LightNOW has published a good deal about AI, Electrification, and Reshoring, but all three are now major drivers of electricity inflation. The Bank of America Institute published a report on July 2^nd, 2024, titled Powering the Revolution, that looks at how these economic forces are impacting electricity rates. Some key takeaways follow.

• The year-over-year U.S. electricity inflation rate was 5.9% in May, up from 3.8% in January.
• Growth in electricity demand from AI data centers and industrial reshoring is expected to drive additional electricity inflation.
• Electrification, including EV charging and heat pumps are also driving up building electricity demand and likely rates.
• The U.S. Department of Energy (DOE) reported that some grid operators are expecting annual electricity demand growth of 5-6%.
• Data Centers could consume 9% of the US electricity generation by 2030, according to EPRI research. This would be double the amount consumed today, largely driven by AI data center power requirements.

What does this mean for lighting? Higher electricity rates increase the ROI of lighting retrofits and lighting controls. This could accelerate these efficiency measures, but the clock is also ticking for LED socket saturation, expected by many for the end of this decade.

Additional information on these electricity inflation drivers is available here.

David Shiller

David Shiller is the Publisher of LightNOW, and President of Lighting Solution Development, a North American consulting firm providing business development services to advanced lighting manufacturers. The ALA awarded David the Pillar of the Industry Award. David has co-chaired ALA’s Engineering Committee since 2010. David established MaxLite’s OEM component sales into a multi-million dollar division. He invented GU24 lamps while leading ENERGY STAR lighting programs for the US EPA. David has been published in leading lighting publications, including LD+A, enLIGHTenment Magazine, LEDs Magazine, and more.

See Full Bio