“Many utilities are risk averse,” said Dave Bryant, the chief technology officer for CTC Global, a leading manufacturer of advanced conductors that has projects in more than 60 countries.
There are also mismatched incentives, the report found. Because of the way in which utilities are compensated, they often have more financial incentive to build new lines rather than to upgrade existing equipment. Conversely, some regulators are wary of the higher upfront cost of advanced conductors — even if they pay for themselves over the long run. Many utilities also have little motivation to cooperate with one another on long-term transmission planning.
“The biggest barrier is that the industry and regulators are still caught in a short-term, reactive mind-set,” said Casey Baker, a senior program manager at GridLab. “But now we’re in an era where we need the grid to grow very quickly, and our existing processes haven’t caught up with that reality.”
That may be starting to change in some places. In Montana, Northwestern Energy recently replaced part of an aging line with advanced conductors to reduce wildfire risk — the new line sagged less in the heat, making it less likely to make contact with trees. Pleased with the results, Montana legislators passed a bill that would give utilities financial incentives to install advanced conductors. A bill in Virginia would require utilities to consider the technology.
With electricity demand beginning to surge for the first time in two decades because of new data centers, factories and electric vehicles, creating bottlenecks on the grid, many utilities are getting over their wariness about new technologies.
“We’re seeing a lot more interest in grid-enhancing technologies, whether it’s reconductoring or other options,” said Pedro Pizarro, the president and chief of executive of Edison International, a California power company, and the chairman of the Edison Electric Institute, a utility trade organization. “There’s a sense of urgency.”