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Title page 1

Contents 2

KEY TAKEAWAYS 1

INTRODUCTION 3

PEAK DEMAND AND THE ELECTRICITY GRID 4

DEMAND GROWTH 7

MEETING DEMAND 8

DEMAND SIDE SOLUTIONS: DEMAND MANAGEMENT, DATA CENTERS, AND MORE 10

Data Centers as Grid Assets 10

Creating a Flexible Partner for the Grid 10

Real-World Examples 11

Other Demand-Side Options 13

Efficiency and Grid-Interactive Buildings 13

EV Charging 13

Rethinking Load Growth: Peak Load Curtailment 14

SUPPLY-SIDE SOLUTIONS 14

Dynamic Line Ratings (DLR) 14

Reconductoring With Advanced Conductors 15

Power Flow Control and Topology Optimization 15

Integration and Stacking Benefits 16

Batteries 16

Virtual power plants 16

ECONOMICS OF SUPPLY-SIDE INNOVATION 17

CONCLUSIONS 18

RECOMMENDATIONS 20

FERC: Actions to Accelerate Adoption of Alternatives to New Transmission Lines 20

Correcting the Capital Bias 20

Planning Reforms 21

Operations and Markets 22

Cross-Cutting Support: Data, M&V, and Compliance 23

DOE 24

Data Center Activity 25

APPENDIX A: A ROADMAP FOR FERC 27

APPENDIX B: COMPARING COSTS 28

ENDNOTES 30

Tables 6

Table 1. U.S. Electric System Ownership by Entity Type 6

Table 2. Flexibility pathways for hyperscale data centers 11

Table 3. Comparative cost of grid capacity options 17

Figures 5

Figure 1. Distribution of load as a percentage of peak, for each hour in 2022 5

Figure 2. Hypothetical energy generation mix 5

Figure 3. Estimates for projected growth in electricity demand from data centers (TWh per year, 2023-2028) 7

Boxes 6

Box 1. Grid Background-U.S. Generation, Transmission, and Distribution 6