Modeling shows in 2035 alone, in four regions accounting for about half of U.S. electricity demand, reform could reduce grid costs by $7 billion, lower residential electricity bills by $1.1 billion, and reduce costs from shortages by 76 percent while boosting clean energy and cutting carbon emissions
WASHINGTON – Today, the Center for Climate and Energy Solutions (C2ES), in partnership with Greenline Insights, released new analysis showing that permitting and transmission reforms under debate in Congress, including expanded interregional transmission and interconnection queue reforms, could significantly reduce power sector emissions, strengthen grid reliability, lower electricity costs, and unlock billions of dollars in economic benefits.
Analyzing four regional power systems currently serving 54 percent of the nation’s electricity demand, modeling estimates that carbon dioxide emissions from the power sector would fall by 9 percent (amounting to 71 million tons in these regions in 2035 alone) relative to business as usual. These results are consistent with previous analyses finding that reforms making it easier to build transmission lines and connect power to the grid could result in total emissions reductions of billions of tons nationwide over the coming decades.
Nationwide, reform could also reduce cumulative grid costs by roughly $125 billion and residential electricity bills by $19 billion between 2026 and 2040.
The analysis finds significant changes in the regions’ energy mix. The reform scenario shows large increases in capacity for battery storage (up 65 percent over business as usual), solar power (up 22 percent), and wind power (up 14 percent). Natural gas generation increases from today’s levels to meet growing demand, though its share of generation capacity declines from 45 percent to 39 percent relative to the business as usual baseline.
The findings come as electricity demand is projected to surge across the modeled regions. The analysis finds that transmission expansion and interconnection queue reform would enable substantially more clean energy deployment, lower dependence on natural gas generation (reducing exposure to price volatility in the process), and save consumers money while meeting the same growing demand.
Compared to a “business as usual” scenario, the modeling demonstrates significant economic and climate benefits in 2035, including:
- reduced grid costs by about $7 billion driven primarily by lower fuel and operating expenses across the system.
- meeting the same demand with fewer shortages: the cost associated with power shortfalls drops by more than 76 percent, with reductions in every region that experiences them.
- $1.1 billion saved on residential on electricity bills.
- reduced exposure to fuel price volatility: under high natural gas prices, reform’s grid savings nearly double to roughly $13 billion.
“America’s electricity demand is rising faster than it has in decades, and how we meet that demand will have major implications for energy costs, reliability, economic growth, and a stable climate,” said Nat Keohane, president of C2ES. “This analysis shows that practical reforms to transmission planning and interconnection processes can unlock more clean energy, reduce our reliance on natural gas, lower costs for consumers, and help build a cleaner, more reliable electric grid. These benefits are within reach if we move quickly to modernize the systems that power our nation.”
“The central takeaway from this analysis is that transmission and interconnection reforms work together to make the U.S. electricity grid more efficient,” said Dr. Ashna Aggarwal Dalfort, director of analysis for Greenline Insights. “By allowing more projects to connect and more electricity to move between regions, these reforms simply give the grid more options to meet rapidly growing demand. The result is substantially lower grid costs, savings for residential customers, fewer power shortfalls, and less exposure to fuel price volatility.”
The findings reinforce the growing urgency of bipartisan permitting and transmission reform as electricity demand rises and the nation seeks to strengthen energy security, economic competitiveness, and emissions reductions. More than 2,000 gigawatts of proposed generation and storage projects are currently waiting in interconnection queues, and transmission expansion continues to lag behind the needs of a modern economy. Through its work on permitting reform, C2ES has convened leading companies, stakeholders and policymakers from across the political spectrum to resolve these challenges and advance durable, sensible solutions that modernize permitting, improve interconnection processes, expand transmission infrastructure, and provide greater certainty for energy investments.
To speak with a C2ES expert, contact Tim Carroll at press@c2es.org.
About C2ES: The Center for Climate and Energy Solutions (C2ES) works to secure a safe and stable climate by accelerating the global transition to net-zero greenhouse gas emissions and a thriving, just, and resilient economy. Founded in 1998 as the Pew Center on Global Climate Change, C2ES advances practical, innovative, and durable climate and energy solutions through policy analysis, business engagement, and bipartisan collaboration.
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