Across the country, the demand for power is soaring. Hyperscale facilities, rising industrial load, extreme weather impacts and the loss of firm power capacity are pushing the grid harder than ever. Integration of renewable and distributed generation sources — often far from load centers — has been constrained as infrastructure build-out has lagged soaring demand.
The response from the energy sector has been a boom in capital investment, significant new construction and rebuilds of aging infrastructure, aiming to dramatically increase capacity on the grid.
The complexity and sheer scale of these projects pose serious risks. A streamlined approach to project delivery, utilizing the engineer-procure-construct (EPC) model, will be key to delivering at the rate the market demands. Accelerating the front end of projects, from concept to mobilization, offers opportunities to optimize through integrated delivery and collaborative contracting.
Three important takeaways:
- Extra-high-voltage (EHV) projects, such as 765-kV transmission lines, are an important part of the sector’s response to modern challenges. Given limited practical experience with such projects, partnerships can better leverage that pool of experience.
- The portfolio-based approach required to scale extra-high-voltage infrastructure needs EPC delivery for maximum efficiency.
- The importance of collaboration and coordination is magnified for region-spanning efforts.
Bridging Experience Gaps
Solving capacity challenges means significant capital investment is essential, particularly in EHV transmission infrastructure. However, most of the limited 765-kV infrastructure in the U.S. was built decades ago. The number of people in today’s workforce who have hands-on experience with design, construction or commissioning at that scale is small and shrinking.
The supply of experienced workers — especially field personnel, skilled linemen and engineering leadership — for high-voltage projects is a major constraint in an already-tight labor market. The risk created by that lack of bench strength requires trust among all stakeholders for the projects. Intentional knowledge transfer from those who already own and operate this type of infrastructure, or who have worked on such efforts internationally, is essential. Partnerships that can leverage limited knowledge and experience are a sensible approach to achieving the necessary precision.
Modernizing Delivery Models
Traditional project delivery models, in which work gets dished out piecemeal through long procurement cycles and segmented scopes, do not effectively address market realities. Given dramatically increasing demand — and the labor shortages and supply chain challenges resulting from attempts to address that demand growth — slow project delivery is not a viable option. When more work needs to be done and fewer resources are available to do it, a different project delivery approach is urgently needed.
EPC project delivery offers a strong approach for pursuing portfolio-based initiatives instead of isolated bids. The collaborative planning and execution that fuels a streamlined EPC approach is essential to drive early commitment, reduce rework and shorten preconstruction phases, thereby speeding up execution.
To provide better foresight, an expanded digital toolbox helps partners and contractors understand resource loading and make project expectations more transparent. In a resource-limited industry, projects benefit from greater flexibility and dialogue between engineering and construction in those early stages.
Strategic, program-level thinking helps project partners maximize the efficiencies of EPC through coordinated efforts. The front-end emphasis, including early contractor involvement, is a powerful tool for optimizing workforce leveling to maximize every hour of skilled labor and tapping into the shrinking pool of workers experienced with work at these voltages.
Driving Collaborative Success
Extra-high-voltage infrastructure projects often are not nested within a single utility’s footprint; they can be regional projects spanning multiple utilities and regulatory jurisdictions. Some projects bring together utilities, developers, private investors and more, with each party bringing distinct priorities to the table. Everyone must align to build a resilient transmission backbone. Effective engagement efforts become a force multiplier in achieving all project objectives.
No one can afford to waste time, labor or opportunity with the stakes this high. Better planning is critical. The current for load growth is moving swiftly. Applying EPC project delivery could help operators avoid being swept away by the rapid changes.
Clear communication throughout the project, involving all stakeholders, is foundational to success. Owners of EHV infrastructure can have confidence in the single source of accountability provided by EPC.
