US Pushes Regulators on Connecting Data Centres to Grid
This week, US Energy Secretary Chris Wright instructed federal energy regulators to examine a regulation designed to accelerate the process of connecting electricity-demanding data centers to power grids.
Wright submitted a regulation to the Federal Energy Regulatory Commission that permits customers to submit combined, co-located load and generation interconnection applications.
According to the energy department, this regulation would decrease study durations and expenses for grid improvements while shortening the timeline for bringing additional power capacity online.
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The regulation also encourages FERC to evaluate whether grid project reviews, which can sometimes extend for years, could be completed within 60 days.
With US electricity demand rising for the first time in twenty years due to artificial intelligence, the Trump administration is working to increase power generation capacity, primarily through fossil fuel and nuclear facilities, and improve grid accessibility for data center companies.
While energy secretaries have the authority to instruct FERC, an independent body within the Energy Department expected to maintain a 3-2 Republican majority, to review regulations, they lack the power to compel adoption of these rules.
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The Edison Electric Institute, representing publicly-traded electric utilities, expressed support for Wright's initiative, stating it would enhance grid reliability and reduce customer costs.
An environmentalist slammed the move. "Pushing FERC to rubber-stamp connections in just 60 days while the government's shut down and Trump builds a $300 million White House ballroom shows (how) out of touch his administration is from everyday Americans," says Camden Weber of environmental group Center for Biological Diversity.
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Wright additionally encouraged FERC to evaluate implementing a regulation that would eliminate obstacles related to initial hydroelectric licensing.
The National Hydropower Association's president and CEO, Malcolm Woolf, commended Wright's initiative.
"It is incumbent upon FERC, the Trump Administration, and Congress to ensure that third parties, such as Federal resource agencies, do not unduly inhibit hydropower development and instead foster its necessary growth to meet current challenges."