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Lillian Hoffer

The Rising Demand for Electricity and Its Implications for Federal Climate Initiatives

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With the United States continuing to make major technological strides in areas such as artificial intelligence, the demand for electricity is drastically increasing. This creates obstacles for federal climate initiatives, potentially setting back long-term environmental goals. In the face of the surging demand for electricity, the next steps taken in response require sustainable energy solutions to achieve climate objectives, such as President Joe Biden’s Federal Sustainability Plan. 

After nearly a decade of static growth, the U.S. Department of Energy has forecasted the demand for electricity to skyrocket over the course of the next ten years. Artificial intelligence, data center expansion, electric vehicles, and semiconductor manufacturing are all key drivers of this shift. Data centers, in particular, consumed an estimated 460 terawatt-hours (TWh) of energy in 2022 and could reach more than 1000 TWh by 2026, which is roughly the energy use of  Japan as a whole. Alongside data centers, electricity consumption from artificial intelligence and cryptocurrency agencies continues to rise as they grow. We can expect to see their electricity use double within the next 2 years as they continue to advance. As AI has progressed rapidly from text to images to full-scale videos, more and more energy is required. This accelerated advancement is unprecedented in other technology-based fields and leaves much to be considered for the future of energy use. While the United States has shown a slower increase in the need for electricity compared to other nations, it is expected to increase dramatically in the 2024-26 period. This calls for new solutions and strategies to be formed to account for the growing influx of energy consumption. 


With this technological advancement, the expanding demand for electricity means an increased need for energy production and, therefore, a heightened consumption of fossil fuels. The World Nuclear Association found that electricity production contributes to 31% of the United States' energy-related CO2 emissions. Nearly 76% of all greenhouse gas emissions are caused by CO2, thus making it a primary driver in climate change and global warming. Fossil fuel plants damage the environment before, during, and after electricity production by expelling pollutants into the air and water around them, directly harming ecological communities. The production of electricity is dependent on a variety of energy sources, including coal, oil, and natural gas. In 2022, the United States alone created over 1.5 million metric tons of CO2 emissions. As a result, the power used to generate the needed energy for the U.S. is responsible for 40% of total global CO2 emissions. The infrastructure and resources required to sustain the U.S.’s current electricity usage are damaging and unsustainable for the planet. 


In response to climate change and other present environmental crises, the U.S. government has planned several climate initiatives that aim to create more sustainable energy methods and reduce greenhouse gas emissions. President Joe Biden detailed the 2021 Federal Sustainability Plan, stating, “... to accomplish our goals, we will transition our Federal infrastructure to zero-emission vehicles and energy-efficient buildings, powered by carbon pollution-free electricity. We will improve the Federal Government’s preparedness and resilience to the effects of our changing climate.” However, the plan to create carbon-neutral and emission-free electricity may not be enough to counter the newly predicted spike in energy consumption, as the plan was written a year prior to the forecast of increased demand. However, the plan does account for future electricity demand and hopes to deliver “at least 10 gigawatts of New American clean electricity produced by 2030.” Although this intention is a crucial step toward sustainable energy this would account for less than .05% of the U.S. total electricity consumption annually. 


The DOE’s report titled “The Future of Resource Adequacy” has set sights on reducing greenhouse gas emissions by over 50% by 2030, compared to 2005 emissions, as well as net-zero emissions by 2050. They plan to achieve this by developing new technology to identify rapidly changing energy needs. This may have unintended negative consequences as to implement this plan, the DOE must increase their energy usage and could, in turn end up consuming a larger portion of energy than before. The DOE may have to account for this in their plan as they seek to identify the escalating demand for electricity. The intention of the DOE is to create cleaner energy through alternative sources such as wind, solar, and nuclear power. These sources will require new storage methods to house their sustainable power. 


The forecasted surge in U.S. electricity demand has put newfound pressure on federal organizations to adapt and overcome obstacles the future will present so that progress towards previously set climate goals continues. The Federal Sustainability Plan may face challenges in achieving its stated initiatives as consumption increases, and U.S. climate leaders must reflect on the scale at which energy is used to set potentially heftier goals. To reach alternative energy goals, the DOE must take steps towards sustainable storage modes to stabilize the use of wind, solar, and nuclear energy. It will also be crucial for the DOE to diversify energy sources to meet the heightened demand while not interfering with the sustainability aspect of their mission. This may call for a prioritization of energy-efficient technology to limit unintended negative consequences. If proper steps are taken, the U.S. can meet its expanded future energy needs sustainably and continue to reduce greenhouse gas emissions, but it will require revisions of current federal climate goals.

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