Architecting the Platform-Based ‘Arterial Grid’  

1. Introduction: From Hierarchy to Network
Faced with the systemic failures diagnosed in Part 1, the solution is not to mend the old grid but to rebuild it according to new logic. We need to transition from a rigid, centralised hierarchy to a dynamic, intelligent, and resilient network. This new architecture—the “Platform-Based Grid” or “Arterial Grid”—is a system designed not for command and control, but for coordination and exchange.

This model redefines the grid’s fundamental purpose. Its value shifts from the mere sale of commoditised electrons to the provision of reliable access, transportation, and coordination services. It becomes a neutral, open-access platform that enables a vibrant marketplace of generators, consumers, and prosumers.

2. The Three-Layer Architectural Blueprint
This new architecture is conceptualised in three distinct but interconnected functional layers, each with a clear role and economic logic.

2.1 The Foundational Layer (the core or heart)
This layer is responsible for system stability and the provision of bulk, predictable energy. It is the anchor of the entire system.

• Components: This includes existing, long-life assets like hydroelectric dams and nuclear power plants. It also encompasses a diminishing fleet of dispatchable thermal plants, potentially utilizing cleaner fuels like biogas with carbon capture, which act as a backstop for seasonal variations and prolonged weather events. Finally, it includes large-scale renewable energy parks that function as Independent Power Producers, feeding their bulk output directly into the arteries.
• Economic Logic: Assets in this layer are compensated for their energy output and, crucially, for their capacity and reliability services through markets that pay for availability.

2.2 The Transport Layer (the arteries)
This is the high-voltage transmission network, reimagined. Its role evolves from a passive, one-way conduit to an active, bidirectional “transport platform.”

• Function: The primary function is twofold. First, to connect regions of high renewable energy potential, such as sunny deserts and windy plains, with distant centers of high demand. Second, to enable the long-distance “wheeling” of power from decentralised generators to distant consumers.
• Economic Logic: The Transport Layer is funded and operated as a regulated, common-carrier infrastructure. It earns revenue through transparent “wheeling charges”—tolls for moving power—making it a bankable, low-risk asset class for public-private partnerships.

2.3. The Distributed Layer (the capillaries)
This is the distribution network at the grid’s edge, transformed from a passive endpoint into an active, intelligent platform. This is where the most profound revolution occurs.

• Components: The capillaries host and manage a multitude of distributed energy resources: rooftop solar panels, home and community battery banks, electric vehicle chargers, and microgrids.
• The Prosumer Revolution: In this layer, consumers become “prosumers”—active participants who generate, store, and sell services, such as peak shaving, back to the grid.
• Economic Logic: The value here is in orchestration and services. The distribution utility’s role shifts from selling electricity to managing a complex local marketplace and collecting a “Grid Assurance Fee” for maintaining network reliability.

3. Visualizing the System: The Arterial Grid

We can apply the model as a direct antidote to crises like the $2 billion congestion in PJM. First, the long-term cure of strengthening the physical arteries: the crisis is the most powerful argument for streamlining approvals (permitting) for critical transmission lines, showing that the status quo carries a huge recurring cost. Second, the short-term treatment: deploying the “Virtual Grid.” Strategically sited Battery Energy Storage Systems can act as “virtual transmission,” absorbing cheap power during off-peak hours and discharging it during peaks to alleviate congestion immediately.

The situation in PJM is a harbinger of things to come, as it shows that failing grid architecture is a direct driver of higher bills, delayed decarbonization, and a billion-dollar inefficiency.

“The Prescription” is Part 2 of a three-part series. Part 1, “The Diagnosis” discussed why one-way grid built for the industrial age can no longer power the digital one. Part 3, “The Implementation” will show how to finance it; faster, cheaper, and more equitably than propping up the failing status quo.