Date: Must start after September 29, 2025
  • System Size: Between 30 kW and 200 kW
  • Location: Non-residential premises only.

For example: warehouses, factories, retail stores, health care centers,
schools, universities, sports facilities or new commercial buildings

  • Accreditation: An accredited company must be engaged to create the certificates.

Special Requirements for Hardware:

  1. Solar Panels and inverters must be approved by the Clean Energy Council.
  2. The panels must have a minimum 10-year product warranty.
  3. Inverters must have a minimum product warranty of 5 years.
  4. For smaller systems under 100 kW, solar panel brands must participate in the Solar Panel Validation Initiative
    (SPVI).
  5. The system must include access to a monitoring portal or regular system performance reports.

Need Assistance? Cyanergy is Here to Help!

When it comes to navigating government incentives and getting the most value out of your solar investment, experience matters the most. And Cyanergy excels at it.

With 10+ years of experience and over 467 successful commercial projects, Cyanergy brings years of proven expertise in renewable energy and commercial solar solutions.

From warehouses and retail stores to offices and manufacturing facilities, we’ve helped many Australian businesses to transition faster to clean, cost-effective, and reliable energy.

Our team understands the unique energy demands of commercial and industrial operations and delivers customized solar systems that maximize savings and performance.

Ready to start your solar journey? Let’s talk.

Cyanergy will guide you through every step, making the process smooth, efficient, and profitable. For the latest updates on VEU programs, keep your eyes on the Cyanergy website!

The post Victoria’s VEU Scheme Introduces New Solar Incentives for C&I Properties  appeared first on Cyanergy.

Victoria’s VEU Scheme Introduces New Solar Incentives for C&I Properties 

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