West Virginia is preparing to capture a large part of the booming data center market with new legislation that would allow developers to create independent microgids to feed their data centers.
The law of energy generation and consumption, which is now on the board of Governor Patrick Morrisey, who was waiting for his signature to become a law, would establish a certified microgid development program, including the certification, service, customer eligibility and special contracts requirements. It would establish a program of impact impact data centers, including the provisions for the notification, certification and conservation of records.
A stabilization and safety fund of the mains will be created to collect tax revenue for projects. Morrisey, who proposed the legislation, said he will sign it.
The data centers are “hitting the west Virginia door,” said Morrisey last month. However, the current state code allows only two microgids across the state and must be fed by renewable energy, he said. “That will change,” he added.
He said that the legislation, which allows any type of energy, including coal and gas, will facilitate the development of the data center in Spain.
Matt Armstrong, Vice President of Government Affairs and Public Policies at Baker Hughes, who develops micrographic systems for various sectors, including airports, tells his company that his company did not work on the legislation but welcomes it. “It encourages us to the legislation that facilitates the development of these critical infrastructure projects in the United States,” he said.
Microgids grow dramatically across the country and unfold in many military base applications, which was one of their original uses, for health care, multi -family homes and government offices, says Geoff Oxnam, General Director of American Microgrid Solutions, a consulting and development company. AMS is associated with California with Collective Energy Co. To design, finance and install the 106 kW solar installation of San Fernando Community Health Center, which will integrate a battery system. The completion of the project is scheduled for the end of this year.
North -Americans are expected to increase more significantly than in the past, as Skyrockets demand, according to Oxnam, tells Enr. The data centers are totally dependent on electricity and are in the process of a significant growth phase. “The microgrid option for [data centers] It will be important in the way we manage this growth and will also be important for the utilities, as they try to find out how to meet this increasing demand. “”
Bill Pushback
In West Virginia, Bill’s proponents argue that the state must capitalize on this development, especially when demand increases cloud computing, artificial intelligence and data storage, to attract companies to build it. But critics argue that the way the bill is written can harm western Virginians, for example, provisions such as prohibit local jurisdictions to regulate micrographic districts and data centers in their own regions. Some also argue that the legislation will increase the costs in the communities and disagree with the constitution of the State.
Kelly Allen, Executive Director of the Independent Organization for Non -profit policies on Virginia’s budget and policy, says that his group has worries about preventing local control or eliminating the voice of the communities that will be directly affected by the development. In addition, he adds, the counties and municipalities lose because the bill deviates about 70% of the revenue of the property tax far from them and to the state fund. Local jurisdictions, according to her, are those that will support the cost of the new development, which includes costs for infrastructure or services such as fires and police response.
“The cost of all the things paid by local governments will increase, but they will not necessarily see this increased investment,” says Allen.
In a statement to ENR, Apalachian Power said that legislation presents important challenges, especially because “the opportunity for the Appalaqui to grow through the increasing demand of data centers and other clients located in the microgid district. These types of clients provide a key opportunity to spread fixed costs for a greater number of customers, which could mitigate the impacts of future tariff applications.”
The utility added that some provisions of legislation that are not related to microgids will increase dollars of dollars for customers.
“One of the most important results is the increase in the costs associated with the contracting of coal and vegetal operations,” said Appalachian Power. “In addition, the bill proposes changes in the IRP files of the Integrated Resource Plan (IRP), which could lead to more expensive results for our customers.”
Apalachian Power said that his goal is to ensure that it continues to provide safe, affordable and reliable electricity “to all Virginia customers in the west without compromising the financial stability of our state or the future of our mixture of energy.” The utility added that he is committed to working with the Governor, state legislators and other stakeholders to find solutions that will not increase customer rates.
