Mar 18 2024
Energy Demand Increasing
For the last two decades electricity demand in the US has been fairly flat. While it has been increasing overall, the increase has been very low. This has been largely attributed to the fact that as the use of electrical devices has increased, the efficiency of those devices has also increased. The introduction of LED bulbs, increased building insulation, more energy efficient appliances has largely offset increased demand. However, the most recent reports show that US energy demand is turning up, and there is real fear that this recent spike is not a short term anomaly but the beginning of a long term trend. For example, the projection of increase in energy demand by 2028 has nearly doubled from the 2022 estimate to the 2023 estimate – ” from 2.6% to 4.7% growth over the next five years.”
First, I have to state my usual skeptical caveat – these are projections, and we have to be wary of projecting short term trends indefinitely into the future. The numbers look like a blip on the graph, and it seems weird to take that blip and extrapolate it out. But these forecasts are not just based on looking at such graphs and then extending the line of current trends. These are based on an industry analysis which includes projects that are already under way. So there is some meat behind these forecasts.
What are the factors that seem to be driving this current and projected increase in electricity demand? They are all the obvious ones you might think. First, something which I and other technology-watchers predicted, is the increase in the use of electrical vehicles. In the US there are more than 2.4 million registered electric vehicles. While this is only about 1% of the US fleet, EVs represent about 9% of new car sales, and growing. If we are successful in somewhat rapidly (it will still take 20-30 years) changing our fleet of cars from gasoline engine to electric or hybrid, that represents a lot of demand on the electricity grid. Some have argued that EV charging is mostly at night (off peak), so this will not necessarily require increased electricity production capacity, but that is only partly true. Many people will still need to charge up on the road, or will charge up at work during the day, for example. It’s hard to avoid the fact that EVs represent a potential massive increase in electricity demand. We need to factor this in when planning future electricity production.
Another factor is data centers. The world’s demand for computer cycles is increasing, and there are already plans for many new data centers, which are a lot faster to build than the plants to power them. Recent advances in AI only increase this demand. Again we may mitigate this somewhat by prioritizing computer advances that make computers more energy efficient, but this will only be a partial offset. We do also have to think about applications, and if they are worth it. The one that gets the most attention is crypto – by one estimate Bitcoin mining alone used 121 terra-watt hours of electricity in 2023, the same as the Netherlands (with a population of 17 million people).