With data centers already causing “major disturbances” on the grid, the industry could learn lessons from the recent growth and implementation of inverter-based resources (IBRs), according to a new Elevate Energy Consulting study.
The study, commissioned by WECC, noted that Northern Virginia experienced a large load loss event in July 2024 that resulted in “1,500 MW of data center load switching to backup power. Nearly 60 data centers spread across 25 to 30 substations disconnected from the [bulk power system]. Voltages throughout the area rose significantly and local capacitor banks were removed by operators to bring voltage back within limits.”
Meanwhile, WECC expects electricity demand across the Western Interconnection to increase by “an unprecedented 20%” over the next decade. Balancing authorities forecast demand to increase from 942,000 GWh in 2025 to 1,134,000 GWh in 2034, according to the study.
The report found that the rapid expansion of data centers is projected to be the largest contributor to demand growth and will likely impact BPS reliability.
The study noted that the electric power system has not seen this level of growth since the 1950s. Failure to effectively tackle those challenges “may result in unreliable operations of the BPS, an undesired outcome for grid operators and large load operators alike,” according to the study.
The situation is similar to the rapid growth and challenges brought by IBRs over the last decade, the study authors wrote.
“It is clear that the path ahead for the industry with these large load interconnections may follow a very similar trajectory as the interconnection of IBRs onto the grid,” the study stated. “The experience integrating IBRs can be used as a playbook for mitigating the reliability risks from large loads. The industry must learn from its past with IBRs and act rapidly to address the BPS reliability risks before larger and larger grid disturbances occur and impact the BPS.”
For example, while there are standardized procedures for BPS-connected generators governed by FERC, those mandated procedures do not exist for large load interconnections. Specifically, there is a lack of comprehensive data-sharing requirements, study milestones, timelines and other factors, according to the study.
“This may have sufficed when load interconnection requests were orders of magnitude smaller, and the breadth of requests was much lower,” the study states. “Today, an agile and well-documented load interconnection process is critical for ensuring BPS reliability and administering a fair, just and equitable interconnection process.”
FERC Order 2023 and the overhaul of the generator interconnection process driven by the growth of IBRs could provide guidance, the study authors contend. The order shifted the pro forma interconnection rules from a first-come, first-served serial process to a first-ready, first-served cluster study process. It ramped up financial requirements for developers and set penalties for transmission providers that fail to meet deadlines for completing interconnection studies. (See FERC Updates Interconnection Queue Process with Order 2023.)
Regulators must adapt quickly while ensuring regulations are “flexible, agile and updated frequently to adapt to the changing technology landscape and complex needs of large load interconnections,” according to the study.
“[T]ransmission providers typically do not have adequate interconnection requirements in place for large loads and may be challenged to enforce requirements on interconnection customers,” the authors wrote. “As has been observed with IBR risks, ensuring that clear, consistent and applicable interconnection requirements are in place to ensure that adequate data sharing, modeling, studies and operational performance are achieved is a critical aspect for BPS reliability.”
