The US electricity sector is currently facing the most significant surge in demand in decades, driven by factors such as the rapid expansion of new data centres, the reshoring of manufacturing, and the electrification of end uses. To meet the projected demand, electricity supply must expand at a pace more than five times faster than in the prior two decades. This dramatic acceleration places enormous pressure on grid planning, strains supply chains, complicates environmental policy, and increases the capital investment required—all while imposing higher cost burdens on customers.

A recent whitepaper titled “Optimizing Grid Infrastructure and Proactive Planning to Support Load Growth and Public Policy Goals”, prepared by The Brattle Group for the Clean Air Task Force, examines the significant challenges facing the US power sector as it experiences unprecedented demand growth. It identifies practical solutions that enable the power system to accommodate this load growth in a timely and cost-effective manner aligned with public policy goals.

It focuses on actionable, near- and medium-term strategies that maximise the value of the existing grid and improve investment planning for future infrastructure needs. The report finds that the challenge of growing power demand is both significant and solvable through strategic actions, including the deployment of commercially available technologies and the adoption of proactive planning practices. The key solutions and critical areas of focus are:

  • Maximise the value of the existing power system by: encouraging demand-side resources like managed electric vehicle (EV) charging, which helps shift consumption away from peak periods, reducing the need for costly new infrastructure. Expanding deployment of grid enhancing technologies (GETs) and taking advantage of grid ‘upsizing’ opportunities during equipment refurbishments to improve system reliability and capacity at a lower cost. Additionally, promoting greater interregional electricity trade enables efficient power flow between regions, balancing supply and demand while minimising local generation investments.
  • Cost-effectively accelerate the grid connection of new loads and resources by: facilitating customer-sponsored generation, promoting co-location of generation and load in ‘energy parks’, and streamlining interconnection processes.
  • Implement proactive planning and procurement processes by: improving generation and transmission planning, creating clean energy zones, reforming procurement processes, planning distribution investments, improving interconnection processes, and promoting grid connection reforms.
  • Introduce targeted affordability measures by: expanding energy efficiency and bill assistance programs for low-income customers, offering incentives for demand-side management, and adopting best-practice rate designs to protect all customers.

The whitepaper demonstrates that the power sector can effectively meet growing demand without compromising cost-effectiveness, timeliness, or public policy goals. Achieving these objectives will require coordinated efforts from a broad set of stakeholders. State and regional collaboration among governors, legislators, energy offices, and regulators will play a critical role in enabling innovative solutions and policy reforms. Governors can use their convening power to drive multi-state efforts and champion public policy goals. At the same time, legislators could provide the necessary direction to implement reforms in project siting, permitting, and demand-side programmes. The stakeholder action matrix included in the paper outlines a clear path forward, emphasising the importance of collective effort and close collaboration to successfully navigate the evolving challenges of the power sector.

The full report can be accessed here.