You know there’s a renaissance happening in American power generation. Big new customers like artificial intelligence data centers are creating enough new demand to make building lots of big new power plants necessary. But building new generators is only one necessary step for creating a grid for the future. America also needs the transmission infrastructure to move the power where it’s necessary. In July, the Department of Energy’s Office of Electricity detailed a draft study on the country’s transmission needs. Here’s the executive summary:
The U.S. Department of Energy’s (DOE) Office of Electricity (OE) today released a draft of the 2026 National Transmission Needs Study (Needs Study) for a 60-day public comment period. The Needs Study report shows that there is a pressing need for additional electric transmission infrastructure due to load growth from data centers, expanding domestic manufacturing, large industrial loads, and a growing economy.
Required by the Federal Power Act (FPA), the Needs Study (formally known as the National Electric Transmission Congestion Study) identifies high impact needs and provides information about current and anticipated future capacity constraints and congestion on the nation’s electric transmission grid. Its findings consistently support better transmission planning and investment decisions, help identify opportunities to lower system costs, and contribute to a more affordable, reliable and secure electric grid for American consumers. DOE seeks public comment to help inform how the agency will address these needs with investments and planning.
“Electricity demand is accelerating faster than anything we’ve seen in decades, driven in part by data centers, manufacturing growth, and new forms of industry that are emerging almost by the month,” said Assistant Secretary of the Office of Electricity Catherine Jereza. “The Needs Study makes it clear that we must work together with local communities, industry, states, Tribes, and regional reliability entities to meet this moment with clear direction for transmission planning.”
Key findings of the draft report include the following:
- There is a pressing need for additional electric transmission infrastructure due to load growth from data centers, expanding domestic manufacturing, large industrial loads, and the electrification of industries. Transmission is needed to maintain reliability to account for new generation interconnection, new load interconnection and congestion relief. The majority of transmission congestion is concentrated in 5% of the hours particularly during times with significant day-ahead to real-time market price variance, high net load, cold weather, and high intermittent generation. Regions like New York Independent System Operator (NYISO), NorthernGrid South, and Midcontinent Independent System Operator (MISO) show the highest potential for new, within region transmission to relieve high congestion costs.
- Interregional transmission is increasingly recognized for its multifold benefits to consumers. Specifically, interregional transmission contributes to an increase in reliability, grid resiliency, and meeting demand growth in at risk areas. Using historical locational marginal prices, cross-interconnection links—for example, between Western Interconnection (West Connect) and Eastern Interconnection (Southwest Power Pool)—as well as interregional links particularly between NorthernGrid and WestConnect, and between ISO New England (ISO-NE) and NYISO—show some of the highest potential for transmission congestion value.
- Many Regional Transmission Operators and Independent System Operators are approving their largest transmission portfolios, in anticipation of the driving need for increased transmission. Regions like MISO, Southwest Power Pool (SPP), PJM Interconnection (PJM), and Electric Reliability Council of Texas (ERCOT) have recently approved some of their largest transmission portfolios. In 2024, MISO approved the largest transmission portfolio ever undertaken in the U.S.
The Needs Study identifies key national needs that can inform investments and planning decisions. DOE is inviting feedback on this draft report from local communities, Tribal Nations, states, and regional reliability entities, as well as the general public, by opening a public comment period and hosting in-person roundtables in the summer of 2026 across the country. DOE will review comments received and incorporate them into the final study as appropriate. Direct public feedback is critical to bridging the gap between DOE’s analytical research and the dynamic, localized energy demands currently shaping the nation’s grid.
At RealClearEnergy, David Holt explains that America needs to build ahead for future transmission needs. He writes:
Companies considering where to build their next manufacturing plant, technology facility, or major infrastructure investment need confidence that reliable electricity will be available when they need it. Communities competing for those investments need the infrastructure to support them.
A modern transmission system can help provide that foundation while allowing the country to make better use of the energy resources we already have and bring new resources onto the grid.
But building ahead does not mean building without scrutiny. Consumers must remain at the center of transmission planning. Projects should be based on demonstrated need and sound, not speculative, data. Costs should be transparent and allocated fairly, particularly as very large electricity users connect to the grid. Landowners and communities should also have meaningful opportunities to participate in the planning and siting process.
Those principles are not at odds with building the infrastructure America needs. They are essential to getting it right.
The choice should not be between protecting consumers and building for economic growth. We can do both.
Recently, the Office of Electricity announced that it will fund 31 grid improvement projects across 26 states using the SPARK initiative. They wrote:
The U.S. Department of Energy’s Office of Electricity (OE) announced its intention to help fund 31 grid-improvement projects across 26 states as part of the Department’s SPARK initiative. The projects will receive $5.25 billion in total, $1.9 billion in federal funding from DOE and $3.35 billion in recipient cost-share funding, to improve grid reliability and lower electricity costs for approximately 100 million Americans. Project recipients are expected to reconductor or rebuild more than 1,500 miles of transmission lines and deploy Grid-Enhancing Technologies (GETs) across nearly 21,000 miles. Together, these efforts will make over 23 gigawatts of additional electricity capacity available.
The selections were made from OE’s Notice of Funding Opportunity announcement for an approximate $1.9 billion to catalyze electricity infrastructure investments to meet electricity demand growth and resource adequacy requirements, while reducing costs for American households and businesses. Funded through the Infrastructure Investment and Jobs Act, the Grid Resilience and Innovation Partnerships (GRIP) Program was authorized to provide up to $10.5 billion in competitive funding over five years to states, tribes, electric utilities, and other eligible recipients to strengthen grid resilience and innovation. To provide clarity with the program’s updated emphasis, this Notice of Funding Opportunity (NOFO) was renamed to Speed to Power through Accelerated Reconductoring and other Key Advanced Transmission Technology Upgrades (SPARK).
Successful applications highlighted how reconductoring and other Advanced Transmission Technologies (ATTs), as complementary technologies, expand transfer capability, strengthen reliability and resource adequacy, and reduce consumer cost impact while utilizing existing rights of way. DOE prioritized projects that could be implemented quickly to deliver durable physical upgrades and dynamic operation gains that together increase the value, performance, security, resilience, affordability, and reliability of the nation’s electric grid.
The kinds of projects OE prioritized included:
- Reconductoring with advanced conductors.
- Advanced Transmission Technologies that can increase the usable capacity of existing assets in real time.
- Large-scale, cross-regional transmission upgrades and coordinated planning.
Action Line: Adding new transmission and enhancing resilience will make America’s electric grids stronger. You should take charge of your own electric security and put some power away in your pantry as well. Click here to subscribe to my free monthly Survive & Thrive letter.
