As West Virginia and other states grapple with data center-driven electricity demand growth and rate hikes, transitioning to a “flexible grid” model could lower rates, boost reliability, and slash carbon emissions.
West Virginia’s traditional “base load” model of electricity generation depends heavily on coal, and has accelerated the state’s electricity affordability crisis amidst soaring demand projections. As regulators consider the state’s long-term energy plans, they must chart a path away from the traditional model of large, base load resources and look to innovative solutions for West Virginia’s energy problem.
The “flexible” model delivers power reliably and gets more output from existing infrastructure. By relying on battery storage, efficiency upgrades, demand response, advanced grid management tools, grid-enhancing technologies, and advanced transmission technologies, the state’s needs can be met while cutting costs and rates and avoiding costly new builds.
“West Virginia has reached a critical juncture. Policymakers and regulators now face a decision that will shape electric rates, reliability, and economic competitiveness for decades to come,” author Sean O’Leary explains. “As demand projections reach unprecedented peaks, will our leaders double down on costly, outdated ideas, or lay the foundation for a cheaper, cleaner, more flexible power grid?”
Texas’ ERCOT grid provides a real-world example of the flexible approach’s effectiveness. Since 2006, ERCOT has met a 66% increase in electricity demand while holding retail electricity prices to below 2% growth by developing renewable resources, batteries, and distributed and demand-side resources.
In places like Texas, where markets allow flexible resources to compete on price, lower-cost options tend to win—easing strain on ratepayers struggling to make ends meet. Lowering costs in the PJM region will require decision-makers to dismantle the barriers—poorly designed markets, inefficient interconnection processes, and political interference—that stand in the way of a cheaper, more reliable grid.