Energy parks powered by microgrids might alleviate the burden of increasing energy demand, according to a recently released report.
The Brattle Group, in a report prepared for the Clean Air Task Force, has recommended several key strategies for managing the anticipated increase in electricity demand in the U.S. over the next five years. The report, which estimates a potential rise of 128 GW, emphasises the importance of energy parks, demand-side programs, and improved interconnection processes for self-supplying customers.
Development of Energy Parks
The report highlights the potential of energy parks as a strategic development to efficiently manage concentrated new loads such as data centers. These parks can integrate on-site generation, storage, and demand flexibility to lessen grid impacts and enhance reliability.
Demand-Side Programs
The report emphasizes expanding demand-side resources—including demand response, energy efficiency, and load flexibility—to quickly and cost-effectively meet rising electricity needs. Large-scale load flexibility can address resource adequacy and avoid costly grid upgrades.
Improved Interconnection Processes for Self-Supplying Customers
The report identifies the need to streamline and speed up interconnection procedures for customers who generate their own power (e.g., with onsite solar or storage). Enhancing these processes helps integrate distributed resources more effectively and supports grid reliability.
More broadly, the report argues for a portfolio of "no-regrets" or least-regrets approaches that leverage existing, underutilized solutions like flexible demand, grid-enhancing technologies, and localized resources to tackle near-term load growth, while also improving long-term planning to reduce costs and bottlenecks.
This proactive planning supports affordability, reliability, and environmental goals amid rapid and regionally varied demand increases. The report also encourages the standardization of load interconnection processes to reduce uncertainty associated with load growth and enhance planning efficiency.
The report suggests options such as wheeling and sleeving for customers to self-supply their energy needs. It also recommends considering scaling up promising demand-side programs and providing targeted incentives for customers.
In addition, the report proposes planning processes that more explicitly recognize future uncertainties to develop cost-effective solutions. Utilities, grid operators, and regulators are also dealing with forecasted demand that is failing to materialize, and the report encourages them to encourage new large customers to self-supply their energy needs.
The report does not mention any specific new facts about energy parks or existing ones in development. However, it does suggest that utilities and RTOs should incorporate customers' self-supplied generation into their reliability operations and planning processes.
Astrid Atkinson, a former Google senior director of software engineering, stated that there are around five to 10 times more interconnection requests than data centers actually being built. This underscores the need for more efficient and streamlined interconnection processes.
In summary, managing U.S. electricity demand growth should combine development of integrated energy parks, robust demand-side programs, and smoother self-supply interconnections, alongside comprehensive grid planning and deployment of flexible, quick-to-deploy resources. This proactive approach supports affordability, reliability, and environmental goals amid rapid and regionally varied demand increases.
References: [1] The Brattle Group. (2022). Report for the Clean Air Task Force. [2] Grid Strategies. (2021). Report on U.S. electricity demand growth and management strategies. [4] Meitner Project. (n.d.). Information about the energy park in Texas. [5] Google. (n.d.). Plans for energy parks and self-supply projects.
- In light of the anticipated increase in electricity demand, the integration of technology such as energy-efficient machinery, smart grid systems, and renewable energy sources within business operations can contribute significantly to meeting energy needs sustainably and cost-effectively.
- The financial sector plays a pivotal role in supporting the development of sustainable energy projects, such as energy parks and self-supplying projects, by providing necessary loans and investments, thus fuelling growth in the energy industry.
