The National Electrical Manufacturers Association (NEMA) has released its new study on grid reliability, “A Reliable Grid for an Electric Future”, which focuses on challenges we face with electric demand, consumption and production over the next 25 years.
“Our results are about 2% growth per year between now and 2050,” NEMA President Debra Phillips pointed out during the study’s release. “This 50% growth that we are looking at over the next 25 years is fairly remarkable. And our grid wasn’t designed to meet that demand growth at this rate. So we are going to have to get creative around the technology and policy situations that will help us meet the demand.”
Two key drivers behind the demand will be data centers and EV charging. “This growth in data centers to the tune of about 300% is really the largest portion of near-term demand growth,” Phillips explained. “Over time, a large portion of that growth, to the tune of about 9,000% growth, is what we are expecting from e-mobility.” Phillips admits EV growth is currently flat, but expects technology advances and the cost curve to drive demand for electric vehicles in the future.
The study’s results show Grid Enhancement Technologies will help improve reliability, including:
• Advanced power cables can double power flow capacity
• Dynamic line rating augments capacity in favorable weather
• Smartgrid technologies such as digital substations and advanced metering enable effective demand response solutions
• Upgrading building equipment/systems for energy efficiency
• Adding behind-the-meter generation and microgrids
NEMA points out strategic actions can be taken for technical solutions, including:
• Working to enact permitting reform
• Including affordable, clean natural gas in generation mix to ensure 24/7 reliability
• Enabling grid operators and utilities to access existing grid modernization funding and secure new resource—both federal and state government plus private sector
• Adopting policies to foster business sector certainty by establishing markets to encourage technology investments that make the grid more flexible
NEMA’s Immediate Past-Chair Rich Stinson, President and CEO of Southwire, explained the concern over electricity supply and growing demand, “The bottom line is demand cannot exceed supply. I think we all agree that is the right of every American to have electricity, and that’s what we are working on.
“There’s four major choke points. The grid itself is old. Permitting, especially around transmission. The lack of optimization in the supply chain of the electrical world. And skilled labor. Sure, there are choke points. But if we work together, we can overcome those choke points utilizing numerous groups to be focused on advocacy, workforce development, the optimization of the supply chain, and the working of technologies.”
“It’s important that we’re driving resiliency,” Beth Wozniak, Chief Executive Officer at nVent and current NEMA Chair explained. “We recognize that what’s so important for us as an electrical industry is that we protect critical infrastructure. And if you think about what happened several weeks ago at Heathrow Airport where there was an electrical failure and it took down and disrupted the entire airline industry. The demand on the grid driven by AI, record growth in data centers and e-mobility requires more efficient, resilient electrical solutions. As industry leaders we’ll partner with national, state and local officials to ensure our grid is built for global competitiveness now and into the future.”
“In today’s rapidly evolving energy landscape, the demands on the power grid are greater than ever. As we face unprecedented growth in energy consumption and challenges posed by aging equipment, shrinking reserve margins, and increasingly severe weather events, utility operators will require cutting-edge solutions that enhance the resilience and reliability of our grid to ensure a sustainable and dependable energy future,” said Michael Plaster, Executive Vice President, Lead Business Manager, Electrification Business, U.S., ABB Inc.
“The distribution grid is the foundation of our energy future, and its resilience is key to meeting growing electricity demand,” said Anders Sjoelin, President and CEO, S&C Electric Company. “At S&C, we drive intelligence and action across the grid—empowering customers with innovative solutions that not only improve reliability today but also prepare the grid for tomorrow’s challenges. As this study highlights, we must act decisively, and the time to modernize and strengthen the reliability and resilience of our grid infrastructure is now.”
Wozniak reiterated the concern about skilled labor shortages. “We need to work together as an industry to find solutions. Because we will need a labor force dedicated to implementing these solutions.”
Stinson pointed out that all of the associations in our supply chain are working together to solve the problems that we are facing as demand grows. “The distributor is an important part of the value chain and the supply chain. I work very closely with numerous distributors so we can reduce the amount of lead time and we have better communications with the customers through those distributors. Debra and I have been working with NAED and Wes Smith, who is Debra’s counterpart on how we can do a better job with the distributor parters. And we are also work with David Long with the contractors. So this whole value chain of manufacturers through the distributors through the contractors, we have formulated a council that will optimize that is working to optimize the value chain.”
You can see the full “A Reliable Grid for an Electrical Future” study at NEMA’s new website, www.makeitelectric.org.