AI data centers just got a government-mandated fast lane to the grid
FERC told grid operators to give data centers a fast lane for interconnections, but it failed to address electricity supply shortages. The Federal Energy Regulatory Commission (FERC) told grid operators on Thursday to fast track interconnection requests from data centers and other large electricity users. Under the orders, six major grid operators have to show that data centers are "able to connect to the transmission system in a timely and orderly manner.
Key Takeaways
- " Data centers will be responsible for paying the costs of the interconnection.
- FERC also directed grid operators to be more accommodating to behind-the-meter power for data centers.
While FERC's directives gave data centers a fast lane to connect, they did not address the shortage of generating capacity.
- Some, like PJM, the country's largest grid operator, have descended into something resembling chaos, with major utilities threatening to withdraw .
Tech companies and developers, unable to connect to the grid in a timely manner in many locations, have been turning to on-site, or behind-the-meter, power (which is typically more expensive and complicated) out of desperation.
- The company said it would use the money to build natural gas plants in the Midwest and geothermal projects in the West.
One of Invenergy's wind projects would have generated as much as 2.
- De Chant is also a lecturer in MIT's Graduate Program in Science Writing, and he was awarded a Knight Science Journalism Fellowship at MIT in 2018, during which time he studied climate technologies and explored new business models for journalism.
Stats & Key Facts
- #At the end of 2023, grid connection requests for power plants exceeded the total capacity of the existing power plant fleet, meaning the line to get on the grid was longer than the grid itself could theoretically serve.
- #Wholesale electricity rates are up as much as 267% compared with five years ago, according to Bloomberg.
- #Meanwhile, the Trump administration on Wednesday said it would pay $765 million to wind developer Invenergy to cancel offshore wind leases near California, Maine, and New York.
- #6 billion to scuttle offshore wind developments.
" Data centers will be responsible for paying the costs of the interconnection. Commissioners approved the orders unanimously. FERC also provided an opening to grid tech startups, directing grid operators to consider "alternative transmission technologies.
" The commission didn't name specific technologies, but the directive could include things like solid-state transformers or superconducting transmission lines . Grid operators now have 30 days to submit a report detailing how much generating capacity they have to spare, if any. They also have 60 days to "defend or revise" electricity rates within their regions.
FERC also directed grid operators to be more accommodating to behind-the-meter power for data centers. While FERC's directives gave data centers a fast lane to connect, they did not address the shortage of generating capacity. Grid connections have been slow to materialize in part because new power plants are also having problems connecting.
For more details please read the original article at TechCrunch AI.
Continue Learning
Comments
Sign in to join the conversation