Managing the State’s Surging Energy Demand

A recent forecast from Grid Strategies indicates that US electricity usage is projected to increase by 5.7% annually over the next five years, with AI-driven data center expansion accounting for approximately 55% of this demand growth. New Jersey is particularly grappling with this surge, facing an inability to generate enough power to meet rising demand, which has led to significant energy bill increases for residents. Andrew Hendry, region president for Atlantic City Electric, attributes the bottleneck to the current market and policy structure not delivering new, reliable generation fast enough. Michael Renna, President & CEO of South Jersey Industries (SJI), emphasizes that New Jersey must solve its power supply issues to compete in the data center and AI space, warning that developers will go where energy is readily available. PSEG CEO Ralph LaRossa notes that no new power plants have been built in New Jersey in over a decade, forcing the state to import energy from Pennsylvania. Challenges include the closure of power plants, delays in renewable projects, and long interconnection timelines. While solar deployment has expanded, it is hindered by electric distribution grid constraints. Leaders advocate for an integrated resource plan, which New Jersey has lacked since 2000, and an "all of the above" approach encompassing new generation, transmission investment, energy efficiency, and policy changes. Bob Martin, Managing Director of Christie 55 Solutions, highlights the critical need to modernize the aging grid infrastructure. Governor Mikie Sherrill's administration shows optimism for collaboration on solutions to ensure affordability, reliability, and continued economic growth.