Pennsylvania’s Looming Electric Grid Cliff

There are lots of reasons to be optimistic about renewable energy power generation in Pennsylvania. Solar panel costs continue to drop and grid-scale renewable energy projects continue to come online.

Amid these positive trends, however, there is a looming problem that should be top of mind for anyone who cares about the future of power in Pennsylvania: In the next five to 10 years, large numbers of power plants are scheduled to go offline, even as overall demand for power increases. The result, if the present trajectory doesn’t change, could be brownouts coming to Pennsylvania by 2028, according to one study. Here’s what you need to know about the coming energy crunch.

Up to 20 Percent of Power Generation Facilities Are Set to Close

Pennsylvania receives its power from PJM, a grid operator that covers 13 states across the East Coast. The Keystone State is one of the major energy providers to the grid, accounting for upwards of 25 percent of the power that makes its way to PJM.

According to a recent report, PJM has already begun to sound the alarm about a scenario in the near future in which energy demand surpasses supply. The culprit? Roughly 20 percent of PJM’s power generation facilities, mostly powered by coal and natural gas and many based in Pennsylvania, are scheduled to close by 2030.

Sources of Increased Demand

One of the major sources for increased grid demand comes from an unexpected place: data centers.

These centers, which power the computer systems and technology underpinning large technology companies like Amazon, gobble up massive amounts of power. One utility company in Northern Virginia recently shared that the 50 data centers it serves contribute to nearly 60 percent of its overall energy demand.

For Pennsylvania, which is increasingly looking to make itself a player in the data center space and has crafted a series of tax incentives designed to bring more centers to the state, this trend is worth monitoring. Data centers, for all the economic benefits they might bring, are not without side effects.

Energy Solutions for the Grid

PJM has already begun to take steps to stave off the worst effects of an energy crunch. The problem is that these steps — a proposed $5 billion power line-construction project traversing multiple states, for instance — are mostly centered around maintaining coal and gas power generation.

To both meet our energy needs and limit emissions, policymakers should also consider speeding up the permitting process for grid-scale renewable projects so that other energy sources, like solar and wind power, can help close the demand gap.

To learn more about energy trends in Pennsylvania and renewable energy’s role in the grid, get in touch with one of our energy experts at BAI today.