If you’re wringing your hands about how the US power grid is going to handle growing and arguably unprecedented strain from new sources of demand, you’re not alone. Regions such as the PJM Interconnection zone are showing signs of stress, and utilities and grid-operators are already talking about disconnecting large data-center loads during emergencies and seeing sharp wholesale price spikes.
Earlier this year, the National Electrical Manufacturers Association published a report, A Reliable Grid for an Electric Future, that projects that national electricity demand will rise more than 50% by 2050. Some industry observers worry utilities are ill-equipped to handle such fast load growth. Data centers, transportation electrification and manufacturing operations remain at risk from power disruptions. At the same time, much of the US’ transmission and distribution network is decades old. NEMA says those factors make modernization a near-term necessity rather than a long-term aspiration.
The report provided useful information that set the stage for NEMA and the GridWise Alliance’s recent Congressional Grid Innovation Expo, where the industry had a chance to discuss ongoing projects and technological developments that enhance grid reliability. ABB, IND Technology and other GridWise Alliance members revealed products that suggest the future of grid reliability will succeed based on how well the power system implements data management and predictive control systems. The products support a lofty goal: To extend equipment life and prevent faults and failures before breakdowns happen.
Demand Growth and System Stress
Electricity use in the United States is climbing at the fastest rate in a generation. Data centers alone are expected to increase their consumption by 300% over the next decade, according to NEMA’s analysis. Artificial intelligence workloads generate one-quarter of the total growth in this market. The current requirement for individual facilities exceeds 100 megawatts, which creates excessive pressure on nearby substations and transmission lines.
ABB engineers believe they have solved this problem through the implementation of artificial intelligence technology that now operates within their grid monitoring and fault prediction systems. One system they developed in 2018 uses real-time operational data analysis to detect minor voltage and current irregularities which typically signal upcoming faults. The model achieves 95% confidence in failure precursor detection, which enables utilities to detect and solve potential issues before they cause service disruptions. ABB says it has demonstrated through its European operations that big organizations can achieve major reliability enhancements by implementing data collection and analytics integration at scale.
Another major factor that creates new market demand stems from transportation electrification. NEMA projects that power consumption from electric vehicle charging will grow nearly 9000 percent by mid-century. Roughly 55 million light-duty electric vehicles are expected on US roads by 2035. These vehicles will create new patterns of customer demand by generating more traffic during evening and nighttime hours while creating big consumption zones near charging stations. This requires scheduling charging operations according to renewable power availability and storage capacity to achieve stability.
The process of building and industrial electrification creates an additional level of complexity. The transition to electric heat pumps and induction processes and other non-combustion systems results in higher total energy consumption and produces more concentrated peak demand periods. Installation of rooftop solar systems and behind-the-meter batteries can lead to intermittent backflow that standard distribution networks aren’t designed to handle.
Meanwhile, the regional distribution of growth is uneven. PJM and ERCOT experience fast-growing demand because of data center operations, but northeastern and western states face higher demand from electric vehicle charging and building power consumption. The installation of renewable energy systems will reach more than 50% in multiple regions during 2050, but their unpredictable power output needs stable power sources, including natural gas plants and nuclear reactors and extended storage systems.
Policy Framework and Supply Chain Readiness
Regulatory and supply chain conditions will determine whether modernization can keep pace with demand. NEMA has identified three key areas which need improvement to create immediate results: Permitting processes, tax and trade policy systems, and domestic manufacturing transparency systems.
The process of obtaining permits stands as the main obstacle blocking project development. The review process for transmission projects requires developers to wait multiple years before they can begin construction. NEMA supports federal-state process alignment for environmental requirements and grid-enhancing technology deployment to enhance power grid capacity through existing transmission corridors. The process of expansion would become faster through streamlined procedures which maintain proper monitoring.
The Inflation Reduction Act established financial incentives for grid development, but its unclear implementation procedures have restricted the number of organizations participating in the program. And the unpredictable nature of tariff policies, together with multiple electrical component exemptions, makes it difficult to procure goods and deters businesses from entering into extended contractual agreements.
The US–Mexico–Canada Agreement serves as the main framework for international trade component procurement. The right import policies will help maintain stable transformer and conductor supplies while protecting domestic manufacturing operations. The proposed LEAP Act expansion of technical apprenticeships through its programs would solve the existing skills shortage problem in manufacturing and field maintenance.
NEMA has attempted to address sourcing transparency through its Make It American BABA registry. The program maintains a database of American-made electrical products which fulfill both Buy America and Build America standards. The registry allows public agencies and their contractors to verify compliance status while discovering domestic suppliers through a new system which eliminates conventional certification procedures. The goal is to reduce delays in procurement, strengthen visibility into US manufacturing capacity and turn a regulatory mandate into a practical planning tool.
From Reactive to Preventive Operations
The reliability challenge increasingly depends on visibility. Many outages occur because utilities cannot detect early signs of mechanical or electrical stress. New approaches from ABB and IND Technology (INDT) demonstrate how complementary technologies can close that information gap.
ABB’s predictive fault management platform illustrates how data science can support operational decision-making. The system uses artificial intelligence to analyze real-time measurements of current, phase angle, and power quality. By comparing these data points with historical fault signatures, the software can identify patterns that precede equipment failure. When it detects conditions likely to worsen over the following days or weeks, operators receive alerts that allow targeted maintenance before a disruption occurs.
The value of ABB’s approach lies in its ability to integrate predictive analytics with existing grid management systems. When paired with automated switching and dispatch tools, it enables utilities to isolate faults more quickly and restore service faster. Utilities using this kind of analytics report measurable reductions in both outage frequency and duration, as well as lower maintenance costs from more focused field interventions.
INDT’s technology operates at a different level of the grid. Rather than analyzing system-wide electrical data, it focuses on the physical condition of transmission and distribution lines. The company’s sensor-based monitoring system detects defects such as cracked insulators or loosened fittings that often lead to faults. Sensors installed every few miles along transmission routes capture radio-frequency patterns that shift when small arcing events or mechanical vibrations occur. These changes are processed in the cloud, and the system generates precise geographic coordinates for maintenance crews.
The platform, originally developed and tested in Australia, improved network reliability by roughly 50 percent in long-term trials. It is now deployed across twelve of the twenty largest US utilities and recently completed a 16,000-mile installation in communities with limited previous grid investment. By turning inspection from a periodic task into a continuous process, INDT’s method lowers operational expenses while improving safety and service quality.
Using Existing Infrastructure More Efficiently
NEMA’s study identifies several technologies capable of unlocking substantial capacity increases. The use of advanced materials for reconductoring would enable the generation of 110 gigawatts of additional power. The installation of dynamic line ratings that adjust current limits based on temperature and wind conditions would lead to an additional 80 gigawatts of power generation. The combination of smart grid systems and advanced metering infrastructure would generate approximately 25 gigawatts of power through enhanced monitoring capabilities and better control of electricity usage.
Utilities have started using these methods in their current operations. The sensors from LineVision monitor conductor temperature and sag continuously to establish safe operating limits in real-time which results in a 10 to 20 percent increase in production capacity without requiring additional equipment. The GridWrap system provides mechanical strength to poles and towers through reinforcement which protects them from storms that cause capacity reductions. Organizations can extend their asset lifespan through these methods which delay their need for significant capital expenditures.
Storage and Flexible Resources
Energy storage is expanding faster than any other category of grid infrastructure. NEMA projects that installed storage capacity will grow more than tenfold over the next fifteen years. Short-duration batteries operate to stabilize wind and solar plant power output while long-duration systems function as backup power systems for prolonged power disruptions. Customers who install behind-the-meter systems gain control over their expenses while protecting themselves from power disruptions.
At the Expo, Siemens highlighted the Bronzeville Community Microgrid in Chicago, operated by ComEd. The system combines distributed solar generation, energy storage, and a Siemens controller that allows the microgrid to operate independently during wider grid outages. Similar configurations are being deployed at hospitals, universities, and industrial sites to improve local reliability and reduce peak demand.
Smarter Transformers and Digital Equipment
The power grid contains transformers which represent its most exposed system elements. Many units in service today are more than thirty years old and the supply of new ones is constrained by material and manufacturing limits. The integration of intelligence into these devices creates an efficient solution to boost system dependability until manufacturers can replace them entirely.
Attendees at the expo had an opportunity to see the Prolec-GE smart transformer platform, which contains sensors which track temperature data and vibration patterns and acoustic signals that indicate partial discharge occurrences. The on-board processors analyze data within their system to provide immediate responses when they detect any irregularities. The transformers establish secure connections with utility control systems through standard communication protocols which include MQTT and IEC 61850. The system operates as a bidirectional power flow system which enables distributed generation and microgrid operations.
The transformation allows transformers to take part in system management operations through active system participation. The system provides instant warning alerts about system deterioration while its control system preserves voltage stability through distributed resource power adjustments. Prolec research suggests that predictive maintenance techniques allow transformers to operate for extended periods while minimizing the requirement for new transformer units.
The industry has started to develop new methods which share similarities with these approaches. ABB achieves real-time coordination through direct analytics integration with its switchgear and substation systems. Hitachi Energy has initiated two manufacturing expansion projects in Virginia and Canada while it works to eliminate SF₆ gas from its equipment to achieve environmental sustainability. The modular microgrid systems from Schneider Electric enable faster project completion while providing uniform control systems. Lutron maintains its focus on building automation system development and lighting control solutions which enable users to monitor their energy usage.
Outlook
Electricity demand in the US is rising faster than the capacity of the generation and transmission system. Meeting that growth will depend on how effectively the country links technology, policy and domestic manufacturing.
Many of the necessary tools are already in place. Predictive analytics, sensor networks, grid-enhancing technologies, smart transformers, and advanced storage systems can all be deployed today to deliver measurable gains in reliability and resilience. NEMA’s Make It American BABA registry, along with supporting policy frameworks, strengthens the manufacturing foundation needed to scale those solutions.
Progress will hinge on three areas: streamlined permitting, consistent trade policy, and sustained investment in workforce development. Together, they form the conditions for modernization at the speed the economy now requires.
The grid that results from these efforts will operate with greater visibility and flexibility. It will rely on continuous data rather than scheduled inspection and on predictive maintenance rather than reactive repair. Success will depend on close coordination among utilities, manufacturers, and policymakers, but the essential technologies and methods are already proven. The next step is to apply them with the scope and urgency that a fully electrified economy demands.
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