PA Environment Digest Blog: US Dept. Of Energy Releases Report On Electric Grid Reliability, Security Saying Generation Growth Must Match Needs Of A.I. Data Centers; But What About ‘Ordinary People’?

On July 7, the U.S. Department of Energy released its Report on Evaluating U.S. Grid Reliability and Security.

DOE said the analysis reveals that existing generation retirements and delays in adding new firm capacity, driven by the radical green agenda of past administrations, will lead to a surge in power outages and a growing mismatch between electricity demand and supply, particularly from artificial intelligence (AI)-driven data center growth, threatening America’s energy security.

“This report affirms what we already know: The United States cannot afford to continue down the unstable and dangerous path of energy subtraction previous leaders pursued, forcing the closure of baseload power sources like coal and natural gas,” said DOE Secretary Wright. “In the coming years, America’s reindustrialization and the AI race will require a significantly larger supply of around-the-clock, reliable, and uninterrupted power. President Trump’s administration is committed to advancing a strategy of energy addition, and supporting all forms of energy that are affordable, reliable, and secure. If we are going to keep the lights on, win the AI race, and keep electricity prices from skyrocketing, the United States must unleash American energy.”

Among the highlights of the report:

-- Grid growth must match the pace of A.I. innovation. Electricity demand from AI-driven data centers and advanced manufacturing is rising at a record pace. The magnitude and speed of projected load growth cannot be met with existing approaches to load addition and grid management. Radical change is needed to unleash the transformative potential of innovation.

-- The status quo is unsustainable. DOE’s analysis shows that, if current retirement schedules and incremental additions remain unchanged, most regions will face unacceptable reliability risks within five years and the Nation’s electrical power grid will be unable to meet expected demand for A.I., data centers, manufacturing and industrialization while keeping the cost of living low for all Americans. Staying on the present course would undermine U.S. economic growth, national security, and leadership in emerging technologies.

DOE’s report identifies regions most vulnerable to outages under various weather and retirement scenarios and offers capacity targets needed to restore acceptable reliability.

Click Here for a copy of the report.

Click Here for a copy of the DOE announcement.

What About ‘Ordinary People’?

On May 12, PA Senate and House Committees held hearings on how the rapid increase in demand for electricity to power data centers filled with computers is impacting the price and availability of electricity for “ordinary people” on the regional electric grid operated by the PJM Interconnection. Read more here.

Jason Staneck, Executive Director for Governmental Services at PJM, told the committees the unprecedented increases in demand for electricity they are seeing-- “It’s not people.”

“Number one head and shoulders above any other customer is data centers. So it's for everything from bitcoin mining, to generative artificial intelligence, to cloud computing, to just maintaining the consumption of all the devices, the average household now has 21 connected devices.”

“And we see that everywhere, it's become a global arms race for A.I.”

Rep. Danilo Burgos (D-Philadelphia), Majority Chair of the House Consumer Protection, Technology & Utilities Committee, said-- "You stated [PJM] that people aren't the problem, but yet somehow people continue to carry the load of the payments.

“Our communities like mine and Rep. Ryncavage and across Pennsylvania are going to be hurt with this increase of demand in the future, and I hope that the PJM will consider-- reconsider the way they allow projects to come online.

“Being as though what you stated that either it was lack of financing, or what other excuses that private entities came up with [for not bringing new electric generation online], hopefully will not happen in the future because our communities cannot afford it.”

Sen. Gene Yaw (R-Lycoming), Majority Chair of the Senate Environmental Resources and Energy Committee, shared his concerns about the impact on “ordinary people.”

“One of the issues that we've talked about is, I want to encourage generation capacity here, but I also want to serve the ordinary people, like everybody here.

“A.I. and data centers are great. I encourage them if we can find a way that they... and what they seem to be doing now is, they're enhancing their own power, so that they have a reliable source, they do it themselves.

“If we have some incentive for generation to come here, I want to make sure that generation goes to the, I can't think of a better word saying other than to say the ordinary people, the residential customers, and that they, quite honestly, can't take advantage of some incentive to come here and build for the limited use of an A.I. center.

“We're looking at that, and we're concerned about that.”

Click Here to read more.

NewsClips:

-- Utility Dive: DOE Report: Load Growth, Plant Retirements Could Drive 100X Increase In Blackouts By 2030; Clean Energy Advocates Say It Likely Exaggerates The Risk

-- Bloomberg: US DOE Report Warns Of Blackouts In Precursor To Help Coal

-- E&E News: US DOE Plays Out Worst-Case Scenarios For Electric Grid In Report Viewed As Groundwork For Order On Coal, Gas Power Plants To Support A.I. Data Centers

Resource Links - PA Electric Grid:

-- Rise Of The Machines: PA Senate, House Members Express Concern That Demand For Power To Run Computers Is Impacting The Price And Availability Of Electricity For ‘Ordinary People’ [PaEN]

-- House Committee Told PA Needs An Energy Policy, Doing Nothing Means We Are Going To Run Out Of Power; Overreliance On One Fuel-- Gas-- Is Raising Electricity Prices [PaEN]

-- Gov. Shapiro Announces Amazon Plans To Invest $20 Billion In Pennsylvania For A.I. Data Center Infrastructure; Amazon Told PUC It Has Net-Zero Carbon Emissions Goal By 2040 [PaEN]

-- Spotlight PA: Costs Of Amazon’s $20 Billion Promise To Build Data Centers In PA Unknown: Impact On Electricity Supply, Power Costs To Consumers, Tax Revenue Forfeit

-- DEP Invites Comments On Air Quality Permit For 72 - 2.5 MW Diesel-Fired Emergency Generators At New Amazon Data Services Center In Bucks County [PaEN]