Strategies for Utility Companies to Meet Power Demands for Project Requirements

Strategies for Utility Companies to Meet Power Demands for Project Requirements

Dominion Energy  |  Georgia Power  |  TVA

As the American South experiences a surge in electricity demand, utility companies must adopt strategic approaches to meet increasing power demands. Key industries – including manufacturing, automotive, technology, and data centers – increasingly require reliable and scalable energy solutions.

Utility companies in the American South are implementing various strategies to meet the specific power requirements of these projects. These strategies may include:

• Grid Modernization & Smart Infrastructure
• Diverse Energy Mix & Renewable Integration
• Load Forecasting & Demand Response Programs
• Infrastructure Expansion & Public-Private Partnerships
• Energy Storage
• Regulatory & Policy Adaptation

Three of our region’s energy providers address their approaches here.

Dominion Energy – Powering Your Every Day with an “All of the Above” Strategy

“We understand the critical role energy plays in successful economic development efforts,” said Jen Kostyniuk, Senior Director, Economic Development for Dominion Energy. “No single power source, grid solution or energy efficiency program will reliably serve the unprecedented growth in power demand that we are seeing. We need a comprehensive, ‘all of the above’ strategy, and Dominion Energy’s long-term plans include a balanced, diversified mix of new power generation needed to provide reliable, affordable and increasingly clean energy to our customers.”

In Columbia, S.C., for example, Google announced plans for two new data center campuses in Dorchester County and expansion of its existing data center campus in Berkeley County. In Virginia, LS GreenLink USA, Inc., a global leader in power and communication cable and system solutions, last July announced a $681 million investment to build a state-of-the-art high-voltage direct current submarine cable manufacturing facility. These and countless other examples illustrate the scale of the energy needs that must be met to continue economic development in the region.

Dominion Energy’s ‘all of the above’ strategy involves investing in almost every generating resource available today and those likely to be available in the future, according to Kostyniuk.

“Dominion Energy’s long-term plans include a balanced, diversified mix of new power generation sources, with 80 percent coming from carbon-free sources such as offshore wind, solar, energy storage and nuclear, and about 20 percent coming from dispatchable natural gas,” Kostyniuk said.

Power demand is growing at an unprecedented pace. Electric companies need to meet this demand by providing a diverse mix of power generation and investing in the grid to maintain service reliability.

“Delivering additional power to homes and businesses requires more transmission and distribution infrastructure,” said Kostyniuk. She added that Dominion is “upgrading existing infrastructure and building new transmission lines to ensure a strong, resilient, and reliable transmission grid.”

An example Kostyniuk shared is a first-of-its-kind partnership with FirstEnergy and American Electric Power; Dominion Energy Virginia proposed several new “backbone” transmission lines to strengthen the electric grid at a regional level – “doing more together than we could individually,” she said.

Georgia Power – Proactive Planning to Ensure Reliability while Protecting Customers

For more than a decade, Georgia has consistently been recognized as the number one state for business in the nation by Area Development magazine. This accolade is a testament to Georgia's pro-business environment, unwavering commitment to fostering innovation, and robust economic growth. The state's access to clean, safe, reliable, and affordable energy has played a pivotal role in this success. As Georgia's growth shows no signs of slowing, ensuring reliable and affordable energy is crucial for sustaining this momentum.

As the state's largest energy provider, Georgia Power is at the forefront of meeting these demands. Through proactive planning, substantial infrastructure investments, and a constructive regulatory environment, Georgia Power balances reliability with customer protection. This commitment to providing reliable and affordable energy is essential for supporting Georgia's continued growth and maintaining its status as a top business destination.

Georgia Power recognizes that economic development and power demand go hand in hand. The company’s 2025 Integrated Resource Plan (IRP) outlines a strategic roadmap to support Georgia’s growth while ensuring reliability and resiliency in its energy supply. Over the next six years, Georgia Power projects 8,200 megawatts (MW) of electrical load growth, including a 2,200 MW increase in peak demand by 2030. To meet this rising demand, the company is investing in an expanded and modernized energy mix including nuclear, natural gas and coal, and renewables like solar and modernized hydropower.

With the completion of Plant Vogtle Units 3 & 4 last year, Georgia now hosts the nation’s largest generator of clean energy. Additionally, planned updates to Vogtle Units 1 & 2 as well as Plant Hatch will deliver another 112 MW of carbon-free energy. Enhancements to natural gas and coal units are underway as well, where upgrades to Plants McIntosh, Bowen, and Scherer will add 268 MW of capacity while providing continued reliability.

Renewable energy will also play a major part in Georgia’s energy future. Georgia Power has renewed its commitment to modernizing its hydroelectric fleet, upgrading units that served the state for more than 100 years. The company also plans to procure 4,000 MW of new renewable resources by 2035, with 1,100 proposed in the 2025 IRP. Additional battery energy storage projects will play a key role in grid stability, while investments in Georgia’s integrated transmission system will enhance efficiency and reliability.

A constructive regulatory framework plays a vital role in Georgia Power’s ability to meet growing energy demands while safeguarding customers. The Georgia Public Service Commission (PSC) recently approved new rules that enable Georgia Power to manage the risks associated with large-load customers, such as data centers, which require substantial energy infrastructure. Key regulatory measures like cost recovery mechanisms, and longer contract lengths will allow Georgia to maintain its record growth while ensuring customers enjoy access to the clean, safe, reliable, and affordable energy.

Georgia Power’s commitment to innovation, planning, and customer-focused solutions underscores its role as a key partner in the state’s continued economic growth. By leveraging a diverse energy portfolio, investing in critical infrastructure, and working within a structured regulatory environment, Georgia Power is well-positioned to meet the evolving needs of customers. And as Georgia continues to attract industries that require substantial power resources, Georgia Power remains as dedicated as ever to providing clean, safe, reliable, and affordable energy now and for generations to come.

Tennessee Valley Authority (TVA) – Building America’s Energy Future

In our region and across the country, electricity demand is dramatically increasing. It is vital for energy and national security that we meet that growth with affordable, reliable, and resilient energy.

TVA is undertaking one of the largest capital investments in TVA history. TVA invested more than $22 billion in the power system over the past decade. In January 2024, TVA successfully met its all-time high peak demand of 34,577 MW.

We expect to invest more than $16 billion in the coming years to build generation and update the power and transmission systems. We have 3,570 MW of new generation under construction and an additional 1,950 MW of new generation pending environmental reviews.

Through our $1.5 billion Energy Efficiency and Demand Response program, TVA aims to offset about 30% of future load growth over the next decade, which will help lower power bills for customers.

Innovation has been a part of our DNA since TVA was created more than 90 years ago. Today, we are leading the region and nation in the development of emerging technologies.

• First SMR Early Site Permit from NRC — TVA Board approved up to $350 million to explore development of a small modular reactor (SMR) at our Clinch River site. We’re doing this in partnership with GE Hitachi, Ontario Power Generation and Synthos Green Energy New Fuels Development.
• In partnership with EPRI, we conducted the first renewable diesel test in America and the largest amount of MWs produced in the world.

Our partners play a key role in this. Of TVA’s 153 local power company (LPC) customers, 148 LPCs (or 97%) signed 20-year agreements with TVA. That means 78% of TVA’s entire power revenue is under evergreen 20-year contracts. Participating LPCs receive an ongoing base rate credit of 3.1%. In the first five years since the long-term option was introduced, participating customers have collectively realized almost $1 billion in savings.

As our region grows and electricity demand increases, TVA is working with local power company and direct serve partners to provide more autonomy and flexibility. This may look like partners deploying more distributed energy resources and other generation along with upgrading technology to deliver the best value and service for our customers. This will support our 91-year mission of unlocking more economic opportunities at the local level.

In Conclusion

Utility companies have many challenges – supply chain disruptions, escalating costs of extreme weather events, ability to quickly secure rate case approvals. By leveraging the strategies described above, our American South utility companies can ensure they meet evolving power demands while maintaining efficiency and reliability across the region.