The aging U.S. energy infrastructure received a grade of D+ due to outdated infrastructure contributing to power failures. An estimated $1.5 trillion investment is needed by 2030 to modernize the electric grid. Climate change has also increased storms and events causing more outages, requiring infrastructure to be hardened. A shortage of energy sector workers is also projected due to retirements, requiring new training and skills. Sustainable funding sources must be identified to invest in improvements and protect against worsening climate conditions.
Petron Group LLP predicts Energy and fuel prices in the United States
US Energy Infrastructure Receives D+ Grade Due to Aging Infrastructure
1. Energy Infrastructure received a
grade of D+ by ASCE due to old and
outdated infrastructure contributing
to disturbances and power failures1.
Analyzing Aging Infrastructure and Economic Impacts in the United States
Energy Infrastructure in the United States
Jobs and Workforce Development
In 2008 it was estimated that by 2030 the United States
Electric utility industry would need to make a total
infrastructure investment of $1.5 trillion
Modernization of the grid is necessary due to the
modern way of life and its reliability on electricity for the
internet, healthcare, transportation, financial system,
navigation, and communication
D+
In 2013 approximately 1 million people
were employed in energy transmission
and distribution jobs, with an additional
supporting 900,000 jobs
By 2030 it is projected that the overall
energy sector will employ an additional
1.5 million workers
Due to changes in technology and the
demand to improve an aging grid, a
different type of workforce skills are
needed in the coming years
The workforce is aging, particularly in the transportation sector, and in electric
and natural gas utilities. Within the next decade up to 38% of the employees in
the electric and gas utility sector may retire, which creates more demand for
workers. Having a well-educated and well-trained workforce is required to fill
the positions that are being lost due to individual’s retiring and exiting the
workforce.
The United States’ infrastructure system is one of the most advanced, complicated systems in the world. The system includes over 2.6
million miles of pipeline, 640,000 miles of high-voltage transmission lines, 6.3 million miles of distribution lines, 414 natural gas storage
facilities, 330 ports that handle petroleum, 140,000 miles of railway to transport petroleum, natural gas, and coal, and more than 7,000
operational power plants. The system handles a variety of different types of energy sources, and must connect different grids and systems
over a vast amount of land. In addition to the geographic and logistical demands of the system, it must also work 24 hours a day, 365 days
and year and be reliable and efficient.
Workforce Age Distribution in the Electric and Natural Gas Utilities by Percentage of Total Employees2
2. Energy Disruptions
Sustainable Funding
Since 1880 the temperature of the earth has
risen 1.4 degrees Fahrenheit and 1.6 degrees
in the United States. Due to this change, as
well as other climate changes there has been
an increase of storms and other natural events
(as seen below). The changing climate
patterns have contributed to the power
outages and failures that are becoming more
common. Hardening the existing infrastructure
to protect against worsening climate conditions
must happen, as well as taking into
consideration a more severe climate when
planning and building new energy
infrastructure.
The cost of improving and updating energy infrastructure is
expensive:
Grid Modernization - $3.5 Billion
Multi-state planning grants - $300-$350 Million
SPR modernization - $1.5 - $2 billion
Energy system hardening $3-$5 billion
Pipe Replacement - $ 2.5-$3.5 billion
Energy Assurance planning grants $350-500 million
Energy Connector projects - $2 - $2.5 billion
We must begin looking at new funding opportunities from both
the public and private sector. This is the next step to ensuring
this is to improve local and state policies to encourage
investment in energy infrastructure projects.
United States Department of Energy Energy Jobs Strategy Council
Increased investment in energy infrastructure is imperative to
ensuring energy reliability and security. Looking for new funding
sources, and encouraging energy infrastructure investment is key.
Since 1958, 49 of the 50 states have seen
increases in heavy precipitation
Energy infrastructure is most vulnerable due to:
o Rising sea level
o Increased temperatures
o Flooding
o Decreased water availability
Projected Climate Impacts on the U.S. Energy Sector by Region3
Billion-Dollar Disaster Event Types by Year4
Investment in Transmission Infrastructure by Investor Owned Utilities, 1997-20125
1 "ASCE | 2013 Report Card for America's Infrastructure." ASCE | 2013 Report Card for America's Infrastructure. 2013. Accessed August 10, 2016. http://www.infrastructurereportcard.org/a/#p/energy/overview.
2- Center for Energy Workforce Development. “Gaps in the Energy Workforce Pipeline: 2013 Survey Results.” 2014. Reproduced with permission.
3- AEG (Aspen Environmental Group) and M. Cubed. 2005. Potential Changes in Hydropower Production from Global Climate Change in California and the Western United States. Sacramento, CA: California Energy Commission. http://www.energy.ca.gov/2005publications/CEC-700-200
4- National Oceanic and Atmospheric Administration, National Climatic Data Center. “Billion-Dollar Weather and Climate Disasters: Time Series.” www.ncdc.noaa.gov/billions/time-series.
5- Energy Information Administration (based on Federal Energy Regulatory Commission Financial Reports, as accessed by Ventyx Velocity Suite). “Investment in electricity transmission infrastructure shows steady increase.” Today in Energy.
http://www.eia.gov/todayinenergy/detail.cfm?id=17711. August 24, 2014.