Operations & Maintenance

Smarter technology and contextualized data can help strengthen grid resilience.

Looking back, the year 2024 has been one for the books. Severe weather conditions placed unprecedented strain on the U.S. power grid. As weather patterns fluctuate between extremes, the energy infrastructure remains continuously tested. Increasing grid demands from data centers and electric vehicles, for example, are pushing the grid to its maximum load, and often also beyond what it was designed for. While the grid withstood intense pressure, power executives were reminded again this year of the need for further investment and modernization to strengthen resilience.

The Current State of the U.S. Power Grid

According to the Argonne National Laboratory, the massive, complex U.S. power grid delivers electricity nearly 100% of the time in almost any condition. However, this century-old infrastructure was built to distribute power unidirectionally from fossil fuel plants to homes and businesses, not to address the evolving energy demands of the 21st century. Argonne National Laboratory’s research notes that the grid must meet immediate demands and be ready for future developments, including the addition of distributed, renewable energy sources. With record-breaking weather anomalies and the immense energy requirements of an ever-evolving electric society, it’s clear that balancing immediate needs and future innovations will be a growing challenge. 

Weather’s Impact on Power Resiliency

Weather-related power outages have become more frequent and severe. According to Climate Central, extreme weather caused 80% of major U.S. power outages from 2000 to 2023. The summer of 2024, with hurricanes Beryl, Helene and Milton, wreaked havoc across multiple states, while severe heat waves threatened the grid's stability.

Power outages create serious dangers, especially during long disruptions. Without refrigeration, heating or air conditioning, vulnerable groups face heightened risks. A 2023 study identified regions like the Northeast, South and Appalachia as experiencing the most frequent long-duration outages from 2018 to 2020, with Arkansas, Louisiana and Michigan seeing the greatest impacts on socially and medically vulnerable populations.

The Surge for Power Demand

According to an analysis by Bain & Company, U.S. utilities might need to increase their annual power generation by more than 25% within the next three years to meet rising electricity demand driven largely by data centers and artificial intelligence. The consulting firm’s report, published notes that utilities are facing “potentially overwhelming demand” after nearly two decades of minimal growth. The surge was prompted by the rapid rise of generative AI in late 2022, fueling a boom in data centers. This trend has compounded existing demand growth from the return of manufacturing to the U.S., new industrial policies and the continued expansion of electric vehicles.

Bain & Company also observes that data centers are projected to contribute 44% of the increase in U.S. electricity demand from 2023 to 2028, with an additional 27% coming from the residential sector, 17% from manufacturing and the remainder from commercial use. The firm highlights that by 2028, U.S. utilities may need to raise annual energy generation by between 7% and 26% above 2023 levels to keep pace with demand. This projected increase significantly surpasses the previous five-year peak generation growth of approximately 5% achieved by U.S. utilities from 2005 to 2023, underscoring the extraordinary scale of the current challenge.

The Transformative Role of Technology

The need for improved power resiliency – through infrastructure upgrades and better disaster planning – has never been more evident. In a look back at the summer of 2024’s extreme weather, the Wall Street Journal highlighted several key findings that illustrate the importance of investing in energy infrastructure and multiple energy sources:

Renewable Energy Prevented Blackouts: States like California and Texas, which have invested heavily in renewables and battery storage, were able to meet demand even during extreme heatwaves, highlighting the importance of diversifying energy sources.

Vulnerable Regions Need More Investment: Certain areas, particularly those in the Midcontinent Independent System Operator (MISO) region, remain vulnerable due to shrinking reserve margins. Greater investment in renewable energy infrastructure, battery storage and transmission lines prove essential to meet future demand.

California’s Power Export Success: California’s significant investments in hydroelectric resources and battery capacity enabled it to meet its energy needs and export surplus power to neighboring states facing heat-related energy shortages. This demonstrates the potential for well-prepared regions to bolster grid stability beyond their borders.

Those regions or organizations investing in new tools and infrastructure capabilities will unlock additional support and resiliency in the face of uncertain or trying weather conditions. In short, access to reliable data remains critical for smarter and more informed power management decisions.

Building Resilience for the Future

The lessons from 2024 are clear – the U.S. power grid can withstand extreme conditions, but rising energy demands, including those from data centers and electric vehicles, will require greater investment in smart technology to ensure its resilience moving forward.

For example, Hexagon’s suite of technologies helps power company decision-makers keep their existing generation assets reliable and available (even during capacity shortages).

Leaders understand asset health more effectively, predict potential failures before they occur and improve communications between subsystems. These digital solutions enhance operational efficiency.

Beyond power generation, access to comprehensive data also helps power leaders tackle the root causes of power outages unrelated to weather, such as misoperations. With improved procedures and processes, companies can reduce operational errors and boost grid reliability. When paired with predictive maintenance abilities, real-time data enables organizations to anticipate issues and respond proactively.

Ultimately, improved access to data will drive smarter decision-making, ensuring that energy infrastructure remains robust and adaptable to changing weather patterns. Companies that invest in these digital transformation tools will optimize their operations and enhance resiliency against both weather-related and operational distributions.

We invite you to explore how Hexagon’s suite of technologies helps companies prepare to navigate the complexities of modern power challenges.