Get ready! Hot, power-hungry summer on the way

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By: SGN Staff

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Quick Take: One of SGN's roles is to be your early warning system. Typically we alert you to market trends and disruptive technologies. But today we're here to warn you that a hot summer is on the way, one that may stress your system. Time to put your finger on the demand response button.- By Jesse Berst

 

Peak demand in the U.S. will jump this summer, according to the North American Electric Reliability Corporation (NERC). In fact, it will leap nearly 3% in the West, where "persistent drought conditions west of the Mississippi River will require close plant and system monitoring," as reported in Electric Co-op Today. The Eastern region will see a more modest 0.7% rise.

 

NERC warns that Texas and California will face tight supply that could lead to "operational challenges." The jump in peak demand is especially problematic in Southern California, where a nuclear reactor that typically generated 2.3 GW was unexpectedly shut down permanently.

 

Meanwhile, the National Oceanic and Atmospheric Administration forecast a summer that, though not as brutal as last year, will still bring about a 3% increase in the cost to cool homes and businesses, as reported by CNBC. "There's been a trend over the past decade for the seasonal summer temperatures... to be warmer than normal," said NOAA meteorologist Adam Allgood. Other analysts think things will be even worse. "We're expecting it to be one of the hottest summers across America," said Greg Guthridge, head Accenture's Energy Consumer Services group.

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Jesse Berst is the founder and Chief Analyst of SGN and Chairman of the Smart Cities Council, an industry coalition.

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