Department of Energy solicits opinions on extensive creation and distribution expansion
U.S. Department of Energy Launches "Speed to Power" Initiative
The U.S. Department of Energy (DOE) has announced a new initiative, "Speed to Power," aimed at accelerating the development of large-scale generation and transmission projects to meet the growing demand for electricity.
According to the DOE, the initiative highlights the need for more interregional transfer capacity due to the expected growth in electricity demand over the next few decades. Analysts predict that demand will grow by 25% from 2023 to 2030 and 78% by 2050.
The DOE's Speed to Power initiative also aims to achieve the goals of President Trump's executive orders on "energy dominance" and winning the "artificial intelligence race." The Natural Gas Supply Association believes natural gas investment is an integral component of the AI race, and has urged the DOE to ensure sufficient natural gas infrastructure is available to manage demand growth from data centers and maintain grid reliability for other power uses.
The DOE has issued a request for information on near-term investment opportunities, project readiness, load growth expectations, and infrastructure constraints. The National Association of Regulatory Utility Commissioners (NARUC) will provide insights from the state regulatory community to federal colleagues regarding the DOE's initiative and RFI.
The North American Electric Reliability Corp.'s 10-year forecast shows that demand growth is now higher than at any point in the past two decades. To address this, the DOE could improve port infrastructure to speed the development of offshore wind, or work with the Federal Energy Regulatory Commission (FERC) to accelerate the interconnection of energy storage.
However, the DOE has not yet responded to questions about how the need for rapid energy infrastructure deployment balances against the clean energy restrictions. The White House has sought tighter restrictions for onshore wind and solar development and has tried to halt offshore wind projects. In the first year of Trump's term, his administration has mainly focused on the development of fossil fuel and nuclear resources.
The administration has also canceled previously-approved funding for some transmission projects, including a $4.9 billion loan for the 800-mile Grain Belt Express planned from Kansas to Illinois. Some critics argue that this move could hinder the DOE's ability to meet its goals under the Speed to Power initiative.
To address these concerns, the DOE could work with the Department of Interior on unblocking permit approvals for offshore wind projects or develop clean energy on federal lands. The DOE believes the current rate of project development is inadequate to support the country's rapidly expanding manufacturing needs and the reindustrialization of the U.S. economy.
The NARUC will be discussing the DOE's initiative and RFI in the coming weeks. As the U.S. appetite for electricity continues to grow rapidly, with summer peak demand expected to rise by 15% and winter peak demand by nearly 18% over the next decade, the Speed to Power initiative is a crucial step towards ensuring a reliable and sustainable energy future for the country.
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