Can Colorado’s Electric Grid Handle the Shift to Renewable Energy?

As Colorado pushes for renewable energy, questions arise about the electric grid’s capacity to meet rising demands

Can Colorado’s Electric Grid Handle the Shift to Renewable Energy?
Can Colorado’s Electric Grid Handle the Shift to Renewable Energy?

Denver: So, Governor Jared Polis has this big dream for Colorado. He wants the state’s electric grid to run entirely on renewable energy by 2040. That’s a pretty ambitious goal, right? Lawmakers are on board, aiming for a complete cut in greenhouse gas emissions by 2050.

To make this happen, coal plants are shutting down, with all of them expected to be gone by 2030. Denver and state rules are pushing for all-electric buildings, and Colorado is aiming for nearly a million electric vehicles on the roads by 2030. They’ve even overtaken California in electric vehicle sales!

But here’s the kicker: can Colorado really keep up with all this change? Shutting down power plants while making sure everyone has electricity for their homes and businesses is a tall order. Plus, they need to hit those emission targets. And let’s not forget about the costs involved.

With more mega computing centers popping up and extreme weather becoming more common, there are serious concerns about how much the electric grid can handle. And it’s not just a Colorado issue; it’s a national one.

A recent study from the National Renewable Energy Laboratory in Golden found that the U.S. needs to double its transmission system by 2050 to keep things running smoothly and affordably.

According to a 2024 report, about half of North America is at risk of energy shortages in the next five to ten years as power plants close and demand for electricity rises.

Electricity demand, which had been pretty stable for two decades, suddenly jumped by about 3% in 2024. Blame the scorching summer heat that had everyone cranking up their air conditioning.

Xcel Energy, Colorado’s biggest electric utility, is predicting it will need between 12,500 and 14,000 megawatts of new power soon. They expect demand to grow at a rate of 4% from 2023 to 2031, which is a big jump from the past five years.

To put it in perspective, a 1 megawatt facility can power around 340 homes, while a 1 gigawatt facility can handle about 340,000 homes. That’s a lot of power needed!

Xcel plans to invest $45 billion over the next five years, with about $22 billion earmarked for Colorado. Tri-State Generation, the second-largest utility in the state, is also gearing up for this growth by adding renewable energy projects and ensuring they have enough backup power.

But there are worries. Some renewable projects are getting delayed, which could leave Colorado short on reliable power. A former PUC member, John Gavan, is concerned that without enough backup power, they might have to keep some coal plants running longer than planned.

On the flip side, Xcel insists they’re sticking to their retirement schedule for coal plants. Delays in renewable projects are partly due to rising costs and supply chain issues, making it tough for companies to stick to their original bids.

Experts believe that if these projects don’t move forward, Colorado might not meet its renewable energy and emission reduction goals by the end of the decade.

With the rise of data centers and electric vehicles, the demand for electricity is expected to soar. A report predicts a nearly 16% increase in electricity demand nationwide by 2029, driven by data centers and manufacturing.

Colorado is home to 56 data centers, and Xcel sees a lot of potential for growth in this area. But there’s a catch: renewable energy advocates worry that these centers could hinder Colorado’s climate goals if they lead to more fossil fuel use.

Some experts are cautiously optimistic that utilities will prioritize renewable energy to meet rising demands. However, there’s a call for careful planning to ensure that data centers use clean energy without burdening local communities.

Polis and the Colorado Energy Office believe that data centers can actually help reduce costs for ratepayers if they’re strategically located. It’s all about spreading those fixed costs over more users.

On a national level, there’s a push for expanding the transmission system to meet growing electricity demands. A recent study highlighted the need for a significant expansion of the U.S. transmission system to accommodate more renewable energy.

In Colorado, Xcel’s $1.7 billion Power Pathway project aims to connect renewable energy sources to the Front Range. This could help meet the rising demand while keeping costs down.

Experts believe that investing in transmission could save billions in the long run, as it would reduce the need for new power plants.

While there are challenges ahead, there’s a sense of hope that Colorado can navigate this transition to a cleaner energy future. It’s all about balancing the needs of the grid with the push for renewables.

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