CRISES BY DESIGN: The Coming Electricity Crisis.
President Biden and the press keep raising alarms about a climate crisis that his policies can’t do much about. Yet in the meantime they’re ignoring how government climate policies are contributing to a looming electric-grid crisis that is more urgent and could be avoided.
These pages have been warning for years about an electric-power shortage. And now grid regulators and utilities are ramping up warnings. Projections for U.S. electricity demand growth over the next five years have doubled from a year ago. The major culprits: New artificial-intelligence data centers, federally subsidized manufacturing plants, and the government-driven electric-vehicle transition.
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Georgia Power recently increased 17-fold its winter power demand forecast by 2031, citing growth in new industries such as EV and battery factories. AEP Ohio says new data centers and Intel’s $20 billion planned chip plant will increase strain on the grid. Chip factories and data centers can consume 100 times more power than a typical industrial business.
PJM Interconnection, which operates the wholesale power market across 13 Midwest and Northeast states, this year doubled its 15-year annual forecast for demand growth. Its projected power demand in the region for 2029 has increased by about 10 gigawatts—about twice as much as New York City uses on a typical day.
Don’t expect the power to come from New York, which is marching toward a power shortage as it shuts down nuclear and fossil-fuel power in favor of wind and solar. A new Micron chip factory in upstate New York is expected to require as much power by the 2040s as the states of New Hampshire and Vermont combined.
Electricity demand to power data centers is projected to increase by 13% to 15% compounded annually through 2030. Yet a shortage of power is already delaying new data centers by two to six years, according to commercial-real estate firm CBRE Group. It is also driving Big Tech companies into the energy business. Amazon this month struck a $650 million deal to buy a data center in Pennsylvania powered by an on-site 2.5 gigawatt nuclear plant.
Data centers—like manufacturing plants—require reliable power around the clock year-round, which wind and solar don’t provide. Businesses can’t afford to wait for batteries to become cost-effective. Building transmission lines to connect distant renewables to the grid typically takes 10 to 12 years.
Because of these challenges, Obama Energy Secretary Ernest Moniz last week predicted that utilities will ultimately have to rely more on gas, coal and nuclear plants to support surging demand. “We’re not going to build 100 gigawatts of new renewables in a few years,” he said. No kidding.
As Lionel Shriver writes: Going electric requires electricity. Who knew? “Lo and behold, when you push people to electrify everything in their lives – cars, cookers, heating systems – while bribing them to go all-electric with lavish government subsidies, it turns out they use more electricity. Who would have thought? I guess this is why we need all those brainiac experts to analyse the ultra-complicated technical details of environmental policy.”