Transmission Upgrades Hamper Energy Projects in Virginia
Virginia faces significant delays in energy projects due to costly transmission upgrades, affecting over a million homes. The situation threatens energy reliability amid rising demand, especially from data centers.
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Since 2018, 103 power projects in Virginia, primarily clean energy, have been withdrawn or delayed due to transmission bottlenecks, preventing the generation of 5,000 megawatts, enough for over a million homes. The average cost of network upgrades for these projects is approximately $10.4 million.
The Federal Energy Regulatory Commission has ordered PJM to enhance transmission planning, which may alleviate some issues by distributing upgrade costs based on project benefits. Currently, the infrastructure challenges are exacerbated by soaring electricity demand driven by data centers, increasing the risk of blackouts. Solutions could include adopting new technologies for efficiency and collaborative financing for upgrades.
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