Energy

Energy received a D+ in the ASCE report. It notes that the U.S. system requires heavy duty investment in new power generation, needs to improve efficiency in its existing generation plants, and needs to invest in transmission and distribution systems. The system for transmitting and distributing electric power is overloaded because demand has grown; however, new transmission lines have not been added to match that increase. Since 1990, electric demand has increased 25%, while construction of transmission facilities fell 30%. This congestion often prevents operators from removing the lines for necessary maintenance, which can lead to systemwide failures due to unexpected outages.

Slowly more money is being invested in transmission, but a lot needs to be done across the entire electric infrastructure. The ASCE estimates that the utility industry as a whole needs to invest some $1.5 trillion to $2 trillion by 2030. The industry is spending about that amount now and faces financing problems. However, the smart grid could cost $100 to $900 billion more over the next 20 years. Then add in the costs of carbon dioxide (CO₂) removal and climate change prevention, and you have a big potential funding shortfall. Still, keeping the status quo has significant costs. It has been estimated that power outages and poor power quality cost the country between $25 billion and $180 billion per year. Those costs could increase if power quality worsened or outages became more frequent or increased in duration.