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Executive Brief

Transmission Reliability Impacts of Retiring Conventional Generation

An executive brief on reliability risks associated with retiring synchronous generation

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Transmission Reliability Impacts of Retiring Conventional Generation

Overview


This executive brief examines the transmission system reliability risks associated with retiring conventional synchronous generators. It explains how transmission planners assess the impact of generator retirements across thermal loading, transient and voltage stability, frequency response, inertia, short-circuit impacts and other grid reliability metrics.


The brief also explores solution options that may serve as alternatives to synchronous generator reliability must-run agreements, helping stakeholders understand how reliability can be maintained as the generation mix changes.


Why it matters


As older coal, gas and nuclear units retire, the grid loses more than capacity and energy. Conventional synchronous generators also provide essential reliability services such as frequency control, voltage support, dynamic reactive power, short-circuit current, system strength and restoration capability.


At the same time, electricity demand is increasing sharply, driven by data centers, artificial intelligence, large industrial loads, transportation electrification, cryptocurrency mining, heat pumps and broader electrification. This combination of retiring conventional generation and growing demand creates a more complex reliability environment for transmission planners.


Key challenges explored


The brief examines several reliability considerations associated with retiring synchronous generation, including:


  • Thermal overloads

  • Voltage violations and voltage stability risks

  • Transient stability impacts

  • Frequency response and inertia concerns

  • Short-circuit current reduction

  • Protection system coordination

  • System strength

  • Harmonics and oscillation risks

  • Resource adequacy and energy assurance concerns

  • The role of reliability must-run agreements when timely solutions are not available


Questions this resource helps answer


This resource helps stakeholders consider questions such as:


  • What reliability services do synchronous generators provide?

  • What can happen when conventional generators retire before replacement solutions are ready?

  • How do transmission planners study generator retirement impacts?

  • What types of studies are used to assess thermal, voltage, stability and short-circuit risks?

  • When might a generator be required to remain online under a reliability must-run agreement?

  • What alternative solutions can help mitigate reliability risks?

  • How can utilities and decisionmakers compare conventional and emerging reliability solutions?


What the brief covers


The brief provides a practical overview of how transmission reliability risks are assessed and mitigated when conventional generation retires.


Key sections include:


  • Purpose and background

  • Resource adequacy and energy assurance concerns

  • Generation shifts and demand growth

  • Essential reliability services provided by generators

  • Generator retirement processes

  • Transmission planning studies for generator retirements

  • Reliability risks and solution options

  • Multi-pronged approaches to grid reliability

  • Considerations for deploying different solution options


Key solution options discussed


The brief compares several potential solutions for addressing transmission reliability risks, including:


  • Battery energy storage systems

  • Grid-forming BESS

  • Shunt capacitors

  • STATCOM / SVC

  • Synchronous condensers

  • Series compensation

  • Grid-enhancing technologies

  • Reconductoring and advanced conductors

  • Raising transmission towers

  • New transmission infrastructure


The comparison table on page 5 is useful because it shows how different options perform across reliability risks such as thermal overloads, voltage control, dynamic reactive power, inertial response, transient stability, system strength and short-circuit current.


Who this resource is for


This brief may be useful for:


  • Transmission planners

  • Utilities and grid operators

  • Regulators and policymakers

  • Generator owners

  • Reliability coordinators

  • Energy storage developers

  • Renewable energy developers

  • Technical advisors

  • Stakeholders involved in generator retirement, replacement resources or transmission planning

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