Gee, if only someone had warned them
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“No one took into consideration where this is all going,”
News that the Green Grid is nowhere near being able to supply the unicorn electricity dreamed of by its advocates may be new to the children at the Washington Post and their readers, but for years, this little blog has been linking to articles that have sounded the alarm. Just one such article, lengthy, but notable and well worth reading because of its calm discussion of the issue can be found here, in Edward Ring’s essay for American Greatness,” The Electric Age”.
In any event, here are excerpts from the Post article. My pessimistic nature tells me that when the Democrats sweep the elections this fall we’ll see a new declaration of state of emergency and an ensuing federal takeover of state and local zoning and environmental regulations that are blocking transmission towers and windmill farms. That won’t solve the underlying problem, but it will at least be entertaining.
WAPO:
Vast swaths of the United States are at risk of running short of power as electricity-hungry data centers and clean-technology factories proliferate around the country, leaving utilities and regulators grasping for credible plans to expand the nation’s creaking power grid.
In Georgia, demand for industrial power is surging to record highs, with the projection of new electricity use for the next decade now 17 times what it was only recently. Arizona Public Service, the largest utility in that state, is also struggling to keep up, projecting it will be out of transmission capacity before the end of the decade absent major upgrades.
Northern Virginia needs the equivalent of several large nuclear power plants to serve all the new data centers planned and under construction. Texas, where electricity shortages are already routine on hot summer days, faces the same dilemma.
The soaring demand is touching off a scramble to try to squeeze more juice out of an aging power grid while pushing commercial customers to go to extraordinary lengths to lock down energy sources, such as building their own power plants.
“When you look at the numbers, it is staggering,” said Jason Shaw, chairman of the Georgia Public Service Commission, which regulates electricity. “It makes you scratch your head and wonder how we ended up in this situation. How were the projections that far off? This has created a challenge like we have never seen before.”
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The situation is sparking battles across the nation over who will pay for new power supplies, with regulators worrying that residential ratepayers could be stuck with the bill for costly upgrades. It also threatens to stifle the transition to cleaner energy, as utility executives lobby to delay the retirement of fossil fuel plants and bring more online. The power crunch imperils their ability to supply the energy that will be needed to charge the millions of electric cars and household appliances required to meet state and federal climate goals.
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Data center operators are clamoring to hook up to regional electricity grids at the same time the Biden administration’s industrial policy is luring companies to build factories in the United States at a pace not seen in decades. That includes manufacturers of “clean tech,” such as solar panels and electric car batteries, which are being enticed by lucrative federal incentives. Companies announced plans to build or expand more than 155 factories in this country during the first half of the Biden administration, according to the Electric Power Research Institute, a research and development organization. Not since the early 1990s has factory-building accounted for such a large share of U.S. construction spending, according to the group.
Utility projections for the amount of power they will need over the next five years have nearly doubled and are expected to grow, according to a review of regulatory filings by the research firm Grid Strategies.
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Rethinking incentives
It is all happening at the same time the energy transition is steering large numbers of Americans to rely on the power grid to fuel vehicles, heat pumps, induction stoves and all manner of other household appliances that previously ran on fossil fuels. A huge amount of clean energy is also needed to create the green hydrogen championed by the White House, as developers rush to build plants that can produce the powerful zero-emissions fuel, lured by generous federal subsidies.
Planners are increasingly concerned that the grid won’t be green enough or powerful enough to meet these demands.
Already, soaring power consumption is delaying coal plant closures in Kansas, Nebraska, Wisconsin and South Carolina.
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Georgia regulators, meanwhile, are exploring how to protect ratepayers while ensuring there is enough power to meet the needs of the state’s most-prized new tenants: clean-technology companies. Factories supplying the electric vehicle and green-energy markets have been rushing to locate in Georgia in large part on promises of cheap, reliable electricity.
When the data center industry began looking for new hubs, “Atlanta was like, ‘Bring it on,’” said Pat Lynch, who leads the Data Center Solutions team at real estate giant CBRE. “Now Georgia Power is warning of limitations. ... Utility shortages in the face of these data center demands are happening in almost every market.”
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Going off the grid
Halaburda sees the growth as good for the country and the economy. “But no one took into consideration where this is all going,” he said. “In the next couple of years, unless there is a real focus on expanding the grid and making it more robust, we are going to see opportunities fall by the wayside because we can’t get power to where it is needed.”
Companies are increasingly turning to such off-the-grid experiments as their frustration with the logjam in the nation’s traditional electricity network mounts. Microsoft and Google are among the firms hoping that energy-intensive industrial operations can ultimately be powered by small nuclear plants on-site, with Microsoft even putting AI to work trying to streamline the burdensome process of getting plants approved. Microsoft has also inked a deal to buy power from a company trying to develop zero-emissions fusion power. But going off the grid brings its own big regulatory and land acquisition challenges. The type of nuclear plants envisioned, for example, are not yet even operational in the United States. Fusion power does not yet exist.
The big tech companies are also exploring ways AI can help make the grid operate more efficiently. And they are developing platforms that during times of peak power demand “can shift compute tasks and their associated energy consumption to the times and places where carbon-free energy is available on the grid,” according to Google. But meeting both their zero-emissions pledges and their AI innovation ambitions is becoming increasingly complicated as the energy needs of their data centers grow.
“These problems are not going to go away,” said Michael Ortiz, CEO of Layer 9 Data Centers, a U.S. company that is looking to avoid the logjam here by building in Mexico. “Data centers are going to have to become more efficient, and we need to be using more clean sources of efficient energy, like nuclear.” ….
The logjam is already pushing officials overseeing the clean-energy transition at some of the nation’s largest airports to look beyond the grid. The amount of energy they will need to charge fleets of electric rental vehicles and ground maintenance trucks alone is immense. An analysis shows electricity demand doubling by 2030 at both the Denver and Minneapolis airports. By 2040, they will need more than triple the electricity they are using now, according to the study, commissioned by car rental giant Enterprise, Xcel Energy and Jacobs, a consulting firm.
“Utilities are not going to be able to move quickly enough to provide all this capacity,” said Christine Weydig, vice president of transportation at AlphaStruxure, which designs and operates clean-energy projects. “The infrastructure is not there. Different solutions will be needed.” Airports, she said, are looking into dramatically expanding the use of clean-power “microgrids” they can build on-site.
The Biden administration has made easing the grid bottleneck a priority, but it is a politically fraught process, and federal powers are limited. Building the transmission lines and transfer stations needed involves huge land acquisitions, exhaustive environmental reviews and negotiations to determine who should pay what costs.
The process runs through state regulatory agencies, and fights between states over who gets stuck with the bill and where power lines should go routinely sink and delay proposed projects. The amount of new transmission line installed in the United States has dropped sharply since 2013, when 4,000 miles were added. Now, the nation struggles to bring online even 1,000 new miles a year. The slowdown has real consequences not just for companies but for the climate. A group of scientists led by Princeton University professor Jesse Jenkins warned in a report that by 2030 the United States risks losing out on 80 percent of the potential emission reductions from President Biden’s signature climate law, the Inflation Reduction Act, if the pace of transmission construction does not pick up dramatically now.
While the proliferation of data centers puts more pressure on states to approve new transmission lines, it also complicates the task. Officials in Maryland, for example, are protesting a plan for $5.2 billion in infrastructure that would transmit power to huge data centers in Loudoun County, Va. The Maryland Office of People’s Counsel, a government agency that advocates for ratepayers, called grid operator PJM’s plan “fundamentally unfair,” arguing it could leave Maryland utility customers paying for power transmission to data centers that Virginia aggressively courted and is leveraging for a windfall in tax revenue.
Tensions over who gets power from the grid and how it gets to them are only going to intensify as the supply becomes scarcer.
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“Lawmakers need to think about this,” Hertz-Shargel said of allocating an increasingly limited supply of power. “There is a risk that strategic industries they want in their states are going to have a challenging time setting up in those places.
