Stakeholders Should Prepare for Significant Increases in Grid Infrastructure Spending

This Guidehouse Insights report 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.

Table of Contents

1. Spark

2. Context

3. Recommendations

4. Despite Investment to Date, Achieving Grid Resilience Requires Immediate and Sustained Action

4.1 Concerns About Current Grid Infrastructure Grow in Latest Assessments

4.2 Regulators Call for Action on Grid Reliability

4.3 Case Study #1: California Summer Reliability Prompts Emergency Action

5. T&D Infrastructure Spending Has Experienced Slow but Consistent Growth

6. Driving Infrastructure Investment

6.1 Grid Planners Should Prepare for More Frequent Weather Events

6.2 Clean Energy Standards and Required Infrastructure Escalate Over the Next Two Decades

6.3 Transportation Electrification Will Likely Accelerate Distribution Investment

6.4 Appliance Electrification Requires Long-term and Continued Investment

6.5 Case Study #2: California Public Utility Commission's 2021 Preferred System Plan Provides a Glimpse of the Future

6.6 CPUC 2021 Preferred System Plan

7. The 2021 US Infrastructure Investment and Jobs Act Offered a Boost to Grid Infrastructure Spending

7.1 Stakeholders Should Prepare for Robust Grid Infrastructure Spending Over the Next Decade