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Grid Operator Warns of Power Rationing Eventuality

Michael Morris, chairman, president and chief executive of American Electric Power, which runs the nation's largest electrical transmission system, told the Associated Press he sees a dire situation ahead for the power grid, and the U.S. could eventually face power rationing.

I've been talking with various people in the electric energy industry about the eventuality of power rationing. Few want to call it that, but some admit they're planning for it.

In "5 years after big blackout, nation still vulnerable," AP reporter Mark Williams paints a dark future for the electric grid. AEP's Michael Morris enumerated for Williams the problems facing the grid: Demand will grow by 29 percent between 2006 and 2030; excess generating capacity is shrinking; the cost to construct new power plants is soaring; new coal and nuclear plants are being blocked by host states; new transmission lines are facing local opposition.

We have power rationing today. It's called demand response and -- for now -- it's voluntary. The technologies and tariffs being developed for demand response are very similar to the mechanisms needed to implement involuntary power rationing. Those businesses with the technology and experience in place will fare better than others in that event. Meanwhile, energy efficiency represents a vast untapped resource for giving grid operators more time to upgrade.

Sub-Saharan Africa's economic growth outstripped its ability to supply power -- and outran countries' investments in infrastructure -- in 2007. Rolling blackouts and on-site generators are now commonplace in Nigeria, Angola, Ghana and South Africa. The crisis delayed any hope for deploying large-scale renewable energy there. The short-term solution for Africa is, unfortunately, fossil-fueled generation.

Related EnergyBlog:

"Africa Power Crisis "

Morris anticipates demand will exceed supply in the United States in 10 to 20 years, at which point the blackouts here will increase.

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Comments

While I agree with the comments on DR, energy efficiency can be a two edged sword -- particularly when it is applied to appliances. Hyping about appliance energy efficiency creates a false sense of security about electricity usage and only leads to more appliances being plugged into the grid. The need to reduce home appliances with more efficient functional devices that can do more for less (replace multiple appliances) is where the consumer will get the most from Energy Star. Saving energy should not equate to consumers having more electricity to consume and therefore more appliances to buy.

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