Accelerating America’s Clean Energy Transition Through Permitting Reform
The United States stands at the crossroads of a historic opportunity to redefine its energy future. Much like the dramatic grand slam by Freddie Freeman in Game 1 of the 2024 World Series that turned the tide for the Los Angeles Dodgers, the country faces a critical moment in its clean energy transition. With unprecedented resources, talent, and federal investments available, success hinges on one significant swing: comprehensive permitting reform for clean energy and transmission projects.
The U.S. has made impressive strides in clean energy development over the last decade. Renewables like wind and solar are not only environmentally friendly but also cost-effective, ranking as the cheapest electricity sources for the second consecutive year. However, while clean energy is poised to meet growing electricity demand, bottlenecks in the permitting and interconnection processes threaten to stifle progress.
The stakes are high. According to data from the Lawrence Berkeley National Laboratory, over 11,600 clean energy projects, representing double the capacity of all current U.S. power plants, are stuck in the queue, awaiting permits and grid connection. These projects, comprising 95% wind, solar, and energy storage, are critical to meeting America’s increasing electricity demand, which is forecast to rise significantly due to industrial electrification, manufacturing onshoring, and population growth.
The delays in permitting and transmission development are not just bureaucratic annoyances; they have tangible economic and environmental consequences.
1. Higher Electricity Costs
Permitting bottlenecks are costing Americans more every day. Between now and 2032, clean energy growth could reduce electricity prices by 5.7% to 7.8%, saving the average household $235–$282 annually. Businesses, which consume far more energy, stand to save millions. Without reform, these savings remain untapped, leaving families and companies to shoulder higher costs.
2. Economic Losses
Slow transmission development is a major bottleneck. In 2023, only 55 miles of high-voltage transmission lines were built—a stark decline compared to the early 2010s, when 500 miles were constructed annually. If the pace of transmission deployment were accelerated, the U.S. could save $270–$490 billion by 2050, translating to $1,900–$3,500 in household savings.
3. Environmental Setbacks
Clean energy deployment is a linchpin in the fight against climate change. If projects remain stalled, the U.S. risks missing its environmental goals. The 11,600 projects in the pipeline represent a chance to avoid significant carbon emissions, yet red tape keeps them from materializing.
Comprehensive permitting reform could unleash massive benefits for the economy, environment, and energy reliability. Two critical legislative efforts—the Energy Permitting Reform Act (EPRA) of 2024 and the Federal Energy Regulatory Commission’s (FERC) Order 1920—could pave the way for success by streamlining permitting processes and enhancing grid interconnection.
Opportunities that come with Accelerating America’s Clean Energy Transition
1. Job Creation
Investments in clean energy and transmission infrastructure could be a game-changer for employment. A study found that 36 “shovel-ready” high-capacity transmission projects could create 1.3 million jobs. Additionally, the wind and solar projects enabled by these lines could add another 2 million jobs, bringing the total to over 3.3 million new jobs.
2. Boosting Energy Security
Modernizing the grid through expanded transmission lines would enhance reliability and resilience. Recent extreme weather events, including hurricanes, heat waves, and winter storms, have underscored vulnerabilities in the current system. A more robust grid would better handle these challenges, ensuring consistent power delivery year-round.
3. Scaling Clean Energy
FERC’s Order 1920 focuses on long-term transmission planning to accommodate clean energy projects. This could enable the interconnection of 187,000 megawatts of new power—enough to serve over 17 cities the size of Los Angeles.
Transmission infrastructure is the backbone of a clean energy future. Yet, America is building just 20% as much new transmission in the 2020s as it did in the early 2010s. This underinvestment is a major roadblock to clean energy deployment, with far-reaching consequences.
As America seeks to bring manufacturing back to its shores, industrial electrification will require a massive increase in power supply. By 2030, the equivalent of 25 million homes worth of additional electricity will be needed to support these processes. Without sufficient transmission infrastructure, this demand cannot be met sustainably.
Some of the nation’s best renewable energy resources are in remote areas, far from population centers. Expanding transmission lines is essential to delivering this power to where it is needed most.
The clean energy industry has demonstrated its potential to drive down costs and improve efficiency. For example, wind and solar costs have plummeted by 60% and 80%, respectively, since 2010, largely due to technological advancements and economies of scale. Transmission infrastructure, however, has not kept pace, highlighting the need for public-private partnerships to overcome barriers.
Companies like Google and Amazon are investing heavily in renewable energy to power their operations, demonstrating the demand for clean, reliable power. Yet, without a modernized grid, these efforts face limitations.
Permitting reform has garnered bipartisan attention, with lawmakers recognizing the economic and environmental stakes. EPRA of 2024 aims to streamline permitting processes, reduce interconnection delays, and promote regional transmission planning. These measures would accelerate clean energy deployment, unlock cost savings, and enhance energy reliability.
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