US regulators have approved the biggest grid reform in at least 10 years. The new regulations aim to speed up the construction of future power grids to meet growing energy demand, in particular the surge in energy demand due to developments in artificial intelligence and other technologies, and to improve the grid's resilience to extreme weather events.
The “old” US grid has finally ushered in major reforms and new regulations.
On May 14, the US Federal Energy Regulatory Commission (FERC) finalized regulations aimed at speeding up the construction of future power grids and approved the largest grid reform in at least 10 years. The new regulations aim to speed up the construction of future power grids to meet growing energy demand, in particular the surge in energy demand due to developments in artificial intelligence and other technologies, and to improve the grid's resilience to extreme weather events.
Meanwhile, FERC will require grid planners to conduct a 20-year evaluation and approve relevant regulations to allow the installation of high-voltage wires in national corridors set up by the US Department of Energy.
The analysis points out that this means that the development of power grids is no longer just short-term, but requires a long-term perspective to ensure that power grids can adapt to the energy needs and technological changes of the next few decades. Furthermore, these national corridors are often key transmission lines connecting multiple states or regions to distribute and transfer electricity over large areas. Such infrastructure construction can help improve the efficiency and reliability of power grids, while also supporting the entry of more renewable energy into the grid.
Additionally, FERC has developed guidelines for allocating billions of dollars in grid maintenance and upgrade costs. Furthermore, the new regulations also require developers to engage and communicate with native tribes and environmental justice groups in the early stages of the development process.
This means that through clear rules for allocating costs, it is possible to ensure that these necessary updates and maintenance are properly funded, while also ensuring that costs are shared fairly among stakeholders. The new regulations also require developers to give more consideration to Aboriginal rights, cultural heritage protection, and environmental protection and equity issues in the early stages of the development process, particularly for projects that may affect local communities and sensitive environmental areas.
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