Cornell researchers propose power-cutback trades to ease data center grid strain
Cornell researchers proposed a Curtailment Credit Market that would let data centers pay other flexible electricity users to reduce or shift demand when the grid is strained. Simulations found the approach could reduce the economic impact of required cutbacks, but the market has not been implemented.
Cornell University researchers led by doctoral student Richard Mahuze and engineering professor Max Zhang have proposed a market that would allow data centers facing electricity curtailments to purchase credits from factories, businesses, virtual power plants and other users willing to reduce or shift demand. The system would require grid operators to approve trades that satisfy transmission constraints rather than allowing data centers to avoid their obligations.
Simulations on three modeled power grids, including a simplified New York system, indicated that the approach could avoid at least one-third of the economic damage associated with power reductions. The researchers said it could also reduce pressure for grid upgrades and limit reliance on diesel backup generators, although the findings have not been tested in live operations.
The proposal comes as large electricity users face delays in connecting to the grid. The Federal Energy Regulatory Commission has directed six regional grid operators to justify or revise their connection rules for data centers and other large loads, but that action did not adopt Cornell's proposed market.