This Week's Energy & Utilities Brief - Week Two of December
No nonsense updates for energy & utility professionals
Good morning Thursday- the weekend is almost here!
⚡ Here are the need-to-knows from our industry this week. ⚡
Executive Summary
Historic Grid Demand Forecast: Grid Strategies projects a staggering 456% increase in U.S. electricity demand over five years, reaching 128 GW. While AI and data centers drive this surge, they’re also powering advances in grid management and renewable energy optimization.
Google’s $20B Energy Parks Deal: In a landmark agreement, Google partners with Intersect Power to develop integrated energy parks combining data centers with renewable energy and storage facilities. First facility operational by 2026.
Treasury Finalizes Clean Energy Credits: New Investment Tax Credit (ITC) rules expand eligibility for offshore wind, geothermal, biogas, and hydrogen storage projects, reshaping clean energy financing.
Virginia Power Crisis Looming: State regulators warn data center growth could raise residential electric bills by $14-$37 monthly, requiring massive infrastructure investment including 19,000 MW of new renewable energy by 2040.
Regulatory & Policy Updates
Federal Landscape
The Treasury’s ITC finalization has reshaped clean energy financing:
Offshore wind developers can now claim credits for subsea cables and transmission equipment
Geothermal heat pump installations have gained clarity on ownership structures
Biogas and RNG projects benefit from expanded eligibility
Hydrogen storage requirements have become more flexible
The Net-Zero Asset Owner Alliance is pushing for mandatory scope 3 emissions disclosures, which would transform utility carbon accounting and reporting requirements.
State-Level Action
Virginia regulators predict data centers will raise residential rates by $14-$37 a month
Milwaukee, Wisconsin partners with DOE for net-zero housing, with a $3.4M grant
South Dakota is considering a $1.2-$1.6 billion nuclear plant proposal for additional 320 MW capacity
FERC Initiatives
FERC has taken steps to:
Protect residential consumers from high transmission costs
Develop standardized processes for energy parks
Streamline interconnection studies through enhanced frameworks
Institute “commitment-backed” load requests to deter speculative grid reservations
Industry Innovation Spotlight
Google and Intersect Power’s $20B Venture
This collaboration aims to:
Develop “energy parks” integrating data centers, renewable energy, and storage
Have the first data center facility operational by 2026
Expand Intersect’s focus beyond traditional renewables
Meet the tech industry’s power demands sustainably
Note: Some analysts warn of potential “bubble” risks in data center growth, drawing parallels to the 1990s internet boom.
Clean Energy Development
Houston’s Intersect Power exemplifies rapid expansion
Currently operating a 2.2 GW solar portfolio with a 2.4 GWh battery infrastructure
2025 targets include adding 4 GW of solar, 10 GWh battery capacity, and a 400 MW hydrogen electrolyzer
Manufacturing & Infrastructure Innovation
Milwaukee’s initiative plans an energy-efficient panel facility
Partnership with University of Wisconsin-Milwaukee to design and create jobs
Market Movements
Load Growth Data
FERC Form 714: Projections rose from 23 GW in 2022 to 67 GW by 2024
ERCOT: Increased its 2029 forecast by 37 GW, equivalent to powering 27 million homes
PJM Interconnection: Revised peak load projections from 153.3 GW to 165.7 GW
Northern Virginia: Data centers consume 5,050 MW, surpassing consumption of small states
Regional Concentrations
Data center development is being strategically clustered in:
Dallas-Fort Worth: Emerging as ERCOT’s fastest-growing market
Northern Virginia/Pennsylvania: Benefiting from PJM’s reliable infrastructure
Atlanta: Seeing an influx of unprecedented development requests
South Dakota: Attracting developers with natural cooling resources and wind energy
Pacific Northwest: Capitalizing on hydropower availability to drive expansion
Sustainability Corner
EV Market Growth
Electric vehicles represented 8.9% of Q3 sales in the light-duty market
Combined electric and hybrid vehicles reached 21.2% market share
The luxury segment dominates, with 71% of EV sales, but affordability is gaining traction
The average EV price is $56,351, 16% above the industry average, showing room for mainstream adoption
Renewable Energy Expansion
Kalamazoo pivots from small-scale to utility-scale solar projects
Milwaukee develops a hybrid approach combining community and large-scale solar
Grand Rapids joins Consumers Energy’s solar subscription program
Operations & Maintenance Watch
Infrastructure Challenges
Utilities face unprecedented transmission buildout needs:
Critical bottlenecks in high-demand regions
Integration challenges for renewable sources
Rising costs for grid modernization
Workforce development pressures
Virginia’s Power Requirements by 2040:
19,000 MW of new renewable energy
9,900 MW of fossil-fuel sources for grid stability
3,100 MW of planned storage/demand response systems
Urgent transmission and natural gas pipeline capacity expansion
Shift in Utility Strategies
Meta invests in a 4 GW nuclear power deal
South Dakota evaluates small modular reactors for robust baseload power
Increasing focus on energy parks to reduce transmission burden