From the Daily Caller
Nick Pope
Contributor
U.S. energy demand could exceed electricity supply by the end of the century, according to Bain, a major consulting firm.
Utilities may need to increase annual power generation by as much as 26% by 2028 to meet growing demand, according to one company, as the rise of artificial intelligence (AI) is driving power-hungry data centers. These data centers are necessary to maintain artificial intelligence technology. With overall U.S. electricity demand essentially flat since 2000, utilities will need to make significant adjustments to their business models, raising the cost of electricity for U.S. consumers. (Related: 'Catastrophic': Top grid official sounds alarm over Biden's sweeping power plant rules)
'Unavoidable and foreseeable': Grid operators ask court to strike down EPA rules to prevent power system collapse https://t.co/0LAt8gHVSN
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“In the U.S. alone, adequately funding the capital investments needed to meet data center growth over the next decade will require utilities to generate additional annual revenue of 10% to 19% above previous forecasts,” Bain wrote in the report. “Based on our analysis, this could increase customer bills by 1% per year through 2032. “
AI data centers account for approximately 44% of expected growth, while Residential Demand – which includes electric vehicles (EVs) – is driving 27% growth, according to Bain & Company forecasts. The rest of the growth will come from manufacturing and commercial electricity use.
Bain joins a growing number of grid operators and experts warning that the U.S. power system is under pressure as surging demand and regulations force the early retirement of reliable fossil fuel generation capacity.
Specifically, the Biden-Harris administration finalized regulations in April that would require existing coal plants to use carbon capture and storage (CCS) to control 90% of their carbon by 2032 if they want to continue operating beyond 2039 Emissions, and some new natural gas plants must also reduce emissions by 90% by 2032, according to the Environmental Protection Agency. The federal government insists the rules will not make the grid less reliable, although grid experts told the Daily Caller News Foundation they expect the opposite to happen if the rules are enforced.
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