A regulator has warned that North America’s power grid faces “serious operational challenges” due to growing demand for artificial intelligence and the shift toward alternative energies.
In a report published by the Financial Times, writer Miles McCormick said that the North American Electricity Reliability Foundation found that the expected rise in electricity consumption over the next decade, along with the closure of coal-fired power plants, will add enormous pressure to the electricity grids in the United States and Canada. .
According to this non-profit regulatory body, which is supervised by the Federal Energy Regulatory Commission, the expected inability to meet the growing needs may lead to power outages during peak periods in the two countries, and the crisis is expected to worsen due to the delay in relying on solar generators, batteries, and hybrid resources within the grids. Electricity generation.
According to the 2024 Long-Term Reliability Assessment Report, some areas in the United States may face electricity supply shortages over the next year.
In this context, John Mora, director of reliability assessment at the corporation, says, “We are witnessing a radical transformation. We notice that there is a growth in demand that we have not seen in decades, and the pace is accelerating.”
According to the author, this report is the latest warning that artificial intelligence’s increasing energy needs threaten to overwhelm the already fragile electricity grid, coinciding with the challenges the industry faces in keeping pace with the energy transition.
Tremendous growth and serious concerns
The North American Electricity Reliability Foundation concluded that demand for electricity has grown faster than ever in the past two decades, as data centers for powering artificial intelligence and cryptocurrency mining rapidly develop, and as consumers buy electric vehicles and heat pumps.
According to the corporation, demand will increase during the next decade at peak times during the summer by 132 gigawatts, or 15%, which is a much greater increase than expectations that last year indicated an increase of 80 gigawatts. Demand at peak times during the winter will also increase by 15%. 149 gigawatts, i.e. 18% compared to 92 gigawatts according to previous expectations.
For its part, the International Energy Agency estimates that global demand for electricity from data centers alone may exceed 1,000 terawatt-hours by 2026, which is double the levels of 2022 and equivalent to Germany’s total electricity needs.
The writer stated that major technology companies are currently seeking to find alternative ways to meet the enormous demand expectations, announcing a group of new deals in the field of nuclear energy generation.
But the Reliability Foundation explained that the increase in demand will coincide with a shrinkage in the volume of power generation from fossil fuels, as up to 115 gigawatts of operating capacity is scheduled to close in the next ten years.
The corporation warned that the deficit could lead to supply reserves falling below required levels in most states over the next decade, and the operator of the “MidContinent” system responsible for the electricity grid in the midwestern United States may face a potential deficit early next year.
The corporation said, “Most of the North American energy system faces increasing challenges to secure resources during the next ten years, with continued growth in demand and the announcement of the closure of a number of thermal power generators.”