Work

Interregional Electricity Transmission in the United States: Realized Savings and Opportunities for Increased Value, 2014 to 2023

Year: 2025

Type: article

Abstract: Interregional electricity trade in the United States reduces total energy costs, but falls short of maximizing the economic potential of existing transmission infrastructure. This analysis of thirty-two U.S. electricity system interfaces crossing grid or market seams finds an average achieved cost savings of at least $1,226 million per year. This positive impact is offset by an average annual cost of uneconomic interchange of $551 million. Additional value of at least $238 million per year could be enabled by increasing utilization. Notably, uneconomic flows and low utilization rates can persist even when the price spread between regions is large. These conclusions are derived from historical (2014–2023) data on the magnitude and direction of interregional price spreads, the magnitude and direction of net energy transfers, and how these variables coincide, but do not account for all system constraints. These findings motivate the development and deployment of solutions that improve interregional transmission operations, in parallel with robust transmission infrastructure planning. JEL Classification: Q40 Energy: General

Source: The Energy Journal

DOI: 10.1177/01956574251399644

Authors: Leila Safavi, Julie Mulvaney Kemp, Will Gorman, Dev Millstein, Ryan Wiser

Institutions: New York University, Lawrence Berkeley National Laboratory

Language: English

Topic: Electric Power System Optimization

Subfield: Electrical and Electronic Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Industry, innovation and infrastructure, Affordable and clean energy

Open Access status: hybrid

Estimated APC paid: $3,650