Guidehouse Insights Explores Spending Levels on Transmission and Distribution Infrastructure in North America

Rate of T&D spending is significantly below what is required to build a resilient grid of the future

BOULDER, Colo., Nov. 3, 2022 /PRNewswire/ -- A new report from Guidehouse Insights explores the current and historical spending levels on transmission and distribution (T&D) infrastructure in North America, and the rapidly changing drivers of grid investment that highlight the need for future spending increases.

As efforts to prepare for and combat climate change gain momentum, the energy grid occupies a unique space as the most important component of the solution—and a potential casualty. Reliability concerns are currently propelling short-term investments for aging grid infrastructure. According to a new report from Guidehouse Insights, the exponential deployment of distributed energy resources and intermittent renewable generation that is expected over the next decade will require a more sophisticated response capability than exists today.

"The US energy grid, like many around the world, is at the center of a significant transformation and poised for an influx of capital," says Michael McConnell, managing consultant with Guidehouse Insights. "The importance of modernizing the grid infrastructure is reflected in recent federal spending bills, which put clean energy and grid infrastructure at the forefront of national priorities. Over the longer term, the electric grid will play a central role in facilitating the transition to carbon-free energy sources, and grid investments will be compounded by the need to serve growing electricity demand."

Across the board, the system needs repair because of its age, hardening measures due to severe weather and external threats, modernization to increase efficiency, and a sizeable expansion to facilitate renewable generation growth. The age and condition of the existing T&D infrastructure is reflected in recent system performance metrics, which show a measurable decline in grid reliability. Recent trends show that spending on T&D infrastructure is increasing, but the rate of spending to date is significantly below what is required to build a resilient grid of the future, according to the report.

The report, Stakeholders Should Prepare for Significant Increases in Grid Infrastructure Spending, examines the current and historical spending levels on T&D infrastructure in North America, and the rapidly changing drivers of grid investment that highlight the need for future spending increases. It also breaks down the 2021 Infrastructure Investment and Jobs Act, providing context for the many potential funding sources for T&D upgrades. An executive summary of the report is available for free download on the Guidehouse Insights website.

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has approximately 16,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit www.guidehouse.com.

*The information contained in this press release concerning the report, Stakeholders Should Prepare for Significant Increases in Grid Infrastructure Spending, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin
+1.646.941.9139
[email protected]

SOURCE Guidehouse Insights