US Considering Scrapping Multibillion-Dollar Power Auctions
- Electric grid is under more stress with aging infrastructure
- Demand is set for major growth amid boom for AI, data centers
The power-capacity auctions were established to make sure there was enough supply around-the-clock.
Photographer: Brian Kaiser/BloombergThis article is for subscribers only.
The top US energy regulatory agency will debate whether multibillion-dollar power auctions are still the best way to ensure sufficient electric supply amid a demand boom from artificial intelligence.
The Federal Energy Regulatory Commission will hold a two-day conference in June to discuss the topic, and under discussion will be alternatives to these auctions, Chairman Mark Christie said in an interview in Washington. At the moment, there aren’t enough power plants getting built to meet demand growth that’s being accelerated by data centers, he said.