The Impact of Electrification and Renewables on Tech Trends

💡𝗪𝗲’𝘃𝗲 𝗿𝗲𝗮𝗰𝗵𝗲𝗱 𝗮 𝗽𝗼𝗶𝗻𝘁 𝘄𝗵𝗲𝗿𝗲 𝗔𝗜 𝗰𝗼𝗻𝘀𝘂𝗺𝗲𝘀 𝗺𝗼𝗿𝗲 𝗲𝗹𝗲𝗰𝘁𝗿𝗶𝗰𝗶𝘁𝘆 𝘁𝗵𝗮𝗻 𝗲𝗻𝘁𝗶𝗿𝗲 𝗰𝗼𝘂𝗻𝘁𝗿𝗶𝗲𝘀...💡 Data centers now use more electricity than 115 countries combined, and just 100 TWh less than all of Sub-Saharan Africa. Here are 4 takeaways from the latest International Energy Agency (IEA) 𝗘𝗻𝗲𝗿𝗴𝘆 𝗮𝗻𝗱 𝗔𝗜 𝗥𝗲𝗽𝗼𝗿𝘁 that stood out: 1. 𝗡𝗼 𝗔𝗜 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗲𝗻𝗲𝗿𝗴𝘆. In 2024, data centers consumed around 𝟰𝟭𝟱 𝗧𝗪𝗵, 𝗮𝗯𝗼𝘂𝘁 𝟭.𝟱% 𝗼𝗳 𝗴𝗹𝗼𝗯𝗮𝗹 𝗲𝗹𝗲𝗰𝘁𝗿𝗶𝗰𝗶𝘁𝘆 𝘂𝘀𝗲. A typical AI-focused data center uses as much electricity as 𝟭𝟬𝟬,𝟬𝟬𝟬 𝗵𝗼𝘂𝘀𝗲𝗵𝗼𝗹𝗱𝘀, and the largest ones under construction will consume as much as 𝟮 𝗺𝗶𝗹𝗹𝗶𝗼𝗻 𝗵𝗼𝘂𝘀𝗲𝗵𝗼𝗹𝗱𝘀. As demand scales, affordable, reliable, and clean electricity will be essential to power AI services and determine where AI innovation thrives. 2. 𝗡𝗼 𝗺𝗼𝗱𝗲𝗿𝗻 𝗲𝗻𝗲𝗿𝗴𝘆 𝘀𝘆𝘀𝘁𝗲𝗺 𝘄𝗶𝘁𝗵𝗼𝘂𝘁 𝗔𝗜. AI is being deployed across the global energy system to meet a wide range of objectives, from forecasting and integrating variable renewable generation and balancing electricity networks, to improving system efficiency and reducing emissions. AI can also pinpoint grid faults, reducing outage durations by 30–50% and supporting more timely maintenance of infrastructure. 3. 𝗥𝗲𝗻𝗲𝘄𝗮𝗯𝗹𝗲𝘀 𝗮𝗿𝗲 𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗲 𝘁𝗼 𝘀𝗼𝗮𝗿𝗶𝗻𝗴 𝗱𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗿𝗲 𝗱𝗲𝗺𝗮𝗻𝗱. Half of new data center electricity needs are already being met by renewables. By 2035, renewables generation is expected to grow by over 450 TWh, underpinned by fast deployment, falling costs, and proactive procurement strategies of major tech companies. 4. 𝗧𝗵𝗲 𝗲𝗻𝗲𝗿𝗴𝘆 𝘀𝗲𝗰𝘁𝗼𝗿 𝗺𝘂𝘀𝘁 𝗮𝗰𝗰𝗲𝗹𝗲𝗿𝗮𝘁𝗲 𝗶𝘁𝘀 𝗱𝗶𝗴𝗶𝘁𝗮𝗹 𝗿𝗲𝗮𝗱𝗶𝗻𝗲𝘀𝘀. Persistent barriers, from fragmented data access and limited digital infrastructure to skills shortages and cybersecurity risks, are holding back progress. Effective policy and regulatory action are needed to enable the energy sector to seize AI’s transformative potential. 𝗠𝘆 𝘁𝗮𝗸𝗲: In a world where nearly 700 million people still lack access to electricity, 𝘁𝗵𝗲 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻 𝗶𝘀𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗵𝗼𝘄 𝗳𝗮𝘀𝘁 𝗔𝗜 𝗴𝗿𝗼𝘄𝘀, 𝗯𝘂𝘁 𝗵𝗼𝘄 𝗿𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗹𝘆 𝗮𝗻𝗱 𝗶𝗻𝗰𝗹𝘂𝘀𝗶𝘃𝗲𝗹𝘆 𝘁𝗵𝗮𝘁 𝗴𝗿𝗼𝘄𝘁𝗵 𝘂𝗻𝗳𝗼𝗹𝗱𝘀, 𝗶𝗻 𝘀𝗲𝗿𝘃𝗶𝗰𝗲 𝗼𝗳 𝘁𝗵𝗲 𝘂𝗻𝗱𝗲𝗿𝘀𝗲𝗿𝘃𝗲𝗱.  🌍 Stay tuned to learn how we use AI and Earth Observation through the Energy Access Explorer to democratize access to both data, and energy! #sdg7 #sdg17 #dataforgood #AI #energyaccess #energytransition Energy Access Explorer WRI Africa WRI India WRI Polsky Center for the Global Energy Transition World Resources Institute

California has achieved 100 days meeting 100% of its demand with wind, water, and solar resources only. Only the water (hydro) is synchronous - the rest is inverter-based (#IBR). This trend is happening all over the US and around the world. High IBR conditions are here; they are not a future problem. The "future" challenges we talked about 5 years ago are now here today, and we collectively as an industry must keep pace with this rapid change in terms of #interconnection, #planning, #engineering, #operations, and #systemrestoration. Grid challenges that are evolving/growing with increasing IBRs: - System strength changes and weak grid impacts - Variability and uncertainty in planning and operations - IBR controls stability and oscillations - Need for electromagnetic transient (EMT) modeling and studies - Forensic analysis and sharing lessons learned - Regulatory lag and the need to move more proactively - Need for forward looking scenario-based transmission planning - Impacts to protection systems - Fully leveraging the full suite of services and capabilities from modern IBRs IBRs and renewables are not a "bad actor" that require risk mitigations. The narrative needs to change to IBRs being a resource rich in capabilities that must be fully leveraged in concert with system-level solutions that help ensure a reliable and stable grid today and moving forward. Elevate Energy Consulting Source: https://lnkd.in/gs3678BV

🌍 Reflecting on the Future of #EnergyDistribution at the World Economic Forum 🌍 Honored to discuss at the World Economic Forum’s Clean Power Executive group last week, on the urgent steps needed to strengthen our energy distribution grid amidst today’s surge toward #electrification. As we accelerate #ElectricVehicles, #heatpumps, #industrialelectrification and #renewables, our #grid faces unprecedented strain, leading to overloads, connection delays, and stability issues. Here’s what we believe will drive meaningful change: Regulatory Shift to #Totex and the right pricing signals 💼 We must shift from rigid Capex models to Totex, allowing Distribution Grid Operators to prioritize flexible, digital investments. In Europe, the 2024 Electricity Market Design Directive is a step forward, but we need faster national implementation. On pricing, we need to move from a long term Capex, ‘cost plus’ model, to a dynamic pricing model, both in retail and wholesale markets, to signal investment needed to solve congestion at the points where it occurs.  Scaling #Flexibility Markets 🔄 Flexibility markets are a key enabler for an efficient distribution grid. They could cut grid investment needs by up to 20%, at the same time accelerating renewable rollout. First flexibility market implementations in Europe and North America show potential – now it is time to scale them. Data Accessibility 📊 Without much improved availability and quality of data in lower distribution grid voltage levels, flexibility markets, grid efficiency, shorter interconnection backlogs, and effective investment planning will be very difficult to achieve. Following progressive examples in the UK and elsewhere, we recommend data frameworks, adoption of standards, and data availability in the distribution grid to be required in all national regulations.  Addressing #PowerElectronics Challenges ⚙️ The rise of volatile solar and wind based power generation and the move to a largely power electronics controlled energy grid introduces fundamental control and stability issues. Industry-wide collaboration on technical standards and simulation of large scale inverter based grids is key to a resilient grid. We’re at a pivotal moment. Through regulatory evolution, flexible markets, robust data, and innovative tech, we can build a sustainable energy future. 🌍 #WEF2024 #EnergyTransition #SustainableEnergy