S. 1327: Advancing Grid-Enhancing Technologies Act of 2025

This bill, titled the Advancing Grid-Enhancing Technologies Act of 2025, aims to create financial incentives for developers to invest in grid-enhancing technologies. Here is a breakdown of what the bill would do:

Establishment of Shared Savings Incentive

The bill requires the Federal Energy Regulatory Commission (FERC) to set up a shared savings incentive within 18 months of its enactment. This incentive will allow developers who install new grid-enhancing technologies to receive a portion of the savings that result from their investment.

Definitions and Requirements

The bill defines "grid-enhancing technology" as any hardware or software that:

• Increases the capacity, efficiency, reliability, resilience, or safety of transmission facilities.
• Is installed in addition to existing transmission equipment to improve grid control and efficiency.

The bill specifies that the savings returned to developers must be between 10% and 25% of the total savings attributed to the investment, and this percentage should be consistent across all eligible projects. The financial return of savings should occur over a period of three years.

Eligibility Criteria

The shared savings incentive will be available to any developer who invests in grid-enhancing technology, which can be related to both new and existing transmission facilities. However, the expected savings must be at least four times the investment cost for the incentive to apply. Technologies that are already installed before the act's enactment won't be eligible for this incentive.

Annual Congestion Reporting

Operators of transmission facilities will be required to submit annual reports detailing the costs associated with managing congestion. This data will include specific constraints causing significant costs and will be used to create a publicly accessible map of associated costs.

Evaluation and Sunset Provision

FERC will evaluate the shared savings incentive's effectiveness between seven and ten years after it is established. This review will determine if the program should continue, be revised, or be discontinued. The evaluation will also consider public feedback and the alignment of the incentive with long-term regional transmission planning requirements.

Application Guide for Technologies

In addition to the incentives, the bill mandates the creation of an application guide by the Secretary of Energy within 18 months of enactment. This guide will assist utilities and developers in implementing grid-enhancing technologies and will be updated annually. The Secretary shall also provide technical assistance upon request and create a clearinghouse of completed projects for reference.

Funding

The bill authorizes funding of $5 million for fiscal year 2025 and $1 million for each subsequent year through fiscal year 2036 to support the implementation of these initiatives.

Relevant Companies

None found