grid-friendly appliances. The distribution systems could be modernized by 2030 if such a consensus is reached nationwide.
Costs: The estimated cost to modernize the T&D system is modest relative to the investments that will be required simply to meet load growth and replace or upgrade aging equipment.
Transmission. At a minimum, an investment of $9 billion per year would be needed in the transmission system from 2010 to 2020, and $14 billion per year from 2020 to 2030. Of these investments, $2 billion per year from 2010 to 2030 and $3 billion per year from 2020 to 2030 would be the incremental costs of modernizing the transmission system. In comparison, utilities and organizations that operate transmission systems spent $7.8 billion in 2007.
Distribution. An investment of $26 billion per year between 2010 and 2020 and $38 billion per year from 2020 to 2030 will be needed for the distribution system. Of these sums, $7 billion per year from 2010 to 2020 and $10 billion per year from 2020 to 2030 would be devoted to modernization.
Barriers: The committee has identified the major barriers to T&D modernization as follows:
Technical. Current high costs of advanced technologies, as well as challenges of systematically integrating existing technologies, constitute a barrier to modernizing the T&D system. This situation is further compounded by the risk-averse nature of the electric utility industry.
Investment. The exclusion of societal benefits (such as avoiding costs to the public from widespread blackouts) in the return on investment for the transmission system is a barrier to industry investment in modern transmission technologies.
Regulatory and legislative. The lack of a comprehensive national vision for the transmission system could form a barrier to transmission modernization. In particular:
There is limited multiregional planning and coordination of improvements to the transmission system. Overarching consensus-based standards for grid modernization are necessary but do not currently exist. An open-protocol communications architecture and mechanisms for