Grid Strategies president Rob Gramlich explains to Shail Khan why data center operators still depend on regional transmission networks despite media hype around on-site power generation.
Insight
Gramlich: Utilities resist cheap grid tech because it hurts rate base returns
“Our utilities love their capital in the rate base. They don't love quite so much cheap things that can solve problems without a lot of capital in the rate base. So that's the problem with grid enhancing technologies.”
Prediction Not checkable as stated
Gramlich: US electric grid will face severe constraints for five years
“We're going to be, you know, putting a lot more both supply and demand on, and we're going to have a much more constrained grid, I think, for a good five years, and then depending on how long it takes us to build transmission, it could last longer.”
Prediction Partly held up
Gramlich: Electricity interconnection queue backlogs will not get worse
“I also don't expect the cues to get even worse than they are. I think there are a lot of activities to improve the cue processing issue.”
Assertion Partly supported
Gramlich: Only 55 miles of high-voltage transmission were built in 2023
“There were only 55 miles of new High voltage transmission lines in twenty-twenty-three, which is down, you know, a trickle from the 4000 you know, that had been built 10 years prior”
Assertion Supported
Gramlich: Energy Secretary Wright submitted a grid access rulemaking to FERC
“The Secretary of Energy, Secretary Wright, wrote this letter to FERC saying, you know, here's a rulemaking I'm putting before you, On access to the grid.”
Insight
Gramlich: Hyperscalers avoid funding transmission lines because competitors benefit equally
“If they're in that intense competition, like, company to company, then it's of much less interest, just much less incentive For, you know, them to go work on the network that all of their competitors get to use just as much as they do. So that's classic public…”