Software-based initiative could unlock up to 20% more bulk capacity: OATI

A company called OATI, which handles most of the buying and selling of power on the U.S. grid, wants federal funding to roll out software that could squeeze 10% to 20% more capacity out of existing transmission lines, without building any new power lines or towers. The idea is to use better software rather than new hardware: real-time coordination between grid operators in different regions, dynamic line ratings that reflect actual weather and load conditions instead of fixed conservative limits, and AI-based dispatch of flexible power resources.

OATI applied this summer for a piece of the Department of Energy's $1.9 billion SPARK program, which funds projects that boost transmission capacity through upgraded wires and other advanced technology. Selection results are expected later this month, with formal awards starting in October. A coalition of grid operators and utilities, including the California and New York grid operators, the Southwest Power Pool, PacifiCorp, Duke Energy and Florida Power & Light, has signed on to help test the approach.

This is a big-grid story, not something that changes anything on your own house or bill right away. But it points to how utilities are trying to find more power capacity as demand grows, especially from data centers, without necessarily building costly new infrastructure. If projects like this succeed, they could eventually help ease the kind of grid strain that drives up electricity costs or slows new hookups, including for home electrification projects like heat pumps or EV chargers.