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Climate Policy Center

Research

Potential Impacts of Subsidizing Transmission

Dec 5, 2024

Why It Matters

A new analysis from MIT finds that investment tax credits for transmission projects can lower costs for the US power system while simultaneously improving the grid's reliability during extreme weather events and reducing greenhouse gas emissions.

Researchers at MIT modeled the potential impacts of subsidizing transmission projects with investment tax credits (ITCs). The analysis reveals that transmission ITCs may have a number of important benefits. The subsidies can reduce system costs for the US power grid, keep the lights on for millions of households during extreme weather events, and reduce the greenhouse gas emissions of the US power system.

For more info Drew Story Policy Director dstory@mit.edu