0 Comments
The Department of Energy’s renewable energy transition goals are expected to be missed by the Philippines mainly due to the increasing power requirements of data centers. The said department, the Department of Information and Communications Technology (DICT) which supervises data centers, might not be fully knowledgeable about the number of those being constructed, and this results in poor coordination with the DOE. This increasing demand in the data centers and the everyday Demand Side Management challenges the shift to Renewable Energy by DOE. The expected load may not be accurate, which is similar to the problem evident in the US, where the utilities did not foresee the data center load.
Challenges and Comparisons
Similar issues have been seen in US utilities. At times, coal plant retirements have been delayed to meet the demand of data centers. The DOE may need to reverse the ban on new coal plants and retrofit the existing ones to avert such a situation in the next five years.
Investment and Infrastructure Needs
New generation capacities should be built up to feed the economic development and data center demand. According to Goldman Sachs, the US utilities will require $50 billion by the year 2030 for data centers only. The Philippines has to assess the investment requirements to nurture its economic and data center development.
Integrating Renewable Energy
New grid infrastructure is important for the energy transition process, especially in the integration of wind and solar power farms. Breakthrough Energy which is backed by Bill Gates is currently working on an open-source operating system that will assist countries in constructing grids that are suitable for the new RE technologies.
Planning and Coordination
Thus, the DOE and the DICT must enhance planning and coordination, especially in relation to these challenges that require a higher-than-normal rate of expansion. For a stable energy future, the right infrastructure, investments, and policy changes are necessary.