The U.S. utility industry will have to invest between $1.5 trillion and $2 trillion between 2010 and 2030 to maintain current levels of reliable energy service for customers throughout the country, according to a new report issued today by the Brattle Group, which provides consulting and expert testimony in economics, finance and regulation.
The findings are detailed in ‘Transforming America's Power Industry: The Investment Challenge 2010-2030.’ The report was presented by Peter Fox-Penner, a principal of the Brattle Group, at the Edison Electric Institute's 43rd Financial Conference. The report was sponsored by the Edison Foundation.
According to the report, all types of new generation capacity will be needed, including natural gas, coal, nuclear and renewables. Nearly 40 GW of new renewable capacity will be needed just to meet state requirements.
Significantly, capital spending to upgrade distribution and transmission facilities nationwide may surpass investment in new generation, the study found. Smart grid technologies to ramp up efficiency – along with new power lines to integrate renewable electricity sources – will account for much of that spending.
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SOURCE: The Brattle Group