ENERGY SECTOR TRANSFORMATION The energy sector is undergoing a profound transformation, driven by the need to meet the escalating power demands of an increasingly digital world, particularly the voracious appetite of AI and machine learning technologies. This transformation encompasses three key areas: grid modernization, integration of renewable energy sources, and smart grid technologies. Grid Modernization Aging electrical infrastructure, much of which was established in the mid-20th century, was not designed to handle the complex power flows and intermittent nature of renewable energy sources, let alone the massive energy demands of AI data centers. To address this challenge, upgrading power grids with advanced sensors, control systems, and energy storage technologies is crucial to ensure reliable, efficient, and sustainable power delivery. These upgrades will enable real-time monitoring, predictive maintenance, and dynamic load balancing— essential features for managing the fluctuating energy needs of AI workloads.
The industry is also investing in advanced grid technologies (Figure 1) that enable utilities to increase the transmission capacity of their existing infrastructure and rights-of-way. These include advanced transmission technologies such as advanced conductor and grid-enhancing technologies (GETs) like dynamic line rating, virtual power plants, and utility- scale long-term storage. Integration of Renewable Energy Sources The shift towards renewable energy sources like solar, wind, and hydroelectric power is a key driver of the energy sector’s transformation. While these clean energy sources offer a path to improved sustainability, they also present challenges due to their location and their variable and intermittent nature. Unlike traditional fossil fuel-based generation, which can be stood up close to the demand, renewable energy resources need to be built where there are sufficient natural resources (e.g., wind, sunlight). This requires utilities to build out new transmission infrastructure, often across hundreds of miles, to deliver power to the point of consumption.
FIGURE 1: Overview of Advanced Technologies and Applications (Source: DOE Liftoff Report). 1
January/February/March 2025
I
7
Made with FlippingBook - Online catalogs