Interregional energy transfers are getting their time to shine during a period of uncertainty in the electric industry, with a changing resource mix, extreme weather complexity, and an evolving threat landscape driving the need for more resiliency and reliability. Now, the North American Electric Reliability Corporation (NERC) is continuing to deliver on the mandate from Congress to study how transmission can maximize the use of local resources, including storage and demand response.
NERC published Prudent Additions Recommendations (Part 2) and Meet and Maintain Recommendations (Part 3), the third in a series of three draft documents that will be merged into the final Interregional Transfer Capability Study (ITCS), which is being produced in response to the congressional directive in the Fiscal Responsibility Act of 2023. NERC argues the ITCS highlights the importance of wide-area resource evaluation, as increasing transfer capability without surplus energy from neighboring areas would be ineffective
The document provides an energy margin analysis and resulting recommendations for increases to the transfer capability between transmission planning regions to improve energy adequacy during extreme weather events. It also recommends how to meet and maintain transfer capability as enhanced by these technically prudent additions.
“Transmission is a critical piece of North America’s reliability strategy, but it is only part of the solution. The ITCS emphasizes a balanced approach—one that identifies the unique needs of each region and determines where targeted and meaningful investments can make a real difference in ensuring reliability and resilience,” said John Moura, NERC’s director of Reliability Assessments and Performance Analysis. NERC’s focus is to ensure the bulk power system is prepared for tomorrow’s challenges without taking a one-size-fits-all approach.”
While NERC noted that “transmission upgrades alone” will not fully address all risks, it argued that a diverse and flexible approach allows tailored solutions specific to each TPR’s vulnerabilities, risk
tolerance, economics, and policies. The study encourages that a broader set of solutions should be considered and emphasizes the need for local resources, energy efficiency, demand-side, and storage solutions.
Key findings in the study include:
- Transmission limitations and the potential for energy inadequacy were identified in all 12 weather years studied. Enhancing specific transmission interfaces could reduce the likelihood of energy deficits during extreme conditions, NERC said.
- The import capability needed during extreme conditions varied “significantly” across the country, indicating that a one-size-fits-all requirement may be ineffective. NERC recommended an additional 35 GW of transfer capability across the United States as a vehicle to strengthen energy adequacy under extreme conditions.
- Some identified transmission needs could be alleviated by projects already in the planning, permitting, or construction phases. If completed, these projects could mitigate several risks highlighted by the ITCS, reinforcing their importance for grid resilience.
- Higher than expected retirements (without replacement capacity) would lead to increased energy deficiencies and potentially more transfer capability needed than recommended in the study.
- Interregional transmission connections could help distribute resources more effectively. However, there are numerous barriers to realizing these benefits in a timely fashion, NERC noted.
The complete ITCS will be filed with the Federal Energy Regulatory Commission (FERC) by December 2, 2024, and will be followed by a FERC public comment period. A fourth document, a study of transfer capabilities and recommendations for additions from the United States to Canada and between Canadian provinces, will be published in the first quarter of 2025.
