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The Opportunity for Grid Connectivity, Intelligence, and Flexibility in Africa

grid flexibility

At the same time, utilities are contending with expanding penetration of distributed energy resources (DERs), aging infrastructure, and rising expectations for reliability and resilience. A policy framework that rewards utilities for cost savings and innovation can lay the pathway toward this future state. However, at wide-scale adoption levels, where DERs can be aggregated and operated as power plants, regulations will need to evolve to recognize and allow cost-reflective prices and charges for the different types of services that DERs, including demand response, provide. For example, many companies in Exhibit 3 offer creative financing or revenue sharing business models that reduce the upfront cost to utilities. Partnerships can build utilities’ ability to implement these solutions, helping them side-step funding constraints by bringing a credible third party that can unlock new sources of capital and expertise.

Utilities that invest in visibility, coordination, and scalable operating capabilities are better positioned to respond decisively without increasing exposure. Operating models designed for stability are being tested by compressed timelines, concentrated load growth, and rising coordination demands at the grid edge. Visibility gaps, unclear constraint awareness, and fragmented coordination make it harder to manage growth without increasing operational and reliability risk. Increasingly, utilities are framing DSO as an expansion of capabilities, processes, and responsibilities needed to manage growing complexity at the distribution level.

Stronger alignment between planning and operations reduces uncertainty and improves the ability to integrate new resources without compromising reliability. This phased approach allows utilities to build capabilities in sequence, creating options rather than commitments as system complexity grows. Without clear visibility into emerging system constraints and available operational flexibility, strategies remain reactive. Planning discipline and early constraint identification form the foundation for effective coordination later on. As a result, utilities are revisiting DSO concepts not as abstract frameworks, but as a response to real operational pressure.

They are a way of improving capital efficiency by ensuring that every euro invested in infrastructure solves multiple constraints at once. Depot-based electrification sits precisely at this intersection. Properly located flexibility changes the capacity requirements of the grid itself. It is a cost-effective alternative to overbuilding grid infrastructure, fully aligned with the Commission’s objective of reducing wasted system value. This has immediate local value for DSOs, but also national and EU-level system benefits.

More articles by Kristofer Fröjd

GETs have been widely used in Europe for decades and have a long track record of proven performance.11 Companies like https://www.testking.us/sovereign-strategic-shifts-in-the-trans-european-natural-gas-network/ Enline use digital twin technology to enable dynamic line ratings, maintenance planning, power optimization, and short-term overload prevention. For example, in Ghana, Beacon helped a utility double revenue in just 18 months by finding 180,000 customers that were on the grid but not being billed, and by pinpointing a troublesome transformer that needed better management to prevent overloading and outages. Leveling up these capabilities will require a mosaic of hardware and software solutions that create the grid of the future.8 Beyond managing the grid that is already built, digital tools can also enable better planning for future infrastructure investments by making today’s problems visible and then simulating the effects of various improvements. A more intelligent, flexible, and interconnected grid is the key ingredient in integrating these DERs. In Nigeria, we estimate the opportunity for grid-tied DERs at roughly 22 GW over the next 10 years in the least-cost path to meeting growing demand.7

grid flexibility

Pathways to scale

  • Researchers from Duke University have said that integrating more flexibility into U.S. power grids could help provide the energy needed to power future load growth, particularly the electricity needed to support artificial intelligence and data centers.
  • Overall, the findings suggest that load flexibility offers a promising near-term strategy for regulators and market participants to more quickly integrate new loads, reduce the cost of capacity expansion and enable greater focus on the highest-value investments in the electric power system.”
  • They focus on defining average flexibility cost, assuming that any of the jobs could theoretically be delayed (thus can be seen as an upper bound estimate).
  • Cryptocurrency mining facilities are therefore optimized to house the maximum number of ASICs at minimal cost, and unlike traditional data centers, they typically do not include high-end networking, storage, or resilience features.
  • At Decade Energy, our business formula is designed to translate the Grids Package objectives into deployable solutions by reducing cost, accelerating timelines and strengthening resilience.
  • With such steps, as much as 1,600 GW of the more than 2,500 GW of currently stalled, queued projects could be integrated into the grid system in the near term, according to the report.

Interconnectors enables electricity to flow between electrical grids, connecting separate networks or linking synchronous grids. Many existing nuclear plants, especially in France, have proven their ability to adjust output quickly—up to 80% within mere minutes—thereby becoming another asset for grid reliability as renewable penetration increases. This combination supports not only daily balancing of supply and demand but also seasonal management of energy fluctuations. On the supply side, power plants are also able to increase or decrease generation in response to fluctuations in demand and renewable output.

Bill Fehrman, CEO of Ohio-based AEP, last week said “It continues to be full speed ahead” for his group, and said the company is considering adding $10 https://www.wtf-film.com/short-course-on-what-you-should-know-9/ billion to its record $54-billion capital expenditure plan through the end of the decade. Norris said some utilities and other groups already are making adjustments to account for power demand from data centers. The group said those periods are when flexibility (Figure 3) would be important, as end-use customers could temporarily reduce their electricity consumption from the grid through the use of on-site power and energy storage, temporal flexibility, spatial flexibility, and reduced operations. For example, even a slight wind blowing around 4 mph can increase transmission line capacity by 30% through cooling. The group said about half of the new load on the grid would be retained during about 90% of the time that curtailment is required. The study said the average duration of load curtailment would be about 1.7 hours at 0.25%, 2.1 hours at 0.5%, and 2.5 hours at 1.0%.

  • Battery storage and demand-side management through intelligent technologies, such as smart charging, also play key roles in this type of flexibility.
  • In practice, utilities are using grid-edge data, including AMI, to enhance functions such as load forecasting, voltage monitoring, and flexibility program enablement.
  • Philanthropy enables us to produce independent research and make resources like this freely available.
  • However, at wide-scale adoption levels, where DERs can be aggregated and operated as power plants, regulations will need to evolve to recognize and allow cost-reflective prices and charges for the different types of services that DERs, including demand response, provide.

The superior scheduling algorithms discussed would also allow the center to better utilize its own resources, and therefore possibly increase the total power consumption. Most work which quantifies the “price” at which data centers would provide the flexibility considers only the direct costs to the center operator . However, if such users can specify what fraction of the normal cost they are willing to pay when accepting non-ideal job characteristics, a data center can capitalize on this added flexibility provided by the user. In order to realize additional flexibility, we propose that providing dynamic prices to users has the potential to increase the efficiency of data centers.

A Comprehensive Updated Review of Data Centers Under Industry 4.0: Architecture and Energy Efficiency Perspectives

At today’s scale, these loads are system-shaping assets that influence planning timelines, infrastructure investment, and operational risk across both distribution and transmission networks. Data centers and other emerging large loads are no longer just bigger customers on the system. In this article, we examine five grid operations trends influencing how U.S. utilities operate in 2026. On a national level, data centers are projected to consume up to 12 percent of total U.S. electricity by 2028. RMI can pursue the highest-impact climate and energy solutions because we’re supported by people who believe change is possible.

  • These outcomes depend on portfolio-level control and predictable performance, regardless of whether control is achieved through direct dispatch, pricing signals, or behavioral response.
  • For example, in Ghana, Beacon helped a utility double revenue in just 18 months by finding 180,000 customers that were on the grid but not being billed, and by pinpointing a troublesome transformer that needed better management to prevent overloading and outages.
  • This allows the movement of the jobs in time as well as space (increasing the flexibility potential), however these data centers also operate at higher levels of utilization given that they can queue jobs 12,13,14.
  • For decades, U.S. utilities planned around stability, based on assumptions of predictable load growth, centralized generation, and passive customer behavior.
  • Eurelectric’s latest e-mobility study shows that by 2030 there will be an estimated 114 terawatt/hour (TWh) of battery capacity available for grid purposes based on current estimates of EV uptake.

Expert and operator perspectives on barriers to energy efficiency in data centers

grid flexibility

In addition, electricity is also taxed more heavily than natural gas in many countries, weakening incentives for households to electrify heating, cooking, or hot water use. With such steps, as much as 1,600 GW of the more than 2,500 GW of currently stalled, queued projects could be integrated into the grid system in the near term, according to the report. Light blue represents the European Union; dark blue, the United States; light green, China; orange, India; dark green, other Asian countries; and gray, other countries. Global nuclear generation by countries and regions, 1973–2030, shown in terawatt-hours. EPRI’s DCFlex initiative is exploring what’s possible when it comes to leveraging data centers to support a more reliable power system. EPRI’s trusted experts collaborate with more than 450 companies in 45 countries, driving innovation to ensure the public has clean, safe, reliable, affordable, and equitable access to electricity across the globe.

The Potential of Data Center Energy Demand To Provide Grid Flexibility Current Sustainable Renewable Energy Reports Springer Nature Link

grid flexibility

They focus on defining average flexibility cost, assuming that any of the jobs could theoretically be delayed (thus can be seen as an upper bound estimate). These findings are based on optimization models to approximate the re-scheduling possible with maximum delays of 10 or 20%. For each of the discussed flexibility mechanisms, the ability of a data center to participate depends on the specific hardware and job constraints. Cryptocurrency mining facilities are therefore optimized to house the maximum number of ASICs at minimal cost, and unlike traditional data centers, they typically do not include high-end networking, storage, or resilience features. However, at current electricity prices and cryptocurrency values, GPU-based mining is largely unprofitable.

grid flexibility

This is anticipatory planning in practice and a clear example of how private-sector insight can support public infrastructure planning. We then share these forward-looking demand signals with distribution and transmission system operators, enabling them to plan grid reinforcements earlier, more accurately and at lower cost. Charging will happen primarily at logistics depots, often located in industrial zones already facing grid constraints.

grid flexibility

The cost of “clean energy portfolios” — comprising wind, solar, battery storage, energy efficiency, https://www.suscinio.info/3-tips-from-someone-with-experience-2/ and demand flexibility — has fallen 80% since 2010 and is competitive with new natural gas power plants while providing the same grid reliability services. If Nigeria’s grid could deliver its full installed capacity (versus 25% today) and eliminate ATC&C losses (nearly 50% today), utilities could generate eight times more revenue — without building a single new power project. This support makes it possible for us to share our independent insights for free.

  • This directly supports the EU objective of optimizing infrastructure investment, rather than maximizing it.
  • This flexibility can be categorised based on both its duration and origin—whether it stems from consumption adjustments, generation changes or energy storage.
  • Integrated system planning (ISP) addresses these challenges by integrating planning processes across key planning areas.
  • As a result, policymakers are increasingly focusing on policy frameworks, market designs, and regulation to improve affordability and encourage electrification.”
  • Unlike residential demand, depot-based charging follows logistics patterns that are highly structured—but largely invisible to grid planners today.

Scaling the Next Generation of Industrial Climate Solutions

They improve utilities’ situational awareness, which enables them to assess the localized impact of dispatching specific DERs on the grid, and to orchestrate DERs at wider levels of adoption (i.e., when they reach 5% to 15% of distribution system peak). More broadly, only 16 of the 70 utilities https://www.recycle100.info/learning-the-secrets-of-14/ in sub-Saharan Africa generate enough revenue to cover their costs.6 African utilities building out their infrastructure in the coming decades have access to new tools to build better grids and feed them cheap power. In 2025, most traditional utilities in Africa are manually operating analog electricity systems, with limited knowledge of who their customers are and where their assets are located. Given the large sunk capital costs and highly lucrative jobs, we conclude that it is unlikely that centers would be routinely incentivized to perform energy arbitrage based on electricity prices alone. “Flexible data center design and operation is a key strategy for accelerating AI development and realizing its benefits while minimizing costs, lowering carbon emissions, and enhancing system reliability.”

grid flexibility

Background on Grid Flexibility

  • In Nigeria, we estimate the opportunity for grid-tied DERs at roughly 22 GW over the next 10 years in the least-cost path to meeting growing demand.7
  • Another study surveyed data center owners to attempt to understand the barriers to data centers providing flexibility in China .
  • Nuclear power output in 2025 was supported by reactor restarts in Japan, higher generation in France, and new capacity additions in China, India, and other countries.
  • Coordinated DER portfolios can support peak management, outage response, voltage regulation, and localized resilience strategies.
  • Integration becomes the differentiator, positioning AMI data as an active enabler of grid operations and orchestration.

Our work is supported by philanthropy as well as partnerships, including fee-for-service engagements. In addition, due to the large number of users utilizing a data center we expect significant challenges in gathering high-quality performance data of various workloads to assess potential job scheduling flexibility. Internet data centers typically have a lot of latency, and are therefore able to re-route jobs (providing https://goodmanner.info/2019/07/11/short-course-on-experts-what-you-need-to-know/ locational flexibility) at very low cost. In this paper we discussed the features of data centers, their jobs, and their suitability to provide grid flexibility.