Capacity Value of Interregional Transmission
Adria E. Brooks
July 29, 2026

Interregional transmission offers a variety of benefits, including directly supporting resource adequacy (RA) in regions throughout the U.S. These benefits arise from connecting areas with different resource mixes and load profiles. But there is currently no market signal for interregional transmission investments to respond to resource adequacy needs. RA procurement mechanisms, including integrated resource plans and capacity markets, were initially designed to incentivize the investment of internal generation resources and, therefore, omit any value of interregional transmission to import pooled capacity from neighboring regions.

As we face accelerating load growth, tightening resource reserves, rising costs, and intensifying severe weather, resource procurement mechanisms must change to include interregional transmission among the suite of possible RA solutions.

Grid Strategies has developed a “Capacity Value of Interregional Transmission” policy brief to help policymakers, grid operators, reliability experts, regulators, advocates, and other stakeholders better understand the benefits to resource adequacy outcomes from accrediting interregional transmission. The policy brief outlines concrete steps that can be taken to advance this solution. Click the button below to download the brief.

This policy brief was created given information gathered in a series of Spring 2026 workshops on capacity accreditation of interregional transmission, convened by Americans for a Clean Energy Grid (ACEG). A compiled summary of relevant opportunities and challenges that were identified in the workshops is available for download here.