A new role for onsite generation: Accelerating grid access for large loads | Utility Dive
For hyperscale data center developers, the challenge is no longer theoretical. Utilities in many regions cannot deliver 24/7 firm power, with waits as long as three to six years, forcing developers to either delay projects or rely on costly, standalone power solutions that lock in long-term self-generation and cause friction in communities.
Now regulators, utilities and large load facilities recognize that the solution is flexible, dispatchable generation co-located with large loads. These systems allow large loads to operate at full capacity by self-supplying the load during grid-constrained hours. This defers the need for immediate systemwide resource additions or transmission and substation upgrades, easing rate pressure while bolstering system reliability.
Recent modeling from Camus, Encoord and Princeton University’s ZERO Lab demonstrates the effectiveness of this approach. The research found that a 500 MW data center with flexible grid connection and on-site generation capacity can achieve full operation “three to five years faster than traditional interconnection processes,” and can also reduce grid costs by $78 million per GW of demand. In large data centers, this acceleration can generate tens of millions of dollars in monthly revenue.