North Carolina, like much of the United States, is in a high-stakes race to protect consumers and the climate from the data center boom. Without precautions, energy-intensive facilities could raise electricity costs and encourage large-scale expansion of polluting fossil fuel power plants.
After much discussion and little action, one concrete strategy to avoid these risks is now gaining attention.
Duke Energy, North Carolina’s largest utility, agreed late last month to evaluate the so-called “Energy.” “It’s a clean transition tariff. ” The idea is that data centers and other large power customers can connect to the grid while developing enough clean energy to meet their own demands and limit their carbon footprint without burdening other customers.
“At least some large companies have their own climate change goals and want to improve. ‘Grid citizens,” said Nick Jimenez, senior attorney at the Southern Environmental Law Center. “If a clean transition tariff allows us to pay the difference for resources that don’t expose us to fuel risks or climate change, that would be great. ”
This fee is not a panacea and is far from a sure thing when it comes to mitigating data center risk. Duke agreed to consider the plan. ““In good faith” is buried in a side agreement in a separate regulatory case that has little to do with data center energy needs. The settlement agreement is supported by a number of parties, including utility companies, large electricity users such as Google, the Southern Environmental Law Center and other nonprofit organizations, but still requires regulatory approval.
Still, after months of discussions about data center risks in forums ranging from the Utilities Commission to the Governor’s Energy Task Force, the settlement agreement appears to be the closest to advancing this particular policy to date.
“A lot of people want a clean transition tariff,” said Chris Carmody, executive director of the Carolinas Clean Energy Business Association. “However, to date, no substantial progress has been made. ”
Comparing data center solutions
Data centers provide power in North Carolina and throughout the United States. A.I. The boom is becoming increasingly controversial. A growing number of regions in the state are moving to temporarily ban the construction of warehouses packed with computers.
concerns about A.I.energy demands are prompting state decision makers to seek solutions. Last October, regulators listened to hours of presentations from experts on issues surrounding data centers, which Duke predicts could be rectified. 80% of future energy demand.
During and after these presentations, Mr. Duke advocated the current case-by-case response to heavily loaded customers and the introduction of a large fleet of new gas plants to meet exploding electricity demand.
But clean energy advocates and big tech companies like Google had other ideas, offering a range of tools that could prevent data centers from overwhelming the power grid, unduly raising costs for other utility customers and furthering their dependence on fossil fuels.
Load flexibility. Data centers promise not to take full advantage of the grid. twenty four/7that was one suggestion. The concept of virtual power plants was for Duke to control customers’ solar panels, batteries, and other distributed grid assets to mimic the value of traditional power plants. Stakeholders also proposed enforcement mechanisms such as clean transition fees and heavy load fees to ensure data centers pay their fair share.
However, the presentation was mainly about expertise and data collection. Although no action was taken, the North Carolina Public Utilities Commission last week issued an order seeking more information about Duke’s contracts with major electric customers.
After those fall discussions, clean energy advocates seized on another committee meeting to build momentum. The Southern Environmental Law Center and others have reached a settlement with Duke that includes clean transition fee language in Duke’s effort to consolidate two separate electric utilities in the Carolinas, a move that could benefit customers by reducing operational inefficiencies.
