Put more energy into renewables to meet rising electricity demand

If people were as smart as artificial intelligence is cracked up to be, they would be working night and day to get renewable energy projects up and running and finding the best way to deliver that electricity to customers.

The exponential growth of AI means energy-hungry data centers are springing up around the country. Along with new manufacturing plants, crypto mining and other mega uses, these centers gobble up oceans of electricity. If the energy to run all that comes from burning more fossil fuels, that will send more greenhouse gases into the atmosphere, worsening climate change.

Already, as the Washington Post reported recently, existing power generation plants and electrical grids in some areas are struggling to meet demand, even as AI keeps growing. Meanwhile, proposed renewable energy projects that could provide more electricity face growing wait times for hookups to the grids that carry power from generators to local grids via high-power transmission lines.

This is all happening just as Chicago logged its warmest February on record and the planet scored its ninth straight hottest month on record. In February, global ocean temperatures were at an all-time high for any month on record. The message from the imperiled Earth cannot be clearer: There is no time to lose in addressing climate change.

These developments also are occurring just as the state’s two largest electrical grid operators, ComEd and Ameren, face a deadline of March 14 to submit revised “multiyear grid plans,” which will spell out how the utilities plan to meet Illinois’ clean energy and environmental goals and deal with a future landscape of rooftop solar, electric vehicles and electrified homes and businesses.

The multiyear grid plans are significant because they change the way the utilities’ rates are reviewed in Ilinois and are more transparent than the previous system of opaque formula rates. The Illinois Commerce Commission rejected the utilities’ first attempt at writing multiyear grid plans in December because they were not deemed cost-effective and didn’t meet the needs of front-line environmental justice communities, as required by the 2021 Illinois Climate and Equitable Jobs Act. ComEd has been holding a series of calls with stakeholders for weeks to draw up a new plan.

Red tape tying up projects

Not long ago, some experts expected a drop in demand for electricity because of the success with energy conservation. Huge AI data centers and other factors are changing that calculus.

Right now, Illinois generates enough power to meet its requirements. But the state needs to get new wind and solar energy installations up and running, and that remains a huge challenge because the approval process is so lengthy and detailed.

Billions of dollars worth of projects are waiting for the green light to connect to so-called regional transmission organizations, but are tied up in red tape. That creates a risk that energy companies will be tempted to keep open coal-burning power plants that are slated for closing or even build new natural gas-powered plants, making it harder for Illinois to meet its clean energy goals.

PJM, the nation’s largest so-called regional transmission organization, operates in all or part of 13 states, including the area served by ComEd. In April, there will be a vote on a final PJM plan that lays out its long-range transition goals and sets the criteria PJM is trying to meet. Environmentalists hope the plan does not prioritize fossil fuel plants.

For ComEd, which handles local transmission lines, the planning is complicated. There is no argument its power grid needs investment over time to meet changing needs. But too much upfront investment could unnecessarily pump up customer’s power bills. For example, Illinois will need to provide electricity for more electric vehicles, but there will not be millions more electric vehicles on the roads next year.

New big data centers could help by finding ways to conserve energy, perhaps by using on-site renewable generation or battery storage to offset the amount of energy they need at peak times.

There are a lot of major changes and moving pieces on the energy front right now. For Illinois to be a leader on wisely implemented clean energy, the utilities need to make smart, cost-effective investments. It’s important for the utilities, PJM, the state and the nation to get things right.

The Sun-Times welcomes letters to the editor and op-eds. See our guidelines.