Utility Dive•6 days ago
Efficiency, demand flexibility can meet growing data center loads — and do so cheaply: ACEEE
Key Takeaway
Energy efficiency and demand flexibility offer a significantly cheaper and more sustainable pathway to meet growing data center loads compared to building new combined-cycle gas plants.
AI Summary
- •Energy efficiency programs provide a highly cost-effective solution for meeting electricity demand at approximately $21/MWh.
- •This cost is less than half that of new combined-cycle gas turbine (CCGT) plants, which are estimated at $42/MWh or more.
- •For data center developers and large power consumers, this highlights efficiency and demand flexibility as economically superior alternatives to new generation for managing load growth.
- •The American Council for an Energy-Efficient Economy (ACEEE) advocates for prioritizing efficiency investments, suggesting significant economic benefits for utilities and consumers.
Topics
capacity-marketccgtdatacenteremissionsfinancingpolicy