Transforming America's Power Industry: The Investment Challenge 2010-2030

The U.S. electric utility industry is facing the greatest challenge in its history. The demand for electric service is increasing, reserve margins are shrinking and input costs to build infrastructure for all types of electricity production are soaring. Global climate change and other environmental issues are directing the industry toward greater development and use of energy efficiency products and services and low-emissions supply sources, all of which come with costs.

Transforming America's Power Industry: The Investment Challenge 2010-2030 quantifies the total investment that would be required to maintain today’s high levels of reliable electric service across the United States through 2030, net of the investment that could be avoided through the implementation of more aggressive energy efficiency and demand response programs.

Key Findings:

By 2030, the electric utility industry will need to make a total infrastructure investment of $1.5 trillion to $2.0 trillion.
For this investment, our customers will get more efficiency and more control over their electricity use, lower carbon-emitting generation sources, and a higher-technology, more resilient and reliable electric grid capable of meeting their growing electricity needs.
Energy efficiency and demand response programs can significantly reduce, but not eliminate, the need for new generation capacity. However, increasing energy efficiency and demand response programs will require significant investment that, in part, will offset the avoided generation investment.
Implementation of a new federal carbon policy will significantly increase the cost and the mix of new generation capacity.
Required transmission and distribution investment could be as large as, or larger than, generation investment.