Over the next decade, utilities predict that data centers, manufacturing and electrification will drive up energy demand at an unprecedented rate. Gov. Josh Stein has tasked a group of experts and working professionals with finding solutions that don’t break the bank.
State regulators, elected officials, researchers, private business leaders and nonprofits held the first meeting of the North Carolina Energy Task Force on Tuesday. They discussed how the state will meet rising energy demand while preserving reliability and low rates.
“There are new users in the state that are consuming energy at previously, frankly, unimaginable rates, whether it’s the large-scale manufacturing [...], or it’s the data centers,” Stein said.
Data centers, in particular, drew attention from several experts who presented during the day’s proceedings. Todd Olinsky-Paul, of the Clean Energy State Alliance, emphasized that these projects are difficult to pin down since companies may place bids in multiple states.
Speakers proposed possible solutions to rising demand, such as large load tariffs and shifting energy demand away from peak hours. A recent study from Duke University's Nicholas School of the Environment found that utilities can already handle the demand growth from data centers for most of the year without adding new energy generation.
“If you’re thinking about peak shifting, energy storage is going to be a key technology,” Olinsky-Paul said.
Several members emphasized the value of improving grid efficiency. Sen. Julie Mayfield from Buncombe County said this energy challenge might provide an economic development opportunity in a state with a growing clean energy economy.
“Clean energy, renewable technologies [are going to] be the fastest way to meet the short-term load growth that we’re seeing,” Mayfield said.
Matt Abele, CEO of the N.C. Sustainable Energy Association, emphasized the importance of keeping rates low when considering new energy infrastructure. He said the group should be “thinking about how we can maintain affordability for the individuals who can least afford to manage large rate increases over the next three or four years.”
The Task Force will submit an annual report to inform state policy and Utility Commission proceedings in February.
