The Value of Inter-Regional Coordination and Transmission in Decarbonizing the US Electricity System

Preventing global warming in excess of 1.5 degrees C-2 degrees C requires a transition to zero-carbon electricity systems by midcentury along with the widespread electrification of other sectors. Current state-level renewable portfolio standards and regional transmission arrangements do not capture the benefits of inter-regional transmission or coordination of planning and dispatch for renewable-energy integration. Here, using a co-optimized capacity-planning and dispatch model over 7 years of hourly operation, we show that inter-state coordination and transmission expansion reduce the system cost of electricity in a 100%-renewable US power system by 46% compared with a state-by-state approach, from 135 $/MWh to 73 $/MWh. Sensitivity analyses show that reductions in the cost of photovoltaics, wind, and lithium-ion batteries lead to the lowest electricity costs for systems in which transmission expansion is allowed, while cost reductions for nuclear power or long-duration energy storage lead to greater electricity cost reductions for isolated systems.