Controlling Costs: TSOs' Risk Strategies Need To Keep Pace With Change

The future is electric. Demands on transmission networks will continue to grow exponentially, as will investment and the interconnectivity between networks. Modern, flexible, reliable and resilient transmission networks are fundamental to the success of the energy transition, and within a regulated sector with fixed revenues, finding ways to build operational efficiencies will be a focus for risk and finance leaders.

But making strides in the energy transition comes with its challenges for transmission system operators (TSOs):

• While the existing power grid is based around centralized and large-scale power plants, solar, wind, and hydroelectric power are pushing generation assets further from load centers. Pushing into new regions with limited transmission infrastructure has the potential to create transmission bottlenecks.