Department of Energy (DOE) proposal that could significantly change how large data centers connect to the U. S. power grid. The DOE wants the Federal Energy Regulatory Commission (FERC) to take over interconnection decisions for data centers with a load of 20 MW or greater, streamlining the process. This proposal is intended to support the growth of artificial intelligence and domestic manufacturing, which require substantial electricity.
DOE Proposal: The DOE wants FERC to standardize how large data centers connect to the interstate transmission grid. This would involve FERC making the interconnection decisions, currently handled by regional transmission organizations or state agencies.
Government Rationale: The Energy Secretary, Chris Wright, links the plan to the government's goals for artificial intelligence and domestic manufacturing. He argues that these sectors need a lot of electricity and infrastructure investment.
Reactions and Concerns:
Mark Christie, a former FERC member, raises questions about reliability, cost to consumers, and federal overreach into state regulatory authority.
Travis Kavulla suggests utilities will resist the change.
The Edison Electric Institute (EEI) offered a general statement of support.
Co-location and Alternative Solutions: The DOE supports data centers co-locating with generation sources. An alternative solution, promoted by Advocates for Consumer Regulated Electricity (ACRE), is for data centers to directly contract for off-grid power, which is gaining some traction.
The DOE's proposal to federalize data center interconnection is facing scrutiny. The debate involves concerns about grid reliability, cost implications, and the balance of federal and state regulatory authority.
https://www.masterresource.org/free-market-electricity/doe-grid-policy-data-centers-new-thinking/
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