Office of Electric Transmission and Distribution. Transforming the Grid to Revolutionize Electric Power in North America

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1 Office of Electric Transmission and Distribution Transforming the Grid to Revolutionize Electric Power in North America

2 Electricity and Economic Growth If the electricity infrastructure of this country is inadequate or in some way excessively costly, it will undermine economic growth, and is therefore a major issue that must be addressed. Alan Greenspan Chairman of the Federal Reserve Board January 26, 2001

3 Electricity Market Facts ~$1 trillion total asset value $247 billion annual revenues 131 million customers 3200 utilities Without electric power the $10.4 trillion U.S. economy would come to a halt Transmission and distribution are essential to the electric market supply chain

4 Recent Major Blackouts West Texas Coast Detroit 00 Detroit 00 New York 99 Chicago Chicago New York 99 Northern California San Francisco 00 San Francisco 00 Delaware 99 West Delaware Coast Atlanta 99 New Orleans 99 17

5 Leadership from All Levels It is a plan to modernize our electricity delivery system. It is a plan which is needed now. It is needed for economic security. It is needed for national security George W. Bush February 6, 2003 Presidents Council of Advisors On Science and Technology Transforming the Grid to Revolutionize Electric Power in North America G RID 2030 A N ATIONALV ISIONFOR E LECTRICITYS S ECOND100 Y EARS Based on the results of the National Electric System Vision Meeting Washington, DC April 2-3, 2003 May 2001 May 2002 Sept 2002 Report on Energy Efficiency Findings and Recommendations Draft April 2003 Draft Not for Circulation, Distribution, or Citation June 2003 United States Department of Energy Office of Electric Transmission and Distribution Final Draft July 2003

6 Office of of Electric T&D Director RD&D Analysis Electric Systems RD&D Transmission Systems Including high capacity conductors Distribution and Integration Including interconnection of distributed energy Electricity Storage Superconductivity Electric Power Systems Operations and Analysis Electricity Policy Modeling and Analysis Provide Check/Balance to the FERC Electricity Restructuring Electricity Exports Including Presidential Permits Power Marketing Administration Liaison

7 Strategy for Implementation An Integrated Approach Policies Markets Technologies Energy RD&D Policy analysis, modeling, and data development Coordination of Federal, Regional, and State Agencies The Ultimate Goal A competitive marketplace for expanding the use of clean, efficient, reliable, and affordable energy resources

8 National Electric System Vision and Roadmap Process Participation is Paramount! Vision Roadmap Implementation Technologies Markets Policies Action Agenda RD&D Regulations Market Designs Industry Today Goals Priorities Partnerships Industry Tomorrow April 2-3, 2003 Next Step: National Electric System Roadmap Meeting July 8-9, 2003 (Washington, DC)

9 Grid 2030 A National Vision Vision Grid 2030 energizes a competitive North American marketplace for electricity. It connects everyone to abundant, affordable, clean, efficient, and reliable electric power anytime, anywhere. It provides the best and most secure electric services available in the world. Draft proceedings and vision documents can be downloaded from

10 National Electric Backbone For coast-to-coast power exchange

11 Regional Interconnections Backbone plus interconnected regional networks

12 Local Grid Backbone, interconnected regions, plus local and micro/mini-grids

13 Resulting in a National Grid Plus integrated communications and controls architecture

14 Conclusion We will work to unleash innovation and strengthen our markets to allow entrepreneurs to develop a more advanced and robust transmission system that meets growing energy demand in the years ahead." Secretary of Energy Spencer Abraham, May 8, 2002

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