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The US Energy Grid Is Approaching A Crisis

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Certain areas of America face a long-term threat of electricity shortages as the US energy infrastructure continues to be mostly neglected and city populations rise. The increase in renewable energy sources and the rising national energy demand are putting unprecedented strain on the system in addition to the inadequate energy infrastructure. According to a recent analysis, the Midwest and South-Central regions of the United States seem to be most vulnerable to electricity shortages. These areas are classified as “high risk” and “elevated risk.” The North American Electric Reliability Corporation (NERC) states that peak energy demand periods are when shortages are most likely to occur. There are several causes for the shortages, but America’s deteriorating energy infrastructure is a major one.

Currently, more electricity is being generated offline than is being added to the grid across the Midwest. Since 2018, this has caused shortages in the area. In contrast, California uses a variety of inconsistent energy sources, including renewable possibilities like solar power. The demand also fluctuates throughout the day, with peak periods failing to correspond with periods of strong solar power output. The world’s overall LNG scarcity brought on by Russia’s invasion of Ukraine and the ensuing energy sanctions has also contributed to the energy problems.

High peak demand, which includes increased demand in the summer and winter, peak hour usage, and a spike in demand during severe weather events when people are more inclined to use their air conditioners and heating systems, is the main cause of shortage concerns. Power demand in Texas is expected to increase by 7% over the previous winter, raising concerns that shortages would be severe during the colder months. The state’s grid operator implemented rotational power outages last year as a result of shortages brought on by the Texas frost of February 2021.

Reserve margins have decreased by 5% from last winter for the Midcontinent Independent System Operator (MISO). Energy emergencies [in the region] are likely under extreme circumstances, according to NERC. And NERC advised generators to prepare by filling up tanks because the amount of oil stockpiled at power plants in New England was at about 40% of capacity. After the winter shortages, the system will likely be under more strain once more in the summer of 2023 as demand rises throughout the warm months.

Numerous utilities are making the switch from fossil fuels to more environmentally friendly fuels in response to regional, national, and global concerns. Although battery storage facilities are still in the early phases of development and solar and wind power are the most popular renewable energy sources in the U.S., it is challenging to guarantee reliable electricity delivery due to the fluctuating energy supply and demand. In addition, most of the U.S. energy infrastructure needs to be completely updated to remain functional as populations rise and new energy-producing technologies are introduced.

We are living in extraordinary circumstances from the standpoint of the electric industry, according to John Moura, director of reliability evaluation at NERC. “We need to work with the entire ecosystem to make sure we’re managing that base and to be very clear that we’re not retiring generation prematurely — that is done in an orderly fashion and especially in areas that are right on the edge,” he said, adding that “managing the pace of our generation retirement and our resource mix changes to ensure we have enough energy and essential services are an absolute necessity.”

Long-standing worries about America’s outdated energy infrastructure have become more pressing in recent years as a result of an increase in the frequency of catastrophic weather events across multiple states. This was a problem when the U.S. relied mainly on readily transported fossil fuels, but as the country’s energy balance diversifies, so too must its infrastructure. This entails the construction of new transmission lines, which can take seven to fifteen years. To guarantee a steady supply of electricity, the U.S. must also expand its battery storage capacity by integrating battery storage into renewable energy operations.

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Additionally, NERC emphasizes how much electricity is being used to mine cryptocurrencies, pointing to the need for stricter regulations on both energy use and cryptocurrency mining. Approximately one-third of the world’s crypto-asset operations are based in the U.S., and mining there currently consumes 0.9% to 1.7% of the nation’s total electricity. This is comparable to how much electricity is used by American homes for lighting or computers.

The U.S. system is under pressure due to a number of causes, including aging energy infrastructure, increased demand, an increase in the frequency of extreme weather events, and LNG shortages. While efforts are being made to upgrade the system and increase battery storage alongside the use of renewable energy, certain parts of the United States are expected to experience electricity shortages during the busiest times for several years to come.

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