Without new investments in our electricity infrastructure, service interruptions and capacity bottlenecks will become more frequent and unpredictable, imposing direct costs to businesses and households. That's one conclusion from the American Society of Civil Engineers (ASCE), which did the math on current grid investment trends versus investment needs for its new report Failure to Act: The Economic Impact of Current Investment Trends in Energy Infrastructure.

According to ASCE's analysis of the nation’s transmission, generation and distribution systems, extending current investment trends for these assets through 2020 shows an anticipated investment of $566 billion, but also reveals a $107 billion shortfall compared to needs.

The report suggests that closing the gap would:

·         Lead to fewer brownouts and blackouts and save American businesses $126 billion

·         Prevent the loss of 529,000 jobs and $656 billion in personal income losses

·         Benefit America’s economic competitiveness by protecting $496 billion in Gross Domestic Product (GDP) and $10 billion in revenue from U.S. exports

"Just like the roads we use every day, when there are bottlenecks or congestion in our electricity infrastructure, it affects everyone. And fewer disruptions mean real money to American businesses and households," said Andrew W. Herrmann, P.E., president of ASCE.

The report indicates there is reason to believe the gaps can be overcome, including an upturn in investment in electricity infrastructure in the last decade.

"The outlook for our grid and the system overall is good because the rate of investment has increased substantially in the past few years. In fact, the total needs projected for each year between 2012 and 2020 fall within the range of spending seen between 2001 and 2010. We saw an increase from $44 billion to a high of $101 billion in that timeframe, and so if spending keeps pace we will be able to close the gap," said Steven Landau of the Economic Research Group of Boston, the lead author of the report.

So what's your take? Do these numbers make you feel more positive or less so about the prospects for grid modernization? Use the Talk Back comment form to tell us what you think.

Speaking of reports: The global state of the smart grid

The Global Smart Grid Federation (GSGF) just announced the release of its inaugural report on the global state of smart grid. The report investigates the key challenges facing deployment of smart grid as well as highlights leading projects from around the world. (You can read the full announcement on page 2.)

"The report provides industry leaders with real-world best practices that can be applied to their own projects," said Guido Bartels, GSGF Chairman. "...it also provides policy makers with insights into successful national smart grid activities, while providing regulators with models of innovative regulatory constructs that enable cost effective investments. This report is a clear indication of the consumer and system benefits gained through global collaboration as we work to transform the world's electricity systems."