With the U.S. power grid under unprecedented strain, 765,000-volt (765 kV) alternating current (A.C.) transmission is experiencing a renaissance. Demand from data centers, industrial electrification, and renewable energy integration is growing, while accelerated retirements of legacy fossil-fueled generation curtail supply. This demand growth is forcing stakeholders to rethink how to move vast amounts of power efficiently and reliably across entire regions.
At Tangibl Group, we work with utilities, developers, and investors navigating these shifts. Investment in 765 kV is critical to unlock regional transfer capability, optimize project economics, and modernize the nation’s energy infrastructure.
Why 765 kV Is Back in Focus
Electric generation resources are increasingly located far from the loads they serve. This is especially true for renewable resources. Wind and solar are typically built in remote regions where their output must travel hundreds of miles to reach customers. Regional-scale transfer capability is essential.
765 kV transmission lines move more power over greater distances, using fewer lines, less land, and resulting in lower environmental impact compared to lower-voltage alternatives. For utilities and developers, these projects represent strategic investments that can be scaled to match growing demand with returns realized through formulaic ratemaking mechanisms.
A Proven Technology Gains Traction
765 kV represents the highest-operating A.C. voltage in the U.S. It is capable of carrying more power over a greater distance with fewer lines, lower losses, less land, lower environmental impact, and lower costs. It was originally pioneered by American Electric Power (AEP) in 1969 and has seen limited expansion other than at AEP since then:
- AEP extended its network throughout its Eastern system in six states stretching from Southwest Michigan to Central Virginia
- The New York Power Authority constructed a single 765 kV line from Canada to Marcy, New York
For decades, deployment was limited to AEP, but as electricity demand climbs and renewable integration accelerates, what once seemed like an “overbuilt” network now appears prescient.
Investment Momentum Is Building
The combination of compelling economics and reduced environmental impact has sparked at least $25 billion in proposed 765 kV projects across Texas, the Midwest, and the Mid-Atlantic. Developers and policymakers increasingly view 765 kV as a cornerstone of regional transmission strategy.
Large engineering-procurement-construction (EPC) firms, both public and private, are preparing to compete for execution, bringing significant experience with extra-high-voltage (EHV) infrastructure to the table.
Equipment Supply: The Weak Link
While engineering expertise is plentiful, equipment supply remains the primary constraint. At one time, three U.S. manufacturing facilities produced 765 kV-level transformers and other critical components, but all were shuttered by 1998 due to weak demand.
Today, only three U.S. utilities currently own and operate 765 kV assets, concentrating expertise within a limited circle. To scale 765 kV as a national network transmission standard, reshoring domestic manufacturing capacity, including sub-suppliers, must become a priority.
Strategic, Regulatory, and Financial Dimensions of 765 kV
The renewed interest in 765 kV carries significant strategic, regulatory, and financial considerations. Stakeholders must navigate:
- Utility ratemaking dynamics
- Regional transfer planning
- Permitting and environmental review
- Supply chain coordination
Tangibl Group provides utility rate consulting, engineering advisory, and power project development strategy to help clients manage these complexities. Whether advising on long-range planning, structuring investment frameworks, or understanding the economic trade-offs of 765 kV infrastructure, we bridge technical realities with actionable insights.
Looking Ahead
As electrification accelerates and renewables grow, the U.S. grid is evolving into something resembling a national power highway system. The resurgence of 765 kV transmission marks a pivotal step toward enabling that future—one where power can move freely, reliably, and efficiently across an interstate transportation system for electric transmission.
At Tangibl Group, we help clients prepare for that transformation, combining expertise in utility economics, engineering strategy, and market dynamics to deliver clarity in a rapidly shifting landscape.