The largest utility companies in the United States warn that the country is facing a surge in electricity demand unseen in decades. Failure to quickly increase electricity production could jeopardize the US economy.
After more than a decade of mostly flat growth, electricity demand could rise sharply by 2030. The reason for this will be the hype around artificial intelligence, expansion of chip production and electrification of the vehicle fleet.
According to a report published by the consulting company Rystad Energy, the growth of data centers to support artificial intelligence and the introduction of electric vehicles alone will increase electricity demand by 290 TWh by the end of the decade.
The energy company NextEra expects the US electricity demand to grow by 38% over the next two decades, which is four times higher than the annual growth rate over the previous 20 years. At the same time, a significant part of the demand will be met by renewable energy sources and batteries.
Nuclear power and natural gas will be crucial at a time when wind and solar power, which still face problems supplying electricity in adverse weather conditions, are struggling.
«Nuclear power needs to be a significant part of that mix…as we move forward to make sure we have the capacity, energy and electricity that this economy needs,» says Chris Womack, CEO of energy company Southern Company. According to him, the United States needs more than 10 GW of new nuclear power to reliably meet demand while meeting climate goals.
«We’re going to need to look at natural gas and maybe even additional technologies, whether it’s small modular reactors or hydrogen, if we’re going to get through this,» said Robert Blue, CEO of Dominion Energy.
Blue also warned that greater electrification is making people even more dependent on the grid. This makes its security crucial to the country’s future.
Source: CNBC
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