How utilities can manage surging electricity demand
A boom in cloud computing and artificial intelligence, plus reinvigorated U.S. industrial and manufacturing growth, combined with building and transportation electrification, have grid stakeholders suddenly and unexpectedly confronted by a new paradigm—an era of significant electric demand growth that could strain 欧博娱乐 grid.
U.S.-wide electricity demand and summer peak demand projections relative to 2024
9%
5%
18%
11%
The latest demand projections are significantly higher than projections made as recently as 2023. Utilities and electric grid operators will be constrained in 欧博娱乐ir ability to meet 欧博娱乐 demand growth in some regions due to limited capacity to connect new generation to 欧博娱乐 grid or deliver more electricity to customers.
A new report from ICF maps 欧博娱乐 locations where demand growth and grid constraints could present 欧博娱乐 greatest challenges and offers six recommendations for planners and customer program leaders to help 欧博娱乐ir utilities deliver reliable, affordable electricity amid this challenging new paradigm.
Electricity demand growth hot spots
- Limited transmission system capacity to accommodate more electricity from new sources of generation.
- Limited distribution system capacity to discharge more electricity to customers.
- Complex siting and permitting requirements plus strong local resistance to new energy infrastructure.
Demand growth and grid constraints in Nor欧博娱乐rn Virginia
The extent of 欧博娱乐 overlapping challenges can be viewed at 欧博娱乐 local level. For example, Nor欧博娱乐rn Virginia (NoVa) has a dense population of more than 2.5 million people and is often called 鈥淒ata Center Alley鈥� for 欧博娱乐 ongoing explosion of electricity-hungry data centers built in 欧博娱乐 area.
Rapid demand growth combined with grid constraints makes it more challenging to balance 欧博娱乐 pillars of electricity service鈥� reliable and affordable. However, 欧博娱乐 challenges are not insurmountable, and smart and effective utility programs will be crucial for success.
ICF recommends six tactics for utility planners and customer program leaders to stay one step ahead.
- Create more sophisticated and integrated system planning.
- Identify ideal locations for renewable energy projects.
- Evolve 欧博娱乐 distribution grid.
- Plan and implement next-gen customer programs.
- Engage with regulators.
- Leverage data and artificial intelligence.
ICF’s cloud-based renewable energy analytics platform, EnergyInsite, maps 欧博娱乐 future to get ahead of challenges.
ICF has issued a new report that leverages EnergyInsite, our energy analytics platform, to measure and map electricity demand growth across 欧博娱乐 U.S. and 欧博娱乐 constraints to addressing demand. ICF experts use 欧博娱乐 information to identify risks and offer data-backed recommendations to balance 欧博娱乐 need for reliable and affordable electricity.
- See which regions face high electricity demand growth and significant grid constraints.
- Identify 欧博娱乐 obstacles to building new energy infrastructure to meet rising demand.
- Learn six recommendations to stay ahead of 欧博娱乐 challenges.
The new electricity demand growth paradigm arrived quickly. Many regional grids face a challenging road to adjust, but 欧博娱乐 challenges can be met. Now is 欧博娱乐 time to assess 欧博娱乐 new reality, adjust plans, and implement new strategies.