In Nevada, the need to significantly expand power generation, transmission capacity, and regional resource sharing is urgent as the state’s energy grid struggles to keep up with rapid economic and industrial growth. Northern Nevada’s energy grid, for example, could quadruple in size as the data-storage industry continues to grow and expand in the Reno-Sparks area and beyond. Strengthening and expanding transmission lines will be especially critical to ensure that the growing demand for energy can be met as new advanced energy resources come online.
In response to this need, nearly four years ago, Senate Bill 448 created a Regional Transmission Coordination Task Force to help shape Nevada’s energy future. The Task Force is responsible for studying issues and policies related to transmission development and regional electricity markets, both of which are key solutions to deal with load growth.
As part of its responsibilities, the Task Force puts forth a biennial report to summarize its activities and recommendations. The latest report, finalized at the end of 2024 and released earlier this year, includes several recommendations for Nevada to improve both its transmission infrastructure and its cooperation with its neighbors.
Task Force Recommendations
With over 80 percent of Nevada’s land federally owned, permitting new transmission can be a complex and lengthy process. This, combined with the investment required, means building new transmission is both an extensive and expensive process. To overcome these challenges, the Task Force recommends that Nevada improve its transmission planning, permitting, and financing processes. Specific ideas include strengthening the state’s relationship with the federal Bureau of Land Management (BLM), crafting a statewide transmission plan, considering alternative transmission financing structures, and examining the possibility of creating a statewide transmission authority.
In addition to expanding infrastructure, the report emphasizes the importance of optimizing the state’s current infrastructure. In the near term, deploying grid-enhancing technologies and reconductoring existing lines can expand capacity quickly, which is why the Task Force also recommends that the state support policies that will increase the use of these technologies.
Beyond Nevada, addressing long-term transmission planning on a regional scale is critical to unlocking the full potential of resource sharing across the West. Currently, most transmission projects are typically built within states or between a few neighboring states. However, to meet the region’s energy goals more affordably, the West must plan for transmission expansion on a larger scale. Over the last two years, the Task Force heard presentations on FERC Order 1920-A, which is designed to improve regional transmission planning, and one of the key recommendations in the Task Force report is that Nevada policymakers should provide oversight of Order 1920-A implementation by Nevada utilities. The Task Force also recommends that Nevada’s interests should be represented in regional conversations around transmission planning, such as the Western Transmission Expansion Coalition (WestTEC).
Finally, as energy demand continues to increase in the West, regional cooperation through organized energy markets will be essential. Regional markets lead to more efficient resource sharing, helping to lower costs for consumers and increase economic development opportunities. The next step for Nevada is for NV Energy to join a day-ahead market, and the utility says they will file an application to join the Extended Day-Ahead Market this year. The Task Force recommends that Nevada also continue to engage in regional conversations on markets and further explore the economic benefits of joining a western market.
The work of the Task Force is critical because Nevada is well-positioned to play a central role in shaping the future of the Western electricity grid, both figuratively and literally. The state’s geographic location makes it a natural energy corridor, seamlessly connecting energy between the Northwest and Southwest, and offers Nevada a unique opportunity to become a crucial transmission hub. Advanced Energy United is enthusiastic to continue working with Nevada decision makers to bring the Task Force recommendations into reality and successfully plan for the state’s future needs.
