Transitioning to Clean Energy Requires Rebuilding the Electricity Grid

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The Clean Grid Initiative (CGI) is a funding collaborative that launched in 2022 to provide a nationwide philanthropic approach to expanding U.S. electricity transmission infrastructure. CGI is a hub for strategic leadership, coordination and grantmaking that supports transmission solutions at the state, regional and national levels to realize a clean energy future.

To achieve a carbon-free power sector, a landmark investment in expanding the U.S. electricity grid is needed. It’s a complex endeavor. Transmission planning and development is complex, and decision-making is fragmented across federal, state and local governments. Reforms are needed to remove transmission deployment bottlenecks, increase public awareness and acceptance of transmission and unblock the transition to clean energy. CGI seeks to fundamentally change the conversation about transmission, bringing new approaches and new partners to the table and expanding the field of advocates working to accelerate the pace of transmission and clean energy deployment.

In 2023, the Arthur M. Blank Family Foundation awarded a $4.5 million grant to CGI. This grant aligns with the goal of the foundation’s Energy strategy, which is to accelerate the deployment of clean energy over the next decade in the Western and Southeastern U.S. – a goal that requires an expansion of the U.S. electricity grid. A recent conversation with Anna Foglesong, Managing Director at Clean Grid Initiative, provided more information about transmission expansion and the work CGI is doing in this space.

Q: Why does transmission matter?

A: From a climate perspective, transmission is a critical bottleneck to our energy transition. Across the country, a constrained grid is preventing clean energy from coming online, which will increase customer costs and make it harder to have a reliable grid resilient to increased extreme weather. In addition, transmission is a critical bottleneck to affordably and reliably meeting load growth. A well-planned transmission system can increase electric reliability, reduce delivered energy costs for customers and enable decarbonization. Our grid was built last century to support a different type of power generation and older, less energy-intensive industries. Absent modernization and expansion, the grid will slow our transition to clean energy, risk power shortages, spike prices and slow economic growth.

Q: Why does philanthropy need to support transmission expansion?

A: Despite its critical importance, transmission is an interim and technical part of the electricity system, without a lot of obvious champions. By virtue of it being a networked system, the benefits of transmission expansion are challenging to define and not limited to the developer or state that builds the line. As with many common goods, it is challenging to align all of the interests and move proactively. That is the role that CGI and its network of grantees is filling.

Mission-driven philanthropists can fund innovative, long-term transmission initiatives and prioritize social progress in a way that traditional funding streams may not. Transmission philanthropy bridges funding gaps, advocates for supportive policies and de-risks projects, making them more attractive to other investors who care about clean energy and a resilient future.

Q: Are there key examples of what success looks like?

A: Transmission is important to address climate change, but also to accommodate load growth from new tech and manufacturing sectors, increase resilience to extreme weather and access lower-cost electricity sources. Disaster preparedness and affordability are huge concerns impacting everyone. The constraint is becoming more urgent, but that can be a big advantage because this issue is one that should have broad appeal in every region and across the political spectrum.

One specific example is the transmission portfolio that was approved by the regional transmission organization in the Midwest. The states in the Midcontinent Independent System Operator planning region joined together to recognize that their grid was changing and proactively agreed to a $10.3 billion portfolio of projects that is expected to deliver more than $2 of savings for every dollar invested. This process is a model that federal regulators are now requiring across the country.

Q: If people could know one thing about this field, what would it be?

A: We are way behind on investing in transmission. But there is a huge opportunity to partner with diverse interests in this space. Even if we don’t agree on other priorities, our interests do intersect on the need to grow the grid.

Q: As a woman in leadership in this field, what unique perspectives or experiences do you bring to the clean energy and transmission space?

A: Most of my career has been in the utility and grid operator space, a much more male-dominated environment than philanthropy. I have worked closely with engineers and lawyers without having a background in either discipline. The experience of being something of an outsider has resulted in always looking for common aligned interests.

Q: What advice would you give to other women aspiring to leadership roles in energy or infrastructure industries?

A: One of the things that excites me about the electricity sector is the massive changes we are facing, like new types of generation, energy storage and the rise of distributed energy resources. The lack of expertise in dealing with these new challenges can be a bit unnerving, but I think it also makes room for creativity and voices that historically might not have had a seat at the table. My advice to everyone is to learn, ask questions and try to be part of the team developing the solutions we will need!