Why the U.S. Uses Only Half of Its Grid Capacity

The United States appears poised to fall woefully short of meeting new electricity demand over the next five years as data centers and domestic manufacturing proliferate. However, building new power plants and transmission lines may not be the only solution. According to Ian Magruder, founder of the nonprofit Utilize Coalition based in Washington, D.C., the U.S. uses only about half of its grid capacity, and a lot more power could be tapped by deploying newly available technologies.

Backed by Google, Tesla, Carrier, and several other companies, Utilize Coalition advocates for more thorough use of grid capacity through policy change and new technologies. Magruder spoke with IEEE Spectrum about these efforts. He noted that most studies find average utilization rates between 40 and 55 percent across different geographies. The reason is that the grid is built to meet peak demand, which occurs only a few days a year in many parts of the country.

Over the last 20 years, the gap between average use and peak use has widened. Grid operators have become more conservative following major blackouts and reliability events. With more variable-generation sources like wind and solar, operators are building in more capacity. But this also presents an opportunity to get more out of the grid using new technologies.

Key technologies include pairing battery storage with energy generation, managed electric vehicle charging, smart thermostats, and transmission technologies that safely maximize current in power lines. Demand flexibility, where utility customers adapt their power use during peak hours, is also crucial. Flexible data centers are showing promising results.

Grid underutilization is a global phenomenon, varying widely by country. European grids face similar dynamics, and in some places utilization is even lower. Australia and the United Kingdom are ahead in measuring and managing utilization with new technologies. The downside to overbuilding grids is mainly cost. Electricity rates have risen, and a report by Utilize Coalition shows that a 10 percent increase in grid utilization could save Americans over $100 billion over the next decade.