After years of power demand remaining relatively stable across the United States, there’s a sudden swell in energy consumption taking place. A recent forecast from Grid Strategies reports that five-year load-growth forecasts from U.S. utilities anticipate an increase from 23 GW to 128 GW. As a result, annual peak demand growth is expected to average 3% per year over the next five years, which equates to six times the planning and construction of new generation and transmission capacity.
Going electric at this speed means we’re moving closer to a high-energy, low-carbon world, where energy demands are met as efficiently as possible.
But there are many challenges with current U.S. power infrastructure that will make the transition difficult if they aren’t addressed. Let’s take a look at what they are, and find out how fault managed power is positioned to overcome them.
1. The Power Grid is Aging
The U.S. power grid is showing its age as it struggles to avoid congestion caused by modern electricity demands. Its reliability is on the decline as systems age, which can lead to unplanned outages, a reduction in load-carrying capacity, and higher maintenance costs.
While the U.S. Department of Energy’s National Transmission Planning Study indicates that the U.S. power grid will need to at least double in size by 2050 to maintain reliability, it has limited capacity to expand. Beyond that, it’s difficult to source the components required to expand. Currently, for instance, it can take years to gain access to critical equipment like transformers that are needed to grow or modernize the grid.
2. Building Energy Demands Are Going Up, Not Down
With more building systems running on electricity, the built environment is too energy intensive to meet net zero targets as things stand today. Today, building operations are responsible for 30% of global energy consumption and 26% of energy-related emissions, according to the International Energy Agency (IEA), with 8% coming directly from buildings and 18% resulting from the electricity and heat they consume. And building energy use will continue to grow, not shrink, as actions to limit natural gas shift demand onto the grid, and the increase in smart devices creates more energy-intensive loads.
The country’s aging building stock makes these energy demands more intense. For example, the average U.S. building has been in operation for decades, and it was likely designed to prioritize affordability, durability, and functionality—not energy efficiency.
3. More EVs on Roadways Will Contribute to Grid Stress
The rapid adoption of electric vehicles (EVs) will place exceptional strain on the power grid. While EVs reduce emissions and dependence on fossil fuels, they also require substantial amounts of electricity to charge.
According to the Edison Electric Institute (EEI), there will be more than 78 million EVs on U.S. roads in 10 years (a 1600% increase from 4.5 million EVS at the end of 2023!). To support these EVs, more than 42 million charging ports will be needed (325,000 of those being DC fast-charging ports).
While some of this demand will be supported by renewables like solar and wind, much of it will come from the grid.
4. AI and Data-Driven Operations Call for More Power
As operations become more data-driven, and more organizations rely on data-intensive processes like AI and digital twins, the amount of power required to process, analyze, and share information will also increase.
As businesses integrate these technologies into their daily operations, large amounts of data will be needed to train and operate learning models effectively and continuously process real-time information. The high-performance computing that these datasets will require demands more electricity.
In fact, Deloitte predicts that global data center electricity consumption could double to 1,065 TWh by 2030 to keep up with this demand.
5. Power Must Now Extend Across Longer Distances
The need to stretch power’s reach across long distances is becoming critical as people, buildings, and cities become more connected. There’s a growing need for electricity in locations that are farther from power hubs. Consider:
- EV chargers in remote locations
- Industrial plants and data centers in areas where local power generation is inefficient or nonexistent
- Large-scale agricultural operations far from urban centers
Carrying power across these extended distances often requires extensive and costly infrastructure upgrades (and will further stress the grid).
Future Power Systems Should Be Safe and Smart
Fault managed power is in a prime position to address these issues and help the United States prepare to move toward electrification confidently. It’s safe power, but it’s also smart power.
Digital Electricity®, which is VoltServer’s fault managed power solution, is safe because it actively limits energy transfer during fault conditions. It monitors power flow in real time and stops distribution within milliseconds when a fault is detected.
Digital Electricity is smart because every circuit can be controlled. Power levels can be dynamically adjusted in response to demand. Owners can manage their power platform to make sure they efficiently use every watt of power available. Because it’s a plug-and-play system, Digital Electricity doesn’t have to be overbuilt or burdened by stranded capacity. When it’s time to expand the system for whatever reason, it’s fast and straightforward to do so.
Learn more about Tetra, VoltServer’s third-generation platform. It delivers 250% more power per channel than any other commercially available UL certified system, safely distributing high power over distances exceeding a mile.
