Grid Capacity Underutilization Due to Persistent Congestion
Definition
Congestion bottlenecks prevent full use of low-cost generation capacity, leading to curtailments and idle cheaper resources while expensive local generation is dispatched. This occurs daily at constrained interfaces, reducing effective transmission capacity. Zonal pricing and stability constraints exacerbate losses by not fully optimizing flows.
Key Findings
- Financial Impact: $100-280 million annual savings potential from relief (implying equivalent losses prior)
- Frequency: Daily
- Root Cause: Thermal limits, stability constraints, and suboptimal congestion pricing (e.g., zonal vs. nodal) causing inefficient dispatch
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Electric Power Transmission, Control, and Distribution.
Affected Stakeholders
Scheduling Coordinators, Generators, ISO Dispatchers
Deep Analysis (Premium)
Financial Impact
$10-40M annually from settlement errors, disputes, and inability to optimize payment timing based on congestion patterns • $10-50M annual from underutilized capacity and higher dispatch costs • $100-280M annual from underutilized renewable capacity
Current Workarounds
Ad-hoc phone calls and Excel models for bid adjustments. • Excel curtailment schedules coordinated via phone • Excel spreadsheets for forecasting curtailments and manual curtailment scheduling
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
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