2025/12/26 by Leila Safavi, Julie Mulvaney Kemp, Will Gorman +2 · 2 voices
Engineering · #Electric Power System Optimization #Integrated Energy Systems Optimization #Power System Reliability and Maintenance
paper · doi:10.1177/01956574251399644
openalex publication_date 2025/12/26 · openalex created_date 2025/12/27 · openalex updated_date 2026/05/21
Interregional electricity trade in the United States reduces total energy costs, but falls short of maximizing the economic potential of existing transmission infrastructure. This analysis of thirty-two U.S. electricity system interfaces crossing grid or market seams finds an average achieved cost savings of at least 1,226 million per year. This positive impact is offset by an average annual cost of uneconomic interchange of 551 million. Additional value of at least 238 million per year could be enabled by increasing utilization. Notably, uneconomic flows and low utilization rates can persist even when the price spread between regions is large. These conclusions are derived from historical (2014–2023) data on the magnitude and direction of interregional price spreads, the magnitude and direction of net energy transfers, and how these variables coincide, but do not account for all system constraints. These findings motivate the development and deployment of solutions that improve interregional transmission operations, in parallel with robust transmission infrastructure planning. JEL Classification: Q40 Energy: General