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FERC Overhauls Electric Grid to Pave Way for Renewables

Summary

The Federal Energy Regulatory Commission (FERC) has approved landmark rules to overhaul the U.S. electric grid, aimed at facilitating the integration of renewable energy sources and improving grid resilience against extreme weather. The new regulations require grid planners to develop long-term plans (20-year assessments) for regional transmission needs, revisited every five years, to accommodate shifts in energy production and demand. This includes significant investments in high-voltage power lines to transport renewable energy from production areas to urban centers. The rules also mandate cost-sharing among states and involve public-private partnerships to strengthen implementation. These changes are crucial for achieving President Biden's goal of decarbonizing the power sector by 2035, as the current grid capacity needs to double, with interregional transmission capacity increasing fivefold.

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