The U.S. Department of Energy on Thursday announced a “Speed to Power” initiative aimed at accelerating development of large-scale generation and transmission projects needed to power AI data centers and other emerging loads.
“DOE analysis shows that the current rate of project development is inadequate to support the country’s rapidly expanding manufacturing needs and the reindustrialization of the U.S. economy,” the agency said. It kicked off the initiative with a request for information on near-term investment opportunities, project readiness, load growth expectations and infrastructure constraints.
After years of flatlining, U.S. appetite for electricity is growing rapidly.
The North American Electric Reliability Corp. said it expected summer peak demand to rise by 15% and winter peak demand by nearly 18% over the next decade. The reliability watchdog said in its most recent 10-year forecast that demand growth is now higher than at any point in the past two decades, with more large commercial and industrial loads as well as the continued electrification of the transportation and building sectors.
Analysts also expect aggressive growth. Consulting firm ICF said in May that demand could grow 25% from 2023 to 2030 and 78% by 2050. Bank of America Institute believes electricity demand will grow at a 2.5% compound annual growth rate through 2035, compared with an anemic 0.5% CAGR from 2014-2024.
“DOE is requesting stakeholder input on how to best leverage its funding programs and authorities to rapidly expand energy generation and transmission grid capacity,” the agency said. Utilities, state energy offices, regulators, grid operators, infrastructure developers, large energy users, and other stakeholders are invited to respond by Nov. 21.
The power system needs new resources quickly and if it is technology-agnostic then Speed to Power is “exactly the kind of action that DOE should be undertaking,” John Moore, director of the Sustainable FERC Project, housed at the Natural Resources Defense Council, said.
But “there is some irony to it, as the administration is moving to block clean energy projects onshore and offshore,” he added.
The Trump administration has declared an energy emergency and DOE has used its authorities to keep aging fossil fuel plants online. But at the same time, the White House has sought tighter restrictions for onshore wind and solar development and has tried to halt offshore wind projects.
The administration has also canceled previously-approved funding for some transmission projects, including a $4.9 billion loan for the 800-mile Grain Belt Express planned from Kansas to Illinois.
DOE says the Speed to Power initiative will help achieve the aims of President Trump’s executive orders on “energy dominance” and winning the “artificial intelligence race.” The agency did not immediately respond to questions about how the need for rapid energy infrastructure deployment balances against the clean energy restrictions.
“If this is really the goal, then working with the Department of Interior on unblocking some permit approvals for offshore wind projects, or developing clean energy on federal lands, would serve the executive orders,” Moore said.
DOE could take steps to improve port infrastructure to speed development of offshore wind, or work with FERC to accelerate the interconnection of energy storage, Moore said. DOE’s initiative also noted the need for more interregional transfer capacity and “that’s something folks across the policy spectrum can agree on,” he said.
In the first year of Trump’s term, his administration has largely focused on the development of fossil fuel and nuclear resources, however.
“The bottom line is, you can’t meet the need with one hand tied behind your back,” Moore said. Some of the “anti-energy positions” coming out of the administration “will just drive up costs.”
