We can accelerate the energy transition not just by building more clean energy, but by making grids work more efficiently.
Jigar Shah knows more about this ongoing process than anybody, and had a good thread discussing.
The U.S. grid isn’t “full.”
It’s underutilized.
Less than half of existing grid capacity is used on average—yet we keep planning like every new MW requires new steel in the ground.
That’s a trillion-dollar mistake.
We have the ability to reduce electricity rates while demand is surging (data centers, EVs, manufacturing). The default response:
Build more infrastructure
Raise rates
There’s a better option: use what we already have, better. While we build a smarter grid.
The core insight:
The grid is built for a few peak hours per year.
If we add load when & where there’s spare capacity, fixed grid costs are shared by more customers → lower bills for everyone.
That’s system utilization.
So many analyses have shown the upside:
+10% system utilization
↓ customer rates by ~5%
↑ utility revenue by ~20%
New load connects years faster This is rare: lower bills + higher utility earnings.
So how do we unlock utilization without compromising reliability?
Two words:
VPPs + GETs
They turn flexibility into a strategic reserve—and capacity into economic value.
Virtual Power Plants (VPPs) aggregate flexible demand & DERs:
Batteries
Managed EV charging
Smart HVAC & water heaters
Smart panels They reduce peaks, create headroom, and allow our supply chain to breathe by deferring expensive upgrades.
Real-world proof:
- Rocky Mountain Power’s largest peaker = residential batteries
- TX added ~700 MW of dispatchable residential storage in <3 years
- Utilities are already using VPPs as grid assets
This is no longer theoretical.
Grid-Enhancing Technologies (GETs) unlock hidden capacity on wires we already own:
Dynamic Line Ratings
Power flow controls
Advanced sensors & analytics Utilities are seeing 15–20% capacity gains without rebuilding lines. For Dominion $7m per year unlocks this capacity
Here’s the key shift:
Instead of asking
“Where do we need new infrastructure?”
Governors/Regulators can ask
“Where can flexibility + GETs defer expensive upgrades?”
That’s faster, cheaper, and far less risky.
The economic upside stacks up:
Lower system costs
Lower customer rates
Higher utility revenues
Faster interconnection for data centers & EV load
Reduced stranded asset risk This is capital efficiency that public power and rural electric coops already do.
At scale, the impact is massive. If applied nationally, improved utilization could save $120–180B over 10 years—while helping millions of households add back-up batteries. That’s affordability without austerity.
The takeaway for utility leaders & regulators:
VPPs and GETs aren’t “DER programs.”
They’re core system-planning tools.
The next era of grid growth isn’t just about building more—it’s about using what we have smarter.
Great stuff and good idea.
As a linguist, I would have preferred your title to be something like, “The grid has capacity.”
When we use a negative, even though it appears logical, the brain doesn’t pick up the negative. All it hears is “Grid: and “Full.” The more we repeat this, the harder it is wired into our brains. Think this is hyperbole, then think about all the times we said “Coal is NOT clean.” Now people think there is something like clean coal. Let’s all use direct statements. i.e. Coal is toxic. Coal pollutes. Or The Grid Has Capacity.
Thanks for all you do!
Hobie
I prefer “supposedly non-dirty coal”.
Thanks for your reminder of a great way to communicate.
People can read George Lakoff’s tiny but excellent book Don’t Think of an Elephant”. Have other suggestions?
Great thought.
We still have a big problem with “listicles” of myths.
____________
“The police moved into the area. Shots were fired.”
Some actual personal examples of possibilities and problems. In the state of South Australia with the ‘most rooftop solar’ ‘in the world’ (expect that is true) and going seriously into home batteries, and son Mk1 with his 13 1/2 KW panels and 32 KWH battery, about which I drool with envy.
Early days he checked his sexy phone app which showed the battery full and not exporting as the tariff was negative (-4Cents KWH). No worries but the panels, on estimated guess 10 KW sun were only outputting less than 1/2 KW. This is Annoyingly Wasteful and will increase with more solar/batterie systems. Doing something about it is tricky in a capitalist economy.
Fun story. Recent evening checked app and, ‘ooo goody, price spike.’ Paying 57 cents a KWH which is ~150% of top retail for consumers. Within a minute had increased over $2, final chek was over $24 KWH (drain that battery babe!)
Conclusion, household panels with or without battery are very useful and can work for all benefit. Variations on the theme are many and require commercial power producers and retailers to be constrained from screwing the public. IMO.