What’s new:

According to a new report released by Grid Strategies on Tuesday, U.S. utilities now project that we’ll need 166 GW of extra peak demand by 2030, with roughly 90 GW (more than 54% ) tied to data centers. That’s a sixfold jump from energy forecasts made in 2022, meaning that we now need six times the energy we thought we would before generative AI hit the scene.

Why it matters:

Utilities are leaning on these aggressive load projections to greenlight huge spends on new power plants and grid upgrades nationwide.

Those projections are already hitting people’s wallets, and it’s only going to get worse.

In PJM’s region (the nation’s largest power market serving 67+ million people), capacity costs jumped from just $2.2B in 2023 up to $14.7B in 2024 and $16.1B in last summer’s auction, fueling anger in hard-hit states and helping candidates who promised lower bills win November’s elections in New Jersey and Virginia.

To meet the surge, many utilities are planning gigawatts of new gas-fired generation, which could raise costs even further, slow the shift to cleaner power, and add more pollution.

In Virginia, now the world’s largest data center hub, Dominion Energy is proposing multiple gigawatts of new gas.

Dominion says the plants are needed to meet demand, but critics point out that adding new gas would likely make it impossible for Virginia to meet their Renewable Energy Portfolio Standard goals, which are supposed to phase out fossil fuels in the state entirely by 2045.

In Georgia, Georgia Power is asking regulators to approve gigawatts of gas to meet load forecasts. But voters in November flipped two Public Service Commission seats to challengers who campaigned on reining in utility spending.

Texas, which is second only to Virginia for data centers, has seen forecasts nearly quadruple in a year. A new state law now requires new data centers to disconnect during peak grid stress. Regulators are still finalizing how that will work.

What’s true is that we need more power and we need it fast. Solar is the fastest way to add new power right now, and the best match for meeting this surging data-center demand.

Tesla Recalls 10,500 Powerwalls

What’s new:

According to the U.S. Consumer Product Safety Commission, Tesla is recalling about 10,500 Powerwall 2 Battery Power Systems in the U.S. after reports of overheating, smoke, and a handful of fires that caused minor property damage. The CPSC warns that the defect presents fire and burn hazards and a risk of serious injury or death.

Why it matters:

The recall, initiated on Nov. 13, cites a third-party lithium-ion cell defect that can cause units to fail and overheat during normal use. Thankfully, no injuries have been reported.

Affected units were sold nationwide via Tesla and certified installers from November 2020 through December 2022. Tesla says Powerwall 3 is not affected. Disabled units will be replaced at no cost.

Backup power will be unavailable to battery owners until replacements are installed, though rooftop solar generation can continue if customers have solar paired with storage.

Sources:

Data-center power forecasts climb to unreachable heights

Load Growth Forecast Reports

Tesla recalls over 10,000 batteries nationwide for risk of burn, injury or death

Tesla recalls 10,500 Powerwall 2 battery systems in US over fire risk

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