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NETL’s Modern Grid Strategy (MGS) seeks to accelerate the modernization of our nation’s electricity grid.  To accomplish this, MGS is fostering the development of a common, national vision among grid stakeholders.  MGS is also working toward a framework that enables utilities, vendors, consumers, researchers and other stakeholders to form partnerships and overcome barriers.  Finally, MGS supports demonstrations of systems of key technologies that can serve as the foundation for an integrated, modern power grid.

The Challenge of the Old Grid: America’s global competitiveness and quality of life depend upon plentiful, reliable electric power. Consider some of the economic consequences of power losses:

• Power interruptions and disturbances cost the U.S. electricity consumer at least $79 billion per year¹ [PDF-94KB]
• A recent rolling blackout caused an estimated $75 million [PDF-692KB] in losses in Silicon Valley alone.²
• When the Chicago Board of Trade lost power for an hour during the summer of 2000, trades worth $20 trillion [PDF-692KB] could not be executed.³

Our nation is increasingly held back by an outdated power delivery infrastructure. Designed in the 1960s or earlier, much of this critical national asset is well beyond its design life. The financial consequences of interruptions are growing into an enormous threat.

Opportunity – A New Dawn for the Grid: The power grid is increasingly operating at its limit, facing shortcomings in capacity, reliability, security and power quality. Smart investments must occur to replace aging infrastructure and expand capacity where necessary to meet increasing electricity demand.  This investment represents a once-in-a-century opportunity to apply new technologies and systems rather than the antiquated designs and technologies of the 1960s and earlier. New advances in power delivery, communications and information technology have laid the groundwork for a modern grid. Proven effective in lab tests and field trials, these cutting-edge solutions offer dramatic improvements in power quality, service and cost savings.

The technology is here, the challenges are manageable, and the benefits far outweigh the costs. Through collaboration and cooperation, we can renew the nation’s power infrastructure in a phased, affordable way and create the foundation for our country’s economic growth and prosperity.

Follow the links to the right to learn more about our efforts to modernize the grid, or contact a MGS team member directly by sending an email to: moderngrid@netl.doe.gov.