Transmission Bottlenecks: The Hidden Barrier to Clean Energy

We can build all the wind and solar we want, but without transmission capacity to move that power to demand centers, gigawatts of clean energy remain stranded. The transmission challenge is now the binding constraint.

The Scale of the Problem

• Queue Delays – Over 2,000 GW of generation projects sit in interconnection queues, waiting years for grid studies
• Cost Overruns – Transmission projects routinely exceed budgets by 50-100% due to permitting delays
• Regulatory Fragmentation – Crossing state lines requires navigating dozens of jurisdictions

Emerging Solutions

High-Voltage Direct Current (HVDC)

HVDC enables long-distance transmission with minimal losses:

• Efficiency – 3% loss per 1,000 km vs. 6-8% for AC
• Capacity – Individual lines up to 12 GW
• Flexibility – Asynchronous grid interconnection

Grid-Enhancing Technologies (GETs)

Dynamic line rating, topology optimization, and power flow controllers can increase existing capacity by 30% at 1/10th the cost of new builds.

Offshore Wind Integration

Purpose-built offshore transmission hubs aggregate multiple wind farms before making landfall, reducing onshore corridor needs.

Policy Catalysts

• FERC Order 2023 – Streamlining interconnection processes
• Federal Transmission Siting – Expanding FERC authority for interstate projects
• Cost Allocation Reform – Socializing benefits across wide regions

Investment Framework

Transmission is a multi-decade asset class with inflation-protected returns. Strategic players should:

1. Partner with Utilities – Leverage existing right-of-way and regulatory relationships
2. Technology Arbitrage – Back GETs providers with proven performance track records
3. Political Risk Mitigation – Diversify across jurisdictions; avoid single-state exposure
4. Community Engagement – Proactive stakeholder management reduces permitting timelines by years

Without a transmission buildout renaissance, we cannot achieve climate goals. The capital is ready—regulatory and political will must catch up.