Why has Europe made bold and meaningful progress while other regions – some much larger consumers of energy – are slow off the mark? Do we need a ‘green race’ to bring other countries to the party?

The United States for one, needs to catch up. The potential for this superpower and super-fossil fuel-loving nation to embrace renewables, a more efficient grid and the Energy Transition, is huge.

We’ve seen FERC (Federal Energy Regulatory Commission) signal their intention to address key issues that have historically been siloed – inter-regional planning, intra-regional planning, interconnection processes – and deliver solutions to obstacles such as planning, permitting and cost allocation.

Critically, FERC is also looking to act on the legislative mandate of the Federal Power Act section 291b(3) which requires FERC to incentivize the deployment of grid enhancing technologies. FERC understands that today’s framework dis-incentivizes investment in grid efficiency measures. By sharing project benefits between a utility’s customers and shareholders, this misalignment can be righted, resulting in billions of savings for consumers.

In parallel, President Biden’s recent infrastructure package offers a significant, and very welcome change in direction for the world’s second largest energy producer and consumer. The American electric grid could receive a much needed, renewed focus.

Negotiations with the Senate are still ongoing, and investments in the electric grid appear to potentially be on the chopping block. This would be a critical mistake. 

The President’s initial proposal included $100 billion to create a more resilient electric grid, lower energy bills, improve air quality and public outcomes, create good jobs, and put the US on the path to achieving 100% carbon-free electricity by 2035.

The need for holistic solutions is undeniable. The combination of FERC and Congressional action would put the US squarely on track to catch up to Europe and claim a world-leading position in the transition to fossil-free energy economy.

If the US captures this opportunity, we can look forward to seeing projects like those recently announced by National Grid in the UK. National Grid is unlocking 1.5 GW of capacity on its existing network, resulting in nearly $400 million in consumer savings, and enabling roughly 1 million homes to be powered by renewables.

National Grid’s work shows that the right policies and funding can drive massive dividends for consumers. These projects were pursued because of an effective regulatory framework that encouraged holistic thinking. What we’re seeing in Europe, particularly in the UK, needs to happen across the pond as well. The US needs these multi-pronged approaches to accelerate an affordable energy transition.

It’s time for the US to enter the green race and get the energy transition done.