This white paper outlines the key differences between traditional large loads and new large loads, such as data centers, and discusses the main implications for system planning and operations.
The rapid development and integration of new types of large loads are having widespread impacts on the planning, operations, and reliability of the U.S. electricity system. While the country has experienced swift and sustained growth in electricity demand before, many characteristics of modern large loads driving the current growth—particularly data centers—are unlike traditional large loads of the past. Today’s facilities have electricity consumption of a small city, and they are often geographically concentrated.
Modern large loads are much harder to plan for in load forecasting, as utilities receive many more applications for interconnection from large loads such as data centers than are likely to ultimately materialize. In addition, data centers interface with the grid through power electronics and can change their power consumption (or disconnect from the grid) at unprecedented speeds and with a great deal of unpredictability for the grid operator. Trieu Mai, Visiting Fellow at ESIG, explained that “the electric industry is rethinking rules and processes across planning and operations to incorporate the unique characteristics of data centers and other new large loads.”
The white paper discusses these unique characteristics of modern large loads, and emerging practices and opportunities for their integration into the grid in six key areas: (1) large load forecasting and tariffs, (2) large load interconnection processes, (3) resource adequacy and large load flexibility, (4) transmission service, (5) large load behavior and operational reliability, and (6) load and resource configurations. Many of these practices and other yet-to-be developed innovations are likely necessary to serve the needs of these new customers and to ensure a reliable and affordable electricity system for all customers.