A new report from the Federal Energy Regulatory Commission (FERC) shows that electric grid investments could be worth $50 billion to $200 billion over the next five years.
But the amount of that money could be drastically reduced if a major change occurs to the federal grid.
The agency released its preliminary report today, which found that investment in the electric grid has fallen to a point where it is “significantly less than it was five years ago.”
In fact, the amount invested in the grid is expected to drop to $15 billion to be about $60 billion lower than it would be if investments had remained the same.
The decline in investment in grid infrastructure is largely due to the failure of the Obama administration to act to modernize and strengthen the grid during the 2016 presidential campaign.
The Obama administration failed to provide an aggressive and transparent plan to address the needs of electricity markets, which led to an overall decline in electricity market investments.
The Federal Energy Regulation Commission (FERC) was created to address that issue by passing the Electricity Market Modernization Act of 2018.
The act includes provisions to streamline and modernize the electricity grid, as well as to help states develop better grid planning strategies.
The FERC report does not mention any other major policy change by the Trump administration that has resulted in grid investments falling.
However, it does include recommendations for further grid investment.
The report recommends that the Federal Emergency Management Agency (FEMA) provide funds to fund the development of a comprehensive grid modernization plan, which could include the development and deployment of advanced technologies and energy storage, among other things.
This could allow states to create or develop alternative power plants that could reduce energy use and greenhouse gas emissions while also helping to reduce grid costs and reliability.
The FERC also recommends that state and local governments should focus on grid modernization to help prevent and mitigate the effects of climate change and the impacts of the rapidly changing energy market.
These investments should be aimed at the “lowest common denominator,” the FERC stated.
“In other words, we should focus our investments on the most vulnerable populations,” the report stated.
While the FERC does not directly address the role that states and localities should play in the modernization of the grid, the commission’s recommendations can have a significant impact on the overall investment in energy infrastructure.