The electric grid underpins nearly every aspect of the national economy, powering homes, businesses, and critical infrastructure. As electricity demand grows, driven by electrification, data centres, and artificial intelligence (AI), insufficient expansion and modernisation of the grid, as well as delays in bringing new transmission capacity online, are increasingly constraining economic growth and raising costs for consumers. Investment in electric transmission delivers significant societal benefits, including lower electricity costs, improved reliability, enhanced resilience, reduced congestion, and improved access to lower-cost generation. A new report by Grid Strategies, prepared on behalf of WIRES, a non-profit trade association that promotes investment in the North American electric transmission system through information sharing, strategic advocacy, and innovation across regulatory, policy, industry, and educational forums, examines the economic and consumer impacts of delays in developing large-scale electric transmission infrastructure. The report was undertaken to quantify how postponements in expanding and modernising the electric grid affect consumers, economic growth, workforce development, and national security priorities, including those connected to the rapid growth of data centres and AI. As electricity demand continues to rise, the analysis highlights the consequences of failing to deliver transmission projects on a timely basis.
To estimate costs, the report reviews eight benefit-cost studies of transmission portfolios from across the US. Using the total benefits reported in each study, the analysis converts those benefits into annualised values and estimates the consumer cost of a one-year delay in placing transmission projects into service. The findings show that for every USD1 billion invested in well-planned, large-scale transmission, a one-year delay results in approximately USD150 million to USD370 million in lost net benefits to consumers. These losses stem primarily from higher fuel and capacity costs, continued congestion, and reduced power system reliability.
In addition to direct consumer impacts, delayed transmission investment slows economic growth, hinders job creation, and poses risks to national security. The report finds that each USD1 billion in delayed transmission investment defers between 11,000 and 25,000 direct, indirect, and induced job-years. Moreover, the additional transmission capacity that would have resulted from timely investment enables broader economic expansion by supporting new or expanded businesses, including data centres and manufacturing facilities, further amplifying employment and growth benefits.
In conclusion, consumers benefit most when transmission projects are completed and energised as quickly as possible. Many of the economic and reliability benefits of transmission arise from more efficient system operation. The affordability, reliability, and resilience of the nation’s electricity supply depend heavily on the timely execution of efficient and cost-effective transmission expansion, making delays costly not only for consumers but for the broader economy as well.
The full report can be accessed here.
