Katherine Hamilton and Isaac Brown of Utility Dive report that the US electric grid is under increasing strain as electricity demand surges, particularly from data centers and AI workloads. Without reforms, brownouts and grid stress could become more frequent. Flexible technologies like thermal batteries offer a solution by storing energy during low-demand periods and supplying it when needed, reducing costs and easing pressure on the grid. These batteries can electrify industrial processes efficiently, cut peak demand, and improve grid reliability. Modernizing electricity market rules—such as wholesale access, interconnection fees, and grid pricing—would unlock the full potential of thermal storage, benefiting manufacturers, grid operators, and consumers. They write:
America’s electric grid wasn’t designed for what’s coming. Projections show electricity demand growing at an unprecedented pace, driven especially by surging data center and artificial intelligence loads — data center demand alone could more than double over the next decade.
This puts our energy system at an inflection point. Without key reforms at the state and federal level, brownouts and grid strain could become more common, impacting everything from homes to factories.
But with the right policies, new, flexible technologies like thermal batteries could help us meet this moment, making energy more affordable and reliable for everyone on the grid. […]
Imagine a typical stretch of the Midwest, where data centers are adding new loads the size of entire cities. Nearby, a large food processing factory is exploring traditional options to electrify, which typically draw electricity at all hours, regardless of grid conditions. Instead, it installs thermal batteries that charge flexibly when electricity is cheap and deliver reliable, cost-effective industrial heat.
The result: lower operating costs, expanded factory operations and no contribution to grid peaks. By charging only when demand is low, the plant makes better use of existing grid infrastructure and helps grid operators manage growing load volatility. […]
But to unlock these benefits at scale, we need to modernize the rules of the road for U.S. electricity markets. […]
U.S. electricity markets were built around static loads. A few common-sense updates would unlock the benefits of flexible technologies, cut costs and strengthen the grid. […]
With fair rules, thermal batteries can help stabilize the grid, lower system costs and strengthen America’s manufacturing base and AI infrastructure. Doing so would unleash some of the most powerful tools available to our grid while driving down energy costs for industry and households alike.
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