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Electricity Infrastructure Report Executive Summary Part 2

 Failure to Act Economic Studies  | Electricity Infrastructure Full Report (PDF)
 
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WV power plant - John E Amos by haglundcProjected Demand for Electricity

In the near term, there is close to adequate capacity to meet demand. Over the short term from 2011 through 2020, national growth in generation is expected to be 8% and demand for electricity in all regions is expected to average 8% or 9% based on projections from the U.S. Energy Information Agency. Divergence across different areas in the United States is not expected until the 2021-2040 period. Over the long-term there is expected to be significant regional differences as use is expected to increase by 39% in Florida, 34% in Western states and 20% in the Mid-Atlantic area.

 

Table 1: Annual Average Construction Expenditures 

Recent Investment Trends

Investment in electricity infrastructure has increased in the past decade. From 2001 through 2010, annual capital investment averaged $62.9 billion, including $35.4 billion in generation, $7.7 billion in transmission, and $19.8 billion in local distribution systems (in 2010 dollars).

The average rate of this investment is used as the basis for calculating the gap between investment rates and expected future increases in investment needs. However, it is important to note the widely varying annual investment levels from 2001 to 2010, which ranged from $44 billion to $101 billion. Spending for generation showed the widest range, while distribution was the most narrow in range. Over the recent ten year period, estimated investment in electric generation facilities varied from $18 billion to $72 billion, while transmission and distribution investments varied from $6 billion to $10 billion and $17 billion to $22 billion, respectively (all dollars adjusted to 2010 value).

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