Renewable energy's (other) price tag: $50-$100 billion in transmission investment

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The cost of successful renewable energy integration in the U.S. is going to be a lot more than the price of wind turbines, solar panels and other hardware and smart grid technologies. We're going to need to write a check for between $50 and $100 billion to pay for enough transmission infrastructure to meet renewable energy goals, according to Johannes Pfeifenberger, principal and utility practice leader of The Brattle Group. He estimates that investment in transmission will cost roughly $50 billion to meet state-level renewable portfolio standards (RPS) through the next 10-15 years. If a 20% federal RPS is introduced that requires states to meet either the higher of their current RPS standards or the 20% level of renewables integration, the need for transmission investment jumps to about $100 billion, Pfeifenberger said during a transmission cost allocation conference in Chicago this week. Uncertainty over cost recovery for regional transmission projects is considered one of the biggest barriers to making the needed investment.

Quick Take: That's a huge price tag and it underscores the critical need for a major overhaul in transmission policy, planning and regulation.

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