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Electricity Infrastructure Report Executive Summary Part 3

 Failure to Act Economic Studies | Electricity Infrastructure Full Report (PDF)
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The Potential Investment Gap for Electric Infrastructure

Nationally, extending current trends leads to funding gaps in electric generation, transmission, and distribution that are projected to grow over time to a level of $107 billion by 2020, about $11 billion per year, and almost $732 billion by 2040, as shown in Table 2, and the flow of annual expenditures through 2040 is illustrated by Figure 2. 

Figure 1: Projected Needs and Gap by Year


In 2020, distribution and transmission infrastructure are expected to account for more than 88% of the investment gap while generation infrastructure represent roughly 11.5%. By 2040, however, generation infrastructure is potentially the most costly element of the gap, accounting for 55% of the total, with transmission accounting for 15%, and distribution accounting for 30%. This is a reversal from 2020, when generation is expected to be the best funded element of electricity infrastructure.

Table 2: National Electricity Infrastructure Gap 

Table 3: Regional Breakdown of Electric Distribution Investment Gap 

The cumulative total investment gap adds the generation, transmission, and distribution infrastructure gaps. Those results are shown by region in Table 3, and indicate that the investment funding gap will be highest in the Southeast, the West, and the Mid-Atlantic area, and lowest in the Southwest and Florida. Growth alone does not appear to be driving the gap, but rather a combination of supply, technologies, and demand.

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