BOSTON, MA, May 19, 2021 – London Economics International LLC (“LEI”) published an in-depth study, entitled Repowering America: Transmission investment for economic stimulus and climate change, that examines the economic impact from $83 billion in approved/planned transmission projects across the US (notably, $83 billion is a conservative figure as it does not include recently proposed transmission projects or merchant transmission projects that are outside RTO/ISO and utility planning processes).
LEI quantified the “multiplier” effect associated with the direct local spending from bringing these approved/planned transmission projects to fruition. During the construction phase of these projects, the U.S. can expect to see a boost of $42 billion to the Gross Domestic Product (“GDP”), and the creation of around 442,000 jobs. To put these figures into context, the 2019 GDP contribution of the Utility sector was approximately $301 billion, and Utility sector employment totaled 431,000 jobs. Therefore, the construction of these transmission projects would result in an economic boost roughly equivalent to the existing employment in the overall Utility sector. After the transmission projects come online, the annual operations and maintenance expenditures are projected to increase GDP by $1.6 billion a year and create approximately 9,000 permanent jobs. LEI also examined other benefits that are not quantified as part of the analysis but would be beneficial to US consumers and the overall economy, namely reduced electricity prices, increased investment in renewable generation, and successful achievement of decarbonation goals.
“There are many obstacles to getting beneficial transmission infrastructure built.” Julia Frayer, Managing Director and co-author of the report stated. “However, policymakers and regulators have a lot of levers available to them – they can improve planning process, refine cost allocation policies and ROE policies, and implement complementary financial measures. Our study shows that taking action to support and encourage such transmission investment would benefit the economy and consumers.”
The study is available for download from the WIRES website through the following link: https://wiresgroup.com/repowering-america-transmission-investment-for-economic-stimulus-and-climate-change/
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London Economics International LLC (“LEI”) is a global economic, financial, and strategic advisory professional services firm specializing in energy and infrastructure. For further information on LEI, please contact Kathryn Evans at (416) 643-6622 or Julia Frayer at (617) 933-7221 or visit www.londoneconomics.com.